Lennox International Inc.
- Open
- 377.10
- Day high
- 381.02
- Day low
- 376.47
- Prev close
- 374.00
- Volume
- 30K
- Mkt cap
- $13.1B
- P/E (TTM)
- 17.1
- EPS (TTM)
- $22.18
- P/B
- 10.1
- P/S
- 2.5
- Yield
- 1.39%
- Per share
- $5.26
Lennox International Inc. (LII) is a Industrials company listed on NYSE. The stock is down 31% over the past year. Drillr has 1 published research article covering LII.
Lennox International Inc. (LII) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
LII earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 29, 2026 | $7.67 | $7.72 | +0.6% | $1.5B | -0.6% |
| Apr 29, 2026 | $3.16 | $3.35 | +6.0% | $1.1B | +6.0% |
| Jan 28, 2026 | $4.76 | $4.45 | -6.5% | $1.2B | +11.4% |
| Oct 22, 2025 | $6.82 | $6.98 | +2.3% | $1.4B | -3.0% |
| Jul 23, 2025 | $6.86 | $7.82 | +14.0% | $1.5B | +2.0% |
| Apr 23, 2025 | $3.28 | $3.37 | +2.7% | $1.1B | +4.7% |
| Jan 29, 2025 | $4.12 | $5.60 | +35.9% | $1.3B | +8.5% |
| Oct 23, 2024 | $6.00 | $6.68 | +11.3% | $1.5B | +5.7% |
| Jul 24, 2024 | $6.57 | $6.83 | +4.0% | $1.5B | -1.8% |
| Jan 31, 2024 | $3.46 | $3.63 | +4.9% | $1.2B | +1.8% |
| Oct 26, 2023 | $4.73 | $5.37 | +13.5% | $1.4B | +6.5% |
| Jul 27, 2023 | $5.19 | $6.15 | +18.5% | $1.4B | +3.0% |
LII insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 26, 2026 | Buck Sherrydirector | Grant | 343 | — |
| May 26, 2026 | Somasundaram Sivasankarandirector | Grant | 343 | — |
| May 26, 2026 | Embree Tracy Adirector | Grant | 343 | — |
| May 26, 2026 | NORRIS JOHN W IIIdirector | Grant | 343 | — |
| May 26, 2026 | Vander Ark Jondirector | Grant | 343 | — |
| May 26, 2026 | Wall Shane Ddirector | Grant | 343 | — |
| May 26, 2026 | Quintos Karen Hdirector | Grant | 343 | — |
| May 26, 2026 | TESKE TODD Jdirector | Grant | 343 | — |
| May 7, 2026 | Kosel Chrisofficer: VP-Corp Controller and CAO | Sell | 971 | $544.80 |
| Apr 13, 2026 | Somasundaram Sivasankarandirector | Grant | 51 | $505.31 |
| Mar 16, 2026 | BEDAPUDI PRAKASHofficer: EVP, Chief Technology Officer | Grant | 4,221 | — |
| Mar 16, 2026 | BEDAPUDI PRAKASHofficer: EVP, Chief Technology Officer | Tax | 1,474 | $480.48 |
| Mar 16, 2026 | Sessa Daniel Mofficer: EVP, Chief HR Officer | Tax | 1,554 | $480.48 |
| Mar 16, 2026 | Nassab Josephofficer: EVP & Pres., Bldg Climate Sol. | Grant | 3,645 | — |
| Mar 16, 2026 | Kosel Chrisofficer: VP-Corp Controller and CAO | Grant | 1,284 | — |
Source: LII SEC Form 4 filings, latest May 26, 2026. For informational purposes only — not investment advice.
See the full LII insider & 13F page →Lennox International Inc. company profile
Overview
Lennox International Inc. (NYSE:LII) is a leading manufacturer of heating, ventilation, air conditioning, and refrigeration (HVAC-R) systems founded in 1895 and headquartered in Richardson, Texas. The company went public in 1999 and has evolved from a single-product furnace manufacturer into a comprehensive climate control solutions provider serving residential, commercial, and industrial markets across North America and internationally. Lennox operates through three primary business segments and has established itself as a premium brand in the HVAC industry, known for high-efficiency equipment and innovative technology solutions.
Business
Lennox International operates in the heating, ventilation, air conditioning, and refrigeration (HVAC-R) industry, which encompasses systems that control indoor climate and preserve perishable goods. The HVAC industry is essential infrastructure for buildings, providing comfort heating and cooling, air quality management, and temperature control for various applications. The company operates through three distinct business segments: 1. **Home Comfort Solutions (HCS)** - approximately 60% of total revenue: This segment manufactures and sells residential HVAC equipment including furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products like thermostats, and replacement parts. These products serve both the replacement market (when existing equipment fails) and new construction market (for newly built homes). The replacement market typically represents the larger portion, as homeowners must replace failed equipment regardless of economic conditions. 2. **Building Climate Solutions (BCS)** - approximately 17% of total revenue: This segment focuses on commercial HVAC applications, offering unitary heating and air conditioning equipment, applied systems, controls, and variable refrigerant flow systems for light commercial buildings like offices, retail stores, and small warehouses. The segment also provides installation and service capabilities for commercial customers. 3. **Refrigeration** - approximately 12% of total revenue: This segment produces refrigeration equipment including condensing units, unit coolers, fluid coolers, air-cooled condensers, and refrigeration rack systems. These products preserve food and perishables in supermarkets, convenience stores, restaurants, warehouses, and distribution centers. The segment also serves specialized cooling applications for data centers and industrial processes. The HVAC-R industry is characterized by seasonal demand patterns, with peak sales typically occurring during spring and summer months when cooling demand drives replacement and installation activity. The industry has been undergoing significant regulatory changes, particularly the transition from R-410A to R-454B refrigerant due to environmental regulations aimed at reducing global warming potential.
Revenue model
Lennox generates revenue primarily through product sales across its three business segments, operating as a manufacturer that sells through a multi-tiered distribution network. The company sells its products through direct sales to large customers, independent distributors, and company-owned parts and supplies stores. The residential segment benefits from the essential nature of HVAC equipment - when a furnace or air conditioner fails, homeowners typically must replace it quickly regardless of economic conditions, creating relatively inelastic demand for replacement equipment. New construction provides additional demand but is more cyclical and sensitive to housing market conditions. The company commands premium pricing through its focus on high-efficiency equipment and strong brand recognition. The commercial segment operates similarly but with longer sales cycles and more complex installations. Emergency replacement represents a significant opportunity, as commercial customers often pay premium prices for rapid equipment replacement to avoid business disruption. The refrigeration segment serves essential food preservation needs, providing steady demand from grocery stores, restaurants, and food distribution centers. Several factors influence Lennox's margins and profitability. **Positive margin drivers** include the company's premium brand positioning allowing higher pricing, ongoing refrigerant transition creating pricing opportunities (10%+ price increases on new R-454B products), productivity improvements from manufacturing optimization, and market share gains during industry transitions. The company's focus on higher-margin replacement business versus new construction also supports profitability. **Negative margin pressures** include commodity cost inflation (steel, copper, aluminum), labor cost increases, supply chain disruptions, competitive pricing pressure, and regulatory compliance costs. Economic downturns can reduce new construction demand, while rising interest rates affect both housing markets and distributor inventory financing. The company also faces seasonal working capital swings and must invest in new product development to meet changing regulations.
Competitive moat
Lennox International possesses a moderate competitive moat built on several key advantages, though the HVAC industry remains highly competitive with multiple strong players. The company's primary moat elements include its premium brand positioning in the residential market, where Lennox is recognized for high-efficiency equipment and reliability. This brand strength allows the company to command pricing premiums over commodity competitors and maintain strong relationships with dealers who prefer selling higher-margin products. The company's established dealer network represents another moat component, as HVAC contractors typically prefer working with suppliers that provide reliable product availability, technical support, and parts availability. Switching costs exist for dealers who have invested in training, inventory, and customer relationships around specific brands. Lennox's focus on dealer support, including training programs and digital tools, helps maintain these relationships. However, the company's moat faces several challenges. The HVAC industry includes large, well-capitalized competitors like Carrier, Trane, and Goodman, each with their own dealer networks and product portfolios. Product differentiation is limited by regulatory requirements and physical constraints, making it difficult to create sustained competitive advantages through technology alone. The industry's cyclical nature and sensitivity to construction activity also limits pricing power during downturns. Potential disruption could come from new technologies like smart home integration, alternative heating solutions (such as heat pumps gaining share over traditional furnaces), or direct-to-consumer sales models that bypass traditional dealer networks. Additionally, private label manufacturers could pressure margins in price-sensitive segments, while regulatory changes create opportunities for new entrants with innovative solutions. The company's moat is best characterized as narrow but defensible, relying more on execution excellence and dealer relationships than on insurmountable structural advantages.
Risks & safety
Lennox International presents a moderate margin of safety profile with some financial leverage concerns but strong cash generation capabilities. **Debt and Solvency:** - Debt-to-equity ratio of 1.75x indicates moderate leverage - Current ratio of 1.43x provides adequate short-term liquidity - Cash position of $217 million with $415 million at year-end 2024 - Strong operating cash flow generation of $946 million in 2024 - Free cash flow of $782 million in 2024 demonstrates healthy cash conversion **Valuation Metrics:** - P/E ratio of 41.4x appears elevated relative to industrial averages - EV/EBITDA of 34x suggests high valuation multiples - Price-to-book ratio of 23.4x indicates significant premium to book value - Graham number of $42.79 versus current price suggests overvaluation by traditional metrics **Other Considerations:** - Seasonal working capital swings create quarterly cash flow volatility - Strong market position in essential HVAC replacement market provides revenue stability - Regulatory refrigerant transition creating near-term pricing opportunities - High returns on equity (14.1%) indicate efficient capital deployment despite leverage
Recent development
Over the past few years, Lennox International has undergone significant strategic transformation focused on margin expansion, market share gains, and operational excellence. The company completed a major refrigerant transition from R-410A to R-454B refrigerant, successfully capturing pricing opportunities of 10%+ on new products while maintaining market share. This transition represented both a regulatory compliance requirement and a strategic opportunity to reset pricing across the industry. The company established a joint venture with Samsung to accelerate its heat pump offerings, addressing a key growth area as heat pumps gain market share over traditional heating systems. This partnership allows Lennox to expand its product portfolio without significant internal R&D investment while leveraging Samsung's manufacturing capabilities in mini-split systems. Lennox has invested heavily in manufacturing capacity, opening a new commercial factory in Saltillo, Mexico, to support growth in the Building Climate Solutions segment and reduce dependence on existing facilities. The company also divested its European operations to focus resources on the higher-margin North American market. The company has emphasized digital transformation initiatives, including e-commerce platform development, dealer digital tools, and improved customer experience capabilities. Sales resources have been increased by 20% across both residential and commercial segments to capture market share opportunities. Strategic focus has shifted toward the emergency replacement market, particularly in commercial applications, where customers pay premium prices for rapid equipment replacement. The company has reorganized its distribution network and inventory management to better serve this high-margin segment. Recent quarters have shown successful execution of pricing excellence initiatives, with the company implementing multiple price increases to offset inflation while maintaining volume stability. The transformation has resulted in six consecutive quarters of double-digit EPS growth through 2024.
LII company profile · for informational purposes only — not investment advice.
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