Lennox International (LII)
NYSE:LII
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Lennox International
(NYSE:LII)
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Rating:62Neutral
Price Target:
$465.00
â–²(6.20% Upside)
Action:ReiteratedDate:03/27/26
The score is supported by strong profitability and solid free-cash-flow generation, reinforced by constructive 2026 guidance and productivity actions. However, the stock’s technical picture is notably weak (below key moving averages with negative MACD and oversold momentum), and balance-sheet leverage plus recent revenue softness temper the outlook.
Positive Factors
Sustained high margins
Lennox’s consistently high gross and operating margins reflect durable pricing power, manufacturing scale and disciplined cost control. Sustained margins support reinvestment, cushion against cyclical volume swings and enable consistent profitability even through demand volatility.
Negative Factors
Recent revenue softness
Trailing revenue declines signal demand headwinds and channel weakness that can pressure long-term growth if prolonged. Even with pricing and M&A offsetting some weakness, sustained top-line softness undermines capacity to expand margins and fund strategic investments organically.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained high margins
Lennox’s consistently high gross and operating margins reflect durable pricing power, manufacturing scale and disciplined cost control. Sustained margins support reinvestment, cushion against cyclical volume swings and enable consistent profitability even through demand volatility.
Read all positive factors
Lennox International (LII) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.24B
Dividend Yield0.96%
Average Volume (3M)426.28K
Price to Earnings (P/E)21.6
Beta (1Y)1.03
Revenue Growth3.77%
EPS Growth12.46%
CountryUS
Employees5,400
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)4.45
Shares Outstanding34,802,910
10 Day Avg. Volume390,063
30 Day Avg. Volume426,283
Financial Highlights & Ratios
PEG Ratio-13.57
Price to Book (P/B)14.57
Price to Sales (P/S)3.26
P/FCF Ratio26.53
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue3.35
Enterprise Value/Gross Profit10.14
Enterprise Value/Ebitda15.57
Forecast
1Y Price Target
$565.55Price Target Upside29.16% Upside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)24.14
Revenue Forecast (FY)$5.49B
Lennox International Business Overview & Revenue Model
Company Description
Lennox International Inc., together with its subsidiaries, designs, manufactures, and markets a range of products for the heating, ventilation, air conditioning, and refrigeration markets in the United States, Canada, and internationally. It opera...
How the Company Makes Money
Lennox International makes money primarily by selling HVAC equipment and related products through two main operating segments—Residential HVAC and Commercial HVAC. In Residential HVAC, revenue is generated from selling home-comfort systems (e.g., ...
Lennox International Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyLennox International Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Neutral
The call balanced material near-term challenges—sharp destocking-driven volume declines, elevated inventories and tariff/inflation headwinds—with notable execution successes: record full-year margins, modest EPS growth, strong cash generation, active capital deployment, and constructive 2026 guidance. Management emphasized that destocking should largely normalize through Q2 and outlined productivity and investment plans to support second-half recovery.Positive Updates
Record Full-Year Margin
Lennox delivered a record full-year segment margin of 20.4% (first time above 20%), reflecting structural operational improvements and pricing discipline.
Negative Updates
Revenue Declines
Revenue was down 11% in the fourth quarter and down 3% for full-year 2025, driven by weak residential and commercial end markets and deeper channel destocking.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Full-Year Margin
Lennox delivered a record full-year segment margin of 20.4% (first time above 20%), reflecting structural operational improvements and pricing discipline.
Read all positive updates
Company Guidance
Management's 2026 guidance calls for total-company revenue growth of 6–7%, organic volumes down low-single-digits (net of ~1 point from parts & accessories, commercial emergency replacement and Samsung ductless), combined price & mix contributing mid-single-digits and M&A adding mid-single-digits; by segment they expect HCS ≈ +2% and BCS ≈ +15% (with a high-single-digit M&A contribution). Assumptions include ~2.5% inflation, $35M of incremental operating expense, ~$15M higher M&A amortization, ~$75M of productivity savings, interest expense ≈ $65M, a ~20% tax rate, and $250M of planned CapEx, driving adjusted EPS of $23.50–$25.00 and free cash flow of $750–$850M, with seasonality showing a weaker first half (Q1 down more) and one-step destocking nearly complete while two-step destocking is expected to finish by Q2.Lennox International Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
58
Neutral
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.20B | 5.34B | 4.98B | 4.72B | 4.19B |
| Gross Profit | 1.72B | 1.77B | 1.55B | 1.28B | 1.19B |
| EBITDA | 1.12B | 1.13B | 879.50M | 733.50M | 658.50M |
| Net Income | 786.20M | 806.90M | 590.10M | 497.10M | 464.00M |
Balance Sheet | |||||
| Total Assets | 4.08B | 3.47B | 2.80B | 2.57B | 2.17B |
| Cash, Cash Equivalents and Short-Term Investments | 34.70M | 422.30M | 69.10M | 61.10M | 36.50M |
| Total Debt | 2.06B | 1.49B | 1.53B | 1.75B | 1.44B |
| Total Liabilities | 2.92B | 2.62B | 2.51B | 2.77B | 2.44B |
| Stockholders Equity | 1.16B | 850.20M | 285.30M | -203.10M | -269.00M |
Cash Flow | |||||
| Free Cash Flow | 638.80M | 782.10M | 486.00M | 201.20M | 408.70M |
| Operating Cash Flow | 757.60M | 945.70M | 736.20M | 302.30M | 515.50M |
| Investing Cash Flow | -655.60M | -174.40M | -319.70M | -103.00M | -106.40M |
| Financing Cash Flow | -465.70M | -418.60M | -406.20M | -174.10M | -498.70M |
Lennox International Technical Analysis
Negative
437.87
Price Trends
516.75
Negative
505.28
Negative
535.17
Negative
Market Momentum
-20.87
Positive
26.20
Positive
25.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LII, the sentiment is Negative. The current price of 437.87 is below the 20-day moving average (MA) of 495.70, below the 50-day MA of 516.75, and below the 200-day MA of 535.17, indicating a bearish trend. The MACD of -20.87 indicates Positive momentum. The RSI at 26.20 is Positive, neither overbought nor oversold. The STOCH value of 25.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LII.
Lennox International Risk Analysis
Lennox International disclosed 20 risk factors in its most recent earnings report. Lennox International reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lennox International Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $90.80B | 29.82 | 36.17% | 0.95% | 8.58% | 20.37% | |
70 Outperform | $80.36B | 36.04 | 23.52% | 1.27% | -10.19% | 100.65% | |
69 Neutral | $45.32B | 29.70 | 10.50% | 1.65% | -7.93% | -35.00% | |
64 Neutral | $8.40B | -17.89 | -11.39% | 2.43% | 3.47% | -148.53% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $15.24B | 21.56 | 78.89% | 0.96% | 3.77% | 12.46% | |
56 Neutral | $12.11B | 16.37 | -537.31% | 1.94% | -3.62% | 3.41% |
* Industrials Sector Average
LII
Lennox International
437.87
-119.08
-21.38%
TT
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410.23
76.39
22.88%
JCI
Johnson Controls
131.29
52.27
66.16%
MAS
Masco
59.50
-8.75
-12.82%
OC
Owens Corning
104.56
-34.79
-24.97%
CARR
Carrier Global
54.25
-8.25
-13.20%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.