Lennox International (LII)
NYSE:LII
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Lennox International
(NYSE:LII)
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Rating:62Neutral
Price Target:
$516.00
▲(5.93% 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 Profitability
Margins at historically strong levels reflect durable pricing power and operational efficiency across Residential and Commercial segments. Consistent gross and operating margins provide a structural buffer against commodity and labor inflation and support sustained cash generation and reinvestment ability over the next several quarters.
Negative Factors
Revenue Softness & Channel Destocking
Demand weakness and deep channel destocking materially reduced sell-in volumes and indicate slower end-market activity. These dynamics can suppress revenue and operational leverage for multiple quarters until inventories normalize and replacement/new-construction trends stabilize, restraining near-term growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Profitability
Margins at historically strong levels reflect durable pricing power and operational efficiency across Residential and Commercial segments. Consistent gross and operating margins provide a structural buffer against commodity and labor inflation and support sustained cash generation and reinvestment ability over the next several quarters.
Read all positive factors
Lennox International (LII) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.85B
Dividend Yield0.96%
Average Volume (3M)437.57K
Price to Earnings (P/E)29.7
Beta (1Y)1.09
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. Volume438,687
30 Day Avg. Volume437,568
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 Cap1.13
Enterprise Value/Revenue3.66
Enterprise Value/Gross Profit11.07
Enterprise Value/Ebitda17.01
Forecast
1Y Price Target
$543.36Price Target Upside11.55% Upside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)24.12
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 29, 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
Neutral
487.11
Price Trends
507.13
Negative
503.90
Negative
527.35
Negative
Market Momentum
-0.93
Negative
50.14
Neutral
48.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LII, the sentiment is Neutral. The current price of 487.11 is above the 20-day moving average (MA) of 473.15, below the 50-day MA of 507.13, and below the 200-day MA of 527.35, indicating a neutral trend. The MACD of -0.93 indicates Negative momentum. The RSI at 50.14 is Neutral, neither overbought nor oversold. The STOCH value of 48.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $102.38B | 29.82 | 36.17% | 0.95% | 8.58% | 20.37% | |
70 Outperform | $83.98B | 36.04 | 23.52% | 1.27% | -10.19% | 100.65% | |
66 Neutral | $48.91B | 29.70 | 10.50% | 1.65% | -7.93% | -35.00% | |
65 Neutral | $9.37B | ― | -11.39% | 2.43% | 3.47% | -148.53% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $16.85B | 29.73 | 78.89% | 0.96% | 3.77% | 12.46% | |
56 Neutral | $12.82B | 16.37 | -537.31% | 1.94% | -3.62% | 3.41% |
* Industrials Sector Average
LII
Lennox International
487.11
-47.18
-8.83%
TT
Trane Technologies
476.11
156.69
49.05%
JCI
Johnson Controls
140.87
67.44
91.83%
MAS
Masco
66.58
7.64
12.97%
OC
Owens Corning
122.84
-8.32
-6.34%
CARR
Carrier Global
61.32
3.97
6.91%
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.