Lennox International (LII)
NYSE:LII
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Lennox International
(NYSE:LII)
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Rating:71Outperform
Price Target:
$548.00
â–²(12.50% Upside)
Action:ReiteratedDate:04/29/26
The score is driven primarily by strong profitability and free-cash-flow generation, tempered by leverage risk on the balance sheet. The earnings call supports a moderately positive outlook (raised revenue guidance and strong BCS execution) but highlights ongoing HCS softness and cost/tariff headwinds. Technicals are neutral and valuation appears fair rather than compelling.
Positive Factors
High profitability & strong free cash flow
Sustained high margins and very strong free cash flow conversion provide durable internal funding for capex, product development, dividends, and debt reduction. This cash generation underpins strategic initiatives and cushions cyclical swings over the next several quarters.
Negative Factors
Elevated leverage vs equity
Meaningful leverage amplifies earnings volatility in a cyclical construction-linked business and limits financial flexibility. Higher net debt relative to equity raises refinancing and interest-rate risk, constraining strategic choices if end markets weaken in coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability & strong free cash flow
Sustained high margins and very strong free cash flow conversion provide durable internal funding for capex, product development, dividends, and debt reduction. This cash generation underpins strategic initiatives and cushions cyclical swings over the next several quarters.
Read all positive factors
Lennox International (LII) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.14B
Dividend Yield0.96%
Average Volume (3M)438.16K
Price to Earnings (P/E)34.5
Beta (1Y)1.01
Revenue Growth-2.03%
EPS Growth-1.09%
CountryUS
Employees5,400
SectorIndustrials
Sector Strength72
IndustryConstruction
Share Statistics
EPS (TTM)22.29
Shares Outstanding34,799,970
10 Day Avg. Volume484,827
30 Day Avg. Volume438,157
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 Cap1.11
Enterprise Value/Revenue3.81
Enterprise Value/Gross Profit11.53
Enterprise Value/Ebitda17.71
Forecast
1Y Price Target
$556.30Price Target Upside14.20% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)24.29
Revenue Forecast (FY)$5.61B
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
Shows how much revenue comes from different countries or regions, helping assess diversification and vulnerability to local downturns or supply disruptions. For Lennox, a heavy U.S. concentration means domestic housing and commercial markets heavily influence results, while international trends indicate longer-term growth opportunities or risks.
Shows how much revenue comes from different countries or regions, helping assess diversification and vulnerability to local downturns or supply disruptions. For Lennox, a heavy U.S. concentration means domestic housing and commercial markets heavily influence results, while international trends indicate longer-term growth opportunities or risks.
Data provided by:
The Fly
The FlyLennox International Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Neutral
The call balanced clear, tangible positives — return to company-wide revenue growth, an exceptionally strong and profitable quarter for Building Climate Solutions, successful product launches, on-track M&A integration, and maintained full-year adjusted EPS guidance — against persistent and meaningful near-term headwinds in Home Comfort Solutions, factory under-absorption pressures, and rising input costs and tariffs. Management emphasized mitigation actions (pricing, productivity, supply-chain moves) and expects much of the cost and price realization to fall in the second half, signaling cautious confidence but acknowledging ongoing uncertainty.Positive Updates
Return to Year-over-Year Revenue Growth
Revenue of $1.1 billion, up 6% year-over-year in Q1; management also increased full-year revenue guidance to approximately 8% (from 6%-7%).
Negative Updates
Home Comfort Solutions (HCS) Revenue Decline
HCS revenue declined 10% overall; organic revenue down ~12% (one-step down ~10%, two-step down ~5%); organic sales volumes declined 21% (improved from a 32% decline in 2025), with continued weakness in new home construction.
Read all updates
Q1-2026 Updates
Positive
Negative
Return to Year-over-Year Revenue Growth
Revenue of $1.1 billion, up 6% year-over-year in Q1; management also increased full-year revenue guidance to approximately 8% (from 6%-7%).
Read all positive updates
Company Guidance
Lennox reaffirmed full‑year adjusted EPS of $23.50–$25.00 while raising revenue guidance to about 8% (from 6–7%), with HCS revenue now expected to grow ~4% (vs. prior 2%) and BCS ~16%; management still expects organic volumes to decline low single digits (net of roughly 1 point of growth from parts & accessories, commercial emergency replacement, ducted heat pumps and Samsung ductless), cost inflation is now pegged at ~5% (vs. 2% prior), pricing is assumed to be mid‑single‑digit with roughly 90% drop‑through, FIFO accounting delays tariff income‑statement effects until Q3, free cash flow is targeted at $750–$850M, capital expenditures are expected to be ~ $250M, and inventory normalization/absorption headwinds should largely resolve by the end of Q2.Lennox International Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
62
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.26B | 5.20B | 5.34B | 4.98B | 4.72B | 4.19B |
| Gross Profit | 1.74B | 1.72B | 1.77B | 1.55B | 1.28B | 1.19B |
| EBITDA | 1.13B | 1.12B | 1.13B | 879.50M | 733.50M | 658.50M |
| Net Income | 783.10M | 786.20M | 806.90M | 590.10M | 497.10M | 464.00M |
Balance Sheet | ||||||
| Total Assets | 4.29B | 4.08B | 3.47B | 2.80B | 2.57B | 2.17B |
| Cash, Cash Equivalents and Short-Term Investments | 50.20M | 34.70M | 422.30M | 69.10M | 61.10M | 36.50M |
| Total Debt | 1.95B | 2.06B | 1.49B | 1.53B | 1.75B | 1.44B |
| Total Liabilities | 3.08B | 2.92B | 2.62B | 2.51B | 2.77B | 2.44B |
| Stockholders Equity | 1.21B | 1.16B | 850.20M | 285.30M | -203.10M | -269.00M |
Cash Flow | ||||||
| Free Cash Flow | 660.70M | 638.80M | 782.10M | 486.00M | 201.20M | 408.70M |
| Operating Cash Flow | 809.50M | 757.60M | 945.70M | 736.20M | 302.30M | 515.50M |
| Investing Cash Flow | -688.70M | -655.60M | -174.40M | -319.70M | -103.00M | -106.40M |
| Financing Cash Flow | -267.40M | -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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $103.05B | 39.77 | 34.71% | 0.95% | 6.36% | 7.42% | |
71 Outperform | $18.14B | 34.45 | 72.05% | 0.96% | -2.03% | -1.09% | |
70 Outperform | $85.12B | 32.41 | 25.46% | 1.27% | -0.60% | 49.11% | |
69 Neutral | $55.51B | 49.39 | 9.34% | 1.65% | -5.07% | -65.16% | |
67 Neutral | $14.47B | 14.37 | -566.50% | 1.94% | -0.31% | 10.03% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $9.80B | -20.66 | -12.50% | 2.43% | -12.20% | -333.77% |
* Industrials Sector Average
LII
Lennox International
521.25
-68.34
-11.59%
TT
Trane Technologies
466.17
53.83
13.05%
JCI
Johnson Controls
139.52
45.54
48.46%
MAS
Masco
71.74
3.86
5.69%
OC
Owens Corning
121.67
-18.10
-12.95%
CARR
Carrier Global
66.83
-5.54
-7.66%
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.