A Business at a Glance
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LENNOX INTERNATIONAL INC
LII
$19.1B
Mkt Cap
$541.13
+0.60%
LENNOX INTERNATIONAL INC (LII) has a current P/E ratio of 23.7, compared to its historical median P/E of 23.8. The stock is currently considered Fair based on its historical valuation range.
LENNOX INTERNATIONAL INC (LII) has a 5-year average return on invested capital (ROIC) of 43.4%. This indicates strong capital allocation and a potential competitive advantage.
LENNOX INTERNATIONAL INC (LII) has a market capitalization of $18.9B. It is classified as a large-cap stock.
Yes, LENNOX INTERNATIONAL INC (LII) pays a dividend with a trailing twelve-month yield of 0.94%. The company also returns capital through share buybacks, with a buyback yield of 2.20%.
Based on historical P/E analysis, LENNOX INTERNATIONAL INC (LII) appears fair. The current P/E of 23.7 is 0% below its historical median of 23.8. The estimated fair value CAGR (P/E method) is 15.1%.
LENNOX INTERNATIONAL INC (LII) operates in the Air-Cond & Warm Air Heatg Equip & Comm & Indl Refrig Equip industry, within the Industrials sector.
Lennox International is a global leader in energy-efficient climate-control solutions, designing, manufacturing, and marketing a broad range of heating, ventilation, air conditioning, and refrigeration (HVACR) products for residential and commercial markets across North America. The company operates through two segments: Home Comfort Solutions, which serves the residential replacement and new construction markets through furnaces, air conditioners, heat pumps, and indoor air quality equipment sold under brands including Lennox, Armstrong Air, AirEase, and Ducane via direct-to-dealer networks and company-owned Lennox Stores; and Building Climate Solutions, which provides unitary heating and cooling equipment for light commercial applications, commercial refrigeration products under the Heatcraft Worldwide Refrigeration brand, and installation and service offerings through national account services and acquired businesses like AES Industries. The company's business model combines direct sales, independent wholesale distribution, and company-owned distribution channels to penetrate multiple market segments, with unit economics characterized by a mix of equipment sales and recurring parts, accessories, and service revenue. Lennox differentiates itself through innovation in product efficiency and control technology, a diversified brand portfolio addressing different price points and customer segments, and strategic investments in manufacturing capabilities including a new commercial HVAC factory in Mexico and distribution network optimization. The company serves residential homeowners and contractors through its Home Comfort Solutions segment and commercial building owners, contractors, and national account customers through Building Climate Solutions, with geographic operations concentrated in North America following the 2023 divestiture of European operations.
【Cautious recovery ahead】 Management expects stabilizing end markets in 2026 following 2025 destocking challenges, with channel inventories normalizing and residential volumes anticipated to decline in the first half before returning to growth in the second half of the year. The company is pursuing differentiated growth through expanded sales force investments, digital innovation, and higher attachment rates for parts and accessories, while maintaining resilient profit margins through pricing actions, material cost reductions, and productivity initiatives. Building Climate Solutions is expected to benefit from industry shipments returning to growth and strong emergency replacement and national account performance, while Home Comfort Solutions will navigate continued near-term volume headwinds before inflecting positive. Management remains focused on execution of its three-phase self-help transformation plan, leveraging the Lennox Unified Management System to streamline operations and capitalize on emerging opportunities in heat pump adoption and commercial capacity expansion.
| Metric | Target | Period |
|---|---|---|
| Revenue growth | approximately 8% | FY2026 |
| Adjusted EPS | $23.50-$25.00 | FY2026 |
| Free cash flow | $750 million-$850 million | FY2026 |
| Capital expenditures | approximately $250 million | FY2026 |
| Cost inflation | approximately 5% | FY2026 |
Revenue growth (FY2026): “Revenue is now expected to grow approximately 8% compared to prior guidance of 6%-7%.”
Adjusted EPS (FY2026): “We are reaffirming our full-year adjusted earnings per share guidance range of $23.50-$25.00.”
Free cash flow (FY2026): “Free cash flow remains expected to be $750 million-$850 million, driven by inventory normalization and higher profitability.”
Capital expenditures (FY2026): “For 2026, we continue to expect approximately $250 million of capital expenditures focused on innovation and training centers, digital capabilities, distribution network optimization, ERP modernization, and targeted AI capabilities.”
Cost inflation (FY2026): “Cost inflation is now expected to be up approximately 5% from up 2%, driven by recent increases in tariffs and input costs for aluminum, steel, copper, and fuel.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 5.3B | 5.2B | 5.3B | 5.0B | 4.7B | 4.2B |
| Net Income | 803M | 806M | 811M | 591M | 497M | 464M |
| EPS | $22.65 | $22.79 | $22.66 | $16.58 | $13.88 | $12.39 |
| Free Cash Flow | 661M | 639M | 782M | 486M | 201M | 409M |
| ROIC | 31.5% | 36.7% | 46.2% | 40.7% | 43.8% | 49.6% |
| Gross Margin | 33.4% | 33.4% | 33.3% | 31.1% | 27.2% | 28.3% |
| Debt/Equity | 1.25 | 1.52 | 1.55 | 3.89 | -8.62 | -5.34 |
| Dividends/Share | $5.07 | $5.05 | $4.55 | $4.36 | $4.10 | $3.53 |
| Operating Income | 1.0B | 1.0B | 1.0B | 792M | 656M | 590M |
| Operating Margin | 20.0% | 20.0% | 19.5% | 15.9% | 13.9% | 14.1% |
| ROE | 66.1% | 75.8% | 119.7% | 150.4% | -210.6% | -324.4% |
| Shares Outstanding | 35M | 35M | 36M | 36M | 36M | 37M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 3.4B | 3.5B | 3.6B | 3.8B | 3.9B | 3.8B | 3.6B | 4.2B | 4.7B | 5.0B | 5.3B | 5.2B | 5.3B |
| Gross Margin | 26.8% | 27.3% | 29.6% | 29.3% | 28.6% | 28.4% | 28.6% | 28.3% | 27.2% | 31.1% | 33.3% | 33.4% | 33.4% |
| R&D | 61M | 62M | 65M | 74M | 72M | 70M | 67M | 76M | 80M | 94M | 94M | 103M | 103M |
| SG&A | 574M | 581M | 621M | 638M | 608M | 586M | 556M | 599M | 627M | 706M | 731M | 681M | 695M |
| EBIT | 335M | 305M | 429M | 495M | 510M | 657M | 479M | 590M | 656M | 792M | 1.0B | 1.0B | 1.0B |
| Op. Margin | 9.9% | 8.8% | 11.8% | 12.9% | 13.1% | 17.3% | 13.2% | 14.1% | 13.9% | 15.9% | 19.5% | 20.0% | 20.0% |
| Net Income | 206M | 187M | 278M | 306M | 359M | 409M | 356M | 464M | 497M | 591M | 811M | 806M | 803M |
| Net Margin | 6.1% | 5.4% | 7.6% | 8.0% | 9.2% | 10.7% | 9.8% | 11.1% | 10.5% | 11.9% | 15.2% | 15.5% | 15.3% |
| Non-Recurring | 2.2M | 8.1M | 1.3M | 3.0M | 14M | 11M | 11M | 2.0M | 2.5M | 67M | 0 | 5.7M | 6.8M |
| Returns on Capital | |||||||||||||
| ROIC | 25.1% | 23.8% | 35.8% | 35.5% | 42.9% | 53.3% | 38.5% | 49.6% | 43.8% | 40.7% | 46.2% | 36.7% | 31.5% |
| ROE | 83.2% | 337.4% | 398.0% | 610.2% | N/A | -255.6% | -380.5% | -324.4% | -210.6% | 150.4% | 119.7% | 75.8% | 66.1% |
| ROA | 12.1% | 10.8% | 16.2% | 16.7% | 19.4% | 21.2% | 17.5% | 22.1% | 21.0% | 21.5% | 24.7% | 20.9% | 18.7% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 185M | 354M | 374M | 325M | 496M | 396M | 612M | 516M | 302M | 736M | 946M | 758M | 810M |
| Free Cash Flow | 96M | 284M | 290M | 227M | 400M | 291M | 534M | 409M | 201M | 486M | 782M | 639M | 661M |
| Owner Earnings | 101M | 264M | 284M | 236M | 403M | 304M | 516M | 419M | 203M | 620M | 822M | 616M | -350M |
| CapEx | 88M | 70M | 84M | 98M | 95M | 106M | 79M | 107M | 101M | 250M | 164M | 119M | 149M |
| Maint. CapEx | 61M | 63M | 58M | 65M | 66M | 71M | 73M | 72M | 78M | 86M | 95M | 113M | 1.1B |
| Growth CapEx | 28M | 7.1M | 26M | 34M | 29M | 35M | 5.9M | 34M | 23M | 164M | 68M | 6.3M | 0 |
| D&A | 61M | 63M | 58M | 65M | 66M | 71M | 73M | 72M | 78M | 86M | 95M | 113M | 1.1B |
| CapEx/OCF | 47.8% | 21.1% | 22.5% | 30.2% | 19.2% | 26.7% | 12.8% | 20.7% | 33.4% | 34.0% | 17.3% | 15.7% | 18.4% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 53M | 59M | 69M | 80M | 94M | 111M | 118M | 127M | 142M | 153M | 160M | 173M | 177M |
| Dividend Yield | 1.4% | 1.3% | 1.2% | 1.2% | 1.2% | 1.2% | 1.3% | 1.1% | 1.7% | 1.4% | 0.8% | 0.9% | 0.9% |
| Share Buybacks | 550M | 0 | 300M | 250M | 450M | 400M | 100M | 600M | 300M | 0 | 54M | 482M | 417M |
| Buyback Yield | 13.5% | N/A | 4.9% | 3.1% | 5.5% | 4.5% | 1.0% | 5.2% | 3.6% | N/A | 0.2% | 2.7% | 2.2% |
| Stock-Based Comp | 23M | 27M | 32M | 25M | 26M | 21M | 24M | 24M | 22M | 30M | 29M | 29M | 29M |
| Debt Repayment | 2.3M | 24M | 59M | 201M | 3.0M | 6.4M | 11M | 0 | 0 | 0 | 0 | 200M | 200M |
| Balance Sheet | |||||||||||||
| Net Debt | 888M | 702M | 818M | 936M | 995M | 1.3B | 1.1B | 1.4B | 1.7B | 1.5B | 1.1B | 1.7B | 1.5B |
| Cash & Equiv. | 38M | 39M | 50M | 68M | 46M | 37M | 124M | 31M | 53M | 61M | 415M | 34M | 50M |
| Long-Term Debt | 675M | 506M | 616M | 971M | 741M | 849M | 971M | 1.2B | 814M | 1.1B | 833M | 1.1B | 1.1B |
| Debt/Equity | 102.84 | 7.29 | 22.85 | 20.04 | -6.96 | -7.93 | -69.18 | -5.34 | -8.62 | 3.89 | 1.55 | 1.52 | 1.25 |
| Interest Coverage | 19.5 | 12.9 | 15.9 | 16.2 | 13.3 | 13.8 | 16.9 | 23.6 | 17.0 | 15.3 | 26.9 | 25.5 | 21.0 |
| Equity | 9.0M | 102M | 38M | 50M | -150M | -170M | -17M | -269M | -203M | 393M | 962M | 1.2B | 1.2B |
| Total Assets | 1.8B | 1.7B | 1.8B | 1.9B | 1.8B | 2.0B | 2.0B | 2.2B | 2.6B | 2.9B | 3.6B | 4.1B | 4.3B |
| Total Liabilities | 1.8B | 1.6B | 1.7B | 1.8B | 2.0B | 2.2B | 2.0B | 2.4B | 2.8B | 2.5B | 2.7B | 2.9B | 3.1B |
| Intangibles | 28M | 6.2M | 7.3M | 8.6M | N/A | N/A | N/A | N/A | N/A | N/A | 45M | 273M | 270M |
| Retained Earnings | 1.0B | 1.1B | 1.4B | 1.6B | 1.9B | 2.1B | 2.4B | 2.7B | 3.1B | 3.6B | 4.3B | 4.9B | 5.0B |
| Working Capital | 154M | 114M | 117M | 483M | 81M | 118M | 386M | 348M | -99M | 562M | 719M | 712M | 740M |
| Current Assets | 982M | 938M | 1.0B | 1.1B | 1.1B | 1.1B | 1.1B | 1.2B | 1.5B | 1.6B | 2.0B | 1.9B | 2.0B |
| Current Liabilities | 827M | 824M | 889M | 655M | 1.0B | 1.0B | 701M | 827M | 1.6B | 1.0B | 1.3B | 1.2B | 1.3B |
| Per Share Data | |||||||||||||
| EPS | 4.23 | 4.09 | 6.32 | 7.14 | 8.74 | 10.38 | 9.24 | 12.39 | 13.88 | 16.58 | 22.66 | 22.79 | 22.65 |
| Owner EPS | 2.07 | 5.79 | 6.46 | 5.50 | 9.82 | 7.71 | 13.37 | 11.18 | 5.66 | 17.39 | 22.97 | 17.42 | -9.99 |
| Book Value | 0.18 | 2.23 | 0.86 | 1.17 | -3.64 | -4.32 | -0.44 | -7.18 | -5.67 | 11.02 | 26.88 | 32.90 | 34.68 |
| Cash Flow/Share | 3.80 | 7.75 | 8.51 | 7.59 | 12.06 | 10.06 | 15.88 | 13.77 | 8.44 | 20.65 | 26.42 | 21.43 | 55.22 |
| Dividends/Share | 1.14 | 1.38 | 1.65 | 1.96 | 2.43 | 2.95 | 3.08 | 3.53 | 4.10 | 4.36 | 4.55 | 5.05 | 5.07 |
| Shares Out. | 48.7M | 45.6M | 44.0M | 42.8M | 41.1M | 39.4M | 38.6M | 37.4M | 35.8M | 35.7M | 35.8M | 35.4M | 35.0M |
| Valuation | |||||||||||||
| P/E Ratio | 19.8 | 27.5 | 22.0 | 26.8 | 22.9 | 21.7 | 27.7 | 24.8 | 16.7 | 26.5 | 27.1 | 21.8 | 23.9 |
| P/FCF | 42.3 | 18.1 | 21.1 | 36.1 | 20.6 | 30.6 | 18.5 | 28.1 | 41.1 | 32.2 | 28.1 | 27.5 | 28.7 |
| EV/EBIT | 14.7 | 19.0 | 16.0 | 18.3 | 18.7 | 15.7 | 22.4 | 21.5 | 14.8 | 19.7 | 21.8 | 18.2 | 19.5 |
| Price/Book | 452.8 | 50.6 | 161.1 | 163.5 | N/A | N/A | N/A | N/A | N/A | 39.9 | 22.8 | 15.1 | 15.6 |
| Price/Sales | 1.1 | 1.3 | 1.5 | 1.8 | 2.0 | 2.4 | 2.4 | 2.7 | 1.8 | 2.3 | 3.5 | 3.8 | 3.6 |
| FCF Yield | 2.4% | 5.5% | 4.7% | 2.8% | 4.9% | 3.3% | 5.4% | 3.6% | 2.4% | 3.1% | 3.6% | 3.6% | 3.5% |
| Market Cap | 4.1B | 5.1B | 6.1B | 8.2B | 8.2B | 8.9B | 9.9B | 11.5B | 8.3B | 15.7B | 21.9B | 17.6B | 18.9B |
| Avg. Price | 75.89 | 101.34 | 127.00 | 158.37 | 191.46 | 234.70 | 230.09 | 298.88 | 235.23 | 314.85 | 528.36 | 559.33 | 541.13 |
| Year-End Price | 83.77 | 112.61 | 139.25 | 191.37 | 200.37 | 225.56 | 255.74 | 306.72 | 231.17 | 439.51 | 612.97 | 496.85 | 541.13 |
LENNOX INTERNATIONAL INC passes 6 of 9 quality checks, suggesting mixed fundamentals.
LENNOX INTERNATIONAL INC trades at 23.7x trailing earnings, compared to its 15-year median P/E of 23.8x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 29.5x vs a median of 28.1x. The company's 5-year average ROIC is 43.4% with a gross margin of 30.7%. Total shareholder yield (dividends + buybacks) is 3.1%. At current prices, the estimated annualized return to fair value is +8.7%.
LENNOX INTERNATIONAL INC (LII) reported annual revenue of $5.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
LENNOX INTERNATIONAL INC (LII) has a net profit margin of 15.5%. This is a healthy margin.
LENNOX INTERNATIONAL INC (LII) generated $639 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
LENNOX INTERNATIONAL INC (LII) has a debt-to-equity ratio of 1.52. This indicates higher leverage, which may increase financial risk.
LENNOX INTERNATIONAL INC (LII) reported earnings per share (EPS) of $22.79 in its most recent fiscal year.
LENNOX INTERNATIONAL INC (LII) has a return on equity (ROE) of 75.8%. This indicates the company generates strong returns for shareholders.
LENNOX INTERNATIONAL INC (LII) has a 5-year average gross margin of 30.7%. This indicates decent pricing power.
The Ledger Terminal provides 18 years of financial data for LENNOX INTERNATIONAL INC (LII), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
LENNOX INTERNATIONAL INC (LII) has a book value per share of $32.90, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects stabilizing end markets in 2026 following 2025 destocking challenges, with channel inventories normalizing and residential volumes anticipated to decline in the first half before returning to growth in the second half of the year. The company is pursuing differentiated growth through expanded sales force investments, digital innovation, and higher attachment rates for parts and accessories, while maintaining resilient profit margins through pricing actions, material cost reductions, and productivity initiatives. Building Climate Solutions is expected to benefit from industry shipments returning to growth and strong emergency replacement and national account performance, while Home Comfort Solutions will navigate continued near-term volume headwinds before inflecting positive. Management remains focused on execution of its three-phase self-help transformation plan, leveraging the Lennox Unified Management System to streamline operations and capitalize on emerging opportunities in heat pump adoption and commercial capacity expansion.
Based on recent SEC filings and earnings calls, LENNOX INTERNATIONAL INC (LII) has provided the following forward guidance: Revenue growth: approximately 8% (FY2026); Adjusted EPS: $23.50-$25.00 (FY2026); Free cash flow: $750 million-$850 million (FY2026); Capital expenditures: approximately $250 million (FY2026); Cost inflation: approximately 5% (FY2026).