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Lennox International
(NYSE:LII)
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Rating:65Neutral
Price Target:
$462.00
â–¼(-14.62% Downside)
Action:Reiterated
Date:07/30/26
The score is anchored by strong profitability and free-cash-flow generation, but is held back by very weak technical positioning (price far below major moving averages) and mixed near-term outlook from the latest earnings call (EPS guidance cut and delayed residential recovery). Valuation is reasonable but not a clear bargain at ~24x earnings with a modest ~1.2% yield.
Positive Factors
Robust profitability
Margins well above historical 2022–23 levels indicate structural improvement in product mix, pricing and cost control. Sustained high margins provide durable earnings power, funding reinvestment, R&D and aftermarket support while cushioning cyclical volume swings in HVAC demand.
Negative Factors
Residential demand weakness
Home Comfort Solutions is the core business and prolonged unit and new-construction weakness compresses absorption, recurring aftermarket growth and dealer economics. A delayed residential recovery into 2027 raises risk to near-term revenue and long-term installed-base growth drivers.
Read all positive and negative factors
Positive Factors
Negative Factors
Robust profitability
Margins well above historical 2022–23 levels indicate structural improvement in product mix, pricing and cost control. Sustained high margins provide durable earnings power, funding reinvestment, R&D and aftermarket support while cushioning cyclical volume swings in HVAC demand.
Read all positive factors
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 (LII) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.37B
Dividend Yield1.27%
Average Volume (3M)385.58K
Price to Earnings (P/E)18.8
Beta (1Y)0.90
Revenue Growth-2.11%
EPS Growth-5.59%
CountryUS
Employees12,900
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)22.18
Shares Outstanding34,560,677
10 Day Avg. Volume361,888
30 Day Avg. Volume385,577
Financial Highlights & Ratios
PEG Ratio-13.71
Price to Book (P/B)14.57
Price to Sales (P/S)3.26
P/FCF Ratio26.53
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$507.20Price Target Upside-6.27% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)23.69
Revenue Forecast (FY)$5.58B
Lennox International Business Overview & Revenue Model
Company Description
Lennox International Inc. is a global manufacturer and distributor specializing in heating, ventilation, air conditioning (HVAC), and refrigeration solutions. The company operates across three divisions: Residential Heating & Cooling, Commercial H...
How the Company Makes Money
Lennox International makes money primarily by selling HVAC equipment and related components, plus associated services and aftermarket parts. Its largest revenue stream is typically equipment sales, where it manufactures and sells furnaces, air con...
Lennox International Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: strong performance, cash generation, and substantial outperformance in Building Climate Solutions (24% revenue growth, organic +12%) and disciplined strategic actions (acquisitions, share repurchases, inventory reduction) were offset by pronounced weakness in the core Home Comfort Solutions residential business (HCS revenue -7%, unit volumes -12%, one-step channel mid-teens decline, new construction down ~30%) and a downward EPS revision driven by lower residential volumes. Management emphasized portfolio balance, long-term confidence, and continued investment while acknowledging that the residential recovery has been delayed into 2027. Given meaningful operational and financial positives but material near-term headwinds concentrated in the core residential segment, the overall tone is balanced between encouraging execution and clear demand challenges.Positive Updates
Company-Level Revenue and EPS
Total revenue increased 3% year-over-year to $1.5 billion; total segment profit increased 2% to $355 million; adjusted EPS was flat at $7.72.
Negative Updates
Home Comfort Solutions (HCS) Revenue Decline
HCS revenue declined 7% year-over-year in Q2, driven primarily by a 12% decline in unit volume; one-step channel volumes declined in the mid-teens while two-step volumes were relatively flat.
Read all updates
Q2-2026 Updates
Positive
Negative
Company-Level Revenue and EPS
Total revenue increased 3% year-over-year to $1.5 billion; total segment profit increased 2% to $355 million; adjusted EPS was flat at $7.72.
Read all positive updates
Company Guidance
Management updated 2026 guidance calling for adjusted EPS of $23.00–$24.00 and roughly 8% enterprise revenue growth, with Home Comfort Solutions revenue now expected to grow ~1% (versus prior ~4%) and Building Climate Solutions ~20% (versus prior ~16%); the Comfort‑Aire/Century acquisition contributes about +1 point to enterprise revenue and ~+2 points to HCS. They now expect about $60M of productivity (down from $75M prior), interest expense of ~ $70M, M&A amortization of ~ $25M, and unchanged free cash flow of $750M–$850M (trailing 12‑month FCF conversion ~92%); capex was trimmed to ~$225M from $250M. Additional metrics and context included Q2 revenue of $1.5B (up 3%), total segment profit of $355M (up 2%), Q2 adjusted EPS $7.72, net debt/adjusted EBITDA of 1.3x at quarter‑end, ~ $130M of Q2 share repurchases, a post‑quarter ~$200M debt-funded acquisition, tariff refunds (~$25M HCS, ~$5M BCS) and confirmation that inventory dollars were flat to December while unit inventories continued to decline.Lennox International Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
62
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.30B | 5.20B | 5.34B | 4.98B | 4.72B | 4.19B |
| Gross Profit | 1.76B | 1.72B | 1.77B | 1.55B | 1.28B | 1.19B |
| EBITDA | 1.14B | 1.12B | 1.13B | 879.50M | 733.50M | 658.50M |
| Net Income | 774.50M | 786.20M | 806.90M | 590.10M | 497.10M | 464.00M |
Balance Sheet | ||||||
| Total Assets | 4.54B | 4.08B | 3.47B | 2.80B | 2.57B | 2.17B |
| Cash, Cash Equivalents and Short-Term Investments | 52.10M | 34.70M | 422.30M | 69.10M | 61.10M | 36.50M |
| Total Debt | 2.02B | 2.06B | 1.49B | 1.53B | 1.75B | 1.44B |
| Total Liabilities | 3.25B | 2.92B | 2.62B | 2.51B | 2.77B | 2.44B |
| Stockholders Equity | 1.30B | 1.16B | 850.20M | 285.30M | -203.10M | -269.00M |
Cash Flow | ||||||
| Free Cash Flow | 738.70M | 638.80M | 782.10M | 486.00M | 201.20M | 408.70M |
| Operating Cash Flow | 894.70M | 757.60M | 945.70M | 736.20M | 302.30M | 515.50M |
| Investing Cash Flow | -694.10M | -655.60M | -174.40M | -319.70M | -103.00M | -106.40M |
| Financing Cash Flow | -173.60M | -465.70M | -418.60M | -406.20M | -174.10M | -498.70M |
Lennox International Technical Analysis
Negative
541.13
Price Trends
523.63
Negative
506.62
Negative
506.55
Negative
Market Momentum
-25.22
Positive
29.69
Positive
7.75
Positive
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 541.13 is above the 20-day moving average (MA) of 520.72, above the 50-day MA of 523.63, and above the 200-day MA of 506.55, indicating a bearish trend. The MACD of -25.22 indicates Positive momentum. The RSI at 29.69 is Positive, neither overbought nor oversold. The STOCH value of 7.75 is Positive, 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 40 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $88.84B | 25.42 | 26.94% | 1.12% | 6.81% | 70.90% | |
69 Neutral | $100.10B | 34.31 | 34.49% | 0.83% | 7.04% | 4.58% | |
65 Neutral | $14.37B | 18.75 | 65.30% | 0.97% | -2.11% | -5.59% | |
65 Neutral | $50.95B | 42.53 | 8.89% | 1.37% | -1.58% | -43.59% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $14.09B | 16.43 | -406.43% | 1.59% | -0.56% | 15.03% | |
58 Neutral | $11.19B | -20.79 | -12.50% | 2.15% | -12.20% | -333.77% |
* Industrials Sector Average
LII
Lennox International
435.00
-161.72
-27.10%
TT
Trane Technologies
461.21
36.41
8.57%
JCI
Johnson Controls
146.39
42.89
41.44%
MAS
Masco
74.73
6.06
8.82%
OC
Owens Corning
143.21
5.87
4.27%
CARR
Carrier Global
63.17
-2.20
-3.37%
Lennox International Corporate Events
Executive/Board ChangesShareholder Meetings
Lennox International Announces Board Resignation and Governance Updates
Positive
May 28, 2026
On May 23, 2026, Lennox International director Sivasankaran Somasundaram resigned from the company’s Board, citing other professional responsibilities, with the Board reducing its size from nine to eight members and clarifying there was no d...
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.