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Lennox International (LII) AI Stock Analysis

MX:LII

Lennox International

(BMV:LII)

Rating:―N/A
Action:N/A
Date:―

No summary available

Positive Factors
ProfitabilitySustained gross and net margins indicate Lennox has meaningful earnings power across its HVAC and refrigeration portfolio. Consistent profitability provides resources for product investment, channel support, productivity initiatives, and shareholder returns while strengthening resilience through industry cycles.
Negative Factors
Guidance ReductionLower revenue and free-cash-flow guidance signals that Lennox’s near-term earnings trajectory is less robust than previously expected. Reduced price and mix benefits, declining volume, and lower cash generation could constrain investment capacity and weaken operating leverage over the next several quarters.

Lennox International (LII) vs. SPDR S&P 500 ETF (SPY)

-40%-30%-20%-10%0%10%20%MX:LII-29.91%SPY+11.79%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
MXN 11.77B
Dividend Yield
1.46%
Average Volume (3M)
300
Price to Earnings (P/E)
15.9
Beta (1Y)
-0.19
Revenue Growth
-8.56%
EPS Growth
-18.29%
Country
Mexico
Employees
5,400
Sector
Industrials
Sector Strength
63
Industry
Industrial - Machinery

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 Heat...

Lennox International Earnings Call Summary

Earnings Call Date:Oct 27, 2026(Q3-2026)|% Change Since:0.00%|Next Earnings Date:Feb 01, 2027
Earnings Call SentimentNeutral

The call had a mixed sentiment. Revenue growth, strong Building Climate Solutions performance, acquisition contributions, cash flow generation, inventory-unit reductions, and multiple growth and productivity initiatives were positive. However, these positives were offset by lower segment profit and adjusted EPS, residential demand constraints, tariff and inflation pressure, limited price realization, margin contraction, and reductions to full-year revenue, earnings, and free cash flow guidance. Management remained confident in the long-term strategy but acknowledged meaningful near-term challenges.

Positive Updates

Third-Quarter Revenue Growth
Third-quarter revenue grew 10.2% to $1.6 billion, driven by continued outperformance in Building Climate Solutions, contributions from acquisitions, and improving residential sales volumes.

Negative Updates

Declining Profitability and Adjusted EPS
Total segment profit declined approximately 2% to $323 million, while adjusted earnings per share declined 7% to $6.84. Management said profitability fell short of expectations.

Company Guidance

For 2026, Lennox updated adjusted EPS guidance to $21 to $21.50, revenue growth to approximately 6% compared with 8% previously, price and mix growth to low single digit growth compared with mid single digit growth previously, and overall volume to a low single digit decline; BCS revenue growth is expected to be approximately 23%, up from 20%, while HCS revenue is expected to decline approximately 4% compared with the prior expectation for 1% growth, and free cash flow guidance was reduced to $700 million to $750 million from $750 million to $850 million. The expected tax rate is 21% compared with 20% in prior guidance, capital expenditures are expected to be approximately $225 million, fourth-quarter organic total sales are expected to decline mid single digit, full-year 1-step sales are expected to be down low double digits and 2-step sales up low single digits, enterprise margins are expected to decline about 200 basis points, BCS full-year margins are expected to be approximately flat, and HCS margins are expected to contract about 50 basis points. Lennox is not providing 2027 guidance today, but expects successful execution of its recovery plan to drive sales EBIT and EPS growth in 2027, with higher sales, higher EPS, and higher EBIT dollars, while the first half of 27 will be more challenging, industry volumes will be muted, and the company is aiming for price increases of more than the traditional 1-2.

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.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Tech & Innovation - Risks related to the company’s reliance on technology and ability to make innovative products

Latest Risks Added

0 New Risks

Lennox International Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

MX:LII against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
EMREMR76Outperform$92.00B35.9112.69%1.35%4.82%-1.66%
MODMOD71Outperform$6.90B48.6012.64%―29.47%-23.92%
TTTT71Outperform$89.75B28.8336.01%1.00%10.34%8.80%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
CARRCARR61Neutral$43.88B-24.30-14.28%1.79%3.33%-187.15%
AAONAAON51Neutral$5.56B34.7417.21%0.59%53.53%29.55%

* Industrials Sector Average

Performance Comparison

0%50%100%MX:LIIAAONEMRTTMODCARRDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
MX:LII and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
MX:LIILennox International6782.00-2893.81-29.91%
AAONAaon Inc67.40-28.09-29.42%
EMREmerson Electric164.9427.0819.64%
TTTrane Technologies Plc410.00-32.15-7.27%
MODModine Manufacturing129.76-18.15-12.27%
CARRCarrier Global Corp.53.63-3.33-5.84%
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.