Logo

LII

Lennox International Inc.

LII

Lennox International Inc. • NYSE
$498.87 ▲ 1.11% (+5.47)
Market Cap $17.50 B
52w High $689.44
52w Low $443.19
Dividend Yield 4.90%
P/E 21.09
Volume 215.72K
Outstanding Shares 35.07M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $1.427B ▼ $164.8M ▼ $245.8M ▼ 17.227% ▼ $6.98 ▼ $361.7M ▼
Q2-2025 $1.501B ▲ $168.5M ▼ $277.6M ▲ 18.496% ▲ $7.86 ▲ $380.1M ▲
Q1-2025 $1.073B ▼ $172.9M ▼ $120.3M ▼ 11.216% ▼ $3.39 ▼ $180.2M ▼
Q4-2024 $1.345B ▼ $210.7M ▲ $197.7M ▼ 14.699% ▼ $5.55 ▼ $275.1M ▼
Q3-2024 $1.498B $185.1M $239M 15.954% $6.71 $323.2M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $59.2M ▲ $3.525B ▼ $2.454B ▼ $1.07B ▲
Q2-2025 $55.1M ▼ $3.653B ▲ $2.752B ▲ $900.5M ▲
Q1-2025 $222.9M ▼ $3.455B ▼ $2.603B ▼ $852.5M ▲
Q4-2024 $422.3M ▲ $3.472B ▲ $2.622B ▲ $850.2M ▲
Q3-2024 $255.7M $3.313B $2.559B $754M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $245.8M ▼ $300.7M ▲ $-36M ▼ $-259.2M ▼ $3.7M ▲ $265.1M ▲
Q2-2025 $277.6M ▲ $86.8M ▲ $-28.1M ▼ $-227M ▼ $-168M ▲ $58.3M ▲
Q1-2025 $120.3M ▼ $-35.8M ▼ $-23.5M ▲ $-141.2M ▼ $-197.9M ▼ $-61.3M ▼
Q4-2024 $197.7M ▼ $332.4M ▼ $-66.3M ▼ $-91.2M ▲ $172M ▼ $272.2M ▼
Q3-2024 $239M $452.1M $-50.9M $-209.1M $195.5M $410.9M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Commercial Heating and Cooling
Commercial Heating and Cooling
 $460.00M ▲$350.00M ▼$490.00M ▲$510.00M ▲
Residential Heating and Cooling
Residential Heating and Cooling
 $890.00M ▲$720.00M ▼$1.01Bn ▲$910.00M ▼

Five-Year Company Overview

Income Statement

Income Statement Over the last five years, Lennox has delivered steady, healthy growth in both sales and profits. Revenue has climbed each year, and profits have grown faster than sales, which points to better pricing power, improved mix of higher‑margin products, or cost efficiency gains. Profitability along the income statement looks strong: gross profit, operating income, and net income have all moved up meaningfully over time. This suggests Lennox has been able to pass along costs, manage inflation, and benefit from a tilt toward more premium, higher‑efficiency systems. Earnings per share have risen sharply, indicating not only higher profit but also potential benefits from share repurchases or capital allocation choices. Overall, the income statement paints a picture of a mature, premium industrial business that has been steadily increasing its earning power, with solid operating leverage. The main risk is exposure to economic and housing cycles, which can eventually slow or reverse this growth trend.

Balance Sheet

Balance Sheet The balance sheet has improved significantly from a few years ago. Total assets have grown at a measured pace, while reported equity has moved from negative territory to a clearly positive position. That shift alone signals a cleaner, stronger financial foundation than in the past. Debt remains meaningful but broadly stable over the period, which, combined with higher earnings, effectively reduces leverage. Cash on hand has increased sharply in the most recent year, giving the company more flexibility to handle downturns, invest, or manage its capital structure. The key watch points are the still‑sizeable use of debt and the inherently cyclical end markets. While the balance sheet trajectory is positive, Lennox is not a “net cash” company; disciplined debt management and consistent profitability remain important to maintaining its currently solid financial footing.

Cash Flow

Cash Flow Lennox’s cash flow pattern is a strong point. Cash generated from operations has grown over time and now comfortably exceeds what is needed for capital spending. Free cash flow has been positive in every year shown and has trended higher, which is a hallmark of a healthy, cash‑generative industrial business. Capital expenditures are modest relative to operating cash flow, suggesting the company can support its manufacturing and technology needs without straining its finances. The improvement in cash generation in the most recent years also lines up with the better profit margins seen in the income statement. Overall, the cash flow profile provides room for dividends, buybacks, debt reduction, or acquisitions, depending on management’s priorities. The main sensitivity is that cash flows will move with HVAC demand, which can be lumpy with weather patterns, interest rates, and construction activity.

Competitive Edge

Competitive Edge Lennox operates in a concentrated, highly competitive HVAC market but holds a strong position, especially in North American residential and light commercial systems. Its brand is associated with quality and high efficiency, which supports premium pricing and loyalty among contractors and homeowners. A major source of strength is its broad and entrenched dealer network, numbering in the thousands. This distribution footprint and long‑standing relationships are difficult for new entrants to replicate and act as a practical barrier to competition. Recent moves to acquire select dealers and deepen integration further tighten this ecosystem. On the product side, Lennox’s focus on high‑efficiency, quiet, and smart‑connected systems caters directly to regulatory trends and consumer preferences for comfort, lower energy bills, and cleaner air. However, the company still faces strong competition from other global HVAC manufacturers, sensitivity to housing and commercial construction cycles, and ongoing price and innovation pressure. Its moat is real but must be actively maintained through service, technology, and dealer support.

Innovation and R&D

Innovation and R&D Innovation is central to Lennox’s strategy and appears to be a clear differentiator. The company has a track record of pushing energy efficiency, integrating with smart home platforms, and focusing on quiet operation and indoor air quality. These attributes are increasingly important to both regulators and end customers. Its smart thermostat platform and broader connected‑home ecosystem support recurring engagement with customers and installers, while advanced coil materials and early adoption of low‑impact refrigerants align with tightening environmental rules. This forward‑leaning stance on refrigerants and heat pumps positions Lennox to benefit from the global push toward decarbonization and electrification of heating and cooling. Partnerships and acquisitions add to this innovation story. The collaboration with Samsung opens a stronger path into the fast‑growing ductless segment, and the acquisition of NSI’s HVAC division broadens Lennox into a more comprehensive “one‑stop shop” for dealers. The key risks are execution: integrating acquisitions smoothly, scaling new product lines, and staying ahead of fast‑moving competitors in smart and connected technologies.

Summary

Overall, Lennox International combines a strong recent financial track record with a solid competitive position in a structurally important industry. Revenue and profits have grown consistently, margins have expanded, and cash generation is robust, allowing for strategic flexibility. The balance sheet has moved from a somewhat stretched position to a healthier, more resilient state, although leverage is still meaningful enough to warrant monitoring. Strategically, Lennox is leaning into high‑efficiency, smart, and environmentally friendly HVAC solutions, supported by a powerful dealer network and a respected brand. Its push into connected products, advanced materials, low‑GWP refrigerants, and ductless systems, together with selective acquisitions, suggests a company actively shaping its future rather than just defending its legacy. Key uncertainties center around the cyclical nature of construction and remodeling, sensitivity to interest rates and consumer confidence, regulatory changes, and competitive intensity from other large HVAC players. Within that context, Lennox currently looks like a well‑positioned, innovation‑driven industrial business with improving financial strength and a clear focus on energy‑efficient, smart climate solutions.

NEWS

November 19, 2025 · 8:03 AM UTC

Lennox Donates Over 400 Heating and Cooling Units to Homeowners and Nonprofits in Need Across North America

Read more

October 22, 2025 · 6:45 AM UTC

Lennox Reports Third Quarter Results

Read more

October 16, 2025 · 10:09 AM UTC

Sentinel Capital Partners Sells NSI Industries' HVAC Division to Lennox for $550 Million

Read more

October 16, 2025 · 6:45 AM UTC

Lennox Completes Acquisition of NSI Industries' HVAC Division

Read more

October 15, 2025 · 9:30 AM UTC

HomeServe South Jersey and Lennox Team Up to Give Back Through Feel the Love Campaign

Read more