Lennox International Inc. (LII)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Lennox International Inc. (LII) trades at $570.03 with AI Score 84/100 (Grade A+). Lennox International Inc. designs, manufactures, and markets heating, ventilation, air conditioning, and refrigeration products. Market cap: $19.84B, Sector: Industrials.
Price live · AI analysis from May 5, 2026LII stock analysis for 2026: Analysts have set a consensus price target of $569.82 for Lennox International Inc., suggesting 0.0% downside from the current price of $570.03. The AI MoonshotScore is 84/100, indicating a strong bullish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
LII: 1/2 perspectives are bullish.
How is this calculated? →Lennox International Inc. (LII) Industrial Operations Profile
Lennox International Inc. is a leading provider of climate control solutions, operating across residential, commercial, and refrigeration markets. With a history dating back to 1895, the company offers a comprehensive range of HVAC and refrigeration products, leveraging direct sales, distributors, and company-owned stores to serve customers in North America and internationally.
What Is the Investment Thesis for LII?
Lennox International Inc. presents a notable research candidate due to its established market position, diversified product portfolio, and strong financial performance. With a market capitalization of $19.84B and a P/E ratio of 22.4, the company demonstrates financial stability. A profit margin of 14.9% and a gross margin of 33.1% indicate efficient operations. Key growth catalysts include increasing demand for energy-efficient HVAC systems and expansion in the commercial refrigeration market. However, investors may want to evaluate potential risks such as economic downturns and increasing competition. The company's beta of 1.21 suggests higher volatility compared to the market.
Based on FMP financials and quantitative analysis
LII Key Highlights
- Market capitalization of $19.84B reflects substantial investor confidence.
- P/E ratio of 22.4 indicates a premium valuation relative to earnings.
- Profit margin of 14.9% demonstrates operational efficiency.
- Gross margin of 33.1% highlights strong pricing power.
- Dividend yield of 1.01% provides a steady income stream for investors.
Who Are LII's Competitors?
LII is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| FTAI FTAI Aviation Ltd. | $248.06 | -5.26% | $25.45B | 40 |
| CHRW C.H. Robinson Worldwide, Inc. | $189.85 | -0.74% | $22.38B | 46 |
| SNA Snap-on Incorporated | $412.09 | +2.18% | $21.35B | 93 |
| EXPD Expeditors International of Washington, Inc. | $167.57 | +0.46% | $21.92B | 89 |
| WSO Watsco, Inc. distributes air conditioning, heating, and refrigeration equipment, along with related parts and supplies. The company | $404.71 | -0.71% | $16.67B | 69 |
| CSRLF CSR Limited | $5.75 | -2.13% | $2.74B | 58 |
| PHOE Phoenix Asia Holdings Limited Ordinary Shares | $17.80 | +1.37% | $384.48M | 55 |
| NX Quanex Building Products Corporation | $17.08 | -5.01% | $784.45M | 54 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are LII's Key Strengths?
- Strong brand recognition and reputation.
- Diversified product portfolio across multiple segments.
- Extensive distribution network.
- Focus on energy-efficient and innovative solutions.
What Are LII's Weaknesses?
- Exposure to cyclical economic conditions.
- Dependence on raw material prices.
- Competition from larger and more diversified players.
- Potential for product recalls or warranty claims.
What Could Drive LII Stock Higher?
- New product launches in energy-efficient HVAC systems.
- Expansion of the distribution network in key markets.
- Implementation of digital technologies to enhance customer experience.
- Strategic acquisitions to expand product portfolio.
What Are the Key Risks for LII?
- Economic downturns and reduced construction activity.
- Rising raw material costs.
- Intense competition from domestic and international players.
- Changes in environmental regulations and energy efficiency standards.
What Are the Growth Opportunities for LII?
- Expansion in the Residential Heating & Cooling Market: The residential HVAC market is experiencing growth due to increasing demand for energy-efficient systems and smart home integration. Lennox can capitalize on this trend by developing and marketing innovative products that meet consumer preferences for comfort, convenience, and energy savings. The market size for residential HVAC is estimated to reach $30 billion by 2028, presenting a significant opportunity for Lennox to increase its market share.
- Penetration of the Commercial Heating & Cooling Sector: The commercial HVAC sector is driven by the need for reliable and efficient climate control solutions in office buildings, retail stores, and other commercial properties. Lennox can expand its presence in this market by offering customized solutions, energy-efficient equipment, and comprehensive service contracts. The commercial HVAC market is projected to reach $45 billion by 2027, providing substantial growth potential for Lennox.
- Growth in the Refrigeration Segment: The refrigeration segment is driven by the increasing demand for food preservation and cooling solutions in supermarkets, convenience stores, and restaurants. Lennox can capitalize on this trend by offering innovative refrigeration systems that reduce energy consumption, minimize food waste, and comply with environmental regulations. The refrigeration market is expected to reach $25 billion by 2026, offering a significant opportunity for Lennox to expand its market share.
- Leveraging Digital Technologies and IoT: Integrating digital technologies and Internet of Things (IoT) solutions into HVACR products can enhance performance, improve energy efficiency, and enable remote monitoring and control. Lennox can leverage these technologies to develop smart HVAC systems that optimize energy consumption, predict maintenance needs, and enhance customer satisfaction. The market for smart HVAC systems is projected to reach $15 billion by 2025, presenting a significant growth opportunity for Lennox.
- Strategic Acquisitions and Partnerships: Lennox can pursue strategic acquisitions and partnerships to expand its product portfolio, enter new markets, and enhance its technological capabilities. By acquiring companies with complementary products or technologies, Lennox can strengthen its competitive position and accelerate its growth. Potential acquisition targets include companies specializing in indoor air quality, smart home integration, or energy-efficient HVAC systems.
What Opportunities Does LII Have?
- Increasing demand for energy-efficient HVAC systems.
- Expansion in emerging markets.
- Growth in the commercial refrigeration sector.
- Adoption of smart home and IoT technologies.
What Threats Does LII Face?
- Economic downturns and reduced construction activity.
- Rising raw material costs.
- Intense competition from domestic and international players.
- Changes in environmental regulations and energy efficiency standards.
What Are LII's Competitive Advantages?
- Established brand reputation and customer loyalty.
- Extensive distribution network and service capabilities.
- Diversified product portfolio across residential, commercial, and refrigeration markets.
- Technological innovation and energy-efficient solutions.
What Does LII Do?
Founded in 1895, Lennox International Inc. has evolved into a prominent player in the heating, ventilation, air conditioning, and refrigeration (HVACR) markets. Initially focused on manufacturing riveted steel furnaces, the company expanded its product line over the decades to include a wide array of climate control solutions. Today, Lennox operates through three key segments: Residential Heating & Cooling, Commercial Heating & Cooling, and Refrigeration. The Residential Heating & Cooling segment provides furnaces, air conditioners, heat pumps, and indoor air quality equipment for residential replacement and new construction markets. The Commercial Heating & Cooling segment offers unitary heating and air conditioning equipment, applied systems, and controls for light commercial markets. The Refrigeration segment provides solutions for preserving food and other perishables in supermarkets, convenience stores, restaurants, and distribution centers. Lennox sells its products and services through a combination of direct sales, distributors, and company-owned parts and supplies stores, serving customers in the United States, Canada, and internationally. Headquartered in Richardson, Texas, Lennox International Inc. continues to innovate and adapt to changing market demands, maintaining a strong position in the HVACR industry.
What Products and Services Does LII Offer?
- Designs and manufactures furnaces, air conditioners, and heat pumps.
- Offers packaged heating and cooling systems for residential and commercial use.
- Provides indoor air quality equipment and accessories.
- Markets comfort control products and replacement parts.
- Offers refrigeration solutions for supermarkets and convenience stores.
- Provides installation and service of commercial heating and cooling equipment.
- Develops variable refrigerant flow commercial products.
How Does LII Make Money?
- Manufactures and sells HVACR products through direct sales and distributors.
- Generates revenue from replacement parts and supplies.
- Provides installation and maintenance services for commercial customers.
- Offers customized solutions for specific customer needs.
What Industry Does LII Operate In?
Lennox International Inc. operates in the HVACR industry, which is characterized by increasing demand for energy-efficient and environmentally friendly solutions. The market is driven by factors such as rising disposable incomes, urbanization, and stricter environmental regulations. The competitive landscape includes companies like Watsco, Inc. (WSO), which distributes air conditioning, heating, and refrigeration equipment. Lennox differentiates itself through its comprehensive product portfolio, strong brand reputation, and extensive distribution network. The HVACR market is expected to continue growing, driven by both replacement demand and new construction activities.
Who Are LII's Key Customers?
- Residential homeowners seeking replacement HVAC systems.
- Commercial building owners and managers.
- Supermarkets, convenience stores, and restaurants requiring refrigeration solutions.
- New construction projects requiring HVAC systems.
- Data centers and industrial facilities needing cooling applications.
Company Profile
Lennox International Inc. operates in the Construction industry within the Industrials sector. It is headquartered in Richardson, US. The company is led by CEO Alok Maskara. LII has traded publicly since 1999.
Lennox International Inc. Financial Trajectory
Lennox International Inc. (LII) reported $1.14B in revenue for Q1 2026, a decline of 5.0% compared to the prior quarter. The company recorded net income of $117.2M, with diluted EPS of $3.35. Revenue has contracted over three consecutive quarters, which investors in this large-cap Industrials stock should monitor closely. Across the four most recent quarters, LII averaged $5.54 in diluted EPS.
How Lennox International Inc. Is Valued
Lennox International Inc. carries a market capitalization of $19.84B, placing it in the large-cap category. Relative to its peer group, LII's quantitative score of 84/100 is above the peer average of 67/100.
ROE 72%Key Financial Metrics
Return on equity for Lennox International Inc. stands at 72.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 18.2%, showing how much profit it generates from its asset base. LII trades at a trailing price-to-earnings ratio of 22.43, below the Industrials sector average of ~30x. Its free cash flow yield is 3.8%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.57 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 4.5%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 7/9Financial Health
Lennox International Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 7.70 places it in the safe zone, indicating low near-term bankruptcy risk.
7/8 beatsEarnings Track Record
Lennox International Inc. has beaten Wall Street's EPS estimate in 7 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 8.6% above estimates on average.
FY2026 estForward Outlook
Wall Street analysts project Lennox International Inc. revenue of about $5.61B for fiscal 2026, with EPS near $24.33. The estimate reflects 15 contributing analysts.
Net buyingInsider Activity
Over the past six months, Lennox International Inc. insiders filed 15 SEC Form 4 transactions — 4 sales and 11 purchases. On net that is roughly 6K shares acquired (about $654K) — insiders putting money in tends to read as conviction.
LII Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Strong brand recognition and reputation.
- Diversified product portfolio across multiple segments.
- Extensive distribution network.
- Focus on energy-efficient and innovative solutions.
Bear Case
- Exposure to cyclical economic conditions.
- Dependence on raw material prices.
- Competition from larger and more diversified players.
- Potential for product recalls or warranty claims.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
From the Earnings Call
“Revenue is now expected to grow approximately 8% compared to prior guidance of 6% to 7%. The increase is driven by modestly higher mix and price, reflecting the Lennox price actions announced earlier this week, the annual price increase implemented earlier this year and the carryover benefit of the 2025 regulatory mix.”
— Michael Quenzer, CFO
“After two consecutive quarters of year-over-year sales declines, we were pleased in the first quarter to return to year-over-year revenue growth of 6%. Growth from our DuroDyne and Supco acquisitions completed in Q4 2025 contributed 6%, while growth in BCS was offset by continued sales declines in HCS.”
— Michael Quenzer, CFO
LII Q1 FY2026 earnings call transcript · 2026-04-29
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.14B | $117M | $3.35 |
| Q4 2025 | $1.20B | $143M | $4.06 |
| Q3 2025 | $1.43B | $246M | $6.92 |
| Q2 2025 | $1.50B | $278M | $7.82 |
Based on FMP financials and quantitative analysis
LII Latest News
-
Lennox International (LII) Stock Valuation Check After Recent Steady Performance And Modest Undervaluation Estimate
Yahoo! Finance: LII News · Jun 13, 2026
-
10 Industrials Stocks With Whale Alerts In Today's Session
benzinga · Jun 11, 2026
-
1 Cash-Producing Stock to Consider Right Now and 2 That Underwhelm
Yahoo! Finance: LII News · Jun 5, 2026
-
Lennox International Inc. (LII) Presents at 46th Annual William Blair Growth Stock Conference Transcript
seekingalpha.com · Jun 3, 2026
LII Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for LII.
Price Targets
Consensus target: $569.82
LII MoonshotScore
What does this score mean?
The MoonshotScore rates LII's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
Lennox International (LII) Stock Valuation Check After Recent Steady Performance And Modest Undervaluation Estimate
10 Industrials Stocks With Whale Alerts In Today's Session
1 Cash-Producing Stock to Consider Right Now and 2 That Underwhelm
Lennox International Inc. (LII) Presents at 46th Annual William Blair Growth Stock Conference Transcript
Leadership: Alok Maskara
CEO
Alok Maskara is the Chief Executive Officer of Lennox International Inc. He brings extensive experience in global operations, strategy, and business development. Prior to joining Lennox, Maskara held leadership positions at Pentair, where he served as Executive Vice President and President of Pentair's Water Solutions segment. He also worked at McKinsey & Company, advising clients on operational and strategic issues. Maskara holds an MBA from Harvard Business School and a Bachelor of Technology degree from the Indian Institute of Technology.
Track Record: Since becoming CEO, Alok Maskara has focused on driving growth through innovation, operational excellence, and strategic acquisitions. He has overseen the expansion of Lennox's product portfolio and the implementation of digital technologies to enhance customer experience. Under his leadership, Lennox has maintained its strong market position and delivered consistent financial performance.
LII Industrials Stock FAQ
What does Lennox International Inc. do?
Lennox International Inc. designs, manufactures, and markets a comprehensive range of heating, ventilation, air conditioning, and refrigeration (HVACR) products. The company operates through three segments: Residential Heating & Cooling, Commercial Heating & Cooling, and Refrigeration. Its products are used in residential homes, commercial buildings, supermarkets, and other facilities. Lennox sells its products and services through direct sales, distributors, and company-owned stores, serving customers in the United States, Canada, and internationally. The company's business model focuses on providing energy-efficient and reliable HVACR solutions to meet the diverse needs of its customers.
What do analysts say about LII stock?
Analyst consensus on Lennox International Inc. (LII) stock is generally positive, reflecting the company's strong market position and consistent financial performance. Key valuation metrics, such as the P/E ratio of 22.4, suggest a premium valuation relative to earnings. Growth considerations include the increasing demand for energy-efficient HVAC systems and the company's expansion in the commercial refrigeration market. However, analysts also note potential risks such as economic downturns and increasing competition. Overall, analysts view LII as a well-managed company with solid growth prospects, but investors should carefully consider the potential risks before making investment decisions.
What are the main risks for LII?
Lennox International Inc. faces several risks, including economic downturns that could reduce construction activity and demand for HVACR products. Rising raw material costs, such as steel and aluminum, could negatively impact profitability. Intense competition from domestic and international players could erode market share. Changes in environmental regulations and energy efficiency standards could require significant investments in new technologies. Product recalls or warranty claims could damage the company's reputation and financial performance. These risks could adversely affect Lennox's business, financial condition, and results of operations.
What are the key factors to evaluate for LII?
Lennox International Inc. (LII) holds an AI score of 84/100 (high). P/E: 22.4x vs the S&P 500's ~20-25x. Analysts target $569.82 (0%). Not financial advice.
How frequently does LII data refresh on this page?
LII prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven LII's recent stock price performance?
Lennox International Inc. (LII) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strong brand recognition and reputation. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider LII overvalued or undervalued right now?
Lennox International Inc. (LII) trades at 22.4x earnings. Analysts target $569.82 (0%) — near fair value. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying LII?
Before investing in Lennox International Inc. (LII), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- The information provided is based on available data and analysis.
- Future events and market conditions may impact the company's performance.