LII
Lennox International Inc.

Lennox International Inc.LII

Industrials · Building Products & Equipment
371.68USD
+2.21%
Sep 23, 2026
LII overview ready
North American HVAC manufacturer driving heat pump and efficient climate control adoption
Lennox is a North American HVAC equipment manufacturer with direct sales exposure to residential heat pumps and air conditioners, commercial unitary and applied HVAC, VRF, controls, refrigeration equipment, replacement parts, and contractor/distribution channels.
Narrative is still early
Exposed to the Building Electrification and Efficient Climate Control narrative through Heat Pump and High-Efficiency HVAC Replacement — pure play.
Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Attractive valuation
Current market expectations look undemanding relative to the level and quality of its cash generation.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Cyclical demand tied to construction and consumer spending.
Market Sep 22Filing Jun 30Price action Sep 22Research Aug 21

Conviction Level

NarrativeHeat6.5ThemeHeat7.1PriceAction3.4Valuation8.9CompanyPosition7.3
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryWeak / unconfirmed recovery

The daily chart may be improving, but the weekly fast averages have not been reclaimed — the recovery is not yet confirmed on the higher timeframe.

Key Financials

Market Cap
$12.8B
Avg Volume (60D)
559.9K
60 sessions
Revenue Growth YoY
-2.7%
FY2025 vs FY2024
Gross Margin
+33.3%
Trailing twelve months
Operating Margin
+19.7%
Trailing twelve months
Free Cash Flow Yield
+5.8%
Distance from 200DMA
-24.2%
Next Earnings
2026-10-28
P/E
16.3x
EV / EBITDA
12.0x
EV / Sales
2.6x
Market metrics as of Sep 22, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Jun 30, 2026

Fundamentals & Valuation

One of the two valuation perspectives says cheap; intrinsic is the dissenting view.
Lennox International Inc. has a Cheap valuation stance because current market expectations look undemanding relative to the level and quality of its cash generation.

Company Research

Thesis
Lennox is a North American HVAC equipment manufacturer with direct sales exposure to residential heat pumps and air conditioners, commercial unitary and applied HVAC, VRF, controls, refrigeration equipment, replacement parts, and contractor/distribution channels.
Opportunity
Moderate opportunity
Residential and commercial replacement and new-construction demand shifting toward electrically driven, higher-efficiency heating and cooling systems, supported by operating-cost economics, building codes, utility programs, and decarbonization goals.
Key risk
Cyclical demand tied to construction and consumer spending.

Narrative & Theme

Building Electrification and Efficient Climate Control
Part of Heat Pump and High-Efficiency HVAC Replacement, with moderate fit.
LII has genuine, direct exposure to an investable HVAC-electrification and replacement-cycle theme through heat pumps and high-efficiency residential and commercial equipment.
Narrative HeatNeutral6.5 / 10
Theme HeatHeating up7.1 / 10
This is the company’s own research reading. The canonical heat measurement for this story has not run.

Business & Markets

Industrials · Building Products & Equipment
What they do

Lennox International Inc. designs, manufactures, and markets heating, ventilation, air conditioning, and refrigeration products primarily for residential and commercial customers in the US, Canada, and internationally.

How it earns

The company generates revenue through transactional sales of HVAC and refrigeration equipment and related replacement parts.

Products & services
Furnaces
Air conditioners
Heat pumps
Packaged heating and cooling systems
Indoor air quality equipment
Comfort control products
Replacement parts and supplies
Customers & end markets
Residential customers
Commercial customers
HVAC contractors and distributors
Market position

Lennox is a leading manufacturer in the HVAC and refrigeration equipment industry with a strong brand presence.

Demand drivers
Medium cyclicality

Business is influenced by construction activity and consumer spending on home comfort upgrades, which fluctuate with economic cycles.