LII
Lennox International Inc.

Lennox International Inc.LII

Industrials · Building Products & Equipment
341.97USD
-1.96%
Nov 08, 2026
LII overview ready
North American HVAC Manufacturer Supplying High-Efficiency Heat Pumps
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.
Theme not measured
HVAC & Cooling Equipment has no leadership state this session.
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 cash the business actually produces.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Economic downturns reducing new construction and replacement demand.
Market Nov 6Filing Sep 30Price action Nov 7Research Aug 21

Conviction Level

Theme Momentum has no canonical measurement for this company — a research-profile dimension, not an input to this score.

PriceAction1.4BusinessPerformance5.0BusinessQuality8.7Valuation8.8ThemeMomentum—Mixed — Revenue growth has accelerated, rising from +3.0% to +10% year over year. Diluted EPS fell 13% year over year to $6.41. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
HVAC & Cooling Equipment — HVAC & Cooling Equipment is tracked (3–4 priced members) — too few for a leadership state
Its economic family, Industrials & Infrastructure, reads Improving (+8.8pp vs SPY) — the family’s reading, not this theme’s.
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.
EntryDamaged / breakdown

The technical structure itself is broken across timeframes — the weakest entry profile.

Key Financials

Market Cap
$11.7B
Avg Volume (60D)
616.6K
60 sessions
Revenue Growth YoY
-2.7%
FY2025 vs FY2024
Gross Margin
+32.6%
Trailing twelve months
Operating Margin
+18.8%
Trailing twelve months
Free Cash Flow Yield
+7.1%
Distance from 200DMA
-26.5%
P/E
15.6x
EV / EBITDA
11.1x
EV / Sales
2.4x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Mixed

Revenue growth has accelerated, rising from +3.0% to +10% year over year. Diluted EPS fell 13% year over year to $6.41.

Latest reported: Q3 FY2026, ended Sep 30
Revenue growthAccelerating
+10%
$1.57B in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. -11%
  2. +5.8%
  3. +3.0%
  4. +10%
Earnings growthDeclining
-13%
Diluted EPS $6.41 vs $7.38 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. -28%
  2. -7.7%
  3. +0.1%
  4. -13%
Operating marginContracting
19.9%
-3.2 pp YoY · gross margin 31.6% (-2.5 pp)

Business Quality

8.7 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Two of the three valuation perspectives say cheap; peers is the dissenting view.
Lennox International Inc. has a Cheap valuation stance because current market expectations look undemanding relative to the cash the business actually produces.

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
Economic downturns reducing new construction and replacement demand.

Economic classification

Loading the economic classification…

Business & Markets

Industrials · Building Products & Equipment
What they do

Lennox International designs, manufactures, and markets heating, ventilation, air conditioning, and refrigeration products primarily in North America and internationally through its subsidiaries.

How it earns

The company generates revenue through transactional sales of HVAC and refrigeration equipment, replacement parts, and related products to residential and commercial customers.

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

Lennox is a leading North American HVAC equipment manufacturer with broad product offerings and direct sales exposure to residential and commercial markets.

Demand drivers
Medium cyclicality

Demand is influenced by new construction and replacement cycles, which are sensitive to economic conditions and building activity.