Lennox International (LII)
Industrials · $12.7B market cap · SEC CIK 0001069202
fundamentals score out of 100
Next reports on Oct 22, 2026, before the open, with analysts expecting $7.53 in earnings per share.
The case for LII
- Earns 67% on shareholder equity.
- Reasonably priced at 16.0× earnings.
- Pays a modest 1.1% dividend.
The case against
- Revenue slipped 2.1% on the year.
- Down 32.6% over the past year.
- Near the bottom of its 52-week range, 37% below the high. Falling prices usually have a reason; find it first.
- Stability is weak (38/100): beta 1.19, a 40% swing over the year.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 65 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 34 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 72 |
| Momentumhow the price has behaved lately | 10 |
| Stabilityhow violently it moves, what it owes and what it pays you | 38 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
Key numbers
| Price / earnings | 16.0× |
|---|---|
| Price / book | 15.37× |
| Price / sales | 2.4× |
| Revenue growth (YoY) | -2.1% |
| EPS growth (YoY) | -3.0% |
| Gross margin | 33% |
| Operating margin | 20% |
| Net margin | 15% |
| Return on equity | 67% |
| Debt / equity | 1.22× |
| Current ratio | 1.57 |
| Dividend yield | 1.06% |
| Beta | 1.19 |
| 52-week range | $350.22 – $587.27 |
| Position in that range | 9% of the way up |
| 3-month return | -31.7% |
| 1-year return | -32.6% |
Five years of financials, as filed
Pulled from Lennox International's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $5.2B | $5.3B | $5.0B | $4.7B | $4.2B |
| Gross profit | $1.7B | $1.8B | $1.5B | $1.3B | $1.2B |
| Operating income | $1.0B | $1.0B | $792M | $656M | $590M |
| Net income | $806M | $811M | $591M | $497M | $464M |
| Operating cash flow | $758M | $946M | $736M | $302M | $516M |
| Capital expenditure | $119M | $164M | $250M | $101M | $107M |
| Total assets | $4.1B | $3.6B | $2.9B | $2.6B | $2.2B |
| Total liabilities | $2.9B | $2.7B | $2.5B | $2.8B | $2.4B |
| Shareholder equity | $1.2B | $962M | $393M | -$203M | -$269M |
| Cash | $34.2M | $415M | $60.7M | $52.6M | $31.0M |
| Free cash flow | $639M | $782M | $486M | $201M | $409M |
| Gross margin | 33.4% | 33.3% | 31.1% | 27.2% | 28.3% |
| Operating margin | 20.0% | 19.5% | 15.9% | 13.9% | 14.1% |
| Net margin | 15.5% | 15.2% | 11.9% | 10.5% | 11.1% |
| Diluted shares | 35.4M | 35.8M | 35.7M | 35.8M | 37.5M |
Share count is down 5.6% over 4 years. Buybacks have been shrinking the pie.
What Lennox International says it does
References in this Annual Report on Form 10-K to "we," "our," "us," "Lennox," "LII" or the "Company" refer to Lennox International Inc. and its subsidiaries, unless the context requires otherwise. The Company We are a global leader in energy-efficient climate-control solutions. We design, manufacture and market a broad range of products for the heating, ventilation, air conditioning and refrigeration ("HVACR") markets. We have leveraged our expertise to become an industry leader known for innovation, quality and reliability. Our products and services are sold through multiple distribution channels under various brand names. The Company was founded in 1895, in Marshalltown, Iowa, by Dave Lennox, the owner of a machine repair business for railroads. He designed and patented a riveted steel coal-fired furnace, which led to numerous advancements in heating, cooling and climate control solutions. Our two business segments, Home Comfort…
Risk factors LII lists in its 10-K
- Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 - Consolidated Results
- Selling, General and Administrative Expenses
- Income from Equity Method Investments
- Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 - Consolidated Results
- Net Cash Provided By Operating Activities
- Net Cash Used In Investing Activities
- Net Cash Used In Financing Activities
- Current maturities of long-term debt
- Financial Covenants related to our Debt
- Guarantees related to our Debt Obligations
- For the Year Ended December 31, 2025
- Foreign Currency Exchange Rate Risk
- Product Warranties and Product-Related Contingencies
- Quantitative and Qualitative Disclosures About Market Risk