Lennox International is a high-quality industrial business with a return on equity of 77% and consistent earnings execution, but with the current price sitting about 1.4% below near-term resistance and a reward-to-risk ratio of 0.2-to-1, the setup strongly favors waiting for a better entry over adding exposure at current levels.
Thesis pillars
- Best In Class Returns And Margins↓Deteriorating
- Consistent Earnings Execution→Stable
- Price At Resistance Poor Geometry→Stable
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 17, 2026
Lennox International, Inc. (LII) Stock Analysis
Industrials · Building Products & Equipment
Sell if holding. Analyst target reached at $344.08 — A.R:R is negative (-0.7) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Industrials): -0.7.
Lennox International designs and manufactures HVACR products across two North American segments — Home Comfort Solutions (residential furnaces, ACs, heat pumps) and Building Climate Solutions (commercial HVAC and refrigeration). In 2025, the company generated $5,195.3 million in... Read more
Sell if holding. Analyst target reached at $344.08 — A.R:R is negative (-0.7) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Industrials): -0.7. Chart setup: No clear chart pattern; technical signals are mixed. Score 4.7/10, high confidence.
Passes 4/8 gates (clean insider activity, earnings proximity 94d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: speculative.
About Lennox International, Inc.
About Lennox International, Inc.
Lennox International's Home Comfort Solutions segment generated $3,343.4 million of the company's $5,195.3 million in 2025 net sales; Building Climate Solutions — covering commercial HVAC, refrigeration, and the October 2025 Duro Dyne and Supco acquisitions — contributed the remaining $1,851.9 million. Operations are concentrated in North America, with manufacturing in the U.S. and Mexico. The company employed approximately 12,900 people at December 31, 2025 — roughly 8,500 in the U.S. and 3,200 in Mexico.
Lennox earns revenue across two primary distribution models: the company-owned channel sells Lennox-branded products directly to independent dealers, and the independent distribution system sells Armstrong Air, Ducane, AirEase, and related brands through wholesale distributors. National Account Services provides installation and service for commercial customers under multi-facility contracts. Raw material exposure centers on steel, aluminum, and copper, while compressors, motors, and controls are the most significant component purchases; Lennox holds a minority equity stake in a joint venture manufacturing compressors. Competitors in residential HVAC include Carrier Global Corporation, Trane Technologies, Daikin Industries, and Paloma Industries. Revenue is seasonal: summer air conditioning demand makes the second and third quarters the strongest, with roughly twice as many units shipped in June as in December. The company regularly pre-purchases portions of raw materials at fixed prices to reduce commodity cost volatility.
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Lennox's business is directly subject to U.S. Department of Energy energy conservation standards — the company successfully updated product lines to comply with the latest standards in 2023. Transition to refrigerants with a GWP of 700 or less for most commercial and residential HVAC products became effective January 1, 2025, under EPA authority established by the American Innovation and Manufacturing Act. Future refrigerant or efficiency rule changes could require additional capital expenditure; the 10-K also notes approximately 26% of core workforce locations are unionized, with the Marshalltown, Iowa union contract ratified in November 2021 and future negotiations carrying uncertain outcomes.
See also: Industrials · Building Products & Equipment
From Lennox International, Inc.'s most recent 10-K filing, extracted June 11, 2026.
Recent developments
updated 2026-10-31Recent Developments — Lennox International, Inc.
Latest news
- NEWS Lennox International Inc.’s Stock Price Plummets by 20.97%, Now Trading at $430.02 - Smartkarma — Smartkarma negative
- NEWS Lennox International Hasn't Cooled Down Enough Yet (NYSE:LII) - Seeking Alpha — Seeking Alpha negative
- NEWS Why Lennox Stock Crashed Today - The Motley Fool — The Motley Fool negative
- NEWS Why Lennox Stock Crashed Today - The Globe and Mail — The Globe and Mail negative
- NEWS Why Lennox Stock Crashed Today - fool.com — fool.com negative
Generated 2026-10-31T13:02:20Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Material Events(8-K, last 90d)
- 2026-05-28Item 5.02LOWDirector Sivasankaran Somasundaram resigned from Lennox International's Board effective May 23, 2026, citing other professional responsibilities and time commitments. No disagreement with company operations, policies, or practices. Board reduced from 9 to 8 members; no successor named.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
2 floor-breakers
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $344.08 — A.R:R is negative (-0.7) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Industrials): -0.7. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $319.99. Score 4.7/10, high confidence.
Analyst target $323.57 reached (−6.0% from $344.08); no take-profit level is published. Prior stop was $319.99. Stop-loss: $319.99.
Analyst target reached - limited upside remaining; Sector modifier (Industrials): -0.7; Leverage penalty (D/E 1.6): -1.0.
Lennox International, Inc. trades at a P/E of 15.6 (forward 14.6). TrendMatrix value score: 6.8/10. Verdict: Sell.
24 analysts cover LII with a consensus score of 3.4/5. Average price target: $372.
What does Lennox International, Inc. do?Lennox International designs and manufactures HVACR products across two North American segments — Home Comfort...
Lennox International designs and manufactures HVACR products across two North American segments — Home Comfort Solutions (residential furnaces, ACs, heat pumps) and Building Climate Solutions (commercial HVAC and refrigeration). In 2025, the company generated $5,195.3 million in net sales, selling through direct dealer networks, independent distributors, and company-owned Lennox Stores.