At a glance
Lennox International Inc is worth $12.10B, about 16 times its fiscal 2025 earnings. Revenue fell 2.7% to $5.20B in fiscal 2025, with 15.5% kept as profit; over 5 years it has grown 7.4% a year. It pays a 1.5% dividend yield, raised every year for at least 9 years, and returned $2.19B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −29.2% over the past year with dividends reinvested and +4.2% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 40.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 12 months after the low.
The business in plain English
Lennox International makes heating, air conditioning and refrigeration equipment for homes and businesses in North America. Dave Lennox founded the company in 1895 in Marshalltown, Iowa, after he patented a steel coal-fired furnace. Lennox sells its own Lennox brand directly to independent installing dealers. Brands such as Armstrong Air, Ducane and AirEase go through independent wholesale distributors instead. Lennox also runs Lennox Stores across the U.S. and Canada, where contractors pick up parts and supplies.
Home Comfort Solutions is the larger of its two segments. It sold $3.34 billion of furnaces, air conditioners, heat pumps, comfort controls and parts in fiscal 2025 (the year ended December 31, 2025). That was 64% of the company's $5.2 billion in net sales. These products go into both replacement systems and newly built homes. Building Climate Solutions brought in the other 36%, or $1.85 billion. It sells rooftop heating and cooling units for offices, restaurants, stores and schools. It also installs and maintains equipment for large commercial customers and sells Heatcraft refrigeration equipment for supermarkets, warehouses and data centers.
Lennox sold its European operations in late 2023 and now concentrates on North America. In October 2025 it acquired Duro Dyne and Supco, which make heating and cooling parts and supplies. It also owns 49.9% of two joint ventures: one with Samsung for ductless air conditioners and heat pumps, and one with Ariston Group for water heaters.
Price history
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LII -29.2% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Residential Heating and Cooling | $3.34B | 64.4% |
| Commercial Heating and Cooling | $1.85B | 35.6% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $1.57B, up 10.2% from a year earlier, and net income was $221.2M (-14.9%).
- For fiscal 2025, revenue was $5.20B (-2.7% year over year; +7.4% a year from FY2020 to FY2025) with a 15.5% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +7.4% good |
|---|---|
| Operating margin | 20% good |
| Free cash flow margin | 12.3% good |
| Return on equity (FY2025) | 69.3% (lifted by a small equity base, often the result of years of buybacks) good |
| Return on assets (FY2025) | 19.7% good |
| Net cash (cash minus debt) | $-1.58B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $3.63B | $356.3M | $533.9M |
| FY2021 | $4.19B | $464.0M | $408.7M |
| FY2022 | $4.72B | $497.1M | $201.2M |
| FY2023 | $4.98B | $591.2M | $486.0M |
| FY2024 | $5.34B | $811.1M | $782.1M |
| FY2025 | $5.20B | $805.8M | $638.8M |
Valuation snapshot
| Market value | $12.10B |
|---|---|
| P/E ratio | 15.5 |
| Dividend yield | 1.5% |
Rank among 1514 US companies
Market value at each year end
Lennox International’s market value went from $10.49B at the end of 2020 to $12.10B on Nov 2, 2026, up 15%; since the end of 2025 it is down 29%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $12.10B | -29.0% |
| 2025 | $17.03B | -21.5% |
| 2024 | $21.71B | +36.5% |
| 2023 | $15.90B | +87.6% |
| 2022 | $8.48B | -28.6% |
| 2021 | $11.87B | +13.2% |
| 2020 | $10.49B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| LII price data to Nov 2, 2026 | -26.5% | -29.2% | -1.6% | +4.2% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -26.5% |
| 2025 | -19.6% |
| 2024 | +37.3% |
| 2023 | +89.5% |
| 2022 | -24.9% |
| 2021 | +19.7% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 28.6% over that stretch · deepest drop along the way 40.7%, back to its old high 11.9 months after the low |
Insider activity
Form 4 filings from 2025-11-03 to 2026-11-03 (25 read): 0 open-market purchases and 4 sales ($1.1M).
| Date | Insider | Type | Value |
|---|---|---|---|
| May 6, 2026 | Chris Kosel VP-Corp Controller and CAO | sell | $529K |
| Feb 4, 2026 | Todd J Teske Director | sell | $373K |
| Feb 4, 2026 | Chris Kosel VP-Corp Controller and CAO | sell | $136K |
| Feb 25, 2026 | Shane D Wall Director | sell | $54K |
Who owns it
Large shareholders (13G filings)
| Capital International Investors | 8.4% | Dec 31, 2025 |
| BlackRock, Inc. | 8% | Dec 31, 2024 |
| Vanguard Capital Management | 6.68% | Mar 31, 2026 |
| VIKING GLOBAL INVESTORS LP | 5.2% | Apr 15, 2026 |
ETFs with the most weight in LII
| KMID Virtus KAR Mid-Cap ETF | 3.93% |
| XHB SPDR S&P Homebuilders ETF | 3.44% |
| ITB iShares U.S. Home Construction ETF | 2.88% |
| CCSO Carbon Collective Climate Solutions U.S. Equity ETF | 2.63% |
| NUMG Nuveen ESG Mid-Cap Growth ETF | 2.51% |
| UPGR Xtrackers US Green Infrastructure Select Equity ETF | 2.5% |
| PRN Invesco Dorsey Wright Industrials Momentum ETF | 2.2% |
| FSCS First Trust SMID Capital Strength ETF | 0.95% |
What could go wrong
- Heavy reliance on its dealer network. A substantial portion of revenue comes from selling directly to independent home-service dealers. Distribution is easy for new rivals to enter, and losing ground there could cut equipment and follow-on parts sales.
- Single-site factories and key suppliers. Lennox makes many products at just one plant, and some parts come from a single supplier. A disruption at one site, such as a climate-related disaster, could leave it unable to meet demand.
- Mild weather can hurt sales. Cooler summers and warmer winters may depress sales. People tend to replace air conditioners and furnaces when they break down under heavy use, so a mild season can mean fewer orders.
- Tied to U.S. construction activity. Results depend partly on the health of the U.S. construction industry. Fewer new homes and commercial buildings, often caused by higher interest rates or a weak economy, mean less demand for new equipment.
- Tariffs and swings in material costs. Prices for the commodities and components Lennox purchases can be volatile, and U.S. tariffs can push them higher. If Lennox cannot raise its own prices to offset this, profits and cash flow could suffer.
- Shifting environmental and climate rules. Environmental and climate rules shape which products Lennox can sell. Its profit plans count partly on rule changes steering buyers toward higher-margin products, but new or reversed rules could raise costs or hurt demand.
Recent events
- Executive or board change; Investor presentation or announcement
- Quarterly results released
- Executive or board change
- Quarterly results released
- Executive or board change; Shareholder vote results
- Quarterly results released
- Quarterly results released
- Executive or board change
For income and retirement investors
Lennox has raised its dividend for at least nine years in a row through fiscal 2025, and the streak may be longer. Dividends per share grew from $3.08 in fiscal 2020 to $5.05 in fiscal 2025, about 10.4% a year. In fiscal 2025 the dividend used 21.5% of earnings and 27.1% of free cash flow (cash left after capital spending). The yield was 1.6% as of October 28, 2026, so dividend income is modest. Share buybacks return more cash: $1.44 billion in fiscal 2021–2025, against $755 million in dividends. The share count fell 6.6% between February 2022 and October 2026.
In the 2022 bear market (a long, steep fall in the broad market), the shares fell 40.7% from their January 4 peak to a June 16 low. They took about 12 months to recover, by June 13, 2023. As of October 28, 2026, they were down 32.8% over one year. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Lennox make money?
Lennox makes money by selling heating, air conditioning and refrigeration equipment, plus parts and services, mainly in North America. Net sales were $5.2 billion in fiscal 2025. Home Comfort Solutions, which sells furnaces, air conditioners and heat pumps for homes, brought in 64%. Building Climate Solutions, which sells rooftop units, commercial refrigeration and maintenance services for businesses, brought in 36%. Net income was $806 million, or 15.5% of sales.
Does Lennox raise its dividend every year?
Yes, at least through fiscal 2025. Lennox has raised its regular dividend for at least nine years in a row, and the streak may be longer. Dividends per share reached $5.05 in fiscal 2025, up from $3.08 in fiscal 2020. The dividend used 21.5% of fiscal 2025 earnings. The yield was 1.6% as of October 28, 2026. Past increases do not guarantee future ones.
How much debt does Lennox have?
Lennox had about $1.62 billion of total debt and $45.5 million of cash and investments as of September 30, 2026. That leaves net debt (debt minus cash) of about $1.58 billion. Shareholders' equity was $1.32 billion. Share buybacks, which totaled $1.44 billion in fiscal 2021–2025, reduce equity. That helps explain why return on equity (profit as a share of equity) was a high 69.3% in fiscal 2025. Debt adds risk if sales or profits weaken.
Does Lennox still operate in Europe?
No. Lennox completed the sale of its European operations in the fourth quarter of 2023. That business made commercial heating, cooling and refrigeration products at plants in Germany, France and Spain. Lennox now focuses on North America. It runs factories in the region and owns 50% of a refrigeration joint venture in Mexico. It is also adding output from a new commercial heating and cooling factory in Mexico.
How has Lennox stock performed?
Unevenly. The shares gained 89.5% in 2023 and 37.3% in 2024, then fell 19.6% in 2025. They were down 30.9% year to date as of October 28, 2026. In the three years to that date, the deepest drop from a peak was 50%. In the quarter ended September 30, 2026, revenue rose 10.2% from a year earlier while net income fell 14.9%. The price-to-earnings ratio (share price divided by earnings per share), based on fiscal 2025 earnings, was 14.6 as of October 28, 2026.