# Lennox International Inc. (LII)

> Source: Nexqual · https://nexqual.com/LII · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Lennox International Inc. (LII), nexqual.com/LII" · informational, not investment advice.

**Price:** USD 378.72 (+3.37% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 366.37 · day 363.45–382.99 · 52w 340.32–587.27 · market cap $13.1B · NYQ

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $5.30B, net income $789M (14.9% margin), free cash flow $739M (SEC filings).
- Valuation: P/E 16.6x (avg 25.1x at the last 3 fiscal year-ends), EV/EBITDA 12.5x, net debt $1.51B.
- 1 of 80 tracked superinvestors hold LII (13F, Q2 2026): 0 new, 1 added, 0 reduced, 0 unchanged.
- Insider open-market sales, last ~7 months: 1 Form 4 filings, $529K; 1 not under a Rule 10b5-1 plan ($529K); 1 by opportunistic insiders (1 outside 10b5-1 plans), 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Hold (mean 2.78 on a 1–5 scale) (18 analysts), mean target USD 442.14 (range 350–560).
- Total return with dividends: 1Y -22.6% vs S&P 500 +14.9%; 5Y +28.9% vs S&P 500 +80.3%.
- Next earnings: 2026-10-28, EPS estimate USD 7.36, revenue estimate $1.58B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $4.19B | $4.72B | $4.98B | $5.34B | $5.20B | $5.30B |
| Gross profit | $1.19B | $1.28B | $1.55B | $1.78B | $1.73B | — |
| Operating income | $590M | $656M | $792M | $1.04B | $1.04B | $1.04B |
| Net income | $464M | $497M | $591M | $811M | $806M | $789M |
| EPS (diluted) | $12.39 | $13.88 | $16.58 | $22.66 | $22.79 | — |
| Free cash flow | $409M | $201M | $486M | $782M | $639M | $739M |
| Gross margin | 28.3% | 27.2% | 31.1% | 33.3% | 33.4% | — |
| Operating margin | 14.1% | 13.9% | 15.9% | 19.5% | 20.0% | 19.7% |
| Net margin | 11.1% | 10.5% | 11.9% | 15.2% | 15.5% | 14.9% |
| Revenue growth | +15.4% | +12.5% | +5.6% | +7.2% | -2.7% | — |
| Cash + short-term investments | $36.5M | $61.1M | $69.1M | $422M | $34.7M | — |
| Total debt | $1.24B | $1.52B | $1.16B | $1.15B | $1.16B | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 16.6x · P/S 2.5x · EV/EBITDA 12.5x · EV/Sales 2.8x · P/FCF 17.7x · P/B 10.1x · FCF yield 5.64% · Earnings yield 6.02% · Dividend yield (paid, TTM) 1.39% · Buyback yield (TTM) 2.59% · Net debt $1.51B · EV $14.6B
P/E at fiscal year-ends: Dec 2025 21.3x, Dec 2024 26.9x, Dec 2023 27.0x.

## Superinvestors (SEC 13F-HR, Q2 2026)
1 of 80 tracked investors hold LII. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Viking Global | Viking Global Investors | 2.60% | $912M | Added +1.2% |

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 1 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-05-06 | Kosel Chris | VP-Corp Controller and CAO | 971 | $529K | 47.1% | No | Opportunistic (traded every year 2023–2025, no repeating month) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Hold (mean 2.78 on a 1–5 scale), 18 analysts; mean target USD 442.14 (low 350, high 560).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-15 | Morgan Stanley | Target lowered | Underweight | $375 → $350 |
| 2026-10-15 | Mizuho | Target lowered | Neutral | $450 → $395 |
| 2026-10-14 | Goldman Sachs | Downgrade | Buy → Neutral | $547 → $390 |
| 2026-10-14 | Oppenheimer | Target lowered | Outperform | $575 → $548 |
| 2026-10-14 | RBC Capital | Target lowered | Sector Perform | $469 → $406 |
| 2026-09-25 | Wells Fargo | Initiated | Equal-Weight | $424 |
| 2026-09-14 | Deutsche Bank | Downgrade | Buy → Hold | $609 → $444 |
| 2026-09-03 | Morgan Stanley | Target lowered | Underweight | $450 → $375 |
| 2026-07-31 | Goldman Sachs | Target lowered | Buy | $625 → $547 |
| 2026-07-30 | RBC Capital | Target lowered | Sector Perform | $579 → $469 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | -22.6% | +28.9% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | -22.6% | +5.2% |
| Volatility (annualized) | 41.0% | 33.3% |
| Max drawdown | -38.9% (Jun 2026→Oct 2026) | -45.5% (Nov 2024→Sep 2026) |

## Peers (Building Products & Equipment)
CSL (Carlisle Companies Incorporated) USD 352.6 +3.68% · MAIR (Madison Air Solutions Corporati) USD 23.08 -0.60% · MAS (Masco Corporation) USD 78.05 +4.68% · WMS (Advanced Drainage Systems, Inc.) USD 130.92 +0.71% · OC (Owens Corning Inc) USD 116.49 +3.80% · SPXC (SPX Technologies, Inc.) USD 160.01 -4.83%

## More
Full page: https://nexqual.com/LII · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in LII's own 10-K filed 2026-02-17 (https://www.sec.gov/Archives/edgar/data/1069202/000106920226000028/lii-20251231.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Partner | Samsung Electronics | "We own a 49.9% interest in a joint venture with Samsung that distributes Samsung ductless AC and heat pump products in the U.S. and Canada as well as "Lennox powered by Samsung" branded products through Lennox Stores and…" |

## Revenue by business segment (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Residential Heating and Cooling | $935.6M | 60.5% | -7.3% |
| Commercial Heating and Cooling | $609.7M | 39.5% | +24.0% |
| Total revenue | $1.55B | 100% | — |

## Revenue by region (fiscal year ended 2025-12-31)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| UNITED STATES | $4.82B | 92.8% | -4.0% |
| CANADA | $373.4M | 7.2% | +16.9% |
| Total revenue | $5.20B | 100% | — |

## Company outlook (8-K filed 2026-07-29)

- "Corporate and Other: Corporate expenses were $22 million, down $2 million from the prior-year quarter. 1 Includes unallocated corporate expenses FULL YEAR 2026 GUIDANCE For full year 2026, we are reaffirming revenue growth guidance at approximately 8% growth, including an updated 5% benefit from completed acquisitions."
- "Earnings per share guidance has been updated to a range of $23.00 to $24.00 compared to the prior range of $23.50 to $25.00."
- "FORWARD-LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES The statements in this document that are not historical statements, including statements regarding the 2026 full-year outlook and expected consolidated and segment financial results, as well as financial targets for future years, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $7.36 | $7.99 | -7.9% | $1.58B | 17 |
| Next quarter (ends 2026-12-31) | $5.04 | $5.48 | -8.1% | $1.34B | 16 |
| Current fiscal year (ends 2026-12-31) | $23.46 | $24.52 | -4.3% | $5.59B | 18 |
| Next fiscal year (ends 2027-12-31) | $25.80 | $26.84 | -3.9% | $5.93B | 18 |