📈 Price History

Ratio Health

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By Category

📊 Sector Averages

About

Lennox International Inc., together with its subsidiaries, designs, manufactures, and markets products for the heating, ventilation, air conditioning, and refrigeration markets in the United States, Canada, and internationally.

Key Ratios Snapshot

📈 Growth Pattern

⚡ Latest Quarter —

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📊 Quick Scorecard

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⭐ Superinvestors Holding LII

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Manager	Shares	Value	% of Fund	Period
Andreas Halvorsen Viking Global Investors	1.57M	$729.8M	2.04%	Mar 2026
Steve Cohen Point72 Asset Management	61.3K	$28.5M	0.04%	Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

🔍 Concall Decoded

🎙 Management Tone Tracker Confident Specific → Stable 4 quarters analysed

Q2 2025

Confident Specific

Management used phrases like 'impressive results', 'record segment margin', 'raising full-year outlook', and 'I am confident in our strategy'. They highlighted strong execution despite headwinds and provided specific numbers for margin expansion and EPS guidance.

Q3 2025

Mixed

Management expresses confidence in margin resilience and strategic positioning but acknowledges significant headwinds from destocking, weak demand, and lowered guidance. Phrases like 'challenging external environment', 'temporary headwinds', and 'confident about a strong rebound next year' indicate a balanced but guarded optimism.

Q4 2025

Confident Specific

CEO expressed pride in record margins above 20% and detailed cost productivity of $75M, while acknowledging soft demand and destocking. CFO provided specific guidance ranges (revenue up 6-7%, EPS $23.50-$25) and quantified inventory excess ($200M) and tariff impact ($125M).

Q1 2026 latest

Confident Specific

Management used concrete figures (6% revenue growth, 14.4% segment margin, $3.35 EPS) and specific descriptions ('channel destocking has largely concluded', 'emergency replacement momentum'). They acknowledged tariff/input cost headwinds but expressed confidence in mitigation actions. No vague or evasive language observed; responses were direct with data.

Guidance Reliability Pending · <3Q data

Investor Lens

The investment thesis remains broadly intact but faces near-term headwinds. The steady improvement in HCS volumes and the exceptional BCS momentum are positive signals, but the call highlighted a sharp increase in cost inflation (5% vs prior 2%) and ongoing tariff uncertainty. Management's ability to offset these with pricing actions (90% drop-through) and productivity gives confidence in maintaining EPS guidance, but margins will be compressed in the first half. The lack of a full-year margin expansion and the vague mitigation timeline for tariffs weaken the near-term thesis. Key metrics to watch next quarter: HCS volume progression, the actual stick rate of recent price increases, and any incremental tariff impacts. The BCS strength provides a buffer, but HCS recovery is critical for EPS targets.

AI-generated concall tone analysis · Updated 2026-06-08 · Not investment advice

🎙 Management Tone Confident Specific → Stable 4 quarters Full tone analysis in Intelligence →

📊 MIXED Lennox Q1 2026 revenue $1.1B, up 6%; adj EPS $3.35; FY guid $23.50-$25.00

Revenue & Profitability

Revenue $1.1 billion, up 6% YoY. Adjusted EPS $3.35. Operating cash flow positive $16 million; free cash flow use of $39 million improved from $61 million use a year ago. Segment margin 14.4%, down 130 bps. HCS revenue declined 10% (organic -12%), BCS organic sales up 26%.

Outlook

Management sees the industry environment gradually improving with channel destocking largely concluded and replacement demand strengthening. Consumer sentiment remains cautious, continuing to weigh on new home construction and remodel activity. Repair versus replacement has stabilized, providing better visibility into underlying demand. The company expects sequential year-over-year improvement in volume and margins through the year.

Growth Drivers

Key growth levers include Building Climate Solutions (emergency replacement and national accounts driving record quarterly performance), new product introductions (water heater launch, heat pumps, ductless via Samsung JV), and the integration of Supco parts and supplies to boost attachment rates. HCS is benefiting from improved two-step channel performance and restocking ahead of summer.

Balance Sheet & CapEx

Full-year 2026 capital expenditures expected to be approximately $250 million, focused on innovation and training centers, digital capabilities, distribution network optimization, ERP modernization, and targeted AI capabilities. AI investments are yielding results in pricing and demand planning.

Margins

Q1 segment margin of 14.4% declined 130 bps primarily due to $15 million of factory under absorption. Management expects margins to recover as under absorption eases by end of Q2. Full-year enterprise margin expected to decline slightly due to higher cost inflation (now +5% vs prior +2%) offset by pricing actions and productivity. Adjusted EPS guidance unchanged at $23.50-$25.00.

Key Risks

Key risks include tariff and cost inflation uncertainty (Section 232 tariffs, commodity and fuel price increases), factory under absorption, ongoing softness in new home construction, cautious consumer sentiment, and potential price elasticity impacts. The company also faces a pending lawsuit that it disputes. Management flagged the need for continuous focus and execution given the dynamic external environment.

Generated by AI · Q1 2026 results · Not investment advice

✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter

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📞 Earnings Call Transcripts (5)

Q2 2026 Q2 2026 2026-07-29

Revenue grew 3% to $1.5B, with strong commercial gains offsetting residential softness. Adjusted EPS was flat, and full-year EPS guidance was lowered due to weaker residential volumes, but free cash flow and revenue growth targets remain intact.

Q1 2026 Q1 2026 2026-04-29

Revenue grew 6% year-over-year to $1.1B, driven by acquisitions and BCS strength, while HCS stabilized but remained challenged. 2026 guidance was raised for revenue and segment growth, with cost inflation and tariffs expected to impact the second half.

Q4 2025 Q4 2025 2026-01-28

Record segment margins and resilient EPS growth were achieved despite revenue declines and market headwinds in 2025. 2026 guidance anticipates revenue growth, margin expansion, and strong free cash flow, supported by strategic investments and productivity gains.

Q3 2025 Q3 2025 2025-10-22

Margins remained resilient despite a 5% revenue decline, with record Q3 EPS and segment margin. Inventory destocking and weak demand led to lower guidance, but acquisitions and operational improvements are expected to drive growth and margin expansion in 2026.

Q2 2025 Q2 2025 2025-07-23

Q2 delivered 3% revenue growth, record segment margin, and strong cash flow despite industry headwinds. Full-year guidance was raised for both revenue and EPS, supported by productivity gains, strategic partnerships, and improved factory output.

📊 Analysis Methodology

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