
Lennox International Inc.

LII (Lennox International Inc.) trades at 3.4x EV/Revenue — attractively valued for a industrials company with solid margins (33%) and mature growth profile. The business is profitable at 22% EBIT margins. Forward PE of 19x.
The S&P 500 has returned an average of 10.7% annually since 1926 — but only 6 of those years actually returned between 8-12%.
LII (Lennox International) designs, manufactures, and markets climate control solutions including heating, ventilation, air conditioning, and refrigeration systems. They serve residential and commercial customers primarily in North America through a network of independent dealers and distributors. The company generates revenue through equipment sales, replacement parts, and aftermarket services across their residential HVAC, commercial HVAC, and refrigeration segments.
LII has delivered mid-single digit revenue growth historically, benefiting from replacement demand in aging housing stock and commercial building upgrades. The North American HVAC market represents a ~$15B opportunity with structural growth drivers including electrification trends and stricter efficiency standards. Heat pump adoption and smart home integration provide additional growth vectors beyond traditional replacement cycles.
The company maintains healthy gross margins in the mid-20% range with operating margins typically in the low-to-mid teens. Free cash flow generation is strong given the capital-light business model, though margins can be volatile due to commodity input costs and competitive pricing. The high-margin parts and service business provides stability and margin expansion opportunities over time.
LII competes with Carrier, Trane, and other major HVAC manufacturers but differentiates through premium positioning and dealer relationships. Their independent dealer network provides local market expertise and customer relationships that are difficult to replicate. The company's focus on innovation and energy-efficient products helps maintain pricing power in competitive markets.
*Limited financial data available for recent quarters.* The company's performance typically correlates with housing activity and commercial construction trends. Given current market conditions with elevated interest rates impacting housing, recent results likely reflect challenging demand dynamics offset by replacement market resilience.
*Analyst coverage data not available.* HVAC manufacturers generally face mixed sentiment given housing market headwinds balanced against long-term electrification and replacement demand trends. The sector's cyclical nature creates ongoing debates about timing and valuation multiples.
LII is a quality industrial company with strong market position in essential infrastructure, but near-term performance remains tied to housing market recovery and commodity cost management.
Gold Eagle provides data and AI-generated analysis for informational purposes only. Not investment advice. All data from public sources.








| '25E | '26E | '27E | '28E | |
|---|---|---|---|---|
| Revenue | — | $5.5B | $5.8B | $6.1B |
| Growth | — | +5% | +5% | |
| EBITDA | — | $1.6B | $1.7B | $1.8B |
| Growth | — | +5% | +5% | |
| EPS (PF) | — | $24.14 | $26.37 | $28.61 |
| Growth | — |
Lennox Declares Quarterly Dividend
Lennox International Inc. (LII) Analyst/Investor Day Transcript
Lennox Reaffirms 2026 Guidance and Announces 2030 Long-Term Targets at 2026 Investor Day
Lennox Expands into Residential Water Heating Through Ariston Joint Venture
Lennox International Inc. (LII) Presents at Barclays 43rd Annual Industrial Select Conference Transcript
| +9% |
| +8% |