LII
IndustrialsLennox International Inc. · Construction · $17B
What is Lennox International Inc.?
Lennox International is a large-cap industrials company focused on heating, ventilation, air conditioning, and refrigeration systems. Headquartered in Richardson, Texas, it serves residential, commercial, and industrial customers across North America and internationally.
Lennox generates revenue across three segments: Residential Heating & Cooling, Commercial Heating & Cooling, and Refrigeration. The residential segment sells furnaces, air conditioners, heat pumps, and indoor air quality products for homes. The commercial segment provides unitary HVAC systems and applied solutions for light commercial buildings. The refrigeration segment supplies condensing units, coolers, and rack systems for supermarkets, restaurants, warehouses, and data centers. Products reach customers through direct sales, distributors, and company-owned supply stores.
Lennox International was incorporated in 1999 and is headquartered in Richardson, Texas.
- Residential furnaces, air conditioners, and heat pumps
- Commercial HVAC unitary and applied systems
- Refrigeration condensing units and rack systems
- Indoor air quality accessories and comfort controls
- Replacement parts and supplies through owned store network
Is LII a Good Stock to Buy?
UQS Score rates LII as Good overall, reflecting a balanced profile across the five quality pillars.
The Quality pillar stands out as the clearest strength, indicating that Lennox generates reliable earnings and manages its business with discipline relative to sector peers. The Valuation pillar also registers as Good, suggesting the stock is not trading at an extreme premium relative to its fundamentals.
The Moat pillar registers as Weak, pointing to limited structural competitive advantages that could protect margins if rivals intensify pricing pressure. Growth and Risk both land at Neutral, offering no particular tailwind or red flag on their own.
See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does LII pay dividends?
Yes — Lennox International Inc. pays a dividend.
Lennox International pays a regular dividend, which is consistent with its mature, cash-generative business model in the HVAC sector. The company's ability to sustain a dividend reflects the recurring nature of replacement demand in residential and commercial heating and cooling markets. Income-oriented investors may view this as a sign of financial discipline, though dividend sustainability should always be evaluated alongside the full financial picture.
When does LII report earnings?
Lennox International reports earnings on a quarterly cadence, typical for US-listed large-cap equities.
Lennox's results tend to reflect seasonal demand patterns in residential HVAC, with warmer and colder quarters driving higher replacement activity. The commercial and refrigeration segments add some diversification to the revenue mix across reporting periods.
For the most recent quarter's results and guidance, visit Lennox International's investor relations page directly.
LII Price History
+49.6% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Lennox International Inc.?
Based on Lennox International Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
LII Long-term Outlook
With Growth rated Neutral and Risk also Neutral, Lennox's near-term trajectory appears steady rather than accelerating. The business benefits from durable replacement demand in residential HVAC — a market driven by aging equipment cycles rather than purely new construction. However, the Weak Moat rating signals that pricing power may be constrained, and margin expansion could be harder to sustain if input costs rise or competition intensifies in the commercial segment.
Growth drivers
- Aging residential HVAC equipment driving steady replacement demand
- Energy-efficiency regulations pushing upgrades to newer systems
- Refrigeration segment exposure to data center cooling growth
Key risks
- Weak moat leaves margins vulnerable to competitive pricing pressure
- Cyclical exposure to new construction activity in commercial markets
- Input cost volatility affecting manufacturing profitability
LII vs Peers
Lennox operates in a competitive industrials landscape alongside diversified building products and infrastructure companies.
Carlisle focuses on roofing and construction materials, giving it a different end-market mix than Lennox's HVAC-centric model.
Masco concentrates on plumbing products and decorative architectural products, competing in home improvement channels rather than HVAC systems.
Advanced Drainage Systems specializes in water management infrastructure, serving a distinct segment of the broader building products market.
Frequently Asked Questions
What does Lennox International do?
Lennox International designs, manufactures, and markets heating, ventilation, air conditioning, and refrigeration products. It serves residential homeowners, light commercial building operators, and industrial refrigeration customers. Products are sold through distributors, direct sales teams, and company-owned supply stores across North America and select international markets.
Does LII pay dividends?
Yes, Lennox International pays a regular dividend. This reflects the company's mature cash generation profile in the HVAC sector, where recurring replacement demand supports consistent cash flow. Investors should review the current dividend rate and payout history on Lennox's investor relations page for the most up-to-date figures.
When does LII report earnings?
Lennox International reports on a quarterly cadence, as is standard for US-listed large-cap companies. Exact dates vary each quarter. For confirmed upcoming earnings dates, check Lennox's investor relations page or a financial calendar service.
Is LII a good stock to buy?
UQS Score rates LII as Good overall. The Quality pillar is a clear strength, and Valuation also registers positively. The Moat pillar is Weak, which is a consideration for investors focused on long-term competitive durability. The full pillar breakdown is available to UQS Pro members.
Is LII overvalued?
The UQS Valuation pillar for LII is rated Good, suggesting the stock is not trading at an extreme premium relative to its fundamentals. Whether that represents an attractive entry point depends on an investor's own framework. The complete valuation metrics are available in the Pro analysis.
How does LII compare to its competitors?
Lennox is more narrowly focused on HVAC and refrigeration than peers like Carlisle Companies or Masco, which operate across broader building products categories. This focus can be an advantage in its core markets but may limit diversification. UQS Score provides side-by-side pillar comparisons for Pro members.
What is LII's market cap bracket?
Lennox International is classified as a large-cap company. This places it among the more established, liquid names in the industrials sector, typically associated with greater analyst coverage and institutional ownership than smaller peers.
Who founded Lennox International?
Lennox International traces its roots to the late 19th century, with the modern public company incorporated in 1999. Detailed founding history, including the original founders of the Lennox business, is widely available through the company's official history and public filings.
Is LII a long-term quality indicator?
From a quality standpoint, LII's Strong Quality pillar suggests the business has demonstrated financial discipline and earnings reliability over time. However, the Weak Moat rating is a factor long-term investors should weigh, as it may limit the company's ability to defend margins over extended periods. Pro members can view the full long-term quality breakdown.
What is the main competitive advantage of Lennox International?
Lennox's distribution network — including company-owned parts and supply stores — provides a degree of customer proximity that supports recurring replacement business. However, the UQS Moat pillar rates as Weak, indicating that structural competitive advantages relative to sector peers are limited at this time.
What sector does LII belong to?
Lennox International belongs to the Industrials sector, specifically within building products and HVAC equipment manufacturing. The industrials sector is broadly sensitive to construction activity, interest rates, and energy policy — all of which can influence demand for Lennox's products.
Is LII a growth stock or value stock?
Based on UQS pillar labels, LII's Growth pillar is Neutral and its Valuation pillar is Good. This profile positions it closer to a quality-oriented value play than a high-growth name. Investors seeking aggressive earnings expansion may find the neutral growth rating a limiting factor.
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Pro Analysis
LII — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 22, 2026 | 56.7 | 87.6 | 32.0 | 47.3 | 51.9 | 63.4 | 0.0 |
| May 19, 2026 | 56.7 | 87.7 | 32.0 | 47.3 | 51.9 | 63.7 | +1.1 |
| May 7, 2026 | 55.6 | 87.6 | 32.0 | 47.0 | 49.1 | 59.5 | -0.2 |
| May 4, 2026 | 55.8 | 87.6 | 32.0 | 47.0 | 49.1 | 60.6 | +0.1 |
| May 3, 2026 | 55.7 | 87.6 | 32.0 | 46.6 | 49.1 | 60.6 | -0.4 |
| May 2, 2026 | 56.1 | 87.6 | 32.0 | 46.6 | 49.1 | 63.3 | +1.0 |
| May 1, 2026 | 55.1 | 87.6 | 32.0 | 42.2 | 49.1 | 62.5 | 0.0 |
| Apr 26, 2026 | 55.1 | 87.6 | 32.0 | 42.2 | 49.1 | 62.6 | 0.0 |
| Apr 19, 2026 | 55.1 | 87.6 | 32.0 | 42.2 | 49.1 | 62.5 | +0.5 |
| Apr 18, 2026 | 54.6 | 87.3 | 32.0 | 42.2 | 49.1 | 59.5 | -0.6 |
LII — Pillar Breakdown
Quality
— 87.7/100 (25%)Lennox International Inc. demonstrates outstanding capital efficiency and profitability, placing it among the highest-quality businesses in the market.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 47.3/100 (20%)Lennox International Inc. shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 51.9/100 (15%)Lennox International Inc. has some risk factors including moderate leverage or solvency concerns.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 63.9/100 (15%)Lennox International Inc. trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 32/100 (25%)Lennox International Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for LII.
Score Composition
Financial Data
More Stock Analysis
How is the LII UQS Score Calculated?
The UQS (Unified Quality Score) for Lennox International Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Lennox International Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Lennox International Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.