Lennox International Inc. (LII)

Over the past six months, Lennox International's stock (LII) has declined by 9.5% and underperformed the S&P 500 Index. The stock has been trading below its 50-day and 200-day moving averages since late and early August 2025, respectively. Key events impacting the stock include the Q3 2025 earnings report, where LII shares closed down more than 10% after reporting its Q3 results. Lennox signed an agreement to acquire the HVAC division of NSI Industries in August 2025 and mentioned the recent acquisitions of DuroDyne and Supco in its Q3 2025 earnings call. Lennox International entered into a joint venture with Ariston Lennox Water Heating North America on October 16, 2025. The stock's underperformance has also been attributed to soft demand in residential and commercial HVAC markets, declining industry shipments, inventory destocking, regulatory changes, tariff exposure concerns, and a shift towards repairs over replacements.

Lennox International's business experiences demand seasonality, which is typical for the HVACR industry. The company's operational framework emphasizes getting the right product to dealers during peak seasons. The third quarter of 2025 saw a "weak summer selling season" which negatively impacted revenue for its Home Comfort Solutions segment. The industry is also undergoing a transition to new low Global Warming Potential (GWP) refrigerant equipment, which is expected to cause demand disruptions as distributors adjust their inventory levels.

Lennox International, Inc. (LII) is a global leader in energy-efficient climate-control solutions within the HVACR markets. The company designs, manufactures, and markets products for residential and commercial sectors, categorized into Home Comfort Solutions and Building Climate Solutions. Its products include furnaces, air conditioners, heat pumps, indoor air quality equipment, and commercial refrigeration systems. Lennox markets its products under brand names such as Lennox, Armstrong Air, and Chandler Refrigeration. The company was founded in 1895 and is headquartered in Richardson, Texas.

Lennox International has a global manufacturing, distribution, sales, and marketing footprint, serving customers in approximately 100 countries. The company operates manufacturing facilities and offices in the United States, Canada, and India. It divested its European operations in the fourth quarter of 2023, focusing primarily on North America. Its largest production facilities are located in Saltillo, Mexico, Marshalltown, Iowa, and Orangeburg, South Carolina.

Lennox International maintains a strong brand reputation as an industry leader known for innovation, quality, and reliability in climate-control solutions. The company's focus on energy-efficient and innovative products under well-recognized brands contributes to its positive standing. In January 2026, the company launched its Dave Lennox Signature SLP99VK Gas Furnace, a high-efficiency heating system with an integrated Refrigerant Detection System. There haven't been specific events in the past year that have directly damaged the company's core brand reputation among consumers or within the industry.

Lennox International Inc. (LII) is a publicly traded company on the New York Stock Exchange, with its ownership heavily concentrated among institutional investors. Approximately 69.48% to 78% of the company's stock is owned by institutional investors. The largest institutional shareholders include Vanguard Group Inc, BlackRock, Inc., Capital International Investors, State Street Corp, and Morgan Stanley. The top 11 shareholders collectively own 51% of the company. Individual investors hold a 12% stake, and John W. Norris, III owns 9.8% of the company.