Lennox International Inc. (LII)

Over the past six months, Lennox International's stock (LII) has experienced a decline, underperforming the S&P 500 Index. As of December 17, 2025, the stock had dipped 9.5% on a six-month basis and fell 26.3% over the past 52 weeks, attributed to soft demand, declining industry shipments, and inventory destocking. On October 22, 2025, LII shares closed down more than 10% following its Q3 2025 earnings report, with revenue falling short of forecasts. On January 28, 2026, Lennox International reported its Q4 2025 earnings per share (EPS) of $4.45, which missed analysts' expectations by 6.32%.

Demand for Lennox International's products and services is seasonal and heavily influenced by weather patterns. Hotter-than-normal summers lead to strong demand for replacement air conditioning and refrigeration products and services, while colder-than-normal winters have a similar effect on heating products and services. A significant demand shift is anticipated due to the transition to new low Global Warming Potential (GWP) refrigerant products, which launched in Q3 2025. It is expected that 65% of end-market demand will transition to low GWP products in 2025, with a more than 10% price increase for new R-454B products.

Lennox International, Inc. (LII) is a global leader in energy-efficient climate-control solutions, specializing in the design, manufacture, and marketing of products for the heating, ventilation, air conditioning, and refrigeration (HVACR) markets, operating primarily in the Electrical Equipment industry. The company is segmented into Home Comfort Solutions, which accounted for 67% of sales in fiscal year 2024, and Building Climate Solutions, responsible for approximately 33% of revenue in fiscal year 2024. The Home Comfort Solutions segment provides products for residential replacement and new construction markets in the United States and Canada, while the Building Climate Solutions segment offers products for North America's commercial sectors. Lennox is the company's flagship HVAC brand.

Lennox International's headquarters are located in Richardson, Texas, U.S. While the company primarily operates in North America, it maintains a global presence with manufacturing facilities, sales offices, and distribution networks supporting markets in Europe, Asia-Pacific, and Latin America. In late 2023, the company sold its European HVAC and refrigeration businesses to focus on North America. Lennox Global is specifically the Latin America and Caribbean division.

Lennox International has a strong brand reputation, particularly with its flagship Lennox brand, which is recognized for quality and reliability in the HVACR industry. The company's focus on North America and its long history of innovation contribute to its established market leadership, allowing Lennox to command premium pricing. In November 2021, Lennox International made a formal commitment to set science-based targets for reducing greenhouse gas emissions.

Lennox International (LII) stock ownership is a mix of institutional, retail, and individual investors. Approximately 52.90% of the company's stock is owned by Institutional Investors, 9.33% by Insiders, and 37.77% by Public Companies and Individual Investors. Major institutional owners include The Vanguard Group, Inc. (10.84%) and BlackRock, Inc. (8.70%). John W. Norris Jr. is the largest individual shareholder, owning 34.54% of the company. Insider selling activity has been observed in the last 24 months.