Lennox International (LII)
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-11-05
$348.79-2.83%
Close 2026-11-05 · 1-day change
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-11-05
QuarterlyIQ Insights · LII
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within industrials on a research-validated quality screen. As of 2026-11-05.
The screen ranks LII against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Industrials names rated strong grew net income 68% of the time over the next year (vs 52% for the rest of the cohort, n=6978).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Growth was fueled by business development across the segment, and we still expect full year margins to expand despite inflation and tariff pressures.
Stated in 8 of 8 supplied quarters. Management reported: “Growth was fueled by business development across the segment, and we still expect full year margins to expand despite inflation and tariff pressures.” “1 Includes unallocated corporate expenses FULL YEAR 2026 GUIDANCE For full year 2026, we are reaffirming revenue growth guidance at approximately 8% growth, including an updated 5% benefit from completed acquisitions.” Revenue was $1.573 billion in 2026-Q3.
“Growth was fueled by business development across the segment, and we still expect full year margins to expand despite inflation and tariff pressures.”
“We also expanded our portfolio through the acquisition of Comfort-Aire and Century brands and remain focused on executing our growth strategy through innovation, operational excellence, and disciplin…”
“We remain confident in our strategy to deliver long-term shareholder value through differentiated growth and bolt-on M&A opportunities,” said CEO, Alok Maskara.”
““This is a direct reflection of the hard work and dedication of the Lennox team, and we remain confident that our strategy and recent investments position us to grow revenue and profits in 2026 as th…”
““The recent DuroDyne and Supco acquisition strengthens our parts and accessories portfolio, positioning us for greater success during the more normalized operating environment expected in 2026 and be…”
““We remain energized by the current momentum in our growth initiatives to elevate customer experience, expand our portfolio, and strengthen our differentiated go-to-market strategy.”
“We are retooling our processes to more effectively pass through cost increases while accelerating productivity.
Stated in 8 of 8 supplied quarters. Management reported: ““We are retooling our processes to more effectively pass through cost increases while accelerating productivity.” ““While macro uncertainties persist, we are focused on productivity measures, supply chain optimization, and thoughtful pricing actions to offset inflationary pressures.”” Operating income was $312.100 million in 2026-Q3.
““We are retooling our processes to more effectively pass through cost increases while accelerating productivity.”
Free Cash Flow is still estimated to be within the range of $750 million to $850 million.
Stated in 5 of 8 supplied quarters. Management reported: “Free Cash Flow is still estimated to be within the range of $750 million to $850 million.” “Free Cash Flow is still estimated to be within the range of $750 million to $850 million.”
“Free Cash Flow is still estimated to be within the range of $750 million to $850 million.”
Looking ahead, priorities include mitigating share challenges, advancing productivity and tariff mitigation initiatives, and introducing new products in the entry-tier portfolio.
Stated in 2 of 8 supplied quarters. Management reported: “Looking ahead, priorities include mitigating share challenges, advancing productivity and tariff mitigation initiatives, and introducing new products in the entry-tier portfolio.” “Despite these near-term challenges, backlog remains strong and the emergency replacement growth initiative continues to gain traction, supporting our efforts to regain share and accelerate future growth.”
Build revenue in commercial HVAC, refrigeration, and services through market execution and customer development.
Over the trailing year it converted 0.52x of net income into operating cash flow. Historically, Industrials names rated fragile grew net income 50% of the time over the next year (vs 59% for the rest of the cohort, n=5006).
Most sensitive to the broad stock market and long-term interest rates.
Not enough signal to read sensitivity to the US dollar, Fed net liquidity (low R² over the window).
9 material management or governance events in the past 24 months, led by executive changes. Historically, Industrials names rated stable grew net income 60% of the time over the next year (vs 56% for the rest of the cohort, n=6637).
Not investment advice. As of 2026-11-05.
““Our results this quarter highlight the strength of our replacement-driven business model and the value of our North American-focused strategy.”
“These accomplishments not only highlight the strength of our execution but also reinforce our confidence in driving differentiated growth and creating long-term value for our stakeholders.””
“We also expanded our portfolio through the acquisition of Comfort-Aire and Century brands and remain focused on executing our growth strategy through innovation, operational excellence, and disciplin…”
““While macro uncertainties persist, we are focused on productivity measures, supply chain optimization, and thoughtful pricing actions to offset inflationary pressures.””
“In response to these headwinds, we took disciplined SG&A cost control actions and delivered favorable mix and price.”
“Despite these headwinds, segment profit margins expanded by 30 basis points, as cost reduction initiatives and favorable mix/price offset the impact of lower volumes and cost inflation.”
“We continue to expect pricing to offset the inflationary pressures.”
“We now expect additional pricing gains to overcome tariffs while preserving profit margins and offsetting the impact of potential volume declines.”
“"Our significant progress in cash conversion reflects a relentless focus on operational excellence.”
“Free Cash Flow is still estimated to be within the range of $750 million to $850 million.”
“Capital expenditures are projected to be approximately $250 million, and Free Cash Flow is estimated to fall within the range of $750 million to $850 million.”
“Free cash flow guidance is now approximately $550 million, driven by temporarily elevated inventory levels.”
“Capital expenditures are still projected to be approximately $150 million, and the Free Cash Flow guidance range remains at $650 million to $800 million.”
“Looking ahead, priorities include mitigating share challenges, advancing productivity and tariff mitigation initiatives, and introducing new products in the entry-tier portfolio.”
“Despite these near-term challenges, backlog remains strong and the emergency replacement growth initiative continues to gain traction, supporting our efforts to regain share and accelerate future gro…”