Lennox International (LII)
NYSEIndustrialsBuilding Products & EquipmentSnapshot 2026-07-07
$557.38-1.87%
Close 2026-07-07 · 1-day change
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Track LII free→Warn: Management is running behind on a stated commitment.
Lennox grows revenue about 8% in 2026, with acquisitions adding 4%. It aims for EPS between $23.50 and $25.00 this year. Free cash flow is strong, targeted near $750 million. Capital spending is controlled around $250 million.
EPS fell from $3.63 to $3.35 in Q1 2026, showing pressure on profits. Guidance is soft, risking missing targets. Rising costs or weaker demand could hurt growth and cash flow.
The market prices in about 8% revenue growth and EPS near $24.50 for 2026. Our fair value is about 12% below the current price, reflecting cautious optimism. We see risks in EPS delivery but believe revenue growth and cash flow targets are achievable.
Breaks if: capital expenditures exceed $350 million in FY26
Lennox plans to manage capital expenditures to approximately $250 million for 2026.
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Newly stated in 2025-Q4. Net capital expenditures were $55 million in 2026-Q1, indicating a controlled approach towards the $250 million annual target. The trajectory shows initial alignment with the capex plan.
“Capital expenditures are projected to be approximately $250 million.”
Breaks if: EPS falls below $23.5 for FY26
Lennox aims to maintain its EPS guidance range of $23.50 to $25.00 for 2026.
Stated in 2 of last 2 quarters. EPS decreased from $3.63 in 2025-Q1 to $3.35 in 2026-Q1, indicating challenges in maintaining the guidance range. The trajectory shows mixed progress towards the EPS target.
“Earnings per share is still expected to be within the range of $23.50 to $25.00.”
“Adjusted earnings per share is expected to be within the range of $23.50 to $25.00.”
Breaks if: free cash flow falls below $550 million in FY26
Lennox plans to manage capital expenditures to approximately $250 million for 2026.
Newly stated in 2025-Q4. Net capital expenditures were $55 million in 2026-Q1, indicating a controlled approach towards the $250 million annual target. The trajectory shows initial alignment with the capex plan.
“Capital expenditures are projected to be approximately $250 million.”
Breaks if: YoY revenue growth falls below 6% in FY26
Lennox aims for 8% revenue growth in 2026, with 4% from acquisitions.
Stated in 2 of last 2 quarters. Revenue grew from $1.07B in 2025-Q1 to $1.14B in 2026-Q1, a 6% increase. The trajectory shows progress towards the 8% target, with acquisitions contributing significantly.
“For full year 2026, we are updating revenue growth guidance to approximately 8%, including 4% benefit from completed acquisitions.”
“For full year 2026, revenue is anticipated to increase by approximately 6% to 7%, with growth from completed acquisitions contributing approximately 4%.”