Lennox International (LII)
Lennox International (LII) makes the furnaces, heat pumps, and air-conditioning systems that heat and cool homes and commercial buildings. In ETFpedia it represents the HALO concept of AI-resilient physical businesses, because its sales come from a non-discretionary replacement cycle on a vast installed base, physically installed by licensed technicians.
| Ticker | LII |
|---|---|
| Exchange | NYSE |
| Sector | Industrials · HVAC |
| Country | United States |
| Held by ETF | Roundhill HALO ETF (LOHA) |
| Last updated | 2026-06-04 |
Next event:Next earnings · Q2 2026, estimated · Date is estimated from prior-year cadence; not company-confirmed. Confirm on investor.lennox.com. Last report: Q1 2026 on 2026-04-29. (source)
Latest reported quarter:Q1 2026 (ended Mar 31, 2026) (reported2026-04-29)
Lennox reported revenue of $1.135 billion, up 6% year over year, with both GAAP and adjusted EPS at $3.35, each down 8% from $3.63 on cost inflation, as a 38% jump in commercial revenue offset a 10% decline in residential.
| Revenue | $1.135B+6%YoY |
|---|---|
| GAAP EPS | $3.35-8%YoY · from $3.63 in Q1 2025 |
| Adjusted EPS | $3.35-8%YoY · equals GAAP this quarter; also from $3.63 |
| Total segment margin | 14.4% · -130 bps YoY |
Revenue by segment
| Home Comfort Solutions (residential) | $650M-10% YoY |
|---|---|
| Building Climate Solutions (commercial) | $485M+38% YoY |
Guidance:Full-year 2026
| Revenue growth | ~8% · incl. ~4% from acquisitions |
|---|---|
| Adjusted EPS | $23.50–$25.00 |
| Free cash flow | $750M–$850M |
Recent & upcoming events
- · Q1 2026 results; revenue outlook raised.Revenue +6% to $1.135B; both GAAP and adjusted EPS $3.35 (each -8% from $3.63); full-year revenue-growth outlook raised to about 8% on acquisitions. (source)
- · Repair-versus-replace demand stabilizes.Management said deferred replacements were returning after the R-454B refrigerant transition. (source)
Residential (Home Comfort Solutions) volumes were soft; margins were pressured by product-cost inflation and lower factory absorption.
Figures are as of 2026-06-03 and reflect the most recent public filings/IR releases; they are updated after each earnings report.
What does Lennox do?
Lennox manufactures heating, ventilation, air conditioning, and refrigeration equipment across two segments: Home Comfort Solutions for residential customers and Building Climate Solutions for commercial and refrigeration. It sells through dealers, distributors, and national accounts, and much of its profit comes from the steady, high-margin replacement of aging equipment (Lennox, Apr 29, 2026).
Why is Lennox resilient to AI disruption?
When a furnace or air conditioner that is 10 to 12 years old fails, someone has to physically replace it, regardless of what AI can do. That non-discretionary, technician-installed replacement demand is the heart of the HALO thesis: real-economy cash flows tied to a physical installed base, not to information work.
Now contractors are more confident, and consumers are returning to economic decisions—replacing 10–12-year systems to get better efficiency, warranty, and financing.
— Alok Maskara, CEO, Lennox International (Q1 2026 earnings call)
What did Lennox report most recently?
In Q1 2026 (the quarter ended March 31, 2026), Lennox reported revenue of $1.135 billion, up 6% year over year (Lennox). Both GAAP and adjusted EPS landed at $3.35, and both fell 8% from $3.63 a year earlier on product-cost inflation; the two measures coincided this quarter because there were no material adjusting items. Commercial revenue jumped 38% while residential fell 10%.
What is Lennox’s guidance?
For full-year 2026, Lennox guided revenue growth of about 8% (including roughly 4% from acquisitions), adjusted EPS of $23.50–25.00, and free cash flow of $750–850 million (Lennox).
What are the risks for Lennox?
- Residential softness. Home Comfort volumes fell 10% on weak new construction and channel destocking.
- Cost inflation. Product-cost inflation and lower factory absorption compressed margins.
- Refrigerant transition. The R-454B changeover adds training, supply, and pricing complexity.
- Acquisition reliance. Part of 2026 growth comes from M&A, which carries integration risk.
Related securities, concepts & terms
- AI-Resilient Investingparent
- Heavy Asset Low Obsolescence (HALO)parent
- W.W. Grainger (GWW)sibling
- Cummins (CMI)sibling
Related indices & ETFs
- Roundhill HALO ETF (LOHA) · Roundhill InvestmentsTracks the Akros U.S. HALO Index of physical-economy companies screened for AI resilience.
Frequently asked questions about Lennox International
What does Lennox International do?
Lennox International manufactures heating, ventilation, air conditioning, and refrigeration (HVACR) equipment for residential and commercial markets: furnaces, heat pumps, central air conditioning, rooftop units, and refrigeration, sold through dealers, distributors, and national accounts. It runs two segments, Home Comfort Solutions (residential) and Building Climate Solutions (commercial), the latter of which grew revenue 38% in Q1 2026.
When does Lennox report its next earnings?
Lennox is expected to report Q2 2026 results around July 22, 2026, based on its prior-year cadence; the date is not yet company-confirmed, so check investor.lennox.com. It last reported Q1 2026 on April 29, 2026.
What was Lennox's latest quarterly revenue?
Lennox reported revenue of $1.135 billion in Q1 2026, up 6% year over year. Both GAAP and adjusted EPS came in at $3.35, each down 8% from $3.63 on product-cost inflation, and total segment margin fell 130 basis points to 14.4%. Commercial revenue rose 38% while residential fell 10%.
What is Lennox's guidance?
For full-year 2026, Lennox guided revenue growth of about 8% (including roughly 4% from acquisitions), and maintained its adjusted EPS range of $23.50–25.00 and free cash flow of $750–850 million. Management raised only the revenue-growth outlook, citing acquisitions, while holding the earnings range steady.
Why is Lennox a HALO (AI-resilient) stock?
Lennox's demand comes from a non-discretionary replacement cycle: when a 10–12-year-old furnace or air conditioner fails, it must be physically replaced and installed by a licensed technician. That real-economy, low-obsolescence dynamic is effectively immune to AI displacement.
Sources & references
- Lennox reports 2026 first quarter results · Lennox International / PR Newswire, 2026-04-29
- Lennox (LII) Q1 2026 earnings call transcript · The Motley Fool, 2026-04-29
- Lennox International · investor relations and events · Lennox International, 2026-06-02
- NYSE listed company information · LII · New York Stock Exchange, 2026-06-02