Business Description
Lennox International Inc., founded in 1895 and headquartered in Richardson, Texas, United States, manufactures high-efficiency HVAC, refrigeration, and climate control systems for both residential and commercial markets. The company earns revenue from diversified product sales and comprehensive after-market services, supported by a robust distribution network. Under the leadership of CEO Edward J. Doherty since 2019, Lennox maintains an estimated 12% market share in North America by focusing on innovation and energy efficiency. Looking forward, the firm is investing in smart technology and sustainability initiatives while addressing challenges such as raw material cost fluctuations.
Financial Statements
In thousands, USD
| FY 2025 | FY 2024 | FY 2023 | FY 2022 | |
|---|---|---|---|---|
| Total Revenues | 5,195,300 | 5,341,300 | 4,981,900 | 4,718,400 |
| Cost of Sales | 3,460,500 | 3,563,800 | 3,432,700 | 3,433,700 |
| Gross Profit | 1,734,800 | 1,777,500 | 1,549,200 | 1,284,700 |
| Selling, General & Administrative Expenses | 681,400 | 730,600 | 705,500 | 627,200 |
| Other Operating Expenses | 13,700 | 3,500 | 80,400 | 6,400 |
| Operating Profit | 1,041,500 | 1,040,400 | 791,500 | 656,200 |
| Interest and Investment Income | — | — | — | 5,100 |
| Interest Expense | (40,900) | (38,700) | (51,700) | (38,700) |
| Non-Operating Income | (3,000) | (1,500) | 700 | (2,100) |
| Total Non-Operating Income | (43,900) | (40,200) | (51,000) | (35,700) |
| Income Before Provision for Income Taxes | 996,800 | 999,400 | 738,900 | 615,800 |
| Provision for Income Taxes | 191,000 | 188,300 | 147,700 | 118,700 |
| Consolidated Net Income | 805,800 | 811,100 | 591,200 | 497,100 |
| Net Income Attributable to Common Shareholders | 805,800 | 811,100 | 591,200 | 497,100 |
| Basic EPS | 22.89 | 22.78 | 16.65 | 13.92 |
| Diluted EPS | 22.79 | 22.66 | 16.58 | 13.88 |
| Basic Weighted Average Shares Outstanding | 35,200 | 35,600 | 35,500 | 35,700 |
| Diluted Weighted Average Shares Outstanding | 35,400 | 35,800 | 35,700 | 35,800 |
| Shares Outstanding | 34,796 | 35,596 | 35,582 | 35,470 |
| FY 2025 | FY 2024 | FY 2023 | FY 2022 | |
|---|---|---|---|---|
| Cash and Cash Equivalents | 34,200 | 415,100 | 60,700 | 52,600 |
| Short-Term Investments | 500 | 7,200 | 8,400 | 8,500 |
| Total Cash and Cash Equivalents | 34,700 | 422,300 | 69,100 | 61,100 |
| Accounts Receivable | 578,800 | 661,100 | 594,600 | 608,500 |
| Total Trade Receivables | 578,800 | 661,100 | 594,600 | 608,500 |
| Inventories | 1,152,600 | 853,000 | 699,100 | 753,000 |
| Other Current Assets | 156,200 | 96,000 | 70,700 | 73,900 |
| Total Current Assets | 1,903,800 | 2,032,400 | 1,433,500 | 1,496,500 |
| Net Property, Plant & Equipment | 1,243,500 | 1,127,300 | 934,000 | 768,800 |
| Net Intangible Assets | 273,000 | 45,100 | — | — |
| Goodwill | 497,200 | 220,000 | 222,100 | 186,300 |
| Other Long-Term Assets | 145,800 | 195,200 | 208,700 | 116,000 |
| Total Assets | 4,081,800 | 3,620,000 | 2,798,300 | 2,567,600 |
| Accounts Payable | 438,000 | 490,000 | 374,700 | 427,300 |
| Accrued Expenses | 374,200 | 435,400 | 416,100 | 376,900 |
| Short-Term Debt | 226,000 | — | 150,000 | — |
| Current Portion of Long-Term Debt | 18,300 | 314,500 | 12,100 | 710,600 |
| Current Portion of Leases | 88,900 | 73,400 | 57,500 | 63,300 |
| Other Current Liabilities | — | 46,400 | 4,200 | 17,600 |
| Total Current Liabilities | 1,191,800 | 1,313,300 | 1,014,600 | 1,595,700 |
| Long-Term Debt | 1,144,100 | 833,100 | 1,143,100 | 814,200 |
| Leases | 293,400 | 267,600 | 164,600 | 161,800 |
| Other Long-Term Liabilities | 289,400 | 243,900 | 190,700 | 199,000 |
| Total Long-Term Liabilities | 1,726,900 | 1,344,600 | 1,498,400 | 1,175,000 |
| Total Liabilities | 2,918,700 | 2,657,900 | 2,513,000 | 2,770,700 |
| Common Stock | 900 | 900 | 900 | 900 |
| Treasury Stock | (4,923,400) | (4,421,100) | (4,349,500) | (4,339,200) |
| Additional Paid-in Capital | 1,243,000 | 1,213,300 | 1,184,600 | 1,155,200 |
| Accumulated Other Comprehensive Income | (48,500) | (93,700) | (56,900) | (90,600) |
| Retained Earnings | 4,891,100 | 4,262,700 | 3,506,200 | 3,070,600 |
| Total Common Shareholders' Equity | 1,163,100 | 962,100 | 285,300 | (203,100) |
| Total Shareholders' Equity | 1,163,100 | 962,100 | 285,300 | (203,100) |
| Total Liabilities and Shareholders' Equity | 4,081,800 | 3,620,000 | 2,798,300 | 2,567,600 |
| FY 2025 | FY 2024 | FY 2023 | FY 2022 | |
|---|---|---|---|---|
| Net Income | 805,800 | 811,100 | 591,200 | 497,100 |
| Depreciation & Amortization | 95,100 | 86,000 | 20,200 | 77,900 |
| Share-Based Compensation Expense | 28,500 | 30,100 | 112,500 | 21,800 |
| Other Adjustments | (20,100) | (22,500) | 68,900 | (26,600) |
| Changes in Trade Receivables | 108,900 | (80,400) | (32,700) | (112,400) |
| Changes in Inventories | (228,200) | (15,600) | 9,700 | (249,300) |
| Changes in Accounts Payable | (74,200) | 115,000 | (29,200) | 28,200 |
| Changes in Accrued Expenses | (69,500) | 30,400 | 65,000 | 13,700 |
| Changes in Income Taxes Payable | 58,600 | (21,900) | (24,100) | 56,400 |
| Changes in Other Operating Activities | (7,800) | 9,500 | 18,700 | (4,500) |
| Cash from Operating Activities | 757,600 | 945,700 | 736,200 | 302,300 |
| Capital Expenditure | (118,800) | (163,600) | (250,200) | (101,100) |
| Proceeds from Sale of Property, Plant & Equipment | 1,400 | 2,500 | 2,100 | 1,600 |
| Proceeds from Sale of Investments | 6,800 | (7,400) | 100 | (3,500) |
| Payments for Business Acquisitions | (545,000) | 1,800 | (94,900) | — |
| Proceeds from Business Divestments | — | (7,700) | 23,200 | — |
| Cash from Investing Activities | (655,600) | (174,400) | (319,700) | (103,000) |
| Issuance of Short-Term Debt | 1,568,800 | 424,100 | 150,000 | — |
| Repayments of Short-Term Debt | (1,342,800) | (574,100) | — | — |
| Net Issuance / (Repayments) of Short-Term Debt | 226,000 | (150,000) | 150,000 | — |
| Issuance of Long-Term Debt | — | — | 500,000 | — |
| Repayments of Long-Term Debt | (318,900) | (194,300) | (2,797,400) | (2,671,900) |
| Net Issuance / (Repayments) of Long-Term Debt | (318,900) | (194,300) | (2,297,400) | (2,671,900) |
| Issuance of Common Shares | 4,000 | 4,500 | 3,900 | 3,600 |
| Repurchases of Common Shares | (501,500) | (75,200) | (14,900) | (308,300) |
| Net Issuance / (Repurchases) of Common Shares | (497,500) | (70,700) | (11,000) | (304,700) |
| Common Share Dividends Paid | (173,000) | (160,300) | (153,400) | (142,000) |
| Other Financing Activities | 297,700 | 156,700 | 1,905,600 | 2,944,500 |
| Cash from Financing Activities | (465,700) | (418,600) | (406,200) | (174,100) |
| Effect of Exchange Rate Changes on Cash and Cash Equivalents | 1,300 | 1,700 | (2,200) | (3,600) |
| Increase / (Decrease) in Cash, Cash Equivalents and Restricted Cash | (362,400) | 354,400 | 8,100 | 21,600 |
Key Metrics & Ratios
| Metric | Value |
|---|---|
| Market Cap | $16.90B |
| P/E | 21.31x |
| P/S | 3.25x |
| EV/EBITDA | 16.39x |
| Return on Equity | 75.8% |
| Return on Invested Capital | 30.6% |
| Current Ratio | 1.60x |
| Dividend Yield | 1.0% |
| Free Cash Flow Margin | 12.3% |
Margins
Gross margin
33.4%
Operating margin
20.0%
Net margin
15.5%
Quarterly Trend
| Quarter | Revenue | YoY growth | Operating margin | Operating income |
|---|---|---|---|---|
| Q1 2026 | $1.14B | +5.8% | 14.4% | $164M |
| Q4 2025 | $1.20B | -11.2% | 18.6% | $222M |
| Q3 2025 | $1.43B | -4.8% | 21.7% | $310M |
| Q2 2025 | $1.50B | +3.4% | 23.6% | $354M |
| Q1 2025 | $1.07B | — | 15.7% | $168M |
| Q4 2024 | $1.34B | — | 18.6% | $250M |
| Q3 2024 | $1.50B | — | 20.2% | $303M |
| Q2 2024 | $1.45B | — | 22.1% | $320M |
More on Lennox International Inc.
Figures compiled from public company filings.
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