Lennox International, Inc. (LII) Stock Price & How to Invest

Lennox International designs, manufactures, and distributes heating, ventilation, air conditioning, and refrigeration (HVACR) equipment across North America under the flagship Lennox brand and related labels. The business runs in two segments: Home Comfort Solutions (residential furnaces, air conditioners, heat pumps, and related equipment sold largely through dealers and distributors) and Building Climate Solutions (commercial rooftop units, controls, and refrigeration for light-commercial customers such as retailers, restaurants, and convenience stores). A large share of demand is replacement rather than new construction, which gives the model a more stable, recurring feel than pure cyclicals, and the company has leaned on manufacturing efficiency, direct-to-dealer distribution, and pricing to expand margins over time.

The investment picture centers on durable replacement demand, pricing power, and mix improvement against a premium valuation. Regulatory shifts (higher minimum efficiency standards and the transition to low-global-warming-potential A2L refrigerants) force equipment upgrades and support both volume and average selling prices. Lennox has posted strong commercial (Building Climate Solutions) momentum alongside steadier residential trends, while margins have faced some pressure from cost inflation and higher interest expense. With shares trading at a mid-20s earnings multiple, the stock prices in continued mid-to-high single-digit revenue growth, resilient margins, and steady free-cash-flow generation returned through buybacks and dividends.

Lennox trades at a premium mid-20s earnings multiple, so any slowdown in volumes, pricing, or margins can compress the stock quickly. Margins have faced pressure from cost inflation (guided around 5% for 2026) and higher interest expense, and Q1 2026 operating margin fell about 130 basis points year over year even as revenue grew. The business is concentrated in North American HVACR, tying results to U.S. housing activity, weather, consumer spending, and interest rates. It competes against larger, better-capitalized rivals (Carrier, Trane, Daikin, Johnson Controls, Rheem) with broad portfolios and distribution. The refrigerant transition and supply-chain shifts also carry execution and inventory risk.

13 analysts publish price targets on LII, averaging $511.15 against a $377.25 price as of September 2026, or +35.5%. The published targets run from $450.00 to $609.00, a moderate spread, and the ratings split 7 buy, 9 hold, 1 sell. Over the last six months there have been 2 raises and 5 cuts among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full LII forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on Lennox International, Inc.. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Replacement demand and installed base. A large portion of Lennox revenue comes from replacing aging residential and light-commercial HVAC systems rather than new builds, which smooths demand across housing cycles. The most optimistic published target, $609.00, assumes this works close to its best case.

The case against. Lennox trades at a premium mid-20s earnings multiple, so any slowdown in volumes, pricing, or margins can compress the stock quickly. The most pessimistic target, $450.00, is roughly what LII is worth if this bites instead.

Read the full bull and bear case on LII, including what would have to change to break either one. Walnut is not an investment adviser.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Lennox International, Inc.'s investor relations page or your broker.

• Revenue (TTM): ~$5.3B
• Q1 2026 revenue: ~$1.14B (up ~6% YoY)
• Q1 2026 diluted EPS: ~$3.35 (down ~8% YoY)
• 2026 adjusted EPS guidance: ~$23.50 to $25.00
• 2026 free cash flow guidance: ~$750M to $850M
• Market cap: ~$18-19B
• P/E (TTM): ~23-24x

Lennox reported Q1 2026 revenue of about $1.14 billion (up roughly 6%) and diluted EPS of about $3.35, beating estimates even as operating margin slipped on cost inflation and higher interest expense. Management guided full-year 2026 revenue growth to about 8%, adjusted EPS of roughly $23.50 to $25.00, and free cash flow of $750 to $850 million. With shares around the low-$500s, the trailing multiple sits in the low-to-mid 20s, a premium reflecting the replacement-driven, high-margin model.

Other names that sit close to LII: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get LII exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so LII sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where LII fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

LII is a focused, cash-generative HVAC leader whose story hinges on replacement demand, product-mix and margin execution, and whether its premium valuation holds against Carrier, Trane, and Daikin.

Whether LII is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is LII a buy or a sell?, and where the stock could go from here in the LII stock forecast.

For income investors, whether LII pays a dividend and how the payout looks is covered in does LII pay a dividend? And to weigh LII against a peer, read the full side-by-side comparisons: LII vs CARR and LII vs TT.