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, and in 2026 it split in two. Regulatory shifts (higher minimum efficiency standards and the transition to low-global-warming-potential A2L refrigerants) force equipment upgrades and support average selling prices, and the commercial business kept growing fast: Building Climate Solutions revenue rose about 24% to $610 million in the second quarter. Residential went the other way, with Home Comfort Solutions revenue down about 7% to $936 million and segment profit down about 12%. Total second-quarter revenue of about $1.5 billion missed estimates even though EPS of $7.72 edged past consensus, and management lowered full-year 2026 EPS guidance to $23 to $24. Shares fell nearly 21% on July 29 and kept sliding to new 52-week lows in October, so the stock now trades near 16 times trailing and 14 times forward earnings, well below the mid-20s multiple it carried earlier in the year. Trailing revenue is about $5.3 billion and net income about $789 million.

Residential demand is the immediate risk: Home Comfort Solutions revenue fell about 7% in the second quarter of 2026, segment profit fell about 12%, and management cut full-year EPS guidance to $23 to $24, which sent the shares down nearly 21% in a day. Analysts have since turned more cautious, with Goldman Sachs downgrading the stock to Neutral ($390 target) on October 14 and Mizuho, RBC, Jefferies, and Oppenheimer all trimming targets in October. Margins face pressure from cost inflation and higher interest expense, and the balance sheet carries about $2.0 billion of debt against little cash. 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, and trailing free cash flow of about $278 million was well below operating cash flow.

14 analysts publish price targets on LII, averaging $449.29 against a $357.73 price as of October 2026, or +25.6%. The published targets run from $350.00 to $600.00, a moderate spread, and the ratings split 4 buy, 13 hold, 1 sell. Over the last six months there has been 1 raise and 10 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, $600.00, assumes this works close to its best case.

The case against. Residential demand is the immediate risk: Home Comfort Solutions revenue fell about 7% in the second quarter of 2026, segment profit fell about 12%, and management cut full-year EPS guidance to $23 to $24, which sent the shares down nearly 21% in a day. The most pessimistic target, $350.00, 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.

No. Lennox International, Inc. (LII) has not split its stock in the last 10 years. That is a statement about the window we check rather than about the company’s entire history, so an older split is possible. It also matters less than it once did: fractional shares mean a high price per share no longer keeps smaller investors out, which removed most of the practical reason to split.

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
• Q2 2026 revenue growth (YoY): ~3% (commercial ~+24%, residential ~-7%)
• Operating margin: ~23%
• Net income (TTM): ~$789M
• 2026 EPS guidance: ~$23 to $24 (lowered in July)
• P/E (trailing / forward): ~16x / ~14x
• Dividend yield: ~1.5% ($5.44 per share)
• Market cap: ~$12.4B

At about $360 a share, Lennox trades near 16 times trailing earnings and 14 times the 2027 EPS consensus of about $25.80, a sharp de-rating from the mid-20s multiple it carried in mid-2026. The drop came from the July guidance cut and weaker residential volumes rather than a collapse in profitability, since operating margin stayed near 23%. The analyst mean target of about $449 sits above the current price, but the consensus rating has slipped to Hold.

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 residential volumes recover. After a roughly 21% one-day drop on the July 2026 guidance cut and a string of analyst downgrades in October, the stock no longer carries the premium multiple it held against Carrier, Trane, and Daikin, and third-quarter results on October 28 are the next read on whether the residential slump is bottoming.

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.