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.

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.

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 basket, so LII sits alongside other stocks that express the same thesis.

Walnut takes the basket 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.

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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?, 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?