LII
Updated: 23/09/2026, 00:38:46
Lennox International Inc. is a global manufacturer and distributor specializing in heating, ventilation, air conditioning (HVAC), and refrigeration solutions. The company operates across three divisions: Residential Heating & Cooling, Commercial Heating & Cooling, and Refrigeration. Its Residential Heating & Cooling division supplies homeowners with systems like furnaces, air conditioners, and heat pumps, along with indoor air quality products, comfort controls, and replacement components, catering to both new construction and existing residential upgrades. The Commercial Heating & Cooling division serves the light commercial sector, providing unitary HVAC equipment, advanced applied systems, control technologies, and comprehensive installation and maintenance services, including variable refrigerant flow solutions. Lastly, the Refrigeration division delivers essential components such as condensing units, unit coolers, and industrial chillers. These are crucial for food preservation in retail, hospitality, and logistics (e.g., supermarkets, restaurants, warehouses), as well as for specialized cooling needs in data centers, machine tooling, and other industrial applications. The company distributes its offerings through direct sales, a network of distributors, and its proprietary parts and supplies retail locations. Established in 1895, Lennox International Inc. maintains its headquarters in Richardson, Texas.
No summaries found.
Reported and calculated KPIs plus operational exposure disclosed in the FY 2025 filing.
Revenue
N/A
FY — · Reported
Net income
$0.8B
FY 2025 · Reported
Gross margin
N/A
FY — · Reported
Free cash flow
$0.6B
FY 2025 · Calculated
R&D intensity
N/A
FY — · Reported
Share repurchases
$0.5B
FY 2025 · Reported
Other offerings mentioned without separate sales
Area-level product sales are displayed only when the filing reports a product × geography breakdown. Regional totals are not allocated across products by estimation.
Map layer
Pins show disclosed operations. The heatmap colors the filing’s reported geographies; regional figures shade the region and are not estimates for each country.
Only locations and quantities explicitly supported by the filing are displayed. A country-level manufacturing percentage or product allocation is shown only when the source discloses it; materiality scores are never presented as production shares.
Company overview
Global leader in energy-efficient climate-control solutions; HVACR; founded 1895, Marshalltown, Iowa
“We are a global leader in energy-efficient climate-control solutions. We design, manufacture and market a broad range of products for the heating, ventilation, air conditioning and refrigeration ("HVACR") markets.”
Joint ventures
JVs: Ariston (49.9%), Samsung (49.9%), Mexico refrigeration JV (50%)
“We own a 49.9% interest in a joint venture with Ariston Group that will manufacture and distribute water heaters through Lennox Stores and our direct-to-dealer network.”
Segments
Two reportable segments: Home Comfort Solutions and Building Climate Solutions; plus Corporate and Other
“We operate in two reportable business segments of the HVACR industry, Home Comfort Solutions and Building Climate Solutions. In addition to the two major business segments, Corporate and Other is also reported as a segment.”
National Account Services
National Account Services serves commercial HVAC national account customers in U.S. and Canada
“National Account Services ("NAS") provides installation, service and preventive maintenance for commercial HVAC national account customers in the U.S. and Canada.”
Direct-to-dealer network
Direct-to-dealer network; one of the largest wholesale distributors of residential HVAC products in North America; Lennox Stores in U.S. and Canada
“The "Lennox" business and brands ... are sold directly to independent installing dealers, making us one of the largest wholesale distributors of residential heating, ventilation, and air conditioning products in North America.”
Allied Air Enterprise and ADP distribution
Independent wholesale distributors (U.S. and Canada) for Allied Air Enterprise and ADP; private label also sold
“The Allied Air Enterprise business and brands ... are sold through independent wholesale distributors in the U.S. and Canada.”
Building Climate Solutions products and brands
Commercial HVAC and refrigeration products under Lennox, Energence, Prodigy, Lennox VRF, Heatcraft Worldwide Refrigeration, Bohn, Larkin and other brands
“Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, variable refrigerant flow commercial products”
Home Comfort Solutions products and brands
Residential HVACR products under Lennox, Armstrong Air, Ducane, AirEase, Concord, MagicPak, ADP, Allied, Supco and other brands
“Furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, replacement parts and supplies”
Commercial refrigeration applications
Commercial refrigeration for supermarkets, convenience stores, restaurants, warehouses; process cooling including data centers
“These products preserve food and other perishables in supermarkets, convenience stores, restaurants, warehouses and distribution centers. In addition, our products are used to cool a wide variety of industrial processes, including data centers, machine tooling, and other critical cooling applications.”
Refrigeration customers and channels
Heatcraft refrigeration sold to distributors, installing contractors, engineering design firms, OEMs and end-users
“We sell these products to distributors, installing contractors, engineering design firms, original equipment manufacturers and end-users.”
Commodity hedging
Commodity futures notional 87.6M lbs aluminum/copper; $23.6M net asset; 10% forward price change = $13.2M fair value change
“Notional amount (pounds of aluminum and copper)87.6 Carrying amount and fair value of net asset$23.6”
Principal raw materials
Principal raw materials: steel, aluminum and copper; volatility mitigated by pricing actions, vendor contracts, futures and fixed forward contracts
“The principal raw materials used in our manufacturing processes are steel, aluminum and copper.”
Unionized workforce
~26% of core workforce locations unionized as of December 31, 2025; Marshalltown five-year labor agreement ratified Nov 1, 2021
“as of December 31, 2025, approximately 26% of our core workforce locations were unionized. Our Marshalltown, Iowa-based union ratified a five-year labor agreement on November 1, 2021”
Duro Dyne and Supco acquisition
Acquired Duro Dyne and Supco (October 2025); HVAC parts and supplies portfolio
“In October 2025, we completed the acquisition of the Duro Dyne Buyer, Inc. ("Duro Dyne") and Sealed Unit Parts Buyer, Inc. ("Supco") businesses”
AES acquisition
Acquired AES (October 2023), reported in Building Climate Solutions
“In October 2023, we completed the acquisition of AES Industries, Inc. and AES Mechanical Service Group, Inc. (collectively, "AES"), which is included in our Building Climate Solutions segment.”
Seasonality and weather
Weather-driven seasonality; demand also influenced by interest rates, financing availability, population/employment, new construction, consumer spending; majority replacement business
“The demand for our products and services is seasonal and can be significantly impacted by the weather. Warmer than normal summer temperatures generate demand for replacement air conditioning and refrigeration products and services”
European operations divestiture
Sold European businesses in Q4 2023 (previously manufacturing in Germany, France and Spain)
“In the fourth quarter of 2023, we completed the sale of our European businesses. The European businesses were presented with the Corporate and Other business segment until their divestiture.”
Light commercial rooftop product range
Rooftop units 2-30 tons; split systems 1.5-20 tons for light commercial applications
“Our product offerings for these applications include rooftop units ranging from 2 to 30 tons of cooling capacity and split system/air handler combinations, which range from 1.5 to 20 tons of cooling capacity.”
R&D spend
Research and development expense: $103.4M (2025), $93.6M (2024), $94.0M (2023)
“Research and development$103.4 $93.6 $94.0”
Manufacturing rationalization
Manufacturing rationalization and North American distribution network reorganization to lower costs and locate inventory closer to customers
“we are engaged in various manufacturing rationalization actions designed to achieve our strategic priorities of manufacturing, sourcing, and distribution excellence and of lowering our cost structure”
Segment results 2025 vs 2024
HCS net sales -7% and profit -$32M on lower volumes; BCS net sales +5% and profit +$33M on favorable price and mix
“The Home Comfort Solutions segment experienced a 7% decrease in net sales and a $32 million decrease in segment profit in 2025 ... Our Building Climate Solutions segment saw an increase in net sales of 5% and a $33 million increase in segment profit in 2025 compared to 2024, primarily due to favorable price and mix.”
LIFO to FIFO accounting change
Q4 2025 changed inventory accounting from LIFO to FIFO; increased Retained Earnings $106.6M as of Jan 1, 2023
“In the fourth quarter of 2025, we changed the method of accounting for all inventory previously on LIFO to FIFO.”
OBBBA tax legislation
One Big Beautiful Bill Act enacted July 4, 2025; no material impact on 2025 effective tax rate
“On July 4, 2025, the One Big Beautiful Bill Act (the "OBBBA") was enacted into law ... For fiscal year 2025, the OBBBA did not have a material impact on our effective tax rate.”
Single-location production facilities and key supplier reliance
Single-location production facilities and reliance on single/key suppliers create supply disruption risk
“We manufacture many of our products at single-location production facilities. In certain instances, we heavily rely on suppliers who also may concentrate production in single locations or source unique, necessary products from only one supplier.”
Competition risk
Intense HVACR competition on availability, reliability, efficiency, performance, service and price; low barriers to entry in parts, distribution and service
“The most significant competitive factors we face are product availability, product reliability, energy efficiency, product performance, service, and price”
Direct-to-dealer strategy dependency
Direct-to-dealer network drives substantial portion of revenue and installed-base service/retrofit opportunities
“We rely on our direct sales channel for a substantial portion of our revenue. Our direct-to-dealer network also creates a large installed base of HVACR equipment”
AI-related risks
AI technologies present competitive, compliance and reputational risks; company has begun incorporating AI capabilities
“If we fail to keep pace with rapidly evolving technological developments in AI, our competitive position and business results may suffer.”
Lennox brands are sold directly to independent installing dealers via direct-to-dealer network; a substantial portion of revenue depends on this channel.
“Lennox operates a direct-to-dealer network, meaning we manufacture products and sell them directly to select, independent home service companies. We rely on our direct sales channel for a substantial portion of our revenue.”
Steel is one of the principal raw materials in Lennox's manufacturing processes; pricing volatility has impacted the company and the HVACR industry.
“The principal raw materials used in our manufacturing processes are steel, aluminum and copper. In recent years, pricing volatility for these commodities and related components has impacted us and the HVACR industry in general.”
Aluminum is a principal raw material; exposure mitigated by futures contracts and fixed forward contracts.
“We seek to mitigate the impact of certain commodity price volatility through a combination of pricing actions, vendor contracts, improved production efficiency and cost reduction initiatives.”
Copper is a principal raw material; hedged via futures contracts with 87.6M lbs notional (aluminum and copper combined).
“The principal raw materials used in our manufacturing processes are steel, aluminum and copper.”
Demand is seasonal and significantly impacted by weather: warm summers drive AC/refrigeration replacement, cold winters drive heating demand; mild seasons depress demand.
“Warmer than normal summer temperatures generate demand for replacement air conditioning and refrigeration products and services, and colder than normal winter temperatures have a similar effect on heating products and services.”
Many products made at single-location facilities; heavy reliance on suppliers concentrated in single locations or single-source products creates disruption risk.
“any significant interruptions in production at one or more of our facilities or at a facility of one of our key suppliers, any failure to maintain favorable relationships with our suppliers, or any termination of a key supplier relationship, could negatively impact our profitability”
Demand is influenced by interest rates, financing availability, population and employment trends, new construction, general economic conditions and consumer spending habits and confidence.
“demand for our products and services is influenced by national and regional economic and demographic factors, such as interest rates, the availability of financing, regional population and employment trends, new construction, general economic conditions and consumer spending habits and confidence”
Commodity futures program covers quantities of raw materials and parts with high copper and aluminum content; notional 87.6M lbs.
“We enter into commodity futures contracts to stabilize prices expected to be paid for raw materials and parts containing high copper and aluminum content.”
Interest rates, financing availability and new construction activity influence demand; a decline in new construction is a listed risk to results.
“a decline in new construction activity and related demand for our products and services”
New or increased trade tariffs are listed as a factor that could cause actual results to differ materially.
“the impact of new or increased trade tariffs;”
Labor shortages, turnover, stoppages and labor cost increases may adversely affect the labor force and costs; ~26% of core workforce locations unionized.
“A number of factors may adversely affect the labor force available or increase labor costs, including labor shortages from high employment levels and related competition or labor stoppages due to disputes or strikes.”
Changes in environmental and climate-related legislation or government regulations are listed among factors that could materially affect results.
“changes in environmental and climate-related legislation or government regulations or policies;”
Both segments serve Canada; Lennox Stores, dealers and NAS operate across the U.S. and Canada.
“United States Canada”
AI poses competitive risk if rivals use AI more effectively; company has begun incorporating AI including generative AI into operations, with new compliance and reputational risks.
“We face risk of competitive disadvantage if our competitors more effectively use AI to better serve customers, drive internal efficiencies, and/or create new or enhanced products or services.”
49.9% JV with Samsung distributes Samsung ductless AC and heat pump products in U.S. and Canada and 'Lennox powered by Samsung' branded products.
“We own a 49.9% interest in a joint venture with Samsung that distributes Samsung ductless AC and heat pump products in the U.S. and Canada”
Euro is listed among primary FX exposures even after European divestiture in 2023.
“Our primary exposure to foreign currencies are the Canadian dollar, Mexican Peso, and the Euro.”
49.9% JV with Ariston Group will manufacture and distribute water heaters through Lennox Stores and direct-to-dealer network.
“We own a 49.9% interest in a joint venture with Ariston Group that will manufacture and distribute water heaters through Lennox Stores and our direct-to-dealer network.”
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