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Lennox International Financials

LII
Source SEC Filings (10-K/10-Q) Updated Dec 31, 2025 Currency USD FYE December

This page shows Lennox International (LII) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 18 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Financial Health Signals

Profitability Growth Leverage Liquidity Cash Flow Returns 60 / 100
Financial Profile 60/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability
67

Lennox International has an operating margin of 20.1%, meaning the company retains $20 of operating profit per $100 of revenue. This strong profitability earns a score of 67/100, reflecting efficient cost management and pricing power. This is up from 19.5% the prior year.

Growth
29

Lennox International's revenue declined 2.7% year-over-year, from $5.3B to $5.2B. This contraction results in a growth score of 29/100.

Leverage
82

Lennox International carries a low D/E ratio of 0.98, meaning only $0.98 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 82/100, indicating a strong balance sheet with room for future borrowing.

Liquidity
28

Lennox International's current ratio of 1.60 means current assets barely cover short-term liabilities. This tight liquidity results in a low score of 28/100, which could limit financial flexibility.

Cash Flow
56

Lennox International has a free cash flow margin of 12.3%, earning a moderate score of 56/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns
100

Lennox International earns a strong 69.3% return on equity (ROE), meaning it generates $69 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 100/100. This is down from 84.3% the prior year.

Altman Z-Score Safe
7.25

Lennox International scores 7.25, well above the 2.99 safe threshold. This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Neutral
5/9

Lennox International passes 5 of 9 financial strength tests. 2 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.

Earnings Quality Mixed
0.94x

For every $1 of reported earnings, Lennox International generates $0.94 in operating cash flow ($757.6M OCF vs $805.8M net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.

Interest Coverage Safe
25.5x

Lennox International earns $25.5 in operating income for every $1 of interest expense ($1.0B vs $40.9M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

Key Financial Metrics

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Earnings & Revenue

Revenue
$5.2B
YoY-2.7%
5Y CAGR+7.4%
10Y CAGR+4.1%

Lennox International generated $5.2B in revenue in fiscal year 2025. This represents a decrease of 2.7% from the prior year.

EBITDA
$1.2B
YoY+1.6%
5Y CAGR+15.9%
10Y CAGR+12.1%

Lennox International's EBITDA was $1.2B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 1.6% from the prior year.

Net Income
$805.8M
YoY-0.7%
5Y CAGR+17.7%
10Y CAGR+15.8%

Lennox International reported $805.8M in net income in fiscal year 2025. This represents a decrease of 0.7% from the prior year.

EPS (Diluted)
$22.79
YoY+0.6%
5Y CAGR+19.8%
10Y CAGR+18.7%

Lennox International earned $22.79 per diluted share (EPS) in fiscal year 2025. This represents an increase of 0.6% from the prior year.

Cash & Balance Sheet

Free Cash Flow
$638.8M
YoY-18.3%
5Y CAGR+3.7%
10Y CAGR+8.5%

Lennox International generated $638.8M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 18.3% from the prior year.

Cash & Debt
$34.2M
YoY-91.8%
5Y CAGR-22.7%
10Y CAGR-1.3%

Lennox International held $34.2M in cash against $1.1B in long-term debt as of fiscal year 2025.

Dividends Per Share
N/A
Shares Outstanding
35M
YoY-2.2%
5Y CAGR-1.6%
10Y CAGR-2.5%

Lennox International had 35M shares outstanding in fiscal year 2025. This represents a decrease of 2.2% from the prior year.

Margins & Returns

Gross Margin
33.4%
YoY+0.1pp
5Y CAGR+4.8pp
10Y CAGR+6.1pp

Lennox International's gross margin was 33.4% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 0.1 percentage points from the prior year.

Operating Margin
20.1%
YoY+0.6pp
5Y CAGR+6.9pp
10Y CAGR+11.2pp

Lennox International's operating margin was 20.1% in fiscal year 2025, reflecting core business profitability. This is up 0.6 percentage points from the prior year.

Net Margin
15.5%
YoY+0.3pp
5Y CAGR+5.7pp
10Y CAGR+10.1pp

Lennox International's net profit margin was 15.5% in fiscal year 2025, showing the share of revenue converted to profit. This is up 0.3 percentage points from the prior year.

Return on Equity
69.3%
YoY-15.0pp
10Y CAGR-114.4pp

Lennox International's ROE was 69.3% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 15.0 percentage points from the prior year.

Capital Allocation

R&D Spending
$103.4M
YoY+10.5%
5Y CAGR+9.1%
10Y CAGR+5.2%

Lennox International invested $103.4M in research and development in fiscal year 2025. This represents an increase of 10.5% from the prior year.

Share Buybacks
$482.3M
YoY+799.8%
5Y CAGR+37.0%

Lennox International spent $482.3M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 799.8% from the prior year.

Capital Expenditures
$118.8M
YoY-27.4%
5Y CAGR+8.6%
10Y CAGR+5.4%

Lennox International invested $118.8M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 27.4% from the prior year.

LII Income Statement

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Revenue $1.2B-16.2% $1.4B-4.9% $1.5B+39.9% $1.1B-20.3% $1.3B-10.2% $1.5B+3.2% $1.5B+38.6% $1.0B
Cost of Revenue $805.7M-14.3% $939.6M-4.5% $983.4M+34.4% $731.7M-17.2% $884.1M-12.4% $1.0B+4.9% $962.9M+36.2% $707.1M
Gross Profit $389.3M-20.1% $487.2M-5.9% $517.5M+51.8% $340.9M-26.0% $460.9M-5.6% $488.4M0.0% $488.2M+43.6% $340.0M
R&D Expenses N/A N/A N/A N/A N/A N/A N/A N/A
SG&A Expenses N/A $161.6M-6.8% $173.3M+1.2% $171.3M-17.2% $207.0M+12.3% $184.4M+9.4% $168.5M-1.3% $170.7M
Operating Income $195.8M-40.5% $328.8M-5.8% $349.0M+107.7% $168.0M-32.9% $250.2M-17.5% $303.3M-5.2% $320.1M+91.9% $166.8M
Interest Expense N/A $10.5M+26.5% $8.3M+33.9% $6.2M+12.7% $5.5M-38.2% $8.9M-28.8% $12.5M+5.9% $11.8M
Income Tax $36.2M-37.0% $57.5M-13.0% $66.1M+111.9% $31.2M-26.4% $42.4M-22.8% $54.9M-10.1% $61.1M+104.3% $29.9M
Net Income $142.5M-45.2% $259.9M-5.1% $273.9M+111.3% $129.6M-35.8% $201.9M-15.5% $239.0M-2.8% $245.9M+97.8% $124.3M
EPS (Diluted) $4.07-44.9% $7.38-4.3% $7.71+112.4% $3.63 N/A $6.68-2.8% $6.87+98.0% $3.47

LII Balance Sheet

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Total Assets $4.1B+15.8% $3.5B-3.5% $3.7B+5.7% $3.5B-4.5% $3.6B+9.3% $3.3B+2.8% $3.2B+7.9% $3.0B
Current Assets $1.9B+0.3% $1.9B-5.3% $2.0B+8.0% $1.9B-8.7% $2.0B+11.0% $1.8B+3.7% $1.8B+12.8% $1.6B
Cash & Equivalents $34.2M-35.3% $52.9M+7.5% $49.2M-77.3% $217.2M-47.7% $415.1M+70.8% $243.1M+410.7% $47.6M+4.2% $45.7M
Inventory $1.2B+16.2% $991.5M-1.0% $1.0B+11.0% $902.3M+5.8% $853.0M+23.8% $689.2M-11.2% $776.3M-5.7% $823.4M
Accounts Receivable N/A N/A N/A N/A N/A N/A N/A N/A
Goodwill $497.2M+126.0% $220.0M0.0% $220.0M0.0% $220.0M0.0% $220.0M0.0% $219.9M0.0% $219.9M0.0% $219.9M
Total Liabilities $2.9B+18.9% $2.5B-10.8% $2.8B+5.7% $2.6B-2.1% $2.7B+3.9% $2.6B-3.2% $2.6B+1.1% $2.6B
Current Liabilities $1.2B+5.5% $1.1B-20.3% $1.4B+9.5% $1.3B-1.4% $1.3B-0.2% $1.3B+19.1% $1.1B+0.6% $1.1B
Long-Term Debt $1.1B+36.5% $838.2M+0.3% $835.7M+0.2% $834.2M+0.1% $833.1M+0.7% $827.6M-26.6% $1.1B-2.3% $1.2B
Total Equity $1.2B+8.7% $1.1B+18.8% $900.5M+5.6% $852.5M-11.4% $962.1M+27.6% $754.0M+30.6% $577.4M+56.6% $368.8M
Retained Earnings $4.9B+4.9% $4.7B+4.5% $4.5B+5.5% $4.2B-0.8% $4.3B+6.7% $4.0B+5.2% $3.8B+5.7% $3.6B

LII Cash Flow Statement

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Operating Cash Flow $405.9M+35.0% $300.7M+246.4% $86.8M+342.5% -$35.8M-110.8% $332.4M-26.5% $452.1M+145.7% $184.0M+907.0% -$22.8M
Capital Expenditures $29.2M-18.0% $35.6M+24.9% $28.5M+11.8% $25.5M-57.6% $60.2M+46.1% $41.2M+26.0% $32.7M+10.8% $29.5M
Free Cash Flow $376.7M+42.1% $265.1M+354.7% $58.3M+195.1% -$61.3M-122.5% $272.2M-33.8% $410.9M+171.6% $151.3M+389.3% -$52.3M
Investing Cash Flow -$568.0M-1477.8% -$36.0M-28.1% -$28.1M-19.6% -$23.5M+64.6% -$66.3M-30.3% -$50.9M-92.1% -$26.5M+13.7% -$30.7M
Financing Cash Flow $161.7M+162.4% -$259.2M-14.2% -$227.0M-60.8% -$141.2M-54.8% -$91.2M+56.4% -$209.1M-30.1% -$160.7M-479.0% $42.4M
Dividends Paid $45.6M+3507692207.7% $10.0% $1-100.0% $40.9M-0.2% $41.0M+3565217291.3% $1+4.5% $1-100.0% $39.1M
Share Buybacks $150.5M+306.8% $37.0M-82.3% $209.6M+146.0% $85.2M+109.3% $40.7M+215.5% $12.9M $0 $0

LII Financial Ratios

Metric Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Gross Margin 32.6%-1.6pp 34.2%-0.3pp 34.5%+2.7pp 31.8%-2.5pp 34.3%+1.7pp 32.6%-1.0pp 33.6%+1.2pp 32.5%
Operating Margin 16.4%-6.7pp 23.0%-0.2pp 23.3%+7.6pp 15.7%-2.9pp 18.6%-1.7pp 20.3%-1.8pp 22.1%+6.1pp 15.9%
Net Margin 11.9%-6.3pp 18.2%-0.0pp 18.3%+6.2pp 12.1%-2.9pp 15.0%-0.9pp 16.0%-1.0pp 17.0%+5.1pp 11.9%
Return on Equity 12.3%-12.0pp 24.3%-6.1pp 30.4%+15.2pp 15.2%-5.8pp 21.0%-10.7pp 31.7%-10.9pp 42.6%+8.9pp 33.7%
Return on Assets 3.5%-3.9pp 7.4%-0.1pp 7.5%+3.8pp 3.8%-1.8pp 5.6%-1.6pp 7.2%-0.4pp 7.6%+3.5pp 4.2%
Current Ratio 1.60-0.1 1.68+0.3 1.41-0.0 1.43-0.1 1.55+0.2 1.39-0.2 1.60+0.2 1.43
Debt-to-Equity 0.98+0.2 0.78-0.1 0.93-0.1 0.98+0.1 0.87-0.2 1.10-0.9 1.95-1.2 3.13
FCF Margin 31.5%+12.9pp 18.6%+14.7pp 3.9%+9.6pp -5.7%-26.0pp 20.2%-7.2pp 27.4%+17.0pp 10.4%+15.4pp -5.0%

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Frequently Asked Questions

Lennox International (LII) reported $5.2B in total revenue for fiscal year 2025. This represents a -2.7% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

Lennox International (LII) revenue declined by 2.7% year-over-year, from $5.3B to $5.2B in fiscal year 2025.

Yes, Lennox International (LII) reported a net income of $805.8M in fiscal year 2025, with a net profit margin of 15.5%.

Lennox International (LII) reported diluted earnings per share of $22.79 for fiscal year 2025. This represents a 0.6% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Lennox International (LII) had EBITDA of $1.2B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

As of fiscal year 2025, Lennox International (LII) had $34.2M in cash and equivalents against $1.1B in long-term debt.

Lennox International (LII) had a gross margin of 33.4% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

Lennox International (LII) had an operating margin of 20.1% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

Lennox International (LII) had a net profit margin of 15.5% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Lennox International (LII) has a return on equity of 69.3% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

Lennox International (LII) generated $638.8M in free cash flow during fiscal year 2025. This represents a -18.3% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

Lennox International (LII) generated $757.6M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

Lennox International (LII) had $4.1B in total assets as of fiscal year 2025, including both current and long-term assets.

Lennox International (LII) invested $118.8M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

Lennox International (LII) invested $103.4M in research and development during fiscal year 2025.

Yes, Lennox International (LII) spent $482.3M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

Lennox International (LII) had 35M shares outstanding as of fiscal year 2025.

Lennox International (LII) had a current ratio of 1.60 as of fiscal year 2025, which is generally considered healthy.

Lennox International (LII) had a debt-to-equity ratio of 0.98 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

Lennox International (LII) had a return on assets of 19.7% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

Lennox International (LII) has an Altman Z-Score of 7.25, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

Lennox International (LII) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Lennox International (LII) has an earnings quality ratio of 0.94x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Lennox International (LII) has an interest coverage ratio of 25.5x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

Lennox International (LII) scores 60 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.

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