Gross margin held between roughly 31% and 35% while operating margin compressed from 23.6% to 14.6% over the period, suggesting that volume-driven revenue swings flow heavily through a largely fixed SG&A base.
Lennox International Inc. (LII) annual income statement — 28-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Sales/Revenue | 5.45B | 5.2B | 5.34B | 4.98B | 4.72B | 4.19B | 3.63B | 3.81B | 3.88B | 3.84B | 3.64B | 3.47B | 3.37B | 3.2B | 2.95B | 3.3B | 3.1B | 2.85B | 3.48B | 3.75B | 3.67B | 3.37B | 2.98B | 3.09B | 3.03B | 3.12B | 3.25B | 2.36B | 1.82B |
| Revenue Growth % | 1.92% | -2.73% | 7.21% | 5.58% | 12.5% | 15.41% | -4.55% | -1.97% | 1.15% | 5.44% | 5.02% | 2.97% | 5.26% | 8.47% | -10.72% | 6.69% | 8.74% | -18.21% | -7.16% | 2.14% | 9.06% | 12.86% | -3.32% | 1.96% | -3.01% | -3.93% | 37.5% | 29.64% | - |
| Cost of Goods Sold | 3.67B | 3.46B | 3.57B | 3.43B | 3.43B | 3.01B | 2.59B | 2.73B | 2.77B | 2.71B | 2.57B | 2.52B | 2.46B | 2.34B | 2.23B | 2.47B | 2.2B | 2.05B | 2.51B | 2.7B | 2.52B | 2.26B | 1.99B | 2.07B | 2.07B | 2.19B | 2.12B | 1.56B | 1.21B |
| COGS % of Revenue | - | 66.61% | 66.83% | 68.93% | 72.77% | 71.67% | 71.38% | 71.64% | 71.39% | 70.69% | 70.44% | 72.68% | 73.18% | 73.08% | 75.51% | 74.77% | 71.2% | 72.14% | 72.04% | 71.93% | 68.53% | 67.08% | 66.56% | 67.03% | 68.55% | 70.2% | 65.36% | 66.05% | 66.45% |
| Gross Profit | 1.78B | 1.73B | 1.77B | 1.55B | 1.28B | 1.19B | 1.04B | 1.08B | 1.11B | 1.13B | 1.08B | 947.4M | 903.3M | 861.2M | 722.3M | 833.6M | 891.8M | 793.4M | 973.5M | 1.05B | 1.16B | 1.11B | 997.5M | 1.02B | 951.74M | 929.65M | 1.12B | 801.8M | 611.3M |
| Gross Margin % | 32.62% | 33.39% | 33.17% | 31.07% | 27.23% | 28.34% | 28.62% | 28.36% | 28.61% | 29.31% | 29.56% | 27.32% | 26.82% | 26.92% | 24.49% | 25.23% | 28.8% | 27.86% | 27.96% | 28.07% | 31.47% | 32.92% | 33.44% | 32.97% | 31.45% | 29.8% | 34.64% | 33.95% | 33.55% |
| Gross Profit Growth % | - | -2.09% | 14.48% | 20.48% | 8.1% | 14.26% | -3.68% | -2.83% | -1.24% | 4.52% | 13.63% | 4.88% | 4.89% | 19.23% | -13.35% | -6.53% | 12.4% | -18.5% | -7.51% | -8.88% | 4.26% | 11.08% | -1.94% | 6.88% | 2.38% | -17.35% | 40.28% | 31.16% | - |
| Operating Expenses | 749.3M | 693.3M | 737.1M | 757.7M | 628.5M | 598.1M | 561.6M | 422.9M | 601.3M | 630.7M | 647.1M | 642M | 568.6M | 572.2M | 503.2M | 485.5M | 496.7M | 678.9M | 715.9M | 781.3M | 791.3M | 756.1M | 1.03B | 785.5M | 764.8M | 921.13M | 860.08M | 645.8M | 504.6M |
| OpEx % of Revenue | - | 13.34% | 13.8% | 15.21% | 13.32% | 14.26% | 15.45% | 11.11% | 15.48% | 16.43% | 17.77% | 18.52% | 16.89% | 17.89% | 17.06% | 14.7% | 16.04% | 23.84% | 20.56% | 20.84% | 21.55% | 22.46% | 34.67% | 25.46% | 25.28% | 29.53% | 26.49% | 27.34% | 27.7% |
| Selling, General & Admin | 720.8M | 681.4M | 730.6M | 705.5M | 627.2M | 598.9M | 555.9M | 585.9M | 608.2M | 637.7M | 621M | 580.5M | 573.7M | 570.1M | 507M | 476.9M | 492M | 644.9M | 686.9M | 773.4M | 778M | 753.7M | 826.1M | 783.6M | 764.9M | 849.74M | 849.98M | 588.4M | 461.1M |
| SG&A % of Revenue | - | 13.12% | 13.68% | 14.16% | 13.29% | 14.28% | 15.3% | 15.39% | 15.66% | 16.61% | 17.05% | 16.74% | 17.04% | 17.82% | 17.19% | 14.44% | 15.89% | 22.65% | 19.73% | 20.63% | 21.19% | 22.39% | 27.7% | 25.4% | 25.28% | 27.24% | 26.17% | 24.91% | 25.31% |
| Research & Development | 0 | 103.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 1.99% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | -91.5M | 6.5M | 52.2M | 1.3M | -800K | 5.7M | -163M | -6.9M | -7M | 26.1M | 61.5M | -5.1M | 2.1M | -3.8M | 8.6M | 4.7M | 34M | 29M | 7.9M | 13.3M | 2.4M | 208M | 1.9M | -100K | 71.38M | 10.1M | 57.4M | 43.5M |
| Operating Income | 1.03B | 1.04B | 1.03B | 790.1M | 656.2M | 590.3M | 478.5M | 656.9M | 509.9M | 494.5M | 429.4M | 305.4M | 334.7M | 289M | 219.1M | 184.4M | 204.5M | 109.2M | 218.6M | 266.6M | 168.7M | 189M | -36.6M | 157.8M | 101.3M | -696K | 158.61M | 156M | 106.7M |
| Operating Margin % | 18.89% | 20.05% | 19.37% | 15.86% | 13.91% | 14.07% | 13.17% | 17.25% | 13.13% | 12.88% | 11.79% | 8.81% | 9.94% | 9.03% | 7.43% | 5.58% | 6.6% | 3.83% | 6.28% | 7.11% | 4.6% | 5.61% | -1.23% | 5.11% | 3.35% | -0.02% | 4.88% | 6.61% | 5.86% |
| Operating Income Growth % | - | 0.65% | 30.97% | 20.41% | 11.16% | 23.36% | -27.16% | 28.83% | 3.11% | 15.16% | 40.6% | -8.75% | 15.81% | 31.9% | 18.82% | -9.83% | 87.27% | -50.05% | -18% | 58.03% | -10.74% | 616.39% | -123.19% | 55.77% | 14654.6% | -100.44% | 1.67% | 46.2% | - |
| EBITDA | 1.16B | 1.15B | 1.13B | 876.1M | 734.1M | 662.7M | 551.1M | 728M | 575.9M | 559.1M | 487.5M | 368.2M | 395.5M | 347.9M | 274.5M | 241M | 253.4M | 162.1M | 269.2M | 315.4M | 213M | 226.4M | 6M | 203.9M | 155.2M | 81.84M | 243.02M | 213.4M | 150.2M |
| EBITDA Margin % | 21.27% | 22.21% | 21.15% | 17.59% | 15.56% | 15.8% | 15.16% | 19.12% | 14.83% | 14.56% | 13.39% | 10.62% | 11.74% | 10.87% | 9.31% | 7.3% | 8.18% | 5.69% | 7.73% | 8.41% | 5.8% | 6.73% | 0.2% | 6.61% | 5.13% | 2.62% | 7.48% | 9.04% | 8.24% |
| EBITDA Growth % | -0.92% | 2.13% | 28.97% | 19.34% | 10.77% | 20.25% | -24.3% | 26.41% | 3% | 14.69% | 32.4% | -6.9% | 13.68% | 26.74% | 13.9% | -4.89% | 56.32% | -39.78% | -14.65% | 48.08% | -5.92% | 3673.33% | -97.06% | 31.38% | 89.64% | -66.32% | 13.88% | 42.08% | - |
| D&A (Non-Cash Add-back) | 129.5M | 112.5M | 95.1M | 86M | 77.9M | 72.4M | 72.6M | 71.1M | 66M | 64.6M | 58.1M | 62.8M | 60.8M | 58.9M | 55.4M | 56.6M | 48.9M | 52.9M | 50.6M | 48.8M | 44.3M | 37.4M | 42.6M | 46.1M | 53.9M | 82.53M | 84.41M | 57.4M | 43.5M |
| EBIT | 1.02B | 1.04B | 1.04B | 793.5M | 655.6M | 586.1M | 474.9M | 556.5M | 507M | 496.1M | 430.8M | 307.8M | 336.5M | 290.8M | 220.6M | 186M | 204.4M | 110.3M | 222.3M | 265.9M | 182M | 191.4M | -36.6M | 157.8M | 109.1M | 70.69M | 168.71M | 156M | 106.7M |
| Net Interest Income | -63.3M | -40.9M | -38.7M | -51.7M | -38.7M | -25M | -28.3M | -47.5M | -38.3M | -30.6M | -27M | -23.6M | -17.2M | -14.5M | -17.1M | -16.8M | -12.8M | -8.2M | -14.2M | -6.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 5.4M | 4.3M | 1.1M | 1M | 1.4M | 1.1M | 800K | 1.5M | 1.1M | 1.6M | 1.7M | 2M | 1.8M | 0 | 0 | 1.2M | 3.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 63.3M | 40.9M | 44.1M | 56M | 39.8M | 26M | 29.7M | 48.6M | 39.1M | 32.1M | 28.1M | 25.2M | 18.9M | 16.5M | 18.9M | 16.8M | 12.8M | 9.4M | 13.7M | 6.8M | 15.4M | 15.4M | 27.2M | 31.8M | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -70.5M | -44.7M | -41M | -52.6M | -40.4M | -30.2M | -33.3M | 0 | -42M | -30.5M | -26.7M | -22.8M | -17.1M | -14.7M | -17.4M | -53.8M | -20.5M | -8.3M | -42.7M | -7.5M | -4M | -18.4M | -26.4M | -23.9M | -30.7M | -43.7M | -57.66M | -32.7M | -17M |
| Pretax Income | 958.5M | 996.8M | 993.8M | 737.5M | 615.8M | 560.1M | 445.2M | 507.9M | 467.9M | 464M | 402.7M | 282.6M | 317.6M | 274.3M | 201.7M | 167.3M | 190.7M | 100.9M | 204.3M | 259.1M | 218.4M | 235M | -63M | 131.8M | 70.6M | -44.4M | 100.95M | 123.3M | 89.7M |
| Pretax Margin % | 17.59% | 19.19% | 18.61% | 14.8% | 13.05% | 13.35% | 12.25% | 13.34% | 12.05% | 12.08% | 11.06% | 8.15% | 9.43% | 8.57% | 6.84% | 5.06% | 6.16% | 3.54% | 5.87% | 6.91% | 5.95% | 6.98% | -2.11% | 4.27% | 2.33% | -1.42% | 3.11% | 5.22% | 4.92% |
| Income Tax | 208.6M | 191M | 186.9M | 147.4M | 118.7M | 96.1M | 88.1M | 99.1M | 107.6M | 156.9M | 124.1M | 95.4M | 109.5M | 94.4M | 66.7M | 55.8M | 64.8M | 39.1M | 80.5M | 89.5M | 52.4M | 83M | 30.5M | 45.1M | 32.2M | -2M | 41.89M | 50.1M | 37.2M |
| Effective Tax Rate % | 21.76% | 19.16% | 18.81% | 19.99% | 19.28% | 17.16% | 19.79% | 19.51% | 23% | 33.81% | 30.82% | 33.76% | 34.48% | 34.41% | 33.07% | 33.35% | 33.98% | 38.75% | 39.4% | 34.54% | 23.99% | 35.32% | -48.41% | 34.22% | 45.61% | 4.5% | 41.5% | 40.63% | 41.47% |
| Net Income | 749.9M | 805.8M | 806.9M | 590.1M | 497.1M | 464M | 356.3M | 408.7M | 359M | 305.7M | 277.8M | 186.6M | 205.8M | 171.8M | 90M | 88.3M | 116.2M | 51.1M | 122.8M | 169M | 166M | 150.5M | -134.4M | 84.4M | -190.42M | -42.4M | 59.06M | 73.2M | 52.5M |
| Net Margin % | 13.76% | 15.51% | 15.11% | 11.84% | 10.54% | 11.06% | 9.8% | 10.73% | 9.24% | 7.96% | 7.63% | 5.38% | 6.11% | 5.37% | 3.05% | 2.67% | 3.75% | 1.79% | 3.53% | 4.51% | 4.52% | 4.47% | -4.51% | 2.74% | -6.29% | -1.36% | 1.82% | 3.1% | 2.88% |
| Net Income Growth % | -10.87% | -0.14% | 36.74% | 18.71% | 7.13% | 30.23% | -12.82% | 13.84% | 17.44% | 10.04% | 48.87% | -9.33% | 19.79% | 90.89% | 1.93% | -24.01% | 127.4% | -58.39% | -27.34% | 1.81% | 10.3% | 211.98% | -259.24% | 144.32% | -349.13% | -171.79% | -19.32% | 39.43% | - |
| Net Income (Continuing) | 749.9M | 805.8M | 806.9M | 590.1M | 497.1M | 464M | 357.1M | 408.8M | 360.3M | 307.1M | 278.6M | 187.2M | 208.1M | 179.9M | 135M | 111.5M | 125.9M | 61.8M | 125.1M | 169.6M | 166M | 152M | -93.5M | 86.7M | 38.4M | -42.4M | 59.06M | 73.2M | 52.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | -800K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 400K | 400K | 600K | 800K | 1.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.59M | 1.65M | 2.06M | 14.1M | 12.7M |
| EPS (Diluted) | 21.74 | 22.22 | 22.54 | 16.53 | 13.89 | 12.37 | 9.23 | 10.37 | 8.73 | 7.14 | 6.32 | 4.09 | 4.23 | 3.39 | 1.75 | 1.65 | 2.08 | 0.91 | 2.11 | 2.43 | 2.26 | 2.11 | -2.24 | 1.36 | -3.23 | -0.82 | 0.79 | 1.63 | 1.47 |
| EPS Growth % | -8.96% | -1.42% | 36.36% | 19.01% | 12.29% | 34.02% | -10.99% | 18.79% | 22.27% | 12.97% | 54.52% | -3.31% | 24.78% | 93.71% | 6.06% | -20.67% | 128.57% | -56.87% | -13.17% | 7.52% | 7.11% | 194.2% | -264.71% | 142.11% | -293.9% | -203.8% | -51.53% | 10.88% | - |
| EPS (Basic) | - | 22.31 | 22.67 | 16.62 | 13.92 | 12.47 | 9.30 | 10.48 | 8.84 | 7.25 | 6.39 | 4.16 | 4.30 | 3.45 | 1.77 | 1.68 | 2.13 | 0.91 | 2.17 | 2.55 | 2.37 | 2.35 | -2.24 | 1.41 | -3.33 | -0.82 | 1.04 | 1.63 | 1.50 |
| Diluted Shares Outstanding | 34.5M | 35.1M | 35.8M | 35.7M | 35.8M | 37.5M | 38.6M | 39.4M | 41.1M | 42.8M | 44M | 45.6M | 48.6M | 50.6M | 51.4M | 53.4M | 55.8M | 56.3M | 58.3M | 69.4M | 73.5M | 73.7M | 60M | 63.53M | 58.87M | 52M | 56.63M | 40.44M | 35.71M |
| Basic Shares Outstanding | 34.4M | 34.9M | 35.6M | 35.5M | 35.7M | 37.2M | 38.3M | 39M | 40.6M | 42.2M | 43.4M | 44.9M | 47.9M | 49.8M | 50.7M | 52.5M | 54.6M | 55.5M | 56.7M | 66.4M | 69.9M | 64.2M | 60M | 58.17M | 57.15M | 52M | 56M | 37.83M | 35M |
| Dividend Payout Ratio | - | 21.47% | 19.87% | 26% | 28.57% | 27.26% | 33.15% | 27.04% | 26.16% | 26.07% | 24.84% | 31.78% | 25.56% | 19.79% | 52.89% | 41.34% | 27.88% | 60.86% | 26.38% | 20.71% | 18.86% | 16.48% | - | 26.18% | - | - | 27.54% | 19.4% | 20.57% |
Quick answers to the most common questions about buying LII stock.
For fiscal year 2025, Lennox International Inc. (LII) reported total revenue of $5.20B. This represents a 185.2% increase compared to $1.82B in 1998.
Lennox International Inc. (LII) is profitable, generating $805.8M in net income for the fiscal year ending 2025 with a net profit margin of 15.5%.
Lennox International Inc. (LII) reported an operating income of $1.04B, resulting in an operating profit margin of 20.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Lennox International Inc. (LII) generated $1.73B in gross profit for the year, representing a gross profit margin of 33.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Residential demand softness persisting
Metrics are mathematically derived from official filings.
Top-Line Contraction Masked by Mix
Based on reported quarterly figures, LII's revenue growth turned negative at -2.7% year over year in the latest quarter, with revenue of $1.5B, suggesting volume weakness in the residential end market is not yet resolving.
The sequence of quarterly growth rates shows a clear deceleration from the mid-2024 peak, with several quarters printing negative growth despite acquisition contributions. This pattern suggests inorganic additions are offsetting, rather than reversing, underlying demand softness. Investors should monitor whether organic volumes stabilize before extrapolating the recent top-line recovery.
Gross Margin Resilience Through Pricing
As reported in the income statement, LII's gross margin ranged between roughly 31% and 35% across the period, with the latest quarter at 31.6%, indicating price realization has largely offset commodity and volume pressure.
The stability of gross margin within a relatively narrow band despite revenue swings implies meaningful pricing power in the replacement-driven residential channel. However, the drop to 31.6% in the most recent quarter, following 34.9% the prior quarter, may indicate early pressure from input costs or unfavorable mix. Analysts should assess whether this compression persists into subsequent quarters.
Operating Margin Volatility Tracks Volume
Based on EDBL-style reported figures, LII's operating margin moved from 23.6% in Q2 2025 to 14.6% in Q1 2026, showing operating income is highly sensitive to quarterly revenue swings given a largely fixed SG&A base.
SG&A has remained relatively flat in dollar terms, around $160M to $207M per quarter, so operating income swings primarily reflect revenue volume rather than cost actions. This indicates meaningful operating leverage in both directions. The latest operating margin of 19.8% suggests partial recovery, but the cost base has limited flexibility if volumes soften further.
EPS Outpaces Revenue Trend
According to recent SEC filings, LII's diluted EPS of $6.41 in the latest quarter reflects a -7.9% year-over-year decline, which is more moderate than the operating income decline, possibly indicating share count reduction or tax effects.
Net margin of 14.1% and EPS movements show a partial divergence from operating trends, which warrants reconciliation against share count changes and tax rate. Stock-based compensation of $3.3M to $8.4M per quarter is modest relative to earnings. Investors should verify the non-operating and tax components before relying on EPS as a clean indicator of earnings power.
Acquisition Dependence Challenges Organic Story
Based on reported figures, LII's management has acknowledged that acquisitions mitigated rather than reversed residential softness, which may indicate the growth profile is increasingly reliant on M&A to offset end-market cyclicality.
The bear case centers on whether recent EPS beats reflect durable operating improvement or acquired earnings layered onto a contracting core. Lowered full-year guidance despite a quarterly beat reinforces this concern. Integration risk and the sustainability of acquisition contributions warrant close monitoring, as do any further downward guidance revisions.