Lennox maintains robust pricing power with gross margins reaching 34.8% in 2025Q2, though top-line growth remains vulnerable to cyclicality as evidenced by an 11.2% revenue decline in 2025Q4.
| 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 | 5.26B | 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 % | -2.03% | -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 | 3.52B | 3.48B | 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 | - | 66.98% | 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 | 1.74B | 1.72B | 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 % | 33.06% | 33.02% | 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 % | - | -3.19% | 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 | 712M | 699.7M | 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 | - | 13.47% | 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 | 695.3M | 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 | 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 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 18.3M | 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 | 1.02B | 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 % | 19.52% | 19.55% | 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 % | - | -1.86% | 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 | 1.13B | 1.12B | 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 % | 21.55% | 21.57% | 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 % | 1.16% | -0.84% | 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) | 108.4M | 104.8M | 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 | 1.01B | 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 | -49.9M | -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 | 49.9M | 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 | -56.7M | -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 | 969.4M | 970.9M | 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 % | 18.44% | 18.69% | 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 | 186.3M | 184.7M | 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 % | 19.22% | 19.02% | 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 | 783.1M | 786.2M | 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 % | 14.89% | 15.13% | 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 % | -2.47% | -2.57% | 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) | 783.1M | 786.2M | 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) | 22.37 | 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 % | -1.07% | -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 | 35M | 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 | 34.8M | 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 | - | 22% | 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% |
Cyclical residential replacement volatility
As indicated by the most recent quarterly data, Lennox's revenue growth has turned volatile, with a notable contraction of 11.2% in 2025Q4, suggesting that the company's reliance on the North American residential replacement market is increasingly susceptible to broader macroeconomic pressures and interest rate sensitivity.
The erratic quarterly revenue performance suggests that the company is struggling to maintain consistent volume growth despite its premium market positioning. Investors should monitor whether this deceleration reflects a structural shift in consumer demand or merely a temporary pause in the replacement cycle driven by high financing costs.
Based on reported financial statements, Lennox has maintained a robust gross margin profile, peaking at 34.8% in 2025Q2, which suggests that the company's direct-to-dealer distribution model provides significant pricing power that effectively insulates profitability from the volatility observed in top-line revenue growth.
The ability to sustain gross margins above 30% even during periods of revenue contraction implies a successful execution of price-realization strategies. This structural advantage appears to be a key differentiator, allowing the firm to protect its bottom line while competitors with more fragmented distribution channels may face greater margin compression.
According to historical income statement data, Lennox demonstrates strong operating leverage, as evidenced by the expansion of operating margins to 23.6% in 2025Q2, which indicates that management has successfully optimized its lean manufacturing footprint and SG&A expenses relative to the company's gross profit generation.
The scaling of operating income during peak seasonal quarters suggests that the company's cost structure is highly responsive to volume shifts. However, the subsequent compression in operating margins during lower-revenue quarters warrants further investigation into the fixed-cost burden inherent in the company's retail-heavy distribution model.
While Lennox currently reports strong profitability, the recent revenue decline of 2.73% suggests that the market may be overestimating the company's immunity to cyclical downturns, potentially masking underlying risks related to the high-cost transition to new, more complex refrigerant standards and regulatory compliance requirements.
Short-term margin resilience may be masking the long-term R&D and warranty risks associated with the rollout of next-generation HVAC platforms. Investors should be cautious, as the current profitability levels may be unsustainable if the company is forced to increase promotional spending to defend its market share against aggressive peers.
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 $786.2M in net income for the fiscal year ending 2025 with a net profit margin of 15.1%.
Lennox International Inc. (LII) reported an operating income of $1.02B, resulting in an operating profit margin of 19.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Lennox International Inc. (LII) generated $1.72B in gross profit for the year, representing a gross profit margin of 33.0%. This demonstrates the company's core pricing power and production efficiency.