Core Viewpoint - Lennox International Inc. (stock code LII) has experienced a stock price of $504.73 as of December 4, 2025, reflecting a 0.94% increase from the previous day, with a trading volume of $359 million. However, the stock has declined by 17.16% year-to-date [1]. Financial Performance - For the third quarter of fiscal year 2025, the company reported a revenue of $4.00 billion, representing a year-on-year growth of 0.10%. The net profit was $644 million, showing a year-on-year increase of 5.66% [2]. Analyst Opinions - Wells Fargo maintains a "hold" rating on Lennox, with a target price set at $525 [3]. Recent Events - There are currently no significant upcoming events for Lennox after February 12, 2026, as per publicly available information. Investors are advised to monitor the company's upcoming earnings reports and industry trends [4].

Core Viewpoint - Lennox will host its Investor Day on March 4, 2026, to present operational progress, strategic priorities, and long-term growth targets [1] Group 1: Event Details - The Investor Day will take place in the Dallas-Fort Worth area and will feature presentations from key executives including CEO Alok Maskara and CFO Michael Quenzer [1] - The event will start at 9:30 a.m. Central Time and will be webcast live, with a replay available afterward [1] - Attendees will have the opportunity to tour customer training, product development, and distribution facilities [1] Group 2: Company Overview - Lennox is recognized as a leader in energy-efficient climate control solutions, focusing on sustainability and creating comfortable environments for both residential and commercial customers [1] - The company's product portfolio includes cooling, heating, indoor air quality, and refrigeration systems, along with a range of HVAC parts and services [1]

Core Viewpoint - Lennox International Inc. (LII) has faced challenges in the market, with its stock underperforming compared to broader indices, but has shown some recovery in 2026. Group 1: Company Overview - Lennox International Inc. is headquartered in Richardson, Texas, and specializes in designing, manufacturing, and marketing products for heating, ventilation, air conditioning, and refrigeration markets, with a market cap of $18.6 billion [1]. Group 2: Stock Performance - Over the past year, LII's stock has declined by 9.5%, while the S&P 500 Index has increased by nearly 14% [2]. - In 2026, LII's stock has risen by 9.1%, outperforming the S&P 500's 1.3% increase year-to-date [2]. Group 3: Market Comparison - LII's performance is also lagging behind the Industrial Select Sector SPDR Fund (XLI), which has gained approximately 25.7% over the past year [3]. - The ETF's year-to-date gains of 11.6% significantly exceed LII's returns during the same period [3]. Group 4: Financial Performance - LII reported Q4 results with an adjusted EPS of $4.45, which fell short of Wall Street expectations of $4.76, and revenue of $1.2 billion, missing forecasts of $1.3 billion [6]. - For the current fiscal year ending in December, analysts expect LII's EPS to grow by 4.2% to $24.12 on a diluted basis [7]. Group 5: Analyst Ratings - Among 19 analysts covering LII, the consensus rating is a "Moderate Buy," with six "Strong Buy" ratings, 11 "Holds," one "Moderate Sell," and one "Strong Sell" [7]. - The mean price target for LII is $552.07, indicating a 4.2% premium to current price levels, while the highest price target of $667 suggests an upside potential of 25.9% [8].

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclosures and disclaimers related to investment positions and opinions [1][2] Group 1 - There is no stock, option, or similar derivative position held by the author in any mentioned companies, nor are there plans to initiate such positions in the near future [1] - The article expresses personal opinions of the author and does not reflect the views of Seeking Alpha as a whole [2] - The content does not provide any investment recommendations or advice regarding suitability for particular investors [2]

Financial Data and Key Metrics Changes - Revenue decreased by 11% in Q4 2025, primarily due to weak residential and commercial end markets, with a full-year revenue decline of 3% [7][8] - Segment margin reached a record 20.4% for the full year, despite tariff impacts and inflationary pressures [7][8] - Adjusted earnings per share for Q4 was $4.45, with full-year adjusted EPS at $23.16, a 2% increase from $22.70 in the previous year [7][8] Business Line Data and Key Metrics Changes - The Building Climate Solutions (BCS) segment experienced 8% revenue growth, driven by favorable mix and pricing actions, despite lower organic sales volumes [15][16] - The Heating and Cooling Solutions (HCS) segment saw a 21% revenue decline in Q4, attributed to destocking and weaker residential new construction [28][60] Market Data and Key Metrics Changes - The North American HVAC industry faced significant challenges in 2025, including channel destocking and low dealer and consumer confidence [8][9] - The commercial HVAC sector experienced a decline for 17 consecutive months, with expectations for improvement in 2026 as destocking completes [9][60] Company Strategy and Development Direction - The company plans to continue strategic investments, including $250 million in capital expenditures for innovation and customer experience enhancements in 2026 [19][70] - The self-help transformation plan is entering its final phase, focusing on scaling operations and broadening the product portfolio [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, anticipating a return to revenue growth and continued margin expansion [23][26] - Key factors influencing future performance include consumer confidence, interest rates, and the completion of destocking [46][90] Other Important Information - The company adopted FIFO accounting, which positively impacted EPS by approximately $1 for 2025 [14][15] - Free cash flow for 2025 was $640 million, exceeding prior guidance, supported by strong collections and disciplined payments [18][19] Q&A Session Summary Question: HCS revenue in Q4 was down 21%, what were the trends? - Management noted that November and December were worse than October, with surprises mainly from residential new construction underperforming expectations [28][29] Question: When do inventory levels normalize? - Management indicated that inventory levels are expected to normalize by Q2 2026, with one-step destocking completing in Q1 and two-step by Q2 [34][37] Question: What is the guidance for EPS in Q1? - Management expects Q1 to be down due to tough comparisons and ongoing destocking, with a more favorable outlook for the second half of the year [44][46] Question: How is the repair versus replace dynamic factored into forecasts? - Management views the current situation as deferred replacement, with expectations that repair activity will stabilize rather than worsen [63][64] Question: What are the expectations for pricing and competition? - Management noted that competitors are aiming for similar price increases, with a focus on maintaining a disciplined pricing strategy [105][106]

Financial Data and Key Metrics Changes - Revenue decreased by 11% in Q4 2025, primarily due to weak residential and commercial end markets, with full-year revenue down 3% [7][8] - Segment margin for Q4 was 17.7%, while full-year segment margin reached a record 20.4%, marking the first time margins exceeded 20% [5][7] - Adjusted earnings per share (EPS) for Q4 was $4.45, with full-year adjusted EPS at $23.16, a 2% increase from the previous year [7][8] Business Line Data and Key Metrics Changes - Home Comfort Solutions (HCS) revenue in Q4 was down 21%, with significant declines in residential new construction impacting performance [28][60] - Building Climate Solutions (BCS) achieved 8% revenue growth in Q4, driven by favorable mix and pricing actions despite lower organic sales volumes [16][60] Market Data and Key Metrics Changes - The North American HVAC industry faced significant challenges in 2025, including channel destocking and low dealer and consumer confidence [8][9] - The light commercial HVAC industry experienced a decline for 17 consecutive months by December 2025, but emergency replacement initiatives showed growth [8][60] Company Strategy and Development Direction - The company plans to continue strategic investments, including $250 million in capital expenditures for 2026, focusing on innovation, training centers, and digital technology [19][12] - The self-help transformation plan is entering its final phase, emphasizing portfolio diversification and market position strengthening through joint ventures and acquisitions [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, anticipating a return to revenue growth and continued EBIT margin expansion [22][25] - Key factors influencing future performance include consumer confidence, interest rates, and the completion of channel destocking [44][45] Other Important Information - The company adopted FIFO accounting, which positively impacted EPS by approximately $1 for 2025 [14][15] - Free cash flow for 2025 was $640 million, exceeding prior guidance, supported by strong collections and disciplined payments [18][19] Q&A Session Summary Question: HCS revenue trends in Q4 - Management noted that November and December were worse than October, with surprises mainly from residential new construction performance [28] Question: Inventory levels and normalization - Management indicated that inventory levels are higher than seasonally typical, with expectations for normalization by Q2 2026 [34][36] Question: EPS guidance for Q1 - Management expects Q1 to be down due to tough comps and ongoing destocking, with a more favorable outlook for the second half of the year [42][43] Question: Repair versus replace dynamics - Management believes the repair versus replace activity is stabilizing, with dealer confidence improving [91][93] Question: Future M&A activity - Management maintains an active pipeline for potential acquisitions, focusing on bolt-on opportunities that enhance their market position [96][97]

Financial Data and Key Metrics Changes - Revenue decreased by 11% in Q4 2025, attributed to weak residential and commercial end markets, with full-year revenue down 3% [5][6] - Segment margin reached a record 20.4% for the full year, despite tariff impacts and inflationary pressures [5][6] - Adjusted earnings per share for Q4 was $4.45, with full-year adjusted EPS at $23.16, a 2% increase from $22.70 in the previous year [5][6] Business Line Data and Key Metrics Changes - Home Comfort Solutions (HCS) segment revenue declined by 21% in Q4, with organic volume continuing to decrease across both channels [27][29] - Building Climate Solutions (BCS) segment achieved 8% revenue growth, driven by favorable mix and pricing actions, despite lower organic sales volumes [14][60] - HCS is expected to see a mid-single-digit decline in volume for the full year, with a more significant drop in the first half due to ongoing destocking [29][30] Market Data and Key Metrics Changes - The North American HVAC industry faced significant challenges in 2025, including channel destocking and low dealer and consumer confidence [6][7] - The commercial HVAC market experienced a decline for 17 consecutive months by December 2025, but emergency replacement initiatives showed growth [6][14] - Anticipated improvements in housing due to lower mortgage interest rates are expected to positively impact the market in 2026 [7][8] Company Strategy and Development Direction - The company is focused on diversifying its portfolio and strengthening market position through strategic investments, including $300 million since 2022 [9][10] - Future investments will target customer training centers, digital technology, and automation to enhance customer experience and operational efficiency [10][11] - The self-help transformation plan is entering its final phase, emphasizing scaling operations and broadening product offerings [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2026, expecting a return to revenue growth and continued EBIT margin expansion [20][21] - Key factors influencing future performance include consumer confidence, interest rates, and the completion of destocking [45][46] - The company remains committed to delivering sustained value for shareholders and believes its best days are ahead [25] Other Important Information - Free cash flow for 2025 was $640 million, exceeding prior guidance, with plans for $250 million in capital expenditures in 2026 [16][18] - The company repurchased $482 million in shares and invested $545 million in acquisitions and joint ventures during 2025 [17][18] Q&A Session Summary Question: HCS revenue in Q4 was down 21%, what were the trends? - Management confirmed that November and December were worse than October, with the surprise mainly on the residential new construction side [27] Question: How do tailwinds for 2026 align with HCS guidance? - Management indicated a mid-single-digit decline in volume for HCS, with expected growth in the second half of the year [28][30] Question: What is the outlook for inventory normalization? - Inventory levels are expected to normalize by Q2, with one-step channel destocking nearly complete and two-step expected to finish by Q2 [33][36] Question: What are the expectations for price mix trends in HCS? - Management noted a carryover effect from previous pricing initiatives, with new price increases expected to contribute to mid-single-digit growth [39][52] Question: How will operating margins trend in 2026? - The guidance implies slight EBIT margin expansion, with BCS expected to see more growth compared to HCS [87]

INTEGRITY | RESPECT | EXCELLENCE FOURTH QUARTER 2025 EARNINGS RELEASE JANUARY 28, 2026 FORWARD-LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES The statements in this presentation that are not historical statements, including statements regarding the 2026 full-year outlook and expected consolidated and segment financial results, as well as financial targets for future years, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking state ...

分组1 - Lennox International (LII) reported quarterly earnings of $4.45 per share, missing the Zacks Consensus Estimate of $4.76 per share, and down from $5.6 per share a year ago [1] - The company posted revenues of $1.2 billion for the quarter, missing the Zacks Consensus Estimate by 5.88%, and down from $1.35 billion year-over-year [3] - The earnings surprise for the quarter was -6.55%, while the previous quarter saw a positive surprise of +4.33% [2] 分组2 - The current consensus EPS estimate for the upcoming quarter is $3.41 on revenues of $1.11 billion, and for the current fiscal year, it is $24.70 on revenues of $5.63 billion [8] - The Zacks Industry Rank for Building Products - Air Conditioner and Heating is in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [9] - The estimate revisions trend for Lennox was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [7]

Financial Performance - Q4 2025 revenue was $1.2 billion, a decline of 11% year-over-year, with operating income at $196 million, down 22%[2][3][8] - Adjusted diluted EPS decreased by 22% to $4.45, compared to $5.72 in the prior-year quarter[9] - For full year 2025, total revenue was $5.2 billion, down 3%, while operating income remained flat at $1 billion[14][15] - The company reported a net income of $806 million for full year 2025, or $22.79 per share, compared to $811 million, or $22.66 per share, in the prior-year[17] - Net income for the year ended December 31, 2025, was $805.8 million, slightly down from $811.1 million in 2024[31] - Earnings per share (diluted) for Q4 2025 was $4.07, down from $5.64 in Q4 2024, representing a decrease of 28.0%[31] - Adjusted net income for 2025 was $819.1 million, compared to $812.6 million in 2024[41] Segment Performance - Home Comfort Solutions segment revenue fell 21% to $700 million, with segment profit down 29% to $137 million[11] - Building Climate Solutions segment revenue grew by 8% to $495 million, with segment profit increasing by 11% to $115 million[12] - Home Comfort Solutions segment net sales decreased to $699.8 million in Q4 2025 from $887.4 million in Q4 2024, a decline of 21.2%[33] - Building Climate Solutions segment net sales increased to $495.2 million in Q4 2025 from $457.6 million in Q4 2024, an increase of 8.0%[33] Cash Flow and Liquidity - Operating cash flow for Q4 2025 was $406 million, an increase from $332 million in the prior-year quarter[10] - Net cash provided by operating activities decreased to $757.6 million in 2025 from $945.7 million in 2024[38] - Free cash flow for 2025 was $640.2 million, down from $784.6 million in 2024[42] - Total cash and cash equivalents at the end of the period dropped to $52.7 million from $415.1 million in 2024[38] - Cash and cash equivalents decreased significantly to $34.2 million in 2025 from $415.1 million in 2024, a decline of 91.8%[36] - Commercial paper borrowings increased significantly to $1,368.8 million in 2025 compared to $424.1 million in 2024[38] Assets and Liabilities - Total assets as of December 31, 2025, were $4,081.8 million, up from $3,620.0 million in 2024, reflecting a growth of 12.8%[36] - Total liabilities increased to $2,918.7 million as of December 31, 2025, compared to $2,657.9 million in 2024, an increase of 9.8%[36] Future Projections - Full year 2026 revenue is expected to increase by approximately 6% to 7%, with acquisitions contributing about 4%[22] - Adjusted EPS for 2026 is projected to be in the range of $23.50 to $25.00[23] - Capital expenditures for 2026 are projected to be approximately $250 million[23] Other Financial Metrics - Gross profit for the year ended December 31, 2025, was $1,734.8 million, down from $1,777.5 million in 2024, reflecting a gross margin of 33.4%[31] - Operating income for Q4 2025 was $195.8 million, compared to $250.2 million in Q4 2024, indicating a decline of 21.7%[33] - The company reported restructuring charges of $5.1 million for the three months ended December 2025[41] - The company incurred acquisition costs of $8.9 million in 2025[41] - Depreciation and amortization expenses rose to $112.5 million in 2025 from $95.1 million in 2024[38] - Interest paid increased to $46.5 million in 2025 from $45.2 million in 2024[38]