Lennox International Inc., together with its subsidiaries, designs, manufactures, and markets a range of products for the heating, ventilation, air conditioning, and refrigeration markets in the United States, Canada, and internationally. It operates through three segments: Residential Heating & Cooling, Commercial Heating & Cooling, and Refrigeration. The Residential Heating & Cooling segment provides furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment and accessories, comfort control products, and replacement parts and supplies for residential replacement and new construction markets. The Commercial Heating & Cooling segment offers unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, and variable refrigerant flow commercial products for light commercial markets. The Refrigeration segment offers condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, and refrigeration rack systems for preserving food and other perishables in supermarkets, convenience stores, restaurants, warehouses, and distribution centers, as well as for data centers, machine tooling, and other cooling applications; and compressor racks and industrial process chillers. The company sells its products and services through direct sales, distributors, and company-owned parts and supplies stores. Lennox International Inc. was founded in 1895 and is headquartered in Richardson, Texas.
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Here are 1-2 brief analogies to describe Lennox International (LII):
- Lennox International is like the Carrier of heating and air conditioning (HVAC) systems.
- Lennox International manufactures essential climate control and refrigeration systems for buildings, similar to how Johnson Controls provides other critical infrastructure for commercial and industrial facilities.
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- Residential Heating & Cooling: Manufactures and sells furnaces, air conditioners, heat pumps, and related smart thermostats for residential homes.
- Commercial Heating & Cooling: Provides rooftop units, split systems, chillers, boilers, and advanced building controls for commercial and industrial applications.
- Commercial Refrigeration: Offers display cases, condensing units, unit coolers, and refrigeration systems primarily for supermarkets and convenience stores.
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Lennox International (LII) primarily sells its products and services to other companies (Business-to-Business, B2B) rather than directly to individuals. The company operates through a diversified distribution model, serving a broad network of customers across its residential, commercial, and refrigeration segments.
Lennox International does not publicly disclose specific names of individual major customer companies or their stock symbols, as its sales are distributed across a vast number of businesses and direct relationships, and such information is typically proprietary. However, its major categories of customer companies include:
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Independent HVAC and Refrigeration Dealers/Contractors: These are local, regional, and national businesses that purchase Lennox and Allied Air branded heating, ventilation, air conditioning (HVAC), and refrigeration equipment. They then sell, install, and service this equipment for residential, commercial, and industrial end-users. These thousands of dealers and contractors form the backbone of Lennox's distribution network.
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Wholesale Distributors: Other companies that act as intermediaries, purchasing Lennox International's products in bulk to resell them to a wide array of contractors, installers, and other businesses within the HVACR industry.
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National and Large Commercial Accounts: These are large enterprises and organizations that purchase HVACR solutions directly from Lennox International for their extensive facilities or multiple locations. Examples may include large retail chains, restaurant chains, hospitality groups, data centers, and institutional or governmental entities. While these are specific companies, Lennox International does not publicly name these individual accounts as "major customers" due to the competitive and confidential nature of these business relationships.
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Alok Maskara, Chief Executive Officer
Alok Maskara joined Lennox International as CEO on May 9, 2022. Prior to Lennox, he served for five years as CEO of Luxfer Holdings PLC (NYSE: LXFR), an international industrial company, where he spearheaded its transformation, led value-enhancing acquisitions and partnerships, and drove growth in profitability. Before Luxfer, he spent nearly a decade as president of several global business units at Pentair PLC, a provider of water treatment solutions. He also held leadership positions at General Electric Corporation and McKinsey & Company. Mr. Maskara is a co-author of nine patents in advanced materials science and serves on the board of Franklin Electric (Nasdaq: FELE).
Michael Quenzer, Executive Vice President & Chief Financial Officer
Michael Quenzer was appointed Executive Vice President and Chief Financial Officer in January 2024. He joined Lennox in 2004 and has held several key leadership roles within the company, including Vice President, Investor Relations and Financial Planning Analysis, and Vice President of Finance for the Lennox Building Climate Solutions (Commercial) business segment. Before joining Lennox, Mr. Quenzer worked at Morningstar Inc. He holds a bachelor's degree in finance from Coastal Carolina University and an MBA and master's degree in accounting from the University of Texas at Dallas.
Sarah Martin, Executive Vice President & President, Lennox Home Comfort Solutions
Sarah Martin was appointed Executive Vice President & President of the Lennox Home Comfort Solutions business segment in April 2025. She previously spent 13 years in leadership roles at Honeywell International Inc., serving as President of Honeywell Sensing Solutions, President of Honeywell Sensing & Safety Technologies, and President of Honeywell Advanced Sensing Technologies. Before her tenure at Honeywell, she held commercial and operational leadership roles in the electronic manufacturing industry.
Daniel Sessa, Executive Vice President & Chief Human Resources Officer
Daniel Sessa serves as the Executive Vice President & Chief Human Resources Officer for Lennox International.
Joe Nassab, Executive Vice President & President, LII North America Commercial Heating & Cooling
Joe Nassab is the Executive Vice President & President of LII North America Commercial Heating & Cooling at Lennox International. He is also referred to as EVP & President Building, Climate Solutions.
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The key risks to Lennox International's business include regulatory and transition challenges, macroeconomic conditions and housing market softness, and competitive pressure and market saturation.
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Regulatory and Transition Challenges: Lennox International faces significant risks due to evolving environmental legislation and government regulations, particularly concerning the transition to lower global warming potential (GWP) refrigerants and new energy efficiency standards. The company is in the process of transitioning to refrigerants with a GWP of 700 or less for most commercial and residential HVAC products, with an effective date of January 1, 2025. This transition introduces complexities related to supply, training, safety, potential delays, higher compliance costs, and increased warranty exposure. Delays or increased compliance costs in this transition could compress profit margins.
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Macroeconomic Conditions and Housing Market Softness: The financial performance of Lennox International is closely tied to the health of the U.S. construction industry and broader economic conditions. Recent reports indicate softening HVAC demand, a sharper U.S. housing slowdown, and rising consumer financing costs, which could reduce unit volumes and impact sales. This macroeconomic weakness has led to a downward revision of the company's full-year outlook for 2025, with an anticipated revenue decline. Inventory rebalancing in the distribution channel, partly due to a pre-buy ahead of refrigerant transitions, also contributes to these headwinds.
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Competitive Pressure and Market Saturation: Lennox International operates in a highly competitive HVACR market. This intense competition can lead to price wars, compression of profit margins, and a potential loss of market share. Competitors, including major players like Carrier and Trane Technologies, may possess greater financial resources to invest in research and development and marketing, potentially affecting Lennox's market position. The company must continuously innovate and differentiate its offerings to maintain its competitive edge in this saturated environment.
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Lennox International (LII) operates primarily in the Heating, Ventilation, Air Conditioning, and Refrigeration (HVACR) markets, offering solutions across residential and commercial segments.
Addressable Markets for Lennox International's Main Products and Services:
HVAC Systems (Residential and Commercial Heating & Cooling)
- Global HVAC Systems Market: The global HVAC systems market was estimated at USD 241.52 billion in 2024 and is projected to reach USD 445.73 billion by 2033, growing at a Compound Annual Growth Rate (CAGR) of 7.0% from 2025 to 2033. Other estimates place the global market at USD 165.88 billion in 2024, projected to grow to USD 256.95 billion by 2032 with a CAGR of 5.7% from 2025.
- North America HVAC Systems Market: This market was valued at USD 65.76 billion in 2023 and is predicted to reach USD 99.21 billion by 2030, growing at a CAGR of 5.5% from 2024 to 2030. Another source indicates a revenue of USD 38,382.8 million in 2024, with a projected growth to US$ 70,057.9 million by 2033 at a CAGR of 7% from 2025.
- U.S. HVAC Systems Market: The U.S. HVAC system market size was valued at USD 52.36 billion in 2023 and is predicted to reach USD 79.85 billion by 2030, at a CAGR of 5.7% from 2024 to 2030. It is also projected to reach an estimated value of USD 62.03 billion by 2032.
HVAC Services
- Global HVAC Services Market: This market reached USD 69.90 billion in 2025 and is projected to advance to USD 94.70 billion by 2030, at a CAGR of 6.30%.
- North America HVAC Services Market: The North America HVAC services market size was estimated at USD 39.41 billion in 2024 and is projected to grow at a CAGR of 4.3% from 2025 to 2030, reaching USD 50.36 billion by 2030.
Commercial Refrigeration
- Global Commercial Refrigeration Equipment Market: The global commercial refrigeration equipment market was valued at USD 42.94 billion in 2024 and is projected to reach USD 67.80 billion by 2033, growing at a CAGR of 5.1% from 2025 to 2033. Other data indicates a market size of USD 85.6 billion in 2024, expected to reach USD 161 billion by 2034, growing at a CAGR of 6.6% from 2025 to 2034. Another estimate for 2024 is USD 45.11 billion, with a projected growth to USD 75.61 billion by 2034 at a CAGR of 5.30%.
- North America Commercial Refrigeration Equipment Market: This market was estimated at USD 14.22 billion in 2024 and is expanding at a CAGR of 6.00% during the forecast period (2025-2034). North America also dominated the global market with a 35.6% share in 2024.
- U.S. Commercial Refrigeration Equipment Market: The U.S. commercial refrigeration equipment market size was USD 9.77 billion in 2024 and is projected to be worth around USD 18.54 billion by 2034, growing at a CAGR of 6.62% from 2025 to 2034. The U.S. market is also projected to reach an estimated value of USD 28.08 billion by 2032.
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Lennox International (LII) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market dynamics:
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Transition to Low Global Warming Potential (GWP) Refrigerants and New Product Launches: Lennox is actively transitioning its product portfolio to low GWP refrigerants, such as R-454B. This transition involves replacing approximately 70% of its Home Comfort Solutions and 40% of its Building Climate Solutions product portfolios. The introduction of these new, enhanced products is expected to contribute to favorable product mix and revenue growth, with a projected 4% contribution from low GWP products in 2025.
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Strategic Partnerships and Total Addressable Market (TAM) Expansion: The company is expanding its total addressable market through strategic joint ventures, notably with Samsung for mini-split and VRF heat pump systems, and with Ariston for heat pump water heaters. These partnerships are designed to broaden Lennox's offerings in advanced, energy-efficient product categories and tap into significant market opportunities, with substantial revenue growth anticipated from 2026 and 2027 onwards.
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Volume Gains and Commercial Emergency Replacement Program: Lennox anticipates continued volume growth across its segments, particularly driven by its Building Climate Solutions (BCS) segment. The company is also leveraging its commercial emergency replacement program to better serve a crucial market segment, contributing to market share gains and overall volume.
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Favorable Pricing and Product Mix: Consistent favorable pricing and product mix adjustments have historically contributed to Lennox's revenue growth and are expected to continue. This benefit arises from the introduction of higher-value, more energy-efficient products, along with strategic pricing actions.
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Investments in Distribution Network and Digital Customer Experience: Lennox is making strategic investments to enhance its sales and distribution networks and improve digital customer experiences. These initiatives include expanding distribution channels, implementing digital front-end tools, and optimizing logistics, all aimed at boosting efficiency, improving customer service, and ultimately driving sales growth.
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Share Repurchases
- In May 2025, Lennox International's Board of Directors approved a $1 billion increase to its existing stock repurchase authorization, in addition to approximately $290 million remaining under prior authorizations as of May 12, 2025.
- The company completed $300 million in share repurchases year-to-date as of July 23, 2025.
- Lennox repurchased $300 million in shares during 2022 and $53.6 million in 2024.
Share Issuance
- There is no clear information available on significant dollar amounts of shares issued by Lennox International over the last 3-5 years. The number of common shares outstanding has remained relatively stable, with minor fluctuations (e.g., 35,474,054 shares outstanding as of February 3, 2023, and 35,484,828 shares outstanding as of April 14, 2025).
Outbound Investments
- In October 2025, Lennox International completed the acquisition of the HVAC division of NSI Industries, including the Duro Dyne and Supco brand platforms, for approximately $550 million.
- The company successfully divested its European operations in the fourth quarter of 2023.
Capital Expenditures
- Lennox International's capital expenditures were $164 million in 2024, a reduction from $250 million in 2023.
- Expected capital expenditures for 2025 are approximately $150 million, with a primary focus on enhancing front-end systems for customer experience, as well as expanding and increasing the efficiency of its distribution network.
- A significant investment of $150 million was announced in 2022 for the construction of a new Commercial factory in Saltillo, Mexico, aimed at increasing manufacturing capacity.
