Lennox International Inc. (LII) Monthly Stock Report - January 02, 2026

Company Overview

Lennox International Inc. (NYSE: LII), headquartered in Richardson, Texas, is a prominent player in the Building Products & Equipment industry within the Industrials sector. Founded in 1895, Lennox specializes in designing, manufacturing, and marketing a diverse range of products for the heating, ventilation, air conditioning, and refrigeration (HVACR) markets, both domestically and internationally. The company operates through two primary segments: Home Comfort Solutions, which offers a variety of residential heating and cooling equipment, and Building Climate Solutions, delivering commercial HVAC systems and refrigeration solutions. Due to its long-standing presence in the industry, Lennox enjoys a substantial market share, distributing its products through direct sales, distributors, and company-owned stores.

52-Week Price Performance Analysis

52-Week Price Performance Chart

Lennox International's stock price has exhibited a predominantly bearish trend throughout the past year, with significant fluctuations that underscore the market's volatility. Currently priced at $485.58, the stock is situated between its 52-week high of $689.44 and 52-week low of $443.19. As we analyze the stock price chart, a few critical trends and indicators emerge:

• Current Trends: The stock has experienced a decline of nearly 20% from its peak above $650, illustrating sustained selling pressure. The $600 price level has acted as a robust resistance point; despite several attempts to breach this barrier, the stock has been unable to close above it, indicating reluctance among investors.

• Support and Resistance Levels: The chart indicates that $485 currently serves as a support level, with price action testing this level towards the year's end. It's crucial for the stock to maintain above this price to prevent further declines. Conversely, $600 continues to act as a strong resistance, which, once surpassed, could signal a potential turnaround.

• Momentum Indicators: The 50-day moving average is currently set at $491.02, and the price trading below this average indicates bearish momentum. Recent recovery attempts have struggled, which emphasizes a cautious approach for investors.

Overall, these price performance metrics suggest that traders should monitor crucial support and resistance levels carefully as they can influence short-term trading strategies.

Financial Performance and Metrics

Lennox International's financial performance demonstrates a solid foundation, reflected in its substantial revenue generation. Key financial metrics are as follows:

• Revenue: For the most recent reporting period, Lennox generated approximately $5.35 billion in revenue, showcasing its robust market presence and sales performance.

• EBITDA: The company reported an EBITDA of $1.16 billion, indicating strong operational profitability. This figure highlights the company's capacity to generate income before accounting for financial and operational expenses.

• Shares Outstanding: There are 35,072,782 shares outstanding, with 1,812,171 shares shorted, representing about 6.52% of the company's float. This relatively low short percentage signals a cautiously optimistic sentiment among investors regarding Lennox's performance.

• Price Targets: As of January 2026, analysts have set a target high price of $680.00 and a target mean price of approximately $569.07. The target low price stands at $475.00, indicating a significant price range for investors to consider.

Overall, Lennox's financial metrics position it as a potentially rewarding investment, given its capacity for revenue generation and operational profitability.

Recent News and Developments

Recent developments have positioned Lennox International for future growth, while also presenting potential challenges:

1. Dividend Declaration: On December 31, 2025, Lennox announced a quarterly cash dividend of $1.30 per share, payable on January 15, 2026. This move demonstrates the company's commitment to returning value to its shareholders, a positive indicator for income-focused investors.

2. Strategic Acquisition: In October 2025, Lennox completed the acquisition of the HVAC Division of NSI Industries for approximately $550 million. This acquisition includes the Duro Dyne and Supco brands, significantly enhancing Lennox's portfolio within the HVAC market.

3. Analyst Ratings: Analyst sentiment remains cautious; KeyBanc Capital Markets maintained a Sector Weight rating for Lennox, citing ongoing inventory challenges in the residential segment. Additionally, JP Morgan has lowered its price target to $501, reflecting concerns about potential market performance challenges.

These developments highlight the strategic steps Lennox is taking to bolster its market position, although the cautious analyst outlook suggests vigilance moving forward.

Market Sentiment and Analyst Recommendations

Currently, market sentiment towards Lennox International leans towards a "hold" recommendation. Here's a breakdown of the consensus from analysts:

• Mean Recommendation Score: The average recommendation score stands at 2.56 on a scale where 1 is a strong buy and 5 is a strong sell. This indicates a cautious stance, with a prevailing sentiment to maintain existing positions.

• Price Targets: As previously mentioned, the target high price is set at $680.00, while the mean recommendation suggests investors may expect some growth potential with a realistic target mean of $569.07.

• Risks: While there is potential for upside, persistent selling pressure, ongoing inventory issues in the residential market, and a bearish price trajectory highlight significant risks for investors. The stock's trading below its moving average further cements the cautiously bearish sentiment in the near term.

Conclusion

In summary, Lennox International Inc. presents a mixed bag of opportunities and challenges for investors. While the company shows strong revenue performance, an encouraging dividend declaration, and strategic growth through acquisitions, the bearish trend in stock performance and cautious analyst sentiment suggest that investors should proceed with caution.

Monitoring key support levels of $485 and the resistance at $600 will be critical in evaluating outbound market conditions. With a careful eye on developments and market rotation, Lennox remains a stock worth observing in the evolving landscape of the HVAC market.