Lennox International (LII) has entered Q1 2026 on the back of a year where quarterly revenue ranged from US$1.07b to US$1.50b in 2025 and basic EPS moved between US$3.39 and US$7.86, with trailing twelve month EPS at US$22.89 on revenue of US$5.20b. Over the past six reported quarters, revenue has shifted between US$1.07b and US$1.50b while quarterly basic EPS has stayed within a band of US$3.39 to US$7.86. This gives investors a clear view of how earnings scale with seasonal demand. With trailing net margin at 15.5% and earnings quality described as high, the latest results set up a story focused on how efficiently the business is turning sales into profit.

See our full analysis for Lennox International.

With the headline numbers on the table, the next step is to see how they line up with the widely shared stories about Lennox International, highlighting where the recent performance supports those views and where it quietly pushes back.

EPS Trend Points To Seasonality And Resilience

• Over the last six quarters, basic EPS has moved between US$3.39 and US$7.86, with the latest trailing twelve month EPS at US$22.89. This shows earnings holding in a relatively tight band around that annual run rate.
• What bullish investors highlight is that this EPS profile sits alongside five year earnings growth of 15.3% per year, yet trailing net margin is 15.5%, only slightly above 15.2% a year earlier. This suggests:
  • The bullish view of a sharp margin lift to 17.4% by around 2029 assumes more progress than the recent 0.3 percentage point gain in trailing margin currently shows.
  • At the same time, the ability to keep EPS in the US$3 to US$8 quarterly range with net income of US$805.8 million over the last twelve months supports the bullish argument that the current business model can fund higher-margin products if demand develops as expected.

Over time, bullish investors are trying to work out whether this steady EPS band can really support the higher earnings path they are hoping for, and the detailed bull case sets out what would need to go right for that to happen 🐂 Lennox International Bull Case.

Revenue Around US$5.2b Meets Mixed Growth Expectations

• Trailing twelve month revenue sits at US$5.20b, with quarterly revenue over the last six reported periods ranging from US$1.07b to US$1.50b. Forward looking forecasts call for 7.1% annual revenue growth, which is below the 11.1% forecast for the wider US market.
• Bears focus on this gap, arguing that relying heavily on North American HVAC demand could cap future growth, and the current numbers give them some material points:
  • Forecast earnings growth of 11.5% per year and revenue growth of 7.1% per year both sit under the broader US market forecasts of 16.2% and 11.1%. This lines up with the cautious view that Lennox might not keep pace with faster growing peers.
  • At the same time, trailing revenue of a little over US$5.2b and net income of US$805.8 million show a solid earnings base that challenges the most pessimistic concern that competition and regulation would already be sharply compressing profitability.

Skeptical investors will want to see whether future updates keep revenue growing near that 7.1% forecast or drift closer to the more cautious bear case before leaning too hard into either side of the story 🐻 Lennox International Bear Case.

P/E Of 22.4x Sits Between Industry And Targets

• With a current share price of US$517.62 and a P/E of 22.4x, Lennox trades slightly above the US Building industry average P/E of 22x, below a much higher peer average of 86.4x, and only about 1.6% under a DCF fair value of roughly US$526.10.
• Consensus narrative watchers point out that this valuation sits between cautious and optimistic scenarios, and the figures create a clear tension:
  • The single allowed analyst price target of US$544.35 is above the current US$517.62 price, while the DCF fair value of about US$526.10 is closer. This indicates the market is pricing in some growth beyond today but not fully embracing the more aggressive optimism in the bullish forecasts.
  • At the same time, a trailing net margin of 15.5% and five year earnings growth of 15.3% per year provide the kind of profitability profile that both bulls and bears test their assumptions against when deciding whether a P/E slightly above the sector average feels justified.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Lennox International on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both optimism and caution in the mix, the real question is where you land on Lennox International right now. Take a closer look at the trade off between its risks and potential rewards through the 2 key rewards and 1 important warning sign

See What Else Is Out There

Lennox International combines solid profitability with forecast revenue and earnings growth that sit below broader US market expectations, leaving some investors questioning its potential pace.

If that slower growth profile gives you pause, compare it with companies screened for stronger upside potential and pricing support by checking the 52 high quality undervalued stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.