The Bull Case For Lennox International (LII) Could Change Following Another Quarter of Surpassing EPS Estimates

• Lennox International Inc. recently reported second quarter results that showed both revenue growth and a 14.5% increase in adjusted earnings per share compared to the prior year.
• This marks the fourth consecutive quarter that Lennox International has surpassed consensus earnings estimates, signaling a period of consistently strong financial performance.
• We’ll now explore how Lennox’s consistent earnings outperformance may influence the company’s future outlook and investment narrative.

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Lennox International Investment Narrative Recap

To own shares of Lennox International, you have to believe that the company’s premium pricing, focus on high-efficiency HVAC products, and ability to execute despite a slower new construction market set it apart as a leading player in climate solutions. The company’s better-than-expected quarterly results reinforced near-term confidence but did little to reduce the main short-term risk: ongoing R-454B refrigerant supply challenges, which remain a threat to dealer confidence and replacement unit sales.

Of recent announcements, Lennox’s July 2025 dividend increase, up 13% to US$1.30 per share, stands out. While earnings momentum has supported shareholder returns, these moves are only as durable as underlying consumer demand and the company’s ability to manage cost headwinds, which will define the strength of its future cash flows and support for these payouts.

By contrast, investors should be aware that unresolved supply chain pressures could impact demand sooner than expected if...

Read the full narrative on Lennox International (it's free!)

Lennox International's outlook anticipates $6.5 billion in revenue and $1.1 billion in earnings by 2028. This reflects a 6.3% annual revenue growth rate and a $265 million increase in earnings from the current $834.6 million.

Uncover how Lennox International's forecasts yield a $660.76 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Community fair value estimates for Lennox International span from US$493 to US$661, with just 2 individual perspectives from the Simply Wall St Community. While recent earnings were strong, ongoing refrigerant supply risks could see these opinions shift, explore a range of viewpoints to see how others are weighing the company’s evolving challenges and opportunities.

Explore 2 other fair value estimates on Lennox International - why the stock might be worth 19% less than the current price!

Build Your Own Lennox International Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Lennox International research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Lennox International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Lennox International's overall financial health at a glance.

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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.

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