William Blair Analysts Raise Earnings Estimates for LII

Key Points

• William Blair has raised its Q4 2025 EPS estimate for Lennox International from $5.43 to $5.48, reflecting a positive outlook on the company's financial performance.
• In related analyst actions, Robert W. Baird has increased its price target for Lennox shares from $600 to $668, while several other firms have adjusted their ratings and targets, indicating mixed sentiment among analysts.
• Lennox International has announced a dividend increase to $1.30 per share and initiated a $1 billion share buyback program, signaling confidence in its stock value and financial health.

Lennox International, Inc. (NYSE:LII - Free Report) - Research analysts at William Blair lifted their Q4 2025 earnings estimates for shares of Lennox International in a research report issued to clients and investors on Wednesday, July 23rd. William Blair analyst R. Merkel now expects that the construction company will earn $5.48 per share for the quarter, up from their previous forecast of $5.43. The consensus estimate for Lennox International's current full-year earnings is $22.94 per share. William Blair also issued estimates for Lennox International's Q1 2026 earnings at $4.40 EPS, Q3 2026 earnings at $8.10 EPS and FY2026 earnings at $26.98 EPS.

Lennox International (NYSE:LII - Get Free Report) last posted its earnings results on Wednesday, July 23rd. The construction company reported $7.82 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.90 by $0.92. Lennox International had a net margin of 15.41% and a return on equity of 99.81%. The business had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.48 billion. During the same period last year, the business posted $6.83 EPS. Lennox International's revenue was up 3.4% compared to the same quarter last year.

Several other equities analysts also recently issued reports on LII. Morgan Stanley cut their price target on shares of Lennox International from $585.00 to $450.00 and set an "underweight" rating for the company in a report on Thursday, April 24th. UBS Group raised their price objective on shares of Lennox International from $570.00 to $676.00 and gave the company a "neutral" rating in a research report on Monday. The Goldman Sachs Group raised their price objective on shares of Lennox International from $619.00 to $691.00 and gave the company a "buy" rating in a research report on Tuesday, July 8th. JPMorgan Chase & Co. raised their price objective on shares of Lennox International from $455.00 to $549.00 and gave the company an "underweight" rating in a research report on Friday, May 16th. Finally, Barclays raised their price objective on shares of Lennox International from $696.00 to $753.00 and gave the company an "overweight" rating in a research report on Thursday, July 24th. Four equities research analysts have rated the stock with a sell rating, five have issued a hold rating and four have assigned a buy rating to the company's stock. According to data from MarketBeat.com, Lennox International currently has a consensus rating of "Hold" and an average target price of $635.33.

Lennox International Price Performance

Shares of NYSE:LII traded down $12.74 during midday trading on Friday, reaching $641.69. 177,723 shares of the company's stock were exchanged, compared to its average volume of 408,581. The company's 50 day simple moving average is $582.97 and its two-hundred day simple moving average is $585.12. The firm has a market capitalization of $22.54 billion, a PE ratio of 27.44, a price-to-earnings-growth ratio of 2.12 and a beta of 1.13. Lennox International has a 12 month low of $500.10 and a 12 month high of $689.44. The company has a debt-to-equity ratio of 0.93, a quick ratio of 0.71 and a current ratio of 1.41.

Lennox International announced that its board has authorized a share repurchase plan on Thursday, May 22nd that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the construction company to repurchase up to 5% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's management believes its stock is undervalued.

Lennox International Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 15th. Investors of record on Friday, May 30th were given a dividend of $1.30 per share. This represents a $5.20 dividend on an annualized basis and a yield of 0.81%. This is a positive change from Lennox International's previous quarterly dividend of $1.15. The ex-dividend date was Monday, June 30th. Lennox International's dividend payout ratio (DPR) is currently 22.23%.

Insider Transactions at Lennox International

In related news, CAO Chris Kosel sold 509 shares of the firm's stock in a transaction dated Wednesday, May 7th. The shares were sold at an average price of $568.05, for a total transaction of $289,137.45. Following the transaction, the chief accounting officer directly owned 1,582 shares of the company's stock, valued at approximately $898,655.10. This trade represents a 24.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Daniel M. Sessa sold 2,782 shares of the firm's stock in a transaction dated Wednesday, July 23rd. The shares were sold at an average price of $670.04, for a total transaction of $1,864,051.28. Following the completion of the transaction, the executive vice president directly owned 31,574 shares in the company, valued at approximately $21,155,842.96. This represents a 8.10% decrease in their ownership of the stock. The disclosure for this sale can be found here. 10.40% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Lennox International

Several hedge funds have recently bought and sold shares of LII. GAMMA Investing LLC increased its holdings in Lennox International by 69,429.8% in the 1st quarter. GAMMA Investing LLC now owns 356,688 shares of the construction company's stock valued at $200,041,000 after buying an additional 356,175 shares during the period. Geode Capital Management LLC increased its holdings in Lennox International by 55.7% in the 4th quarter. Geode Capital Management LLC now owns 889,032 shares of the construction company's stock valued at $542,374,000 after buying an additional 317,937 shares during the period. Captrust Financial Advisors boosted its stake in shares of Lennox International by 500.0% in the 4th quarter. Captrust Financial Advisors now owns 94,086 shares of the construction company's stock valued at $57,326,000 after purchasing an additional 78,406 shares in the last quarter. BNP Paribas Financial Markets boosted its stake in shares of Lennox International by 227.4% in the 4th quarter. BNP Paribas Financial Markets now owns 76,149 shares of the construction company's stock valued at $46,398,000 after purchasing an additional 52,888 shares in the last quarter. Finally, Russell Investments Group Ltd. boosted its stake in shares of Lennox International by 118.3% in the 1st quarter. Russell Investments Group Ltd. now owns 92,618 shares of the construction company's stock valued at $51,932,000 after purchasing an additional 50,188 shares in the last quarter. 67.07% of the stock is owned by institutional investors.

Lennox International Company Profile

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. The Home Comfort Solutions segment provides furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, and replacement parts and supplies; residential heating, ventilation, cooling equipment, and air conditioning; and evaporator coils and unit heaters under Lennox, Dave Lennox Signature Collection, Armstrong Air, Ducane, AirEase, Concord, MagicPak, Advanced Distributor Products, Allied, Elite Series, Merit Series, Comfort Sync, Healthy Climate, iComfort, ComfortSense, and Lennox Stores name.