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LII

Identity is verified against the FY2025 Form 10-K and Lennox's Q1 2026 issuer release, which identify Lennox International Inc., NYSE ticker LII and CIK 0001069202.

Lennox International Inc.

Lennox has direct cooling-conversion exposure through residential, commercial and ductless HVAC equipment designed for lower-GWP refrigerants. Official product material says Lennox adopted R-454B as its primary 2025-compliant whole-home refrigerant and R-32 for ductless systems. Q1 2026 revenue was $1.1 billion, up 6%, with operating income of $164 million. The evidence does not establish a refrigerant-reclamation business or isolate conversion-specific revenue, profit or backlog.

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Reviewed company research · researched 2026-07-29 · not an individual investment recommendation

Listing: public
Ticker: LII
Exchange: NYSE
HQ: United States
Currency: USD
SEC CIK: 0001069202

Investment case

How this company captures the theme economics

Competitive position

Lennox has a focused North American HVAC franchise, a trained dealer and technician network, and updated R-454B product lines. Its Q1 2026 earnings call reported completion of the light-commercial transition to R-454B, but issuer disclosures do not identify reclamation economics.

Scarce assets

Relevant assets are Lennox's HVAC product engineering, manufacturing, channel relationships, dealer training and installed-base service reach. No certified reclamation capacity is established by the reviewed sources.

Products, segments, and customers

Lennox reports Home Comfort Solutions and Building Climate Solutions. Its lower-GWP portfolio uses R-454B in primary whole-home systems and R-32 in ductless products.

Theme capture

The company captures equipment replacement and conversion demand, not the reclaimed-refrigerant bottleneck. Q1 2026 Building Climate Solutions revenue rose 38%, while Home Comfort Solutions revenue declined 10%; neither result is separated into refrigerant-conversion economics.

Conditions

What must be true

R-454B and R-32 product adoption must support replacement volume, price or mix without disproportionate cost and warranty pressure.
Official disclosure must establish reclamation activity or conversion-specific economics before the relationship can be treated as financially material to this theme.

Identifiable catalysts

Continued sell-through of Lennox's R-454B and R-32 equipment portfolio
Disclosure of conversion-related mix, pricing, backlog or service economics
Evidence of any refrigerant recovery, management or reclamation offering

Theme materiality

1 mapped theme

Exposure statements are evidence-qualified. Materiality is only claimed where disclosure supports it.

Residential and commercial HVAC equipment OEM with direct lower-GWP conversion exposure.

Refrigerant reclamation and cooling conversion

Official product evidence establishes Lennox's use of R-454B for whole-home systems and R-32 for ductless equipment. Q1 2026 results establish operating scale, but no reviewed source establishes reclamation activity or theme-specific economics.

Evidence: Lennox's Q1 2026 issuer release, Form 10-Q and official R-454B guide directly support current results and product conversion. They do not support a reclamation business.
Materiality: not assessed — Official sources do not isolate refrigerant-conversion or reclamation revenue, profit, orders, backlog, volume or capacity.

Financial evidence

Official SEC filing evidence

Reference period: FY2025 and Q1 2026.

Revenue$5.20 billion
FY2025[1]
Revenue growth-3%
FY2025[1]
Operating income$1.04 billion
FY2025[1]
Operating margin (calculated from reported values)20.0%
FY2025[1]
Diluted EPS$22.79
FY2025[1]
Operating cash flow$758 million
FY2025[1]
Free cash flow$639 million
FY2025[1]
Cash and equivalents$34 million
FY2025 year-end[1]
Revenue$1.1 billion
Q1 2026[2]
Revenue growth6%
Q1 2026[2]
Operating income$164 million
Q1 2026[2]
Operating margin14.4%
Q1 2026[2]
Diluted EPS$3.35
Q1 2026[2]
Operating cash flow$16.1 million
Q1 2026[2]

Limitation: Official evidence establishes company scale and lower-GWP product conversion. It does not separate conversion or reclamation revenue, profit, backlog or cash flow, and licensed current valuation remains unavailable.

Risks

Material risks and break conditions

Material risks

Housing and replacement-cycle weakness can offset regulatory conversion demand, as seen in lower Q1 2026 Home Comfort revenue.
Product and factory transition costs may compress margins before lower-GWP mix produces benefits.
No reviewed source establishes direct participation in refrigerant reclamation.

Thesis-break conditions

Lower-GWP conversion fails to support Lennox volume, price or mix after the product transition.
Future disclosure continues to show no reclamation activity and immaterial conversion economics.

Investability conclusion

Where the evidence lands

Official evidence establishes Lennox's identity, financial scale and lower-GWP equipment conversion. It does not establish reclamation activity, theme-specific financial materiality or licensed current valuation, so the subject remains NOT_READY pending human review.

Next diligence

Obtain conversion-specific revenue, margin, backlog or mix disclosure.
Determine whether Lennox offers refrigerant recovery, management or reclamation services.
Complete licensed valuation and human subject-level acceptance.

Source ledger

Identity and evidence sources

Identity was verified against official issuer, filing, exchange, or regulator sources where available.

Lennox International Inc. FY2025 Form 10-KU.S. Securities and Exchange Commission · primary · published 2026-02-17 · accessed 2026-07-29
Lennox Reports 2026 First Quarter ResultsLennox International Inc. · primary · published 2026-04-29 · accessed 2026-07-29
Lennox International Inc. Q1 2026 Form 10-QLennox International Inc. · primary · published 2026-04-29 · accessed 2026-07-29
R-454B Refrigerant GuideLennox International Inc. · primary · published 2025-01-01 · accessed 2026-07-29