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. The Building Climate Solutions segment offers unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, variable refrigerant flow commercial, curb, curb adapters, drop box diffusers, HVAC recycling, and salvage service. This segment also provides condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, and refrigeration rack systems for preserving food and other perishables; and compressor racks and industrial process chillers under the Lennox, Model L, CORE, Enlight, Xion, Energence, Prodigy, Strategos, Raider, Lennox VRF, Lennox National Account Services, Allied Commercial, Elite, AES Industries, Mechanical, and Reclaim, Heatcraft Worldwide and Chandler Refrigeration, Bohn, MAGNA, Larkin, FriguaBohn, IntelliGen, and Interlink brand name. In addition, the company provides small package units, rooftop units, chillers, air handlers, and fan coils. It sells its products and services through direct sales, distributors, and company-owned parts and supplies stores. The company was founded in 1895 and is headquartered in Richardson, Texas.

Lennox International, Inc.

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the WisdomTree U.S. LargeCap Dividend Fund ETF (Symbol: DLN), we found that the implied analyst target price for the ETF based upon its underlying holdings is $91.77 per unit.
With DLN trading at a recent price near $83.49 per unit, that means that analysts see 9.91% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of DLN's underlying holdings with notable upside to their analyst target prices are Ameriprise Financial Inc (Symbol: AMP), Snap-On, Inc. (Symbol: SNA), and Lennox International Inc (Symbol: LII). Although AMP has traded at a recent price of $506.28/share, the average analyst target is 10.65% higher at $560.18/share. Similarly, SNA has 10.50% upside from the recent share price of $318.93 if the average analyst target price of $352.43/share is reached, and analysts on average are expecting LII to reach a target price of $662.60/share, which is 10.35% above the recent price of $600.48. Below is a twelve month price history chart comparing the stock performance of AMP, SNA, and LII:
Below is a summary table of the current analyst target prices discussed above:
Name
Symbol
Recent Price
Avg. Analyst 12-Mo. Target
% Upside to Target
WisdomTree U.S. LargeCap Dividend Fund ETF
DLN
$83.49
$91.77
9.91%
Ameriprise Financial Inc
AMP
$506.28
$560.18
10.65%
Snap-On, Inc.
SNA
$318.93
$352.43
10.50%
Lennox International Inc
LII
$600.48
$662.60
10.35%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Peek Under The Hood: DLN Has 10% Upside

The S&P 500 Index ($SPX) (SPY) Wednesday closed up +0.78%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +1.14%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.43%. September E-mini S&P futures (ESU25) rose +0.80%, and September E-mini Nasdaq futures (NQU25) rose +0.45%.
Stock indexes rallied on Wednesday, with the S&P 50 posting a new all-time high and the Dow Jones Industrials posting a 5.5-month high. Positive trade news bolstered stock prices and boosted market sentiment on Wednesday.
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President Trump late Tuesday announced a trade deal with Japan, which will impose 15% tariffs on imports from Japan, lower than the previously announced 25% rate set to take effect on August 1. The deal also creates a $550 billion fund for Japan to invest in the US. Japan also agreed to purchase 100 Boeing aircraft, increase its purchases of US rice by 75%, and buy $8 billion in other agricultural products, while raising its defense spending with American firms to $17 billion annually, from $14 billion.
Stocks built on their gains Wednesday afternoon when Bloomberg News reported that diplomats briefed on the situation said the European Union (EU) and the US are progressing toward an agreement that would set a 15% tariff for most imports, lower than the 30% rate President Trump had threatened on EU goods if no trade agreement was reached by August 1.
However, gains in the Nasdaq 100 index were limited due to weakness in auto-related chip makers, led by a -13% plunge in Texas Instruments after company executives on anearnings callsaid there isn’t a “true broad recovery” in the automotive sector, as automotive customers who ship into the US are cautious due to tariffs.
Wednesday’s US economic news was bearish for stocks after June existing home sales fell -2.7% m/m to a 9-month low of 3.93 million, weaker than expectations of -0.7% to 4.00 million.
US MBA mortgage applications rose +0.8% in the week ended July 18, with the purchase mortgage sub-index up +3.4% and the refinancing sub-index down -2.6%. The average 30-year fixed rate mortgage rose +2 bp to 6.84% from 6.82% in the prior week.
The markets are awaiting President Trump’s August 1 deadline for trade deals to avoid high tariffs. Last Wednesday, Mr. Trump announced that he intends to send a tariff letter to more than 150 countries, notifying them that their tariff rates could be 10% or 15%, effective August 1. Also, Mr. Trump said that a 35% tariff on some Canadian products would take effect on August 1, up from the current 25%.
The markets this week will focus on any tariff news along with the announcement of any new trade deals. On Thursday, weekly initial unemployment claims are expected to climb by +5,000 to 226,000. Also, the July S&P US manufacturing PMI is expected to slip -0.2 to 52.7. Finally, on Thursday, June new home sales are expected to climb +4.3% m/m to 650,000. On Friday, June capital goods new orders nondefense ex-aircraft and parts are expected to increase by +0.2% m/m.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 3% at the July 29-30 FOMC meeting and 58% at the following meeting on September 16-17.
The markets are absorbing a heavy slate of quarterly corporate earnings results this week. About one-fifth of the companies in the S&P 500 are expected to report their Q2 earnings results this week. Early results now show S&P 500 earnings are on track to rise +3.2% for the second quarter, better than the pre-season expectations of +2.8% y/y, according to Bloomberg Intelligence. Also, only six of the eleven S&P 500 sectors are projected to post an increase in earnings, the fewest since Q1 of 2023, according to Yardeni Research.
Overseas stock markets today settled higher on Wednesday. The Euro Stoxx 50 closed up +1.02%. China’s Shanghai Composite rose to a new 9.5-month high and closed up +0.01%. Japan’s Nikkei Stock 225 rallied to a 1-year high and closed up sharply by +3.51%.
Interest Rates
September 10-year T-notes (ZNU25) on Wednesday closed down -12.5 ticks. The 10-year T-note yield rose +4.0 bp to 4.384%. T-notes retreated on Wednesday as global trade tensions eased, which curbed safe-haven demand for T-notes. The US and Japan announced a trade deal late Tuesday, and Bloomberg News reported Wednesday that the US and EU are closing in on a trade deal. Wednesday’s rally in the S&P 500 to a new record high also reduced safe-haven demand for government debt.
Losses in T-notes are contained after US existing home sales fell more than expected to a 9-month low, a dovish factor for Fed policy. T-note prices also garnered support from a decline in the US 10-year breakeven inflation rate to a 1.5-week low Wednesday of 2.379%. In addition, strong demand for the Treasury’s $13 billion auction of 20-year T-bonds was positive for T-notes, as the auction had a bid-to-cover ratio of 2.79, better than the 10-auction average of 2.57.
European government bond yields on Wednesday moved higher. The 10-year German bund yield rose +5.0 bp to 2.639%. The 10-year UK gilt yield rose +6.6 bp to 4.635%.
Swaps are discounting the chances at 2% for a -25 bp rate cut by the ECB at Thursday’s policy meeting.
US Stock Movers
Power producers rallied Wednesday after PJM Interconnection LLC predicted that the AI boom will prompt businesses and households served by the largest US power grid to spend a record $16.1 billion to ensure electricity supplies, which could support utility profit margins. Talen Energy (TLN) closed up more than +8% and Vistra (VST) closed up more than +5%. Also, NRG Energy (NRG) closed up more than +4% and Constellation Group (CEG) closed up more than +1%.
Weakness in shares of automotive and industrial chipmakers limited gains in the Nasdaq 100, with Texas Instruments (TXN) closing down more than -13% to lead losers in the Nasdaq 100 after company executives on anearnings callsaid there isn’t a “true broad recovery” in the automotive sector as automotive customers who ship into the US are cautious due to tariffs. Also, Microchip Technology (MCHP) closed down more than -6% and ON Semiconductor (ON) closed down more than -4%. In addition, Analog Devices (ADI) closed down more than -3%, and NXP Semiconductors (NXPI) closed down more than -1%.
Lamb Weston Holdings (LW) closed up more than +16% to lead gainers in the S&P 500 after reporting Q4 net sales of $1.68 billion, stronger than the consensus of $1.59 billion.
GE Vernova (GEV) closed up more than +14% after reporting Q2 revenue of $9.11 billion, stronger than the consensus of $8.80 billion.
Baker Hughes (BKR) closed up more than +11% to lead gainers in the Nasdaq 100 after reporting Q2 revenue of $6.91 billion, stronger than the consensus of $6.64 billion.
TE Connectivity Plc (TEL) closed up more than +11% after reporting Q3 net sales of $4.53 billion, better than the consensus of $4.33 billion, and forecasting Q4 net sales of $4.55 billion, above the consensus of $4.42 billion.
Thermo Fisher Scientific (TMO) closed up more than +9% after reporting Q2 revenue of $10.86 billion, above the consensus of $10.69 billion, and forecasting full-year sales of $43.6 billion-$44.2 billion, the midpoint above the consensus of $43.7 billion.
Lennox International (LII) closed up more than +6% after reporting Q2 adjusted EPS of $7.82, well above the consensus of $6.89.
CoStar Group (CSGP) closed up more than +6% after reporting Q2 revenue of $781.3 million, above the consensus of $772.1 million, and raising its full-year revenue forecast to $3.14 billion-$3.16 billion from a previous forecast of $3.12 billion-$3.16 billion, stronger than the consensus of $3.13 billion.
Fiserv (FI) closed down more than -13% after reporting Q2 organic revenue grew +8.00%, below the consensus of +8.91%.
Otis Worldwide (OTIS) closed down more than -12% after reporting Q2 net sales of $3.60 billion, below the consensus of $3.71 million, and cutting its full-year net sales forecast to $114.5 billion to $14.6 billion from a previous estimate of $14.6 billion to $14.8 billion, weaker than the consensus of $14.72 billion.
Hilton Worldwide Holdings (HLT) closed down more than -2% after cutting its full-year net income forecast to $1.64 billion to $1.68 billion from a previous forecast of $1.71 billion to $1.75 billion.
Unity Software (U) closed down more than -2% after BTIG downgraded the stock to sell from neutral with a price target of $25.
Northern Trust Corp (NTRS) closed down more than -1% after reporting Q2 provision for credit losses of $16.5 million, well above the consensus of $4.31 million.
Teledyne Technologies (TDY) closed down more than -1% after forecasting full-year adjusted EPS of $21.20-$21.50, the midpoint below the consensus of $21.42.
Earnings Reports (7/24/2025)
A O Smith Corp (AOS), Allegion plc (ALLE), Ameriprise Financial Inc (AMP), Blackstone Inc (BX), CenterPoint Energy Inc (CNP), Deckers Outdoor Corp (DECK), Digital Realty Trust Inc (DLR), Dover Corp (DOV), Dow Inc (DOW), Edwards Lifesciences Corp (EW), Healthpeak Properties Inc (DOC), Honeywell International Inc (HON), Intel Corp (INTC), Keurig Dr Pepper Inc (KDP), L3Harris Technologies Inc (LHX), Labcorp Holdings Inc (LH), LKQ Corp (LKQ), Mohawk Industries Inc (MHK), Nasdaq Inc (NDAQ), Newmont Corp (NEM), Pool Corp (POOL), Southwest Airlines Co (LUV), Textron Inc (TXT), Tractor Supply Co (TSCO), Union Pacific Corp (UNP), Valero Energy Corp (VLO), VeriSign Inc (VRSN), West Pharmaceutical Services Inc (WST), Westinghouse Air Brake Technol (WAB), Weyerhaeuser Co (WY).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

S&P 500 Climbs to a Record High on Positive Trade News

The S&P 500 Index ($SPX) (SPY) today is up +0.25%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.45%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.14%. September E-mini S&P futures (ESU25) are up +0.26%, and September E-mini Nasdaq futures (NQU25) are down -0.15%.
Stock indexes today are mixed, with the Dow Jones Industrials posting a 2-week high. Stocks found support today on some positive trade news that has boosted market sentiment. President Trump announced a trade deal with Japan late Tuesday, which will impose 15% tariffs on imports from Japan, lower than the previously announced 25% rate set to take effect on August 1. The deal also creates a $550 billion fund for Japan to invest in the US. Japan also agreed to purchase 100 Boeing aircraft, increase its purchases of US rice by 75%, and buy $8 billion in other agricultural products, while raising its defense spending with American firms to $17 billion annually, from $14 billion.
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However, the Nasdaq 100 index is under pressure today due to weakness in auto-related chip makers, led by a -12% plunge in Texas Instruments after company executives on anearnings callsaid there isn’t a “true broad recovery” in the automotive sector, as automotive customers who ship into the US are cautious due to tariffs.
Today’s US economic news was bearish for stocks after June existing home sales fell -2.7% m/m to a 9-month low of 3.93 million, weaker than expectations of -0.7% to 4.00 million.
US MBA mortgage applications rose +0.8% in the week ended July 18, with the purchase mortgage sub-index up +3.4% and the refinancing sub-index down -2.6%. The average 30-year fixed rate mortgage rose +2 bp to 6.84% from 6.82% in the prior week.
Recent trade news has put some downward pressure on stocks. Last Wednesday, President Trump announced that he intends to send a tariff letter to more than 150 countries, notifying them that their tariff rates could be 10% or 15%, effective August 1. Also, President Trump recently announced that the US will impose 30% tariffs on US imports from the European Union and Mexico, effective August 1. In addition, Mr. Trump said that a 35% tariff on some Canadian products would take effect on August 1, up from the current 25%.
The markets this week will focus on any tariff news along with the announcement of any new trade deals. After today’s close, Alphabet and Tesla will release their quarterly earnings. On Thursday, weekly initial unemployment claims are expected to climb by +5,000 to 226,000. Also, the July S&P US manufacturing PMI is expected to slip -0.2 to 52.7. Finally, on Thursday, June new home sales are expected to climb +4.3% m/m to 650,000. On Friday, June capital goods new orders nondefense ex-aircraft and parts are expected to increase by +0.2% m/m.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 5% at the July 29-30 FOMC meeting and 58% at the following meeting on September 16-17.
The markets are absorbing a heavy slate of quarterly corporate earnings results this week. About one-fifth of the companies in the S&P 500 are expected to report their Q2 earnings results this week. Early results now show S&P 500 earnings are on track to rise +3.2% for the second quarter, better than the pre-season expectations of +2.8% y/y, according to Bloomberg Intelligence. Also, only six of the eleven S&P 500 sectors are projected to post an increase in earnings, the fewest since Q1 of 2023, according to Yardeni Research.
Overseas stock markets today are higher. The Euro Stoxx 50 is up +0.88%. China’s Shanghai Composite rose to a new 9.5-month high and closed up +0.01%. Japan’s Nikkei Stock 225 rallied to a 1-year high and closed up sharply by +3.51%.
Interest Rates
September 10-year T-notes (ZNU25) today are down -8 ticks. The 10-year T-note yield is up +3.0 bp to 4.374%. T-notes are retreating today after the announcement of a trade deal between Japan and the US reduced safe-haven demand for government debt. Supply pressures are also weighing on T-notes as the Treasury will auction $13 billion of 20-year T-bonds later today.
Losses in T-notes are contained after US existing home sales fell more than expected to a 9-month low, a dovish factor for Fed policy. T-note prices also have support as the US 10-year breakeven inflation rate fell to a 1-week low today of 2.386%.
European government bond yields today are moving higher. The 10-year German bund yield is up +1.4 bp to 2.604%. The 10-year UK gilt yield is up +4.2 bp to 4.611%.
Swaps are discounting the chances at 2% for a -25 bp rate cut by the ECB at Thursday’s policy meeting.
US Stock Movers
Power producers are climbing today after PJM Interconnection LLC predicted that the AI boom will prompt businesses and households served by the largest US power grid to spend a record $16.1 billion to ensure electricity supplies, which could support utility profit margins. Talen Energy (TLN) is up more than +8% and Vistra (VST) is up more than +6%. Also, NRG Energy (NRG) is up more than +5% and Constellation Group (CEG) is up more than +4%.
Weakness in shares of automotive and industrial chipmakers is limiting gains in the Nasdaq 100, with Texas Instruments (TXN) down more than -12% to lead losers in the Nasdaq 100 after company executives on anearnings callsaid there isn’t a “true broad recovery” in the automotive sector as automotive customers who ship into the US are cautious due to tariffs. Also, ON Semiconductor (ON) is down more than -7% and Microchip Technology (MCHP) is down more than -6%. In addition, NXP Semiconductors (NXPI), Analog Devices (ADI), and Global Foundries (GFS) are down more than -2%.
Lamb Weston Holdings (LW) is up more than +20% to lead gainers in the S&P 500 after reporting Q4 net sales of $1.68 billion, stronger than the consensus of $1.59 billion.
GE Vernova (GEV) is up more than +14% after reporting Q2 revenue of $9.11 billion, stronger than the consensus of $8.80 billion.
Thermo Fisher Scientific (TMO) is up more than +13% after reporting Q2 revenue of $10.86 billion, above the consensus of $10.69 billion, and forecasting full-year sales of $43.6 billion-$44.2 billion, the midpoint above the consensus of $43.7 billion.
Lennox International (LII) is up more than +9% after reporting Q2 adjusted EPS of $7.82, well above the consensus of $6.89.
TE Connectivity Plc (TEL) is up more than +8% after reporting Q3 net sales of $4.53 billion, better than the consensus of $4.33 billion, and forecasting Q4 net sales of $4.55 billion, above the consensus of $4.42 billion.
Baker Hughes (BKR) is up more than +7% to lead gainers in the Nasdaq 100 after reporting Q2 revenue of $6.91 billion, stronger than the consensus of $6.64 billion.
Capital One Financial (COF) is up more than +1% after reporting Q2 net revenue of $12.49 billion, above the consensus of $11.84 billion.
Fiserv (FI) is down more than -17% to lead losers in the S&P 500 after reporting Q2 organic revenue grew +8.00%, below the consensus of +8.91%.
Otis Worldwide (OTIS) is down more than -11% after reporting Q2 net sales of $3.60 billion, below the consensus of $3.71 million, and cutting its full-year net sales forecast to $114.5 billion to $14.6 billion from a previous estimate of $14.6 billion to $14.8 billion, weaker than the consensus of $14.72 billion.
Teledyne Technologies (TDY) is down more than -5% after forecasting full-year adjusted EPS of $21.20-$21.50, the midpoint below the consensus of $21.42.
Unity Software (U) is down more than -3% after BTIG downgraded the stock to sell from neutral with a price target of $25.
Northern Trust Corp (NTRS) is down more than -3% after reporting Q2 provision for credit losses of $16.5 million, well above the consensus of $4.31 million.
Hilton Worldwide Holdings (HLT) is down more than -1% after cutting its full-year net income forecast to $1.64 billion to $1.68 billion from a previous forecast of $1.71 billion to $1.75 billion.
Earnings Reports (7/23/2025)
Alphabet Inc (GOOGL), Amphenol Corp (APH), AT&T Inc (T), Boston Scientific Corp (BSX), Chipotle Mexican Grill Inc (CMG), CME Group Inc (CME), Crown Castle Inc (CCI), CSX Corp (CSX), Fiserv Inc (FI), Freeport-McMoRan Inc (FCX), GE Vernova Inc (GEV), General Dynamics Corp (GD), Globe Life Inc (GL), Hasbro Inc (HAS), Hilton Worldwide Holdings Inc (HLT), International Business Machine (IBM), Lamb Weston Holdings Inc (LW), Las Vegas Sands Corp (LVS), Lennox International Inc (LII), Molina Healthcare Inc (MOH), Moody’s Corp (MCO), NextEra Energy Inc (NEE), Northern Trust Corp (NTRS), NVR Inc (NVR), O’Reilly Automotive Inc (ORLY), Otis Worldwide Corp (OTIS), Packaging Corp of America (PKG), Raymond James Financial Inc (RJF), Rollins Inc (ROL), ServiceNow Inc (NOW), TE Connectivity PLC (TEL), Teledyne Technologies Inc (TDY), Tesla Inc (TSLA), Thermo Fisher Scientific Inc (TMO), T-Mobile US Inc (TMUS), United Rentals Inc (URI).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Easing Trade Tensions Boost Stocks but Chip Stocks Slide

Key Points
- Non-GAAP earnings per share (EPS) rose 14 % to $7.82, surpassing the $6.86 consensus estimate.
- Revenue reached $1.50 billion, up 3 % year over year, and ahead of analyst expectations.
- Management raised full-year 2025 revenue and EPS guidance; operating cash flow and free cash flow declined from prior year.
Lennox International (NYSE:LII), a major provider of heating, ventilation, air conditioning, and refrigeration (HVACR) systems, reported its second-quarter 2025 earnings on July 23, 2025. The company posted better-than-expected results, with non-GAAP earnings per share of $7.82 compared with analyst estimates of $6.86. Revenue was $1.50 billion, also above the $1,471.07 million consensus. This growth came despite lower sales volumes, as pricing and new product mix drove strong margins. Lennox raised its full-year guidance, but highlighted persistent inflation, volume softness, and weaker cash flows as ongoing concerns for investors. The quarter showed robust performance in both core segments, supported by pricing power and execution on strategic initiatives.
Metric
Q2 2025
Q2 2025 Estimate
Q2 2024
Y/Y Change
EPS (Non-GAAP)
$7.82
$6.86
$6.83
14%
Revenue (GAAP)
$1.50 billion
$1,471.07 million
$1.45 billion
3%
Operating Income
$354 million
$320.1 million
11%
Segment Profit – Home Comfort Solutions
$255.2 million
$228.5 million
12%
Segment Profit – Building Climate Solutions
$122.5 million
$114.0 million
7%
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Business Overview and Strategic Focus
Lennox International is a well-established manufacturer of climate control solutions, best known for its heating and air conditioning equipment for homes and businesses. It operates through two core segments: Home Comfort Solutions, which focuses on residential HVAC products, and Building Climate Solutions, which provides climate systems and services for commercial and industrial buildings.
Recently, Lennox has focused on several key areas to drive its business forward. The company emphasizes ongoing product innovation, particularly in developing energy-efficient and environmentally friendly HVACR (heating, ventilation, air conditioning, refrigeration) systems. Strategic investments and acquisitions support growth, while regulatory compliance—especially with shifting refrigerant standards—and an evolving distribution network remain at the forefront. Success depends on continuous improvement in product quality, strong channel relationships, agile adaptation to regulation, and effective capital management.
Quarter in Review: Financial and Operational Highlights
In the period, revenue grew 3 %, reaching above analyst expectations. Non-GAAP EPS increased 14 %. Lennox credits these results to disciplined pricing actions, robust product mix, and margin expansion in spite of lower overall volumes in both segments. Operating income rose 11 % year over year, and consolidated operating margin climbed 150 basis points.
Home Comfort Solutions, the company’s largest product family focused on residential heating and cooling equipment, saw segment profits rise 12 %. The business achieved this by emphasizing a favorable product mix, including new environmentally compliant systems using R-454B refrigerant. This shift helped the segment offset a $36 million decrease in sales volumes and $11 million in inflation-related costs with $84 million in pricing and mix benefits. Despite weaker demand for unit replacements, higher-value products and recent pricing supported profitability. The segment’s margin improved 200 basis points to 25.3 %.
The Building Climate Solutions unit, which delivers commercial and industrial HVAC systems, increased revenue by 5 % and segment profit by 7 %. The segment margin rose 60 basis points to 24.9 %. Positive product mix and pricing offset a $6 million drop in sales volumes and $5 million in input costs. The company continued to make progress with its emergency replacement initiative, aiming to fulfill critical orders more quickly and improve customer response rates. The backlog in this commercial unit remained healthy, providing visibility into upcoming quarters.
Lennox operated in a climate of persistent inflation, with input and product costs rising by $16 million for the quarter. Tariffs and transition-related headwinds, particularly as the industry moves to new refrigerant requirements, remained present. However, pricing actions—two midsingle-digit price increases during the quarter, one as a traditional increase and another as a temporary tariff surcharge—helped the company manage those costs. Inventory levels grew due to both working capital needs for new products and ongoing investments in distribution capabilities.
Cash flow and capital deployment shifted in the quarter. Operating cash flow and free cash flow fell sharply to $87 million and $59 million, respectively, from $184 million and $152 million in the prior-year quarter. This was largely driven by higher inventory and absorption of working capital, as the company pre-positioned products for the ongoing transition to new refrigerant-compliant models. Lennox repurchased $210 million of shares, a significant increase compared to prior quarters. Net capital expenditures remained steady year over year. The company ended the quarter with $49 million in cash and equivalents.
During the quarter, Lennox continued to integrate prior acquisitions such as AES Industries and AES Mechanical, both of which expand its reach and capabilities in the Building Climate Solutions segment. The ongoing investments in the emergency replacement initiative and the distribution network, totaling approximately $10–11 million per segment, further support these advances. On the product side, the company advanced its line-up of ducted and ductless heat pumps—types of HVAC equipment used for both heating and cooling—and continued embedding diagnostic and control systems for smarter operation.
Outlook and Investor Considerations
Looking ahead, management raised its full-year 2025 financial guidance. The company now expects revenue to grow 3 %, up from prior projections. Adjusted earnings per share guidance increased to a range of $23.25–$24.25, compared to the $22.25–$23.50 range announced in the previous quarter. The company reaffirmed its free cash flow guidance of $650–$800 million for the year, with capital expenditures expected at $150 million. Backlog remains solid, especially in the commercial segment, and management sees strong ongoing benefits from the product and distribution investments made over the past year.
Investors should note, however, that volume trends remain soft, with both core business units reporting year-over-year declines in sales. Management signaled that destocking related to the refrigerant transition should largely conclude after the quarter, but risks remain if industry demand does not rebound as anticipated. Lennox plans to maintain its focus on offsetting inflation and tariffs through pricing and productivity. Any significant swings in macroeconomic factors, construction activity, or changes in trade policy could influence these expectations and cash-flow dynamics in the quarters ahead.
The quarterly dividend was raised 5 % to $1.10 per share.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Lennox Posts 14% EPS Jump in Q2

The S&P 500 Index ($SPX) (SPY) today is up +0.27%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.45%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.17%. September E-mini S&P futures (ESU25) are up +0.21%, and September E-mini Nasdaq futures (NQU25) are down -0.15%.
Stock indexes today are mixed, with the Dow Jones Industrials posting a 2-week high. Stocks found support today on some positive trade news that has boosted market sentiment. President Trump announced a trade deal with Japan late Tuesday, which will impose 15% tariffs on imports from Japanese, lower than the previously announced 25% rate set to take effect on August 1. The deal also creates a $550 billion fund for Japan to invest in the US. Japan also agreed to purchase 100 Boeing aircraft, increase its purchases of US rice by 75%, and buy $8 billion in other agricultural products, while raising its defense spending with American firms to $17 billion annually, from $14 billion.
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However, the Nasdaq 100 index is under pressure today due to weakness in auto-related chip makers, with Texas Instruments down more than -10% after company executives on anearnings callsaid there isn’t a "true broad recovery" in the automotive sector as automotive customers who ship into the US are cautious due to tariffs.
US MBA mortgage applications rose +0.8% in the week ended July 18, with the purchase mortgage sub-index up +3.4% and the refinancing sub-index down -2.6%. The average 30-year fixed rate mortgage rose +2 bp to 6.84% from 6.82% in the prior week.
Recent trade news has put some downward pressure on stocks. Last Wednesday, President Trump announced that he intends to send a tariff letter to more than 150 countries, notifying them that their tariff rates could be 10% or 15%, effective August 1. Also, President Trump recently announced that the US will impose 30% tariffs on US imports from the European Union and Mexico, effective August 1. In addition, Mr. Trump said that a 35% tariff on some Canadian products would take effect on August 1, up from the current 25%.
The markets this week will focus on any tariff news along with the announcement of any new trade deals. Later today, Jun existing home sales are expected to fall -0.7% m/m to 4.00 million. After today's close, Alphabet and Tesla will release their quarterly earnings. On Thursday, weekly initial unemployment claims are expected to climb by +5,000 to 226,000. Also, the July S&P US manufacturing PMI is expected to slip -0.2 to 52.7. Finally, on Thursday, June new home sales are expected to climb +4.3% m/m to 650,000. On Friday, June capital goods new orders nondefense ex-aircraft and parts are expected to increase by +0.2% m/m.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 3% at the July 29-30 FOMC meeting and 58% at the following meeting on September 16-17.
The markets are absorbing a heavy slate of quarterly corporate earnings results this week. About one-fifth of the companies in the S&P 500 are expected to report their Q2 earnings results this week. Early results now show S&P 500 earnings are on track to rise +3.2% for the second quarter, better than the pre-season expectations of +2.8% y/y, according to Bloomberg Intelligence. Also, only six of the eleven S&P 500 sectors are projected to post an increase in earnings, the fewest since Q1 of 2023, according to Yardeni Research.
Overseas stock markets today are higher. The Euro Stoxx 50 is up +1.04%. China's Shanghai Composite rose to a new 9.5-month high and closed up +0.01%. Japan's Nikkei Stock 225 rallied to a 1-year high and closed up sharply by +3.51%.
Interest Rates
September 10-year T-notes (ZNU25) today are down -7 ticks. The 10-year T-note yield is up +2.8 bp to 4.372%. T-notes are retreating today after the announcement of a trade deal between Japan and the US reduced safe-haven demand for government debt. Supply pressures are also weighing on T-notes as the Treasury will auction $13 billion of 20-year T-bonds later today. Easing inflation expectations are limiting losses in T-notes as the US 10-year breakeven inflation rate fell to a 1-week low today of 2.388%.
European government bond yields today are moving higher. The 10-year German bund yield is up +1.8 bp to 2.608%. The 10-year UK gilt yield is up +4.4 bp to 4.613%.
Swaps are discounting the chances at 2% for a -25 bp rate cut by the ECB at Thursday's policy meeting.
US Stock Movers
Power producers are climbing today after PJM Interconnection LLC predicted that the AI boom will prompt businesses and households served by the largest US power grid to spend a record $16.1 billion to ensure electricity supplies, which could support utility profit margins. Vistra (VST) is up more than +8% and Constellation Group (CEG) is up more than +6% to lead gainers in the Nasdaq 100. Also, Talen Energy (TLN) is up more than +7%, and NRG Energy (NRG) is up more than +5%.
Weakness in shares of automotive and industrial chipmakers is limiting gains in the Nasdaq 100, with Texas Instruments (TXN) down more than -12% to lead losers in the Nasdaq 100 after company executives on anearnings callsaid there isn’t a "true broad recovery" in the automotive sector as automotive customers who ship into the US are cautious due to tariffs. Also, Microchip Technology (MCHP) is down more than -8%, ON Semiconductor (ON) is down more than -5%, and NXP Semiconductors (NXPI) and Analog Devices (ADI) are down more than -3%. In addition, Global Foundries (GFS) is down more than -2%.
Lamb Weston Holdings (LW) is up more than +15% to lead gainers in the S&P 500 after reporting Q4 net sales of $1.68 billion, stronger than the consensus of $1.59 billion.
GE Vernova (GEV) is up more than +11% after reporting Q2 revenue of $9.11 billion, stronger than the consensus of $8.80 billion.
Thermo Fisher Scientific (TMO) is up more than +10% after reporting Q2 revenue of $10.86 billion, above the consensus of $10.69 billion, and forecasting full-year sales of $43.6 billion-$44.2 billion, the midpoint above the consensus of $43.7 billion.
Lennox International (LII) is up more than +9% after reporting Q2 adjusted EPS of $7.82, well above the consensus of $6.89.
TE Connectivity Plc (TEL) is up more than +8% after reporting Q3 net sales of $4.53 billion, better than the consensus of $4.33 billion, and forecasting Q4 net sales of $4.55 billion, above the consensus of $4.42 billion.
Manhattan Associates (MANH) is up more than +15% after reporting Q2 revenue of $272.4 million, better than the consensus of $263.7 million, and boosting its full-year revenue forecast to $1.07 billion-$1.08 billion from a previous forecast of $1.06 billion-$1.07 billion, higher than the consensus of $1.06 billion.
Capital One Financial (COF) is up more than +3% after reporting Q2 net revenue of $12.49 billion, above the consensus of $11.84 billion.
Fiserv (FI) is down more than -20% to lead losers in the S&P 500 after reporting Q2 organic revenue grew +8.00%, below the consensus of +8.91%.
Otis Worldwide (OTIS) is down more than -11% after reporting Q2 net sales of $3.60 billion, below the consensus of $3.71 million, and cutting its full-year net sales forecast to $114.5 billion to $14.6 billion from a previous estimate of $14.6 billion to $14.8 billion, weaker than the consensus of $14.72 billion.
Unity Software (U) is down more than -4% after BTIG downgraded the stock to sell from neutral with a price target of $25.
Northern Trust Corp (NTRS) is down more than -3% after reporting Q2 provision for credit losses of $16.5 million, well above the consensus of $4.31 million.
AT&T (T) is down more than -1% after forecasting full-year adjusted EPS of $1.97-$2.07, below the consensus of $2.09.
Hilton Worldwide Holdings (HLT) is down more than -1% after cutting its full-year net income forecast to $1.64 billion to $1.68 billion from a previous forecast of $1.71 billion to $1.75 billion.
Earnings Reports (7/23/2025)
Alphabet Inc (GOOGL), Amphenol Corp (APH), AT&T Inc (T), Boston Scientific Corp (BSX), Chipotle Mexican Grill Inc (CMG), CME Group Inc (CME), Crown Castle Inc (CCI), CSX Corp (CSX), Fiserv Inc (FI), Freeport-McMoRan Inc (FCX), GE Vernova Inc (GEV), General Dynamics Corp (GD), Globe Life Inc (GL), Hasbro Inc (HAS), Hilton Worldwide Holdings Inc (HLT), International Business Machine (IBM), Lamb Weston Holdings Inc (LW), Las Vegas Sands Corp (LVS), Lennox International Inc (LII), Molina Healthcare Inc (MOH), Moody's Corp (MCO), NextEra Energy Inc (NEE), Northern Trust Corp (NTRS), NVR Inc (NVR), O'Reilly Automotive Inc (ORLY), Otis Worldwide Corp (OTIS), Packaging Corp of America (PKG), Raymond James Financial Inc (RJF), Rollins Inc (ROL), ServiceNow Inc (NOW), TE Connectivity PLC (TEL), Teledyne Technologies Inc (TDY), Tesla Inc (TSLA), Thermo Fisher Scientific Inc (TMO), T-Mobile US Inc (TMUS), United Rentals Inc (URI).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Supported as US Announces a Trade Deal with Japan

(RTTNews) - Lennox International Inc (LII) will host a conference call at 9:30 AM ET on July 23, 2025, to discuss Q2 25 earnings results.
To access the live webcast, log on to https://www.investor.lennox.com/events/event-details/q2-2025-lennox-earnings-conference-call
To listen to the call, dial 800-245-3047 (U.S.) or +1 203-518-9765 (international) .
For a replay call, dial 800-753-8591 (U.S.) or +1 402-220-0686 (international).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Lennox International Q2 25 Earnings Conference Call At 9:30 AM ET

(RTTNews) - Lennox (LII) said the company now expects fiscal 2025 adjusted EPS in a range of $23.25 - $24.25, revised from prior guidance range of $22.25 - $23.50. The company now expects revenue growth of 3%.
Second quarter net income was $278 million, or $7.82 per share, compared to $246 million, or $6.87 per share, in the prior-year quarter. Adjusted net income was $278 million, or $7.82 per share, compared to $244 million, or $6.83 per share, in the prior-year quarter. Analysts on average expected the company to report profit per share of $6.87, for the quarter. Analysts' estimates typically exclude special items. Revenue was $1.5 billion, up 3% driven by favorable mix and price benefits.
Shares of Lennox are up 4% in pre-market trade on Wednesday. For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Lennox Raises FY25 Guidance

(RTTNews) - Lennox International Inc (LII) reported a profit for its second quarter that Increases, from the same period last year
The company's bottom line totaled $277.6 million, or $7.82 per share. This compares with $245.9 million, or $6.87 per share, last year.
Excluding items, Lennox International Inc reported adjusted earnings of $277.6 million or $7.82 per share for the period.
The company's revenue for the period rose 3.4% to $1.500 billion from $1.451 billion last year.
Lennox International Inc earnings at a glance (GAAP) :
-Earnings: $277.6 Mln. vs. $245.9 Mln. last year. -EPS: $7.82 vs. $6.87 last year. -Revenue: $1.500 Bln vs. $1.451 Bln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Lennox International Inc Announces Climb In Q2 Income

Below is Validea's guru fundamental report for LENNOX INTERNATIONAL INC (LII). Of the 22 guru strategies we follow, LII rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibit characteristics associated with sustained future growth.
LENNOX INTERNATIONAL INC (LII) is a large-cap growth stock in the Misc. Capital Goods industry. The rating using this strategy is 88% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of LENNOX INTERNATIONAL INC
More Information on Partha Mohanram
About Partha Mohanram: Sometimes the best investing strategies don't come from the world of investing. Sometimes research that changes the investing world can come from the halls of academia. Partha Mohanram is a great example of this. While academic research has shown that value investing works over time, it has found the opposite for growth investing. Mohanram turned that research on its head by developing a growth model that produced significant market outperformance. His research paper "Separating Winners from Losers among Low Book-to-Market Stocks using Financial Statement Analysis" looked at the criteria that can be used to separate growth stocks that continue their upward trajectory from those that don't. Mohanram is currently the John H. Watson Chair in Value Investing at the University of Toronto and was previously an Associate Professor at the Columbia Business School.
Additional Research Links
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Guru Fundamental Report for LII

In trading on Tuesday, shares of Lennox International Inc (Symbol: LII) crossed above their 200 day moving average of $597.38, changing hands as high as $604.00 per share. Lennox International Inc shares are currently trading up about 4.4% on the day. The chart below shows the one year performance of LII shares, versus its 200 day moving average:
Looking at the chart above, LII's low point in its 52 week range is $500.10 per share, with $682.50 as the 52 week high point — that compares with a last trade of $598.66. The LII DMA information above was sourced from TechnicalAnalysisChannel.com
Free Report: Top 8%+ Dividends (paid monthly)
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.