How does Lennox International (LII) make money?

Lennox International (LII) generates revenue primarily from Residential Heating and Cooling, which accounted for 62.2% of total revenue in TTM through Q1 2026. The company reported $5.26B in revenue and converted 14.9% of it into net profit, equivalent to roughly $783.10M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Lennox International (LII)?

Lennox International (LII) reported a gross profit margin of 33.1% in TTM through Q1 2026, equivalent to $1.74B in gross profit on $5.26B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Lennox International (LII)?

Lennox International (LII) reported an operating profit margin of 19.5% in TTM through Q1 2026, equivalent to $1.03B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Lennox International (LII)?

Lennox International (LII) reported a net profit margin of 14.9% in TTM through Q1 2026, equivalent to $783.10M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Lennox International (LII) profitable?

Yes. Lennox International (LII) reported $783.10M in net income for TTM through Q1 2026, with a net profit margin of 14.9%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Lennox International (LII) spend on capital expenditures?

Lennox International (LII) spent $148.80M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 2.8% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Lennox International (LII) generate?

Lennox International (LII) generated $660.70M in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 12.6%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Lennox International (LII)?

Lennox International (LII) had an effective tax rate of 19.2% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Lennox International (LII)?

Lennox International (LII) reports revenue across 2 reportable product segments, led by Residential Heating and Cooling at 62.2% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Lennox International Makes Money: 2026 Visual Revenue Map

Lennox International (LII) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported April 29, 2026).

Lennox International discloses geographic revenue only in annual filings. to view the full breakdown.

Lennox International (LII) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Lennox International (LII) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Residential Heating and Cooling	$3.27B	62.2%
Commercial Heating and Cooling	$1.99B	37.8%
Total	$5.26B	100%

Residential Heating and Cooling$3.27B
Commercial Heating and Cooling$1.99B
Total$5.26B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Lennox International (LII) reports revenue across 2 operating segments; the largest segment was Residential Heating and Cooling at 62.2%, followed by Commercial Heating and Cooling (37.8%).

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