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How Lennox International (LII) makes money
Lennox International (LII) made $1.6B of revenue in the third quarter 2026 (Q3 2026), +10% from a year earlier. Residential Heating and Cooling brought in $937M (60%); Commercial Heating and Cooling brought in $635M (40%). Of every dollar of revenue, 32¢ was left as gross profit, 20¢ was left as operating profit, 14¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Residential Heating and Cooling | $937M | 59.6% | +0.2% | +3% |
| Commercial Heating and Cooling | $635M | 40.4% | +4% | +24% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $1.6B | 100.0% |
| Cost of revenue | $1.1B | 68.4% |
| Gross profit | $497M | 31.6% |
| Operating expenses | $185M | 11.8% |
| Operating profit | $312M | 19.8% |
| Income tax | $72.1M | 4.6% |
| Net earnings | $221M | 14.1% |
| Operating cash flow | $395M | 25.1% |
| Free cash flow | $362M | 23.0% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $1.6B | +10% |
| Q2 2026 | $1.5B | +3% |
| Q1 2026 | $1.1B | +6% |
| Q4 2025 | $1.2B | -11% |
| Q3 2025 | $1.4B | -5% |
| Q2 2025 | $1.5B | +3% |
| Q1 2025 | $1.1B | +2% |
From Lennox International's 10-Q filed Oct 28, 2026 (on EDGAR).
Questions
How does Lennox International make money?
Lennox International (LII) made $1.6B of revenue in the third quarter 2026 (Q3 2026), +10% from a year earlier. Residential Heating and Cooling brought in $937M (60%); Commercial Heating and Cooling brought in $635M (40%). Of every dollar of revenue, 32¢ was left as gross profit, 20¢ was left as operating profit, 14¢ was left as net earnings.
What is Lennox International's biggest business?
Residential Heating and Cooling: $937M in the third quarter 2026, 60% of revenue, +3% from a year earlier.
What is Lennox International's profit margin?
Net earnings were $221M, 14.1% of revenue, in the third quarter 2026; the operating margin was 19.8%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.