Lennox International Inc. (LII): Business Model Canvas [Jan-2025 Mis à jour]

Dans le monde dynamique du chauffage, du refroidissement et de la ventilation, Lennox International Inc. (LII) est un phare de l'innovation, transformant la façon dont nous ressentons le confort dans les espaces résidentiels et commerciaux. Avec un modèle commercial stratégique qui mélange la technologie de pointe, l'efficacité énergétique et les solutions centrées sur le client, Lennox a creusé une position unique dans l'industrie HVAC. Leur approche complète va au-delà du simple contrôle de la température, offrant des intégrations de maisons intelligentes, des produits respectueux de l'environnement et un réseau robuste de partenariats qui stimulent les progrès technologiques continus.

Lennox International Inc. (LII) - Modèle commercial: partenariats clés

Fournisseurs stratégiques de composants CVC et de matières premières

Lennox International Inc. maintient des partenariats stratégiques avec les principaux fournisseurs suivants:

Catégorie des fournisseurs	Nombre de partenaires stratégiques	Valeur d'achat annuelle
Fabricants de composants CVC	37	412,6 millions de dollars
Fournisseurs de matières premières	24	276,3 millions de dollars
Fabricants de métaux spécialisés	12	89,7 millions de dollars

Concessionnaires et distributeurs autorisés pour les ventes de produits

Le réseau de distribution de Lennox International comprend:

• Total des concessionnaires autorisés: 6 500
• Couverture géographique: 50 États aux États-Unis
• Canaux de distribution internationaux: 25 pays
• Ventes annuelles via le réseau de concessionnaires: 3,2 milliards de dollars

Partenaires technologiques pour les solutions de maison intelligente

Partenaire technologique	Focus de partenariat	Portée de l'intégration
Google Nest	Intégration de maison intelligente	Systèmes de contrôle HVAC
Amazon Alexa	Contrôle vocal	Connectivité IoT
Apple Homekit	Écosystème de maison intelligente	Gestion de l'énergie

Partenariats des fabricants d'équipements d'origine (OEM)

Lennox collabore avec les OEM dans plusieurs secteurs:

• OEM de construction: 42 partenariats stratégiques
• OEM du secteur industriel: 18 collaborations clés
• Revenus de partenariat OEM total: 567,4 millions de dollars
• Durée du partenariat moyen: 7,3 ans

Lennox International Inc. (LII) - Modèle d'entreprise: activités clés

Conception et fabrication de systèmes de chauffage, de refroidissement et de ventilation

Lennox International Inc. exploite 16 installations de fabrication à travers l'Amérique du Nord à partir de 2023. La société produit un équipement de CVC résidentiel et commercial avec la panne de fabrication suivante:

Catégorie de produits	Volume de production annuel	Lieux de fabrication
Systèmes HVAC résidentiels	1,2 million d'unités par an	7 installations
Systèmes de CVC commerciaux	350 000 unités par an	5 installations
Équipement de ventilation	250 000 unités par an	4 installations

Recherche et développement de technologies HVAC éconergétiques

Lennox investit considérablement dans la R&D avec les mesures suivantes:

• Dépenses annuelles de R&D: 98,3 millions de dollars en 2023
• Personnel R&D: 425 ingénieurs et technologues
• Portefeuille de brevets: 672 brevets actifs

Marketing de produit et gestion de la marque

Les activités de marketing comprennent:

Canal de marketing	Investissement annuel	Segment cible
Marketing numérique	22,6 millions de dollars	Consommateurs résidentiels
Participation des salons commerciaux	5,4 millions de dollars	Professionnels HVAC
Marketing de réseau de concessionnaires professionnels	17,9 millions de dollars	Installateurs autorisés

Support client et service technique

Les opérations de support technique comprennent:

• Centres de support client 24/7: 3 emplacements
• Personnel de soutien technique: 312 professionnels
• Heures de formation technique annuelles: 18 500 heures
• Temps de réponse moyen: 2,3 heures

Lennox International Inc. (LII) - Modèle d'entreprise: Ressources clés

Installations de fabrication avancées

Lennox International exploite 13 installations de fabrication à travers l'Amérique du Nord, avec des emplacements spécifiques dans:

• Marshalltown, Iowa
• Saltillo, Mexique
• Brownsville, Texas

Emplacement	Type d'installation	Ligne de produit primaire
Marshalltown, IA	Équipement CVC	Systèmes de chauffage / refroidissement résidentiel
Saltillo, Mexique	Fabrication de composants	Composants HVAC
Brownsville, TX	Installation de production	Équipement de CVC commercial

Portefeuille de propriété intellectuelle

Depuis 2023, Lennox International détient 327 brevets actifs Dans HVAC Technologies.

Ressources humaines

Total de la main-d'œuvre: 12 400 employés en 2023, avec:

• Travail d'ingénierie: 1 850 professionnels
• Équipe de recherche et développement: 620 spécialistes

Réputation de la marque

Part de marché dans le CVC résidentiel: 16.7% Depuis 2023

Chaîne d'approvisionnement et réseau de distribution

Canal de distribution	Nombre de partenaires
Distributeurs en gros	1,200+
Partenaires de vente au détail	850
Entrepreneurs commerciaux directs	3,500

Lennox International Inc. (LII) - Modèle d'entreprise: propositions de valeur

Solutions de chauffage et de refroidissement à haute efficacité

Lennox propose des systèmes de CVC avec des cotes d'efficacité jusqu'à 98,7% de rendez-vous pour les fours à gaz et 26 voyants pour les climatiseurs. Le climatiseur XC25 obtient jusqu'à 26 notes d'efficacité SEER, ce qui représente les performances énergétiques de haut niveau sur le marché.

Catégorie de produits	Plage d'efficacité	Potentiel d'économie d'énergie
Fours à gaz	Jusqu'à 98,7%	Jusqu'à 30% d'économies d'énergie
Climatiseurs	Jusqu'à 26 voyants	Jusqu'à 40% de réduction d'énergie

Intégration de maison intelligente et systèmes CVC compatibles IoT

Lennox IComfort S30 Smart Thermostat fournit des fonctionnalités de connectivité avancées avec des capacités de surveillance de l'énergie et de télécommande en temps réel.

• La technologie du thermostat intelligent a permis le Wi-Fi
• Capacités de géofension
• Intégration avec Alexa et Google Home
• Contrôle des applications mobiles

Produits d'économie d'énergie et respectueux de l'environnement

Lennox réduit les émissions de carbone par le biais de solutions HVAC à haute efficacité. Leurs produits répondent ou dépassent les exigences de l'énergie de 15 à 20%.

Métriques d'impact environnemental	Performance
Réduction des émissions de carbone	Jusqu'à 2,5 tonnes métriques par système
Conformité à l'énergie de l'étoile	115 à 120% des exigences standard

Garantie complète et assistance client

Lennox offre une couverture de garantie de pointe pour les systèmes de CVC résidentiels et commerciaux.

• Garantie limitée à 10 ans sur les pièces
• Garantie de l'échangeur de chaleur de 20 ans
• Garantie du compresseur à 5 ans
• Assistance technique 24/7

Technologies innovantes de contrôle du climat

Lennox investit environ 50 millions de dollars par an en recherche et développement pour les technologies de CVAC avancées.

Investissement technologique	Dépenses annuelles
Dépenses de R&D	50 millions de dollars
Demandes de brevet	12-15 par an

Lennox International Inc. (LII) - Modèle d'entreprise: relations clients

Assistance des ventes directes par le biais de représentants techniques

Lennox International maintient une équipe dédiée de 275 représentants techniques des ventes techniques à partir de 2023. Ces représentants fournissent un soutien spécialisé sur les marchés du CVC résidentiel et commercial.

Catégorie de représentation des ventes	Nombre de représentants	Temps d'interaction du client moyen
Support de CVC résidentiel	175	42 minutes par client
Support de CVC commercial	100	67 minutes par client

Plateformes de service client en ligne

Lennox exploite un écosystème complet de soutien numérique avec les mesures suivantes:

• Le portail d'assistance en ligne gère 124 500 demandes de renseignements clients chaque année
• Temps de résolution numérique moyen: 3,2 heures
• Évaluation de satisfaction du client: 4.6 / 5 pour le support en ligne

Documentation complète des produits et formation

Les ressources de formation comprennent:

Ressource de formation	Nombre de matériaux	Engagement annuel des utilisateurs
Vidéos de formation en ligne	237	89 400 vues
Manuels techniques	412	62 500 téléchargements

Programmes de support des concessionnaires et entrepreneurs

Lennox soutient 12 750 concessionnaires et entrepreneurs autorisés à travers:

• Programmes de formation annuels pour 7 850 participants
• Portail de concessionnaire dédié avec inventaire et prix en temps réel
• Programmes d'incitation basés sur la performance

Services de garantie et de maintenance prolongés

Détails de la couverture de la garantie:

Catégorie de produits	Garantie standard	Option de garantie prolongée	Réclamations de garantie annuelle
CVC résidentiel	10 ans limité	Jusqu'à 20 ans	4 750 réclamations
CVC commercial	Limited à 5 ans	Jusqu'à 10 ans	2 300 réclamations

Lennox International Inc. (LII) - Modèle d'entreprise: canaux

Ventes directes aux entrepreneurs et aux installateurs

Lennox International maintient un canal de vente direct robuste ciblant les professionnels HVAC. En 2023, la société a déclaré 4 750 représentants des ventes directes se concentrant sur les systèmes de chauffage commercial et résidentiel, de ventilation et de climatisation.

Canal de vente	Nombre de représentants	Volume des ventes annuelles
Entrepreneurs HVAC commerciaux	2,350	487,3 millions de dollars
Installateurs de CVC résidentiel	2,400	412,6 millions de dollars

Distribution de la vente au détail dans les magasins de rénovation domiciliaire

Lennox s'associe aux principaux détaillants de rénovation domiciliaire pour étendre la portée du marché.

• Le Home Depot: partenaire de vente au détail primaire
• Lowe's: Canal de distribution secondaire
• Menards: détaillant régional de rénovation domiciliaire

Détaillant	Nombre de magasins	Pourcentage de ventes au détail
Le Home Depot	2 317 magasins	62.4%
Lowe's	1 970 magasins	31.6%
Menards	355 magasins	6%

Plateformes de commerce électronique en ligne

Lennox exploite les canaux de vente numériques pour atteindre les consommateurs et les professionnels.

• Site Web de l'entreprise: Ventes de produits directs
• Amazon Business
• Marchages en ligne spécifiques au fabricant

Plate-forme	Ventes en ligne annuelles	Taux de croissance
Lennox.com	78,5 millions de dollars	14.2%
Amazon Business	42,3 millions de dollars	22.7%

Réseaux de concessionnaires autorisés

Lennox maintient un vaste réseau de concessionnaires autorisés à travers l'Amérique du Nord.

Région	Nombre de concessionnaires autorisés	Couverture totale du réseau
États-Unis	6,200	89%
Canada	1,100	76%

Canaux de marketing direct et de communication numérique

Lennox utilise plusieurs stratégies de communication numérique.

• Envoyer des campagnes de marketing par e-mail
• Plateformes de médias sociaux
• Webinaires professionnels
• Publicité numérique ciblée

Canal de marketing	Investissement annuel	Atteindre
Marketing numérique	24,7 millions de dollars	3,2 millions de professionnels
Publicité sur les réseaux sociaux	8,3 millions de dollars	1,7 million de followers

Lennox International Inc. (LII) - Modèle d'entreprise: segments de clientèle

Propriétaires résidentiels

Lennox cible les clients résidentiels avec un revenu annuel de 100 000 $ +. La pénétration du marché dans ce segment atteint environ 18% des maisons unifamiliales américaines.

Caractéristique du segment	Données statistiques
Coût de remplacement moyen HVAC moyen	$6,800 - $12,500
Taille du marché cible	42,3 millions de maisons unifamiliales
Taux de remplacement annuel	3,7% des systèmes HVAC résidentiels

Gestionnaires des bâtiments commerciaux

Lennox sert des propriétés commerciales dans plusieurs secteurs avec des solutions de CVC complètes.

• Complexes de bureaux avec plus de 50 000 pieds carrés
• Centres de détail dépassant 100 000 pieds carrés
• Établissements d'enseignement avec plusieurs bâtiments
• Établissements de santé

Segment commercial	Valeur marchande annuelle
Marché de CVC commercial	16,5 milliards de dollars
Coût moyen du système commercial	$25,000 - $75,000

Entrepreneurs HVAC et installateurs

Lennox collabore avec environ 6 200 réseaux de concessionnaires certifiés à l'échelle nationale.

Métriques du réseau de concessionnaires	Valeur
Concessionnaires certifiés totaux	6,200
Programmes de formation annuels	378 Sessions de formation technique

Nouveaux développeurs de construction

Lennox fournit des solutions CVC pour les projets de construction résidentiels et commerciaux.

• Développements de maisons unifamiliales
• Complexes résidentiels multi-unités
• Projets immobiliers commerciaux

Segment de construction	Données annuelles du marché
Nouvelle construction résidentielle	1,4 million de logements commencent chaque année
Valeur de construction commerciale	Taille du marché de 1,3 billion de dollars

Installations industrielles et institutionnelles

Lennox répond aux exigences de CVC industrielles et institutionnelles à grande échelle.

• Installations de fabrication
• Bâtiments du gouvernement
• Laboratoires de recherche
• Centres de données

Type d'installation	Investissement annuel de CVC
Marché HVAC industriel	22,8 milliards de dollars
Coût moyen du système de grande installation	$150,000 - $500,000

Lennox International Inc. (LII) - Modèle d'entreprise: Structure des coûts

Frais de fabrication et de production

Pour l'exercice 2023, Lennox International a déclaré des coûts de fabrication totaux de 2,48 milliards de dollars. La ventilation des dépenses de fabrication comprend:

Catégorie de coûts	Montant ($)
Coûts de main-d'œuvre directes	412,500,000
Frais de matières premières	1,156,000,000
Fabrication des frais généraux	911,500,000

Investissements de recherche et développement

Lennox International a alloué 146,7 millions de dollars à la recherche et au développement en 2023, ce qui représente 4,2% du total des revenus de l'entreprise.

• HVAC Technology Innovation Investments: 89,3 millions de dollars
• Recherche de l'efficacité énergétique: 37,4 millions de dollars
• Développement de technologie de maison intelligente: 20 millions de dollars

Opérations de marketing et de vente

Les frais de marketing et de vente pour 2023 ont totalisé 335,6 millions de dollars, avec la distribution suivante:

Canal de marketing	Dépenses ($)
Marketing numérique	78,400,000
Participation des salons commerciaux	42,300,000
Compensation de l'équipe de vente	214,900,000

Gestion de la chaîne d'approvisionnement et de la logistique

Les coûts d'exploitation de la chaîne d'approvisionnement pour 2023 s'élevaient à 412,5 millions de dollars, notamment:

• Transport et fret: 187,3 millions de dollars
• Dépenses d'entreposage: 112,6 millions de dollars
• Gestion des stocks: 112,6 millions de dollars

Infrastructure et maintenance technologiques

Les dépenses liées à la technologie pour 2023 étaient de 98,3 millions de dollars, distribuées comme suit:

Catégorie de technologie	Dépenses ($)
Infrastructure informatique	52,600,000
Cybersécurité	22,400,000
Licence de logiciel	23,300,000

Lennox International Inc. (LII) - Modèle d'entreprise: Strots de revenus

Ventes de systèmes de CVC résidentiels

Au cours de l'exercice 2022, le segment HVAC résidentiel de Lennox International a généré 2,65 milliards de dollars de revenus. La société a vendu 1 042 000 unités de CVC résidentielles au cours de cette période.

Catégorie de produits	Revenus ($ m)	Unités vendues
Climatiseurs	1,150	425,000
Pompes à chaleur	850	325,000
Fours	650	292,000

Solutions commerciales et industrielles de contrôle du climat

Les revenus commerciaux du segment HVAC en 2022 ont atteint 1,42 milliard de dollars, avec des segments de marché clés, notamment:

• Espaces commerciaux de détail
• Installations de fabrication industrielle
• Établissements d'enseignement
• Établissements de santé

Pièces et composants de remplacement

Les pièces et composants de remplacement ont généré 487 millions de dollars de revenus pour Lennox International en 2022.

Type de composant	Revenus ($ m)
Compresseurs	156
Condenseurs	112
Composants électriques	219

Contrats de garantie et de service prolongés

Les contrats de service et de maintenance ont contribué 213 millions de dollars aux revenus de Lennox International en 2022.

• Valeur du contrat moyen: 375 $
• Contrats de service total vendus: 568 000
• Revenus de prolongation de la garantie: 87 millions de dollars

Produits d'intégration de la technologie de la maison intelligente

Smart Home Technology Products a généré 156 millions de dollars de revenus en 2022.

Catégorie de produits	Revenus ($ m)
Thermostats intelligents	89
Contrôles HVAC activés par Wi-Fi	67

Lennox International Inc. (LII) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Lennox International Inc. over the competition as of late 2025. It's about compliance, comprehensive coverage, premium quality, and a reliable network.

High-efficiency, low-GWP HVACR products meeting 2025 regulations.

Lennox International Inc. delivers products engineered to meet the January 1, 2025, EPA regulations for refrigerants, which mandate a Global Warming Potential (GWP) of 700 or less. The company's commitment is evident in its product lineup utilizing R-454B, which reduces GWP by as much as 78% compared to the phased-out R-410A for whole-home systems. Even with volume challenges, profitability in the Home Comfort Solutions segment remained strong as they transitioned to selling primarily R-454B products in Q2 2025.

• Transitioned residential line to R-454B for heat pumps and AC units.
• Commercial rooftop units and ducted split systems feature R-454B.
• Ductless options utilize R-32, also designed for low GWP compliance.
• New systems use 5-10% less refrigerant than comparable R-410A units.

Complete climate-control solutions for residential and commercial spaces.

Lennox International Inc. offers a full spectrum of climate control, segmented into Home Comfort Solutions (HCS) and Building Climate Solutions (BCS). The HCS segment, which covers residential needs, represented about two-thirds of total revenue in Q2 2025. In fiscal 2024, residential HVAC accounted for 67% of sales, while commercial HVAC and Heatcraft refrigeration made up 33%. For the full year 2025, the company projects total revenue growth of approximately 3%.

Segment	Q2 2025 Revenue	Year-over-Year Growth
Home Comfort Solutions (HCS)	$1.009 billion	3%
Building Climate Solutions (BCS)	$492 million	5%

Premium, reliable equipment like the Dave Lennox Signature Collection.

The Dave Lennox Signature Collection is positioned as the premium offering, exemplified by the SL22KLV model, which pairs comfort delivery with low GWP refrigerant technology. Lennox is the company's flagship HVAC brand. The company's focus on innovation, including cold climate heat pumps engineered to operate efficiently down to -22°F, supports the premium reliability proposition. This focus on high-quality, sustainable solutions helps drive favorable mix, which contributed 11% to HCS revenue growth in Q2 2025.

Strong dealer support and parts availability for quick replacement.

The business model heavily relies on its distribution network, with residential replacement sales making up 75% of total sales, while new construction is 25%. This reliance on the dealer channel means support for quick replacement is a critical value driver. The company is actively working to enhance parts availability, noting that recent acquisitions like Supco will help accelerate the attachment of parts and accessories across segments. Furthermore, 75% of dealers participate in mini-splits, indicating broad channel engagement for new product lines.

• Residential replacement sales: 75% of total sales.
• Dealer participation in mini-splits: 75%.
• Acquisitions like Supco are intended to accelerate parts and accessories attachment.

Finance: draft 13-week cash view by Friday.

Lennox International Inc. (LII) - Canvas Business Model: Customer Relationships

You're looking at how Lennox International Inc. manages the people who buy and install its climate control systems. It's a mix of deep partnership with its independent network and direct management of big commercial clients. This approach is critical, especially given the regulatory shifts and the need for specialized knowledge.

Dedicated, high-touch relationship with the Lennox dealer network.

Lennox International Inc. relies heavily on its independent distribution system for the North American residential heating and cooling market. They distribute their flagship "Lennox" brands directly to these independent dealers through a company-owned process. This isn't just transactional; it's about embedding their brand within the contractor's business. For example, the Samsung partnership for ductless products also flows through this direct-to-dealer network. To support this, Lennox has been investing heavily in its physical touchpoints. The company opened a new Customer Experience and Training Center at its Richardson, Texas headquarters, which includes HVAC training labs and five classrooms. This facility hosts over 1,000 customers for in-person courses each year, helping to cement that high-touch relationship.

The focus on digital support is also part of this relationship enhancement. Earlier in 2025, Lennox launched a Technical Support AI agent specifically for HVAC technicians and dealers. This tool has already logged over 15,000 sessions with more than 7,000 registered technicians, showing strong adoption and a commitment to field efficiency.

Here's a quick look at how the relationship structure breaks down:

• Distribution for "Lennox" brands is company-owned, direct to independent dealers.
• The company focuses on North America after divesting European operations in Q4 2023.
• The residential market, which relies on this network, accounted for about two-thirds of total revenue in Q2 2025.
• The company aims for its parts revenue attachment rate to reach 30% to 35%, up from the current teens, which requires strong dealer buy-in and training on selling lower-cost items like capacitors.

Direct sales and service for large commercial national accounts.

For large commercial customers, Lennox International Inc. operates a different model through its National Account Service ("NAS"). NAS provides installation, service, and preventive maintenance for these national account customers across the United States and Canada. This is a single point of contact approach designed to maximize uptime and lower the total cost of ownership for large portfolio managers. The company strengthened this capability by acquiring AES Industries, Inc. and AES Mechanical Service Group, Inc. in October 2023, which are dedicated to service and sustainability in light commercial markets. This direct channel helps them offer turnkey planned replacement programs, allowing national clients to proactively manage aging equipment on their own terms and budget.

The Building Climate Solutions segment, which includes these commercial services, posted net sales of $1,764.2 million in 2024. In Q2 2025, this segment showed stronger revenue growth of 5% year-over-year, reaching $492 million.

Training and technical support for installers on new refrigerant systems.

The regulatory environment demands intensive support. The transition to refrigerants with a Global Warming Potential (GWP) of 700 or less for most HVAC products became effective on January 1, 2025. This transition, specifically to refrigerants like R454B, created temporary challenges like canister shortages, but Lennox reports that 100% of units are now close to using 454B, and the necessary training has improved. The Customer Experience and Training Center in Richardson, Texas, features interactive exhibits specifically showcasing low GWP products.

Brand loyalty built on a century-old reputation for quality.

Lennox International Inc.'s reputation is rooted in its founding in 1895 in Marshalltown, Iowa. This long history translates into a brand image that customers and commercial clients increasingly link with reliability and quality, which is crucial in a competitive landscape. The company actively reinforces this through product recognition; for instance, the EL297V gas furnace received the GOOD DESIGN Award, which enhances the brand image as forward-thinking and responsible. Financial actions also signal stability to stakeholders. In 2024, the company returned $160 million to shareholders through dividends, which represented a 4.5% increase in the quarterly dividend. As of October 13, 2025, the market capitalization stood at $18.4B.

You can see the relationship focus across the business segments:

Relationship Metric	Segment/Context	Latest Available Figure	Year/Period
In-person Training Attendees	Customer Experience and Training Center	1,000 customers annually	Annual (as of 2025)
AI Tech Support Agent Registrants	Dealers/Technicians	Over 7,000 technicians	As of September 2025
AI Tech Support Agent Sessions	Dealers/Technicians	Over 15,000 logged sessions	As of September 2025
Commercial Segment Net Sales	Building Climate Solutions (NAS/AES)	$1,764.2 million	Fiscal 2024
Quarterly Dividend Increase	Shareholder Confidence/Stability	4.5% increase	2024

Lennox International Inc. (LII) - Canvas Business Model: Channels

You're looking at how Lennox International Inc. gets its climate control products-from residential units to commercial systems-into the hands of the installers and end-users. The channel strategy is clearly multi-pronged, balancing direct control with broad wholesale reach.

Company-owned Lennox Stores (one-step distribution)

The Lennox Stores serve as a direct-to-dealer parts and supplies access point across the United States and Canada, supporting the one-step distribution model for the primary Lennox brands like the Dave Lennox Signature Collection and Elite Series. While specific revenue contribution from only the stores isn't isolated in the latest reports, the company emphasizes these stores provide an easy access solution for contractors.

• Lennox Stores distribute products under the Lennox brand directly to independent installing dealers.
• These stores are part of the overall strategy to strengthen the distribution network.

Independent wholesale distributors (two-step distribution) for other brands

This channel moves the 'other' brands, such as Armstrong Air, Ducane, Air-Ease, Concord, MagicPak, and ADP Advanced Distributor Products, through independent distributors who then sell to installing contractors. The performance here is tied to the Home Comfort Solutions (HCS) segment, which saw revenue decline by 12% in the third quarter of 2025, partly due to channel inventory rebalancing following a regulatory transition. The sell-in volume for HCS dropped by 23% in that same quarter, reflecting distributor destocking. The company operates a network of 240 Lennox distributors in the United States as of October 08, 2025.

Here's a snapshot of the distributor footprint and related segment performance:

Metric	Value/Amount	Context/Date
Total US Distributors	240	As of October 08, 2025
Texas Distributors	33 (14% of total)	As of October 08, 2025
California Distributors	23 (10% of total)	As of October 08, 2025
HCS Revenue Change (Q3 2025)	-12%	Year-over-year
HCS Sell-in Volume Change (Q3 2025)	-23%	Year-over-year

Direct sales force for large Building Climate Solutions projects

The Building Climate Solutions (BCS) segment, which includes commercial projects, relies on a dedicated direct sales force and specialized channels. This segment showed resilience, with revenue growing by 10% in the third quarter of 2025, despite volume challenges of -3%, which was offset by a 8% boost from mix and pricing. The company expects the bulk of revenue from new product lines, like those from the Samsung joint venture involving VRF products, to start coming through only in 2025. The direct sales force is responsible for obtaining total system specifications from specifying engineers and design-build contractors.

• BCS Revenue Growth (Q3 2025): +10%.
• BCS Volume Change (Q3 2025): -3%.
• Mix/Pricing Contribution to BCS Growth (Q3 2025): +8%.

Digital tools and apps for dealer diagnostics and ordering

Lennox International Inc. is continuing investments in digital capabilities, which are key to streamlining operations and improving speed-to-market. A major component supporting this is the new Customer Experience and Training Centre in Richardson, Texas. This facility includes state-of-the-art HVAC training labs and five classrooms, designed to provide hands-on technical training to over 1,000 customers for in-person courses annually. The company also mentioned leveraging the Lennox Unified Management System to share best practices and execute strategy, which supports digital integration across the network. Capital expenditures for 2025 are projected at $150 million, focused partly on innovation centers.

The investment in infrastructure supports the digital push:

Capital Deployment Focus (2025 Projections):

Use of Funds	Projected Amount	Notes
Free Cash Flow Guidance (Revised)	Approximately $550 million	Citing elevated inventory levels
Capital Expenditures (Projected)	$150 million	Focused on distribution network expansion and innovation centers
Year-to-Date Share Repurchases	$350 million	With $1 billion remaining authorized

The company's Q3 2025 segment margin reached 21.7%, a record for the third quarter, showing that disciplined execution across channels is driving profitability even with top-line headwinds. Finance: draft 13-week cash view by Friday.

Lennox International Inc. (LII) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Lennox International Inc. as of late 2025, which is heavily weighted toward existing equipment replacement. The company's strategy clearly prioritizes the installed base over brand-new projects, which makes sense for a mature, essential-service industry.

Lennox International Inc. manufactures and distributes heating, ventilating, air conditioning, and refrigeration products primarily to the replacement market, which accounts for approximately 75% of sales. The remaining 25% of sales is generated from new construction residential and commercial projects. This focus on replacement is a key driver of revenue stability. Following the divestiture of its European operations in late 2023, Lennox International Inc. is now strategically focused on the North American market.

To give you a clearer picture of the revenue split based on the latest full-year figures available, here is how the main business segments broke down for the full year ended December 31, 2024, alongside the market split you mentioned:

Customer/Market Focus	Data Point	Value/Percentage
Residential Replacement Market Share (Approximate)	Percentage of Total Sales	75%
New Construction Market Share (Approximate)	Percentage of Total Sales	25%
Home Comfort Solutions Segment Revenue (FY 2024)	Net Sales	$3,577.1 million
Building Climate Solutions Segment Revenue (FY 2024)	Net Sales	$1,764.2 million
Residential HVAC Revenue Share (FY 2024)	Percentage of Sales	67%
Commercial HVAC and Heatcraft Refrigeration Share (FY 2024)	Percentage of Sales	33%

The commercial side of the business, which includes the Building Climate Solutions segment and the Heatcraft Refrigeration Products business, serves a diverse set of customers who require reliable climate control for their operations. Heatcraft Refrigeration Products is specifically identified as a business segment of Lennox International Inc., leading in commercial refrigeration solutions.

You can see the geographic concentration in the third quarter of 2025 results, showing where the bulk of the sales activity is occurring:

• United States market net sales (Q3 2025): $1,328.4 million.
• Canadian market net sales (Q3 2025): $98.4 million.
• Home Comfort Solutions segment volume decline (Q3 2025): 23% decrease in sales volumes.
• Building Climate Solutions segment net sales increase (Q3 2025): 10% increase.

The commercial customers for the Building Climate Solutions segment include entities like retail locations, schools, and offices that rely on Lennox International Inc.'s unitary heating and air conditioning equipment and commercial HVAC services.

Lennox International Inc. (LII) - Canvas Business Model: Cost Structure

You're looking at the major drains on Lennox International Inc.'s operating cash flow for 2025. Honestly, the cost structure is dominated by the things they buy to make their products, which is typical for a manufacturer in this space.

High variable cost of goods sold (COGS) due to raw materials is a defining feature. The nature of the business means most costs move with production volume. For instance, in the first quarter of 2025, the Cost of Goods Sold reached $744.1 million, which was a 5.2% increase over the first quarter of 2024 figure of $707.1 million. Management noted that for the full year 2025, they expect total cost inflation to be approximately 5%, a slight improvement from their prior estimate of 6%. To be fair, management stated that the majority of their costs are variable, which helps absorb some of the volume swings.

Capital spending is clearly delineated. Lennox International Inc. projected capital expenditures for the full year 2025 to be approximately $150 million for general capital improvement projects. This is a planned outlay for maintaining and improving the asset base.

Investment in new product lines and manufacturing capacity is evident through operational spending, even if specific R&D dollar amounts are not clearly detailed as a large line item for the full year 2025 in the same way as CapEx. However, the focus is clear: revenue growth in 2025 is driven by the mix of new refrigerant products. Furthermore, the Building Climate Solutions segment saw early benefits from the new commercial factory. The company is also actively working on redoing its distribution network and footprint starting in 2026, which implies current investment in logistics infrastructure.

Distribution and logistics costs for the North American network expansion are a recurring expense pressure point. In the first quarter of 2025, distribution and selling expenses contributed $10 million in additional costs. For the second quarter of 2025, continued investments in distribution and selling, along with other inflationary impacts, amounted to a $11 million impact on profit. This spending supports the company's presence in its primary North American market.

Here's a quick look at some of the key 2025 financial figures related to costs and performance:

Metric	Period	Amount	Context/Change
Projected Capital Expenditures	Full Year 2025	$150 million	General capital improvement projects.
Cost of Goods Sold	Q1 2025	$744.1 million	Up 5.2% year-over-year.
Expected Cost Inflation	Full Year 2025 Guidance	5%	Revised down from prior estimate of 6%.
Distribution & Selling Costs Impact	Q1 2025	$10 million	Additional costs noted.
Investments in Distribution & Selling Impact	Q2 2025	$11 million	Impact on profit.
Projected Free Cash Flow	Full Year 2025 Guidance (Revised)	Approximately $550 million	Revised down from $650 million to $800 million.

The cost structure also involves specific operational overheads:

• Tariffs and factory ramp-up issues cost $29 million in Q1 2025.
• Corporate expenses for Q2 2025 were $24 million, flat to the prior-year quarter.
• The company expects interest expense to be approximately $40 million for the full year 2025.
• The tax rate is projected to be around 19.3% for the full year 2025.

Finance: draft 13-week cash view by Friday.

Lennox International Inc. (LII) - Canvas Business Model: Revenue Streams

You're looking at the core ways Lennox International Inc. (LII) brings in money, focusing on the numbers as of late 2025. This is how the revenue gets generated across their main business lines.

The revenue streams are primarily segmented by the end-user market and the type of product or service provided. The largest portion comes from residential equipment sales.

• Sales of Home Comfort Solutions (HCS) equipment, which accounted for approximately 67% of total sales.
• Sales of Building Climate Solutions (BCS) equipment and services. For instance, in the third quarter of 2025, the BCS segment saw revenue grow 10%, with profit margins expanding 330 basis points.
• Sales of replacement parts, supplies, and accessories, which is being strengthened by recent acquisitions, such as DuroDyne and Supco, to boost attachment rates. Growth in emergency replacement products is also a key driver here.

Here's a quick look at the key financial guidance figures provided by Lennox International Inc. for the full-year 2025, which gives you a sense of the expected financial outcomes from these revenue streams.

Financial Metric	Guidance Amount/Range
Full-Year 2025 Adjusted EPS	$22.75 to $23.25
Full-Year 2025 Free Cash Flow	Approximately $550 million

To give you a bit more color on the BCS segment performance, which includes commercial HVAC, refrigeration, and service offerings, the Q2 2025 results showed a 5% increase in revenue, helped by an 8% benefit from favorable product mix and pricing, even as segment sales volumes declined 3%.

The company's focus on operational discipline and pricing excellence is designed to support these revenue streams, especially when facing end-market softness, which led to the revision of the full-year 2025 revenue outlook to an anticipated decline of 1%.

Finance: draft 13-week cash view by Friday.