LIILennox International

Industrials · HVAC Equipment · NYSE

We are a global leader in energy-efficient climate-control solutions. 10-K, Item 1

Employees: 12,900
Headquarters: Richardson, TX
CEO: Alok Maskara
Next results: around Jan 27, 2027

What the 10-K filed 2026-02-17 says about risks that are not on the face of the balance sheet, from the notes to the financial statements, Legal Proceedings and the MD&A (and, for big customers and key suppliers, Business and Risk Factors). Tickdelta picks sentences with specifics (amounts, accruals, covenant ratios) and quotes them as filed. New marks a sentence with nothing like it in the 10-K filed 2025-02-11.

Big customers

Customers the company names as a large share of revenue or receivables (it must name any worth 10% of revenue).

“For the years ended December 31, 2025, 2024 and 2023, direct sales represented 76%, 74% and 75% of revenues, respectively, and sales to independent distributors represented the remainder.”
Read it in the 10-K ↗

Key suppliers

Parts or manufacturing that depend on one or a few suppliers.

“In certain instances, we heavily rely on suppliers who also may concentrate production in single locations or source unique, necessary products from only one supplier.”
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“We generally concentrate purchases for a given raw material or component with a small number of suppliers.”
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Lawsuits and legal claims

2 new

Pending cases, settlements and what the company has set aside for them.

New “The Environmental liabilities and special litigation charges in 2025 relate to estimated remediation costs at some of our facilities and outstanding legal settlements including asbestos.”
Read it in the 10-K ↗

New “Environmental liabilities and special litigation charges in 2024 relate to estimated remediation costs at some of our facilities and outstanding legal settlements including asbestos.”
Read it in the 10-K ↗

“Insurance coverages are maintained and estimated costs are recorded for such claims and lawsuits, including costs to settle claims and lawsuits, based on experience involving similar matters and specific facts known.”
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Guarantees and indemnities

Promises to pay someone else's debts or losses if they cannot.

“We had no outstanding borrowings as well as $1.7 million committed to standby letters of credit as of December 31, 2025.”
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“We had no outstanding borrowings and $1.7 million committed to standby letters of credit as of December 31, 2025.”
Read it in the 10-K ↗

Debt covenants

1 new

Conditions in loan agreements that, if broken, can make debt due early.

New “The Term Credit Agreement contains customary covenants and events of default that are substantially similar to the existing covenants and events of default in our Credit Agreement.”
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“These events of default include nonpayment of principal or other amounts, material inaccuracy of representations and warranties, breach of covenants, default on certain other indebtedness or receivables securitizations (cross default), certain voluntary and involuntary bankruptcy events and the occurrence of a change in control.”
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“We are currently in compliance with all covenant requirements.”
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“In addition, the Credit Facilities each contain a financial covenant requiring us to maintain, as of the last day of each fiscal quarter for the four prior fiscal quarters, a Total Net Leverage Ratio of no more than 3.50 to 1.00 (or, at our election, on up to two occasions following a material acquisition, 4.00 to 1.00).”
Read it in the 10-K ↗

Commitments off the balance sheet

Contracts the company must pay for later: purchase obligations, take-or-pay deals.

No specific sentence about this in the 10-K.

Sentences are chosen by their words, not read by AI, so some can be off topic. Always check the filing. Open the 10-K ↗

Work on LII in a spreadsheet: Excel workbook (a sheet per section, ten years by column, charts, links to the filings) · CSV. For a Google Sheet that stays up to date, paste =IMPORTDATA("https://tickdelta.com/company/LII/export.csv") into a cell.