LIILennox International
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
3 paragraphs in Risk Factors of the 10-K filed Feb 17, 2026 with nothing like them in the 10-K filed Feb 11, 2025. Quoted exactly. Paragraphs that were only edited are under 10-K change.
Compared with the Risk Factors in the latest 10-K of the other 81 Industrials companies: a paragraph with at least half its words the same at another company is called similar, and the companies are listed under it. A paragraph most of them have is marked boilerplate. No line means no other company has one like it. This counts text; it does not say how serious a risk is.
whether accurate or inaccurate, could damage our reputation and relationships with our customers and suppliers, cause customers and suppliers to terminate their relationship with us, or impair our ability to effectively compete, which could adversely affect our business, financial condition, results of operations and cash flows.
Read in the 10-K ↗
Lennox operates a direct-to-dealer network, meaning we manufacture products and sell them directly to select, independent home service companies. We rely on our direct sales channel for a substantial portion of our revenue. Our direct-to-dealer network also creates a large installed base of HVACR equipment, and creates opportunities for longer term service, monitoring, solutions, and retrofit revenue. If we are unable to continue to execute our strategy, whether due to changes in economic conditions, a failure to anticipate changing customer needs, entry of new competitors into the low-barrier distribution business, or for any other reason, our revenue could decline, which could in turn adversely impact our product pull-through and our ability to grow revenue.
Similar paragraph at 1 of 81 other Industrials companies: JCIRead in the 10-K ↗
selling certain of our products. Even if we have agreements to indemnify us, indemnifying parties may be unable or unwilling to do so.
Read in the 10-K ↗
New in the latest 10-Q
10 paragraphs in the 10-Q filed Oct 28, 2026 with nothing like them in the 10-Q filed Jul 29, 2026 (at least half the words must differ; new numbers alone do not count). Quoted exactly, grouped by the item heading above them. This is text that changed, not a judgement of how serious it is.
Financial statements and notes
(Amounts in millions) For the Nine Months Ended September 30, 2026 2025 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────── Cash flows from operating activities: Net income $ 607.4 $ 663.4 Adjustments to reconcile net income to net cash provided by operating activities: Gain on sale from previous dispositions (3.8) — Income from equity method investments (2.0) (5.8) Dividends from affiliates 4.9 6.1 Restructuring charges, net of cash paid 7.3 — Provision for credit losses (gains) 3.7 (1.8) Unrealized losses, net on derivative contracts 4.4 2.3 Stock-based compensation expense 15.4 21.2 Depreciation and amortization 96.4 79.4 Deferred income taxes 9.1 28.5 Pension expense 2.9 3.2 Pension contributions (0.7) (6.1) Changes in assets and liabilities, net of effects of acquisitions and divestitures: Accounts and notes receivable (289.2) (94.7) Inventories 26.2 (310.2) Other current assets 4.3 (7.0) Accounts payable 94.0 (16.7) Accrued expenses 27.4 (37.3) Income taxes payable and receivable, net (40.7) 27.7 Leases, net 7.7 5.2 Other, net 8.7 (5.7) Net cash provided by operating activities 583.4 351.7 Cash flows from investing activities: Proceeds from the disposal of property, plant and equipment 2.0 1.1 Purchases of property, plant and equipment (124.4) (89.6) Acquisitions, net of cash (209.9) — (Purchases of) proceeds from investments and other (1.8) 0.9 Net cash used in investing activities (334.1) (87.6) Cash flows from financing activities: Commercial paper borrowings 1,311.0 677.1 Commercial paper payments (1,081.9) (520.1) Payments on debt arrangements (17.6) (14.2) Payment of senior unsecured notes — (300.0) Borrowings from credit facility 280.0 — Payments on credit facility (280.0) — Payments of deferred financing costs — (1.7) Proceeds from employee stock purchases 5.8 4.0 Repurchases of common stock (301.9) (331.8) Repurchases of common stock to satisfy employee withholding tax obligations (11.5) (13.3) Cash dividends paid (137.5) (127.4) Net cash used in financing activities (233.6) (627.4) Increase (decrease) in cash, cash equivalents and restricted cash 15.7 (363.3) Effect of exchange rates on cash, cash equivalents and restricted cash equivalents (2.7) 1.1 Cash, cash equivalents and restricted cash, beginning of period 52.7 415.1 Cash, cash equivalents and restricted cash, end of period $ 65.7 $ 52.9 Supplemental disclosures of cash flow information: Interest paid $ 57.4 $ 39.7 Income taxes paid (net of refunds) $ 198.2 $ 91.5
Read in the 10-Q ↗
(2) On July 13, 2026, we completed the acquisition of Dusk Acquisition II Corporation and its subsidiaries Heat Controller, LLC and Aitons Equipment ULC (collectively, "Heat Controller"). In connection with this acquisition, $ 88.2 million of goodwill was recorded and is included in the Home Comfort Solutions reporting segment. See Note 13 for additional information on the Heat Controller acquisition.
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The purchase price was allocated to the assets acquired and liabilities assumed based on management’s estimate of their respective fair values at the date of acquisition. Goodwill was calculated as the excess of the consideration transferred over the net assets recognized and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The factors contributing to the recognition of goodwill were the assembled workforce and strategic benefits that are expected to be realized from the acquisition.
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The purchase price allocation is preliminary and subject to revision as additional information about the fair value of assets acquired and liabilities assumed becomes available. Under the terms of the purchase agreement, a final working capital adjustment is due in the fourth quarter of 2026. The preliminary allocation of the purchase price as of the acquisition date was as follows:
Read in the 10-Q ↗
(Amounts in millions) Amount Total consideration paid $ 215.3 Cash and cash equivalents 6.7 Accounts receivable, net 20.6 Inventory, net 59.2 Other current assets 2.0 Property, plant and equipment 1.2 Right-of-use assets from operating leases 10.5 Other assets, net 0.4 Intangible assets acquired 74.6 Accounts payable (26.8) Accrued expenses (4.0) Current operating lease liabilities (2.1) Long-term operating lease liabilities (8.4) Other liabilities (6.8) Total net assets acquired $ 127.1 Goodwill as of acquisition date $ 88.2
Read in the 10-Q ↗
The purchase price allocation includes $ 74.6 million of acquired identifiable intangible assets, all of which have finite lives. The fair value of the identifiable intangible assets has been estimated using the income approach through a discounted cash flow
Read in the 10-Q ↗
Subsequent to the purchase of Heat Controller, we recognized net sales of approximately $ 29.5 million and the acquired business contributed approximately $ 1.2 million to the Home Comfort Solutions segment profit from the date of acquisition through September 30, 2026. Estimated tax deductible goodwill of $ 31.5 million was generated as a result of the acquisition.
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The valuation of assets acquired and liabilities assumed in connection with the Duro Dyne and Supco acquisition was finalized in the third quarter of 2026.
Read in the 10-Q ↗
Other information
John W. Norris, III, a director, adopted a prearranged stock trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act on August 20, 2026. Mr. Norris’ plan provides for the sale of up to 35,000 shares of the Company's common stock between November 19, 2026 and August 15, 2027.
Read in the 10-Q ↗
This trading plan was entered into during an open insider trading window and is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act and the Company's policies regarding transactions in the Company's securities.
Read in the 10-Q ↗
The 10-Q's risk factors against the 10-K
Item 1A of the 10-Q filed Oct 28, 2026 against Item 1A of the 10-K filed Feb 17, 2026.
A 10-Q repeats only the risks that changed, so a 10-K paragraph that is missing from it is not counted as removed.
Added is a paragraph with nothing like it in the 10-K, Reworded a sentence that is in both with several words changed,
Quiet changes a sentence in both where one to four words changed and one is a hedge or a modal
(cut words struck through, new words highlighted and underlined).
Text on the page, not a score; each links to the filing at sec.gov.
What the 10-Q itself says about its risk factors:
Read in the 10-Q ↗
In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, which could materially affect our business, financial condition or results of operations. There have been no material changes to our risk factors from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.
1 paragraph in the 10-Q's Item 1A, and none of them adds, rewords or quietly edits a paragraph of the 10-K's.
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