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Lennox International LII Provision for Credit Losses

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Other financials

Income statement

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Revenue$1.5B+3.0%
Gross profit$539.5M+4.3%
Operating income$355.0M+1.7%
Net income$269.0M-1.8%
EPS (diluted)$7.72+0.1%

Balance sheet

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Cash & equivalents$51.5M+4.7%
Total debt$1.7B+7.1%
Total equity$1.2B+36.8%
Total assets$4.5B+24.4%

Cash flow

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Operating cash flow$172.0M+98.2%
CapEx$35.7M+25.3%
Free cash flow$136.3M+134%

Valuation

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Market cap$15.44B-26.1%
Enterprise value$17.08B-23.8%
P/E19.6×-5.3×
P/S2.9×-0.9×

Profitability

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Gross margin33.3%+0.1pp
Operating margin19.7%0.0pp
Net margin14.9%-0.6pp
FCF margin13.9%+1.4pp

Returns & leverage

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Return on equity80.1%-62.1pp
Debt / equity1.4×-0.4×
Current ratio1.6×+0.2×

Where this comes from

Reported directly by Lennox International in its filing.

Tagged under the XBRL concept us-gaap:ProvisionForDoubtfulAccounts.

The source filing: Lennox International’s 10-Q, filed July 29, 2026.

Filed
Jul 29, 2026, 3:15 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0001069202-26-000087
(Amounts in millions)For the Six Months Ended June 30, 2026For the Six Months Ended June 30, 2025
Net income$386.2$403.5
Adjustments to reconcile net income to net cash provided by operating activities:
Income from equity method investments(0.6)(3.3)
Provision for credit losses2.50.8
Unrealized losses (gains), net on derivative contracts3.7(0.3)
Stock-based compensation expense12.114.5
Depreciation and amortization61.852.4
Deferred income taxes7.3(8.8)

Item 1. Financial

FAQ

What is Lennox International's provision for credit losses?
Lennox International (LII) reported provision for credit losses of $400K in Q2 2026.
How has Lennox International's provision for credit losses changed year-over-year?
Lennox International's provision for credit losses increased by 180.0% year-over-year, from -$500K to $400K.
What is the long-term trend for Lennox International's provision for credit losses?
Over 4 years (2021 to 2025), Lennox International's provision for credit losses has grown at a -21.1% compound annual growth rate (CAGR), from $4.9M to -$1.9M.
What does provision for credit losses mean?
Non-cash provision for expected loan losses, added back in operating cash flow since it's a reserve build, not a cash payment.

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