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DALLAS - Lennox (NYSE:LII), a $20.3 billion HVAC manufacturer with strong financial health according to InvestingPro analysis, announced today that its commercial cold climate heat pump rooftop unit has become the first to successfully complete laboratory validation in the 15-25 tons category of the U.S. Department of Energy’s Commercial Building HVAC Technology Challenge.
The validation was conducted by independent testing from the DOE and the National Renewable Energy Laboratory. According to the company’s press release, the unit meets and in some cases exceeds the challenge’s performance requirements. This achievement comes as 17 analysts have revised their earnings expectations upward for the upcoming period, as reported by InvestingPro.
"This unit reflects years of focused research and development to overcome cold-climate limitations, particularly around defrost, and deliver consistent comfort in the toughest conditions," said Prakash Bedapudi, Lennox Chief Technology Officer.
The prototype will be installed in a U.S. commercial building later this year to validate its performance through winter conditions. The DOE notes that commercial building space conditioning accounts for approximately 40% of commercial energy use in the United States.
Lennox is one of eight manufacturers participating in the Commercial Building HVAC Technology Challenge. The company’s residential HVAC division previously completed Phase 1 testing in the DOE’s Residential HVAC Challenge in 2022.
The development was led by Lennox’s Texas Product Development and Research laboratory, focusing on improving performance and addressing defrost limitations for heat pumps in cold climates. The company’s innovation efforts are supported by solid financials, with a 7.91% revenue growth in the last twelve months and a 27-year track record of consistent dividend payments. For detailed financial analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Lennox International reported strong second-quarter earnings for 2025, surpassing analysts’ expectations with an adjusted earnings per share of $7.82, compared to the forecasted $6.86. The company’s revenue also exceeded projections, reaching $1.5 billion against a forecast of $1.47 billion. This performance led to several analysts adjusting their price targets for Lennox. Oppenheimer raised its price target to $730 from $650, maintaining an Outperform rating, while Mizuho increased its target to $650 from $595, keeping a Neutral rating. JPMorgan also raised its price target to $592 from $549, despite maintaining an Underweight rating. Additionally, Lennox announced a definitive agreement to acquire the HVAC division of NSI Industries from Sentinel Capital Partners for approximately $550 million. The acquisition will add brands like Duro Dyne and Supco to Lennox’s portfolio, with the transaction expected to close in the fourth quarter of 2025.
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