Lennox launches space-saving heat pump for compact homes

Published 23/06/2025, 14:20
Lennox launches space-saving heat pump for compact homes

DALLAS - Lennox Residential HVAC (NYSE: LII), a $19.5 billion market cap company with strong financial health according to InvestingPro analysis, introduced its new Elite Series EL18KSLV Side Discharge Heat Pump designed for homes with limited outdoor space, the company announced Monday.

The new heat pump features a narrow cabinet specifically engineered for installation in space-constrained areas such as zero-lot-line or narrow-lot homes, where traditional units may not fit.

"The Side Discharge Heat Pump gives homeowners in zero-lot-line or narrow-lot homes access to a high-efficiency heat pump without needing extra space," said Sarah Martin, executive vice president and president of Lennox Home Comfort Solutions.

According to the press release, the unit offers variable-capacity operation that adjusts output based on household needs while maintaining energy efficiency ratings of up to 19.00 SEER2 and 10.00 HSPF2. The company states these ratings may help reduce energy consumption and potentially lower utility costs.

The heat pump operates at sound levels as low as 54 decibels, which Lennox compares to an electric toothbrush. It is compatible with several Lennox smart thermostat systems and can be integrated with various smart home platforms. The company's focus on innovation has contributed to its impressive 7.8% revenue growth over the last twelve months, with InvestingPro data showing consistent dividend payments for 27 consecutive years.

Lennox (NYSE: LII) noted that the heat pump qualifies for the federal Energy Efficient Home Improvement Credit, with potential additional utility or regional incentives available.

The EL18KSLV Side Discharge Heat Pump is now available through local Lennox dealers nationwide.

In other recent news, Lennox International announced a 13% increase in its quarterly dividend, raising it to $1.30 per share, alongside a $1 billion expansion of its stock repurchase program. This move highlights the company's strong financial position and commitment to returning capital to shareholders. Additionally, Lennox has refinanced its credit facility, reducing its revolving commitments to $1 billion and extending the maturity to May 2030, a strategic step to ensure long-term financial flexibility. The company also appointed Tracy A. Embree as a Class III Director to its Board, effective June 2025, bringing extensive leadership experience from her previous roles at Otis Americas and Cummins Inc. RBC Capital Markets recently adjusted its price target for Lennox shares to $582, maintaining a Sector Perform rating, following the company's first-quarter earnings report. The earnings, described as having "low earnings quality," were impacted by various factors, including tariff-related cost pressures and inefficiencies from a new factory startup. However, RBC Capital acknowledged Lennox's strategic efforts to address these challenges, including decreasing reliance on China and implementing price increases. These developments underscore Lennox's proactive financial strategies and governance enhancements.

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