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Side-by-side financial comparison of Lennox International (LII) and WATSCO INC (WSO). Click either name above to swap in a different company.
WATSCO INC is the larger business by last-quarter revenue ($1.5B vs $1.2B, roughly 1.3× Lennox International). Lennox International runs the higher net margin — 13.6% vs 6.1%, a 7.5% gap on every dollar of revenue. On growth, WATSCO INC posted the faster year-over-year revenue change (0.1% vs -11.2%). Over the past eight quarters, Lennox International's revenue compounded faster (6.8% CAGR vs -15.3%).
Lennox International Inc. is an American provider of climate control products for the heating, ventilation, and air conditioning (HVAC) and refrigeration markets. Based in Richardson, Texas, the company is 9.8% owned by John W. Norris, III, a descendant of DW Norris, who acquired the company in 1904. The company's largest production facilities are in Saltillo, Mexico, Marshalltown, Iowa, and Orangeburg, South Carolina.
Watsco, Inc. is a distributor of air conditioning, heating and refrigeration equipment, and related parts and supplies (HVAC/R) in the United States. Watsco was founded more than 60 years ago as a manufacturer of parts, components, and tools used in the HVAC/R industry. In 1989, the company shifted from manufacturing to distribution, by acquiring Gemaire Distributors Inc., a South Florida-based Rheem distributor.
LII vs WSO — Head-to-Head
Income Statement — Q4 FY2025 vs Q1 FY2026
| Metric | | |
|---|---|---|
| Revenue | $1.2B | $1.5B |
| Net Profit | $162.1M | $92.9M |
| Gross Margin | 34.7% | 27.9% |
| Operating Margin | 18.6% | 7.2% |
| Net Margin | 13.6% | 6.1% |
| Revenue YoY | -11.2% | 0.1% |
| Net Profit YoY | -18.0% | -1.7% |
| EPS (diluted) | $4.62 | — |
Green = leading value per metric. Periods may differ when fiscal calendars don't align.
8-Quarter Revenue & Profit Trend
Side-by-side quarterly history. Quarters aligned by calendar period so offset fiscal years line up.
| Q1 26 | — | $1.5B | ||
| Q4 25 | $1.2B | $1.6B | ||
| Q3 25 | $1.4B | $2.1B | ||
| Q2 25 | $1.5B | $2.1B | ||
| Q1 25 | $1.1B | $1.5B | ||
| Q4 24 | $1.3B | $1.8B | ||
| Q3 24 | $1.5B | $2.2B | ||
| Q2 24 | $1.5B | $2.1B |
| Q1 26 | — | $92.9M | ||
| Q4 25 | $162.1M | $71.7M | ||
| Q3 25 | $245.8M | $161.6M | ||
| Q2 25 | $277.6M | $183.6M | ||
| Q1 25 | $120.3M | $80.1M | ||
| Q4 24 | $197.7M | $96.8M | ||
| Q3 24 | $239.0M | $171.0M | ||
| Q2 24 | $245.9M | $181.4M |
| Q1 26 | — | 27.9% | ||
| Q4 25 | 34.7% | 27.1% | ||
| Q3 25 | 32.8% | 27.5% | ||
| Q2 25 | 34.8% | 29.3% | ||
| Q1 25 | 30.6% | 28.1% | ||
| Q4 24 | 33.9% | 26.7% | ||
| Q3 24 | 32.6% | 26.2% | ||
| Q2 24 | 33.6% | 27.1% |
| Q1 26 | — | 7.2% | ||
| Q4 25 | 18.6% | 6.4% | ||
| Q3 25 | 21.7% | 11.4% | ||
| Q2 25 | 23.6% | 13.2% | ||
| Q1 25 | 14.5% | 7.3% | ||
| Q4 24 | 18.2% | 7.8% | ||
| Q3 24 | 20.2% | 11.6% | ||
| Q2 24 | 22.1% | 12.6% |
| Q1 26 | — | 6.1% | ||
| Q4 25 | 13.6% | 4.5% | ||
| Q3 25 | 17.2% | 7.8% | ||
| Q2 25 | 18.5% | 8.9% | ||
| Q1 25 | 11.2% | 5.2% | ||
| Q4 24 | 14.7% | 5.5% | ||
| Q3 24 | 16.0% | 7.9% | ||
| Q2 24 | 16.9% | 8.5% |
| Q1 26 | — | — | ||
| Q4 25 | $4.62 | $1.82 | ||
| Q3 25 | $6.98 | $3.98 | ||
| Q2 25 | $7.82 | $4.52 | ||
| Q1 25 | $3.37 | $1.93 | ||
| Q4 24 | $5.52 | $2.42 | ||
| Q3 24 | $6.68 | $4.22 | ||
| Q2 24 | $6.87 | $4.49 |
Balance Sheet & Financial Strength
Snapshot of each company's liquidity, leverage and book value from the latest quarter.
| Metric | | |
|---|---|---|
| Cash + ST InvestmentsLiquidity on hand | $34.7M | $392.7M |
| Total DebtLower is stronger | $1.1B | — |
| Stockholders' EquityBook value | $1.2B | $3.2B |
| Total Assets | $4.1B | $4.6B |
| Debt / EquityLower = less leverage | 0.98× | — |
8-quarter trend — quarters aligned by calendar period.
| Q1 26 | — | $392.7M | ||
| Q4 25 | $34.7M | $733.3M | ||
| Q3 25 | $59.2M | $524.3M | ||
| Q2 25 | $55.1M | $293.0M | ||
| Q1 25 | $222.9M | $431.8M | ||
| Q4 24 | $422.3M | $781.9M | ||
| Q3 24 | $255.7M | $550.0M | ||
| Q2 24 | $57.8M | $424.9M |
| Q1 26 | — | — | ||
| Q4 25 | $1.1B | $361.6M | ||
| Q3 25 | $838.2M | $340.8M | ||
| Q2 25 | $835.7M | $338.7M | ||
| Q1 25 | $834.2M | $346.4M | ||
| Q4 24 | $833.1M | $337.2M | ||
| Q3 24 | $827.6M | $321.0M | ||
| Q2 24 | $1.1B | $307.1M |
| Q1 26 | — | $3.2B | ||
| Q4 25 | $1.2B | $2.8B | ||
| Q3 25 | $1.1B | $2.8B | ||
| Q2 25 | $900.5M | $2.8B | ||
| Q1 25 | $852.5M | $2.7B | ||
| Q4 24 | $850.2M | $2.7B | ||
| Q3 24 | $754.0M | $2.7B | ||
| Q2 24 | $577.4M | $2.6B |
| Q1 26 | — | $4.6B | ||
| Q4 25 | $4.1B | $4.4B | ||
| Q3 25 | $3.5B | $4.6B | ||
| Q2 25 | $3.7B | $4.7B | ||
| Q1 25 | $3.5B | $4.5B | ||
| Q4 24 | $3.5B | $4.5B | ||
| Q3 24 | $3.3B | $4.5B | ||
| Q2 24 | $3.2B | $4.4B |
| Q1 26 | — | — | ||
| Q4 25 | 0.98× | 0.13× | ||
| Q3 25 | 0.78× | 0.12× | ||
| Q2 25 | 0.93× | 0.12× | ||
| Q1 25 | 0.98× | 0.13× | ||
| Q4 24 | 0.98× | 0.13× | ||
| Q3 24 | 1.10× | 0.12× | ||
| Q2 24 | 1.95× | 0.12× |
Cash Flow & Capital Efficiency
How much cash each business actually produces after reinvestment. Cash flow is harder to manipulate than net income.
| Metric | | |
|---|---|---|
| Operating Cash FlowLast quarter | $405.9M | — |
| Free Cash FlowOCF − Capex | $376.7M | — |
| FCF MarginFCF / Revenue | 31.5% | — |
| Capex IntensityCapex / Revenue | 2.4% | — |
| Cash ConversionOCF / Net Profit | 2.50× | — |
| TTM Free Cash FlowTrailing 4 quarters | $638.8M | — |
8-quarter trend — quarters aligned by calendar period.
| Q1 26 | — | — | ||
| Q4 25 | $405.9M | $399.8M | ||
| Q3 25 | $300.7M | $354.9M | ||
| Q2 25 | $86.8M | $-7.4M | ||
| Q1 25 | $-35.8M | $-177.6M | ||
| Q4 24 | $332.4M | $378.9M | ||
| Q3 24 | $452.1M | $232.8M | ||
| Q2 24 | $184.0M | $57.7M |
| Q1 26 | — | — | ||
| Q4 25 | $376.7M | $388.5M | ||
| Q3 25 | $265.1M | $346.1M | ||
| Q2 25 | $58.3M | $-14.3M | ||
| Q1 25 | $-61.3M | $-185.2M | ||
| Q4 24 | $272.2M | $370.9M | ||
| Q3 24 | $410.9M | $223.0M | ||
| Q2 24 | $151.3M | $51.3M |
| Q1 26 | — | — | ||
| Q4 25 | 31.5% | 24.6% | ||
| Q3 25 | 18.6% | 16.7% | ||
| Q2 25 | 3.9% | -0.7% | ||
| Q1 25 | -5.7% | -12.1% | ||
| Q4 24 | 20.2% | 21.1% | ||
| Q3 24 | 27.4% | 10.3% | ||
| Q2 24 | 10.4% | 2.4% |
| Q1 26 | — | — | ||
| Q4 25 | 2.4% | 0.7% | ||
| Q3 25 | 2.5% | 0.4% | ||
| Q2 25 | 1.9% | 0.3% | ||
| Q1 25 | 2.4% | 0.5% | ||
| Q4 24 | 4.5% | 0.5% | ||
| Q3 24 | 2.8% | 0.5% | ||
| Q2 24 | 2.3% | 0.3% |
| Q1 26 | — | — | ||
| Q4 25 | 2.50× | 5.57× | ||
| Q3 25 | 1.22× | 2.20× | ||
| Q2 25 | 0.31× | -0.04× | ||
| Q1 25 | -0.30× | -2.22× | ||
| Q4 24 | 1.68× | 3.91× | ||
| Q3 24 | 1.89× | 1.36× | ||
| Q2 24 | 0.75× | 0.32× |
Financial Flow Comparison
Revenue → gross profit → operating profit → net profit for each company.
Revenue Breakdown by Segment
LII
| Residential Heating And Cooling | $699.8M | 59% |
| Commercial Heating And Cooling | $495.2M | 41% |
WSO
Segment breakdown not available.
