Lennox International (LII) risk factors, FY2025 10-K

Lennox International's FY2025 10-K, filed Feb 17, 2026, lists 20 risk factors in 3 groups. Against the prior year's 21: 1 dropped, 8 substantially reworded.

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Risk factors listed
203 groups
New this year
0vs 21 last year
Dropped
1since the prior 10-K
Substantially reworded
8of those kept
Section length
5k wordsItem 1A

What the changes say

  • The company highlights new acquisitions like Duro Dyne and Supco, shifting trade policy and tariff risks involving Canada and Mexico, and changing unionization rates.

What changed since the prior 10-K

Dropped

  • DroppedLegal, Tax, and Regulatory Risks

    result in loss of business, regulatory penalties, litigation, and/or reputational damage. Further, we may face adverse reputational risks due to our products and manufacturing operations consuming energy or using refrigerants and hydroflurocarbons

Reworded

  • 62% rewrittenLegal, Tax, and Regulatory Risks

    Changes in U.S. Trade Policy, Including the Imposition of Tariffs and the Resulting Consequences, Could Have an Adverse Effect on Our Results of Operations

    Added specific risks regarding tariffs on Canada and Mexico imports and the upcoming 2026 USMCA review.

  • 57% rewrittenBusiness and Operational Risks

    If We Cannot Successfully Develop and Market New Products or Execute Our Business Strategy, Our Results of Operations Could be Adversely Impacted

    Added disclosures highlighting reliance on a direct-to-dealer sales network for a substantial portion of revenue.

  • 42% rewrittenLegal, Tax, and Regulatory Risks

    We May Not be Able to Successfully Integrate and Operate Businesses that We May Acquire nor Realize the Anticipated Benefits of Strategic Relationships We May Form

    Named the 2025 acquisitions of Duro Dyne and Supco as examples of business expansion activities.

  • 41% rewrittenLegal, Tax, and Regulatory Risks

    Changes in Environmental and Climate-Related Legislation, Government Regulations, or Policies Could Have an Adverse Effect on Our Results of Operations

    Retained environmental and climate-related legislation risks without substantive textual modifications.

  • 30% rewrittenBusiness and Operational Risks

    Our Operations Can Be Adversely Affected By Our Ability to Attract, Motivate, Develop, and Retain Our Employees, Labor Shortages and Work Stoppages, Turnover, Labor Cost Increases and Other Labor Relations Problems

    Updated unionized core workforce locations figure from approximately 32% down to 26% as of December 31, 2025.

  • 26% rewrittenBusiness and Operational Risks

    Artificial Intelligence Technologies Could Present Business, Compliance, and Reputational Risks

    Maintained artificial intelligence risks without material changes to the core disclosure.

  • 26% rewrittenLegal, Tax, and Regulatory Risks

    Cyber Attacks and Other Disruptions or Misuse of Information Systems We Rely Upon Could Affect Our Ability to Conduct Our Business Effectively

    Added specific mention of advanced AI technologies increasing the scale, frequency, and sophistication of cyber threats.

  • 26% rewrittenLegal, Tax, and Regulatory Risks

    Extraordinary Events Beyond our Control, Including Conflicts, Wars, Natural Disasters, Public Health Crises, Terrorist Acts, or Other Civil or Political Disruptions, Could Negatively Impact our Business, Which May Affect our Financial Condition, Results of Operations or Cash Flows

    Streamlined headings and references regarding external disruptions and extraordinary events affecting global operations.

    Was: Extraordinary Events Beyond our Control, Including Conflicts, Wars, Natural Disasters, Public Health Crises, or Terrorist Acts, Could Negatively Impact our Business, Which May Affect our Financial Condition, Results of Operations or Cash Flows

All 20 risk factors

Headings as the filing states them, in filing order.

Business and Operational Risks

  1. 01We May Not be Able to Compete Favorably in the Competitive HVACR Business
  2. 02If We Cannot Successfully Develop and Market New Products or Execute Our Business Strategy, Our Results of Operations Could be Adversely Impacted57% rewritten
  3. 03Our Ability to Meet Customer Demand and Maintain Profitability may be Limited by Our Single-Location Production Facilities, Reliance on Certain Key Suppliers, and Unanticipated Significant Shifts in Customer Demand
  4. 04Our Results of Operations May Suffer if We Cannot Continue to License or Enforce the Intellectual Property Rights on Which Our Businesses Depend or if Third Parties Assert That We Violate Their Intellectual Property Rights
  5. 05Our Operations Can Be Adversely Affected By Our Ability to Attract, Motivate, Develop, and Retain Our Employees, Labor Shortages and Work Stoppages, Turnover, Labor Cost Increases and Other Labor Relations Problems30% rewritten
  6. 06Artificial Intelligence Technologies Could Present Business, Compliance, and Reputational Risks26% rewritten

Industry Risks

  1. 07Our Financial Performance Is Affected by the Conditions and Performance of the U.S. Construction Industry
  2. 08Cooler than Normal Summers and Warmer than Normal Winters May Depress Our Sales
  3. 09Price Volatility for Commodities and Components We Purchase or Significant Supply Interruptions Could Have an Adverse Effect on Our Cash Flow or Results of Operations
  4. 10We May Incur Substantial Costs as a Result of Product Liability, Warranty Claims, or Recalls

Legal, Tax, and Regulatory Risks

  1. 11Changes in Environmental and Climate-Related Legislation, Government Regulations, or Policies Could Have an Adverse Effect on Our Results of Operations41% rewritten
  2. 12Changes in Tax Laws and Interpretations Could Adversely Impact our Effective Tax Rates and Financial Results
  3. 13Changes in U.S. Trade Policy, Including the Imposition of Tariffs and the Resulting Consequences, Could Have an Adverse Effect on Our Results of Operations62% rewritten
  4. 14Our Reputation, Ability to Do Business, and Results of Operations Could be Impaired By Improper Conduct By Any of Our Employees, Agents, or Business Partners
  5. 15We are Subject to Claims, Lawsuits, and Other Litigation That Could Have an Adverse Effect on Our Results of Operations
  6. 16Global General Business, Economic and Market Conditions Could Adversely Affect Our Financial Performance and Limit Our Access to the Capital Markets
  7. 17Extraordinary Events Beyond our Control, Including Conflicts, Wars, Natural Disasters, Public Health Crises, Terrorist Acts, or Other Civil or Political Disruptions, Could Negatively Impact our Business, Which May Affect our Financial Condition, Results of Operations or Cash Flows26% rewritten
  8. 18Our International Operations Subject Us to Risks Related to Foreign Currencies Fluctuations and Other Risks
  9. 19Cyber Attacks and Other Disruptions or Misuse of Information Systems We Rely Upon Could Affect Our Ability to Conduct Our Business Effectively26% rewritten
  10. 20We May Not be Able to Successfully Integrate and Operate Businesses that We May Acquire nor Realize the Anticipated Benefits of Strategic Relationships We May Form42% rewritten

Other Lennox International 10-Ks

  • FY2024 10-K risk factors
    21 risks

    Lennox International relies heavily on single-location production facilities and key suppliers for its HVACR products. Weather seasonality heavily impacts sales of heating and cooling replacement products. Changing environmental regulations and tariffs directly affect manufacturing costs and market demand.

    Filed Feb 11, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.