Noah Kaye's questions to LENNOX INTERNATIONAL (LII) leadership • Q3 2025
Question
Noah Kaye asked for a quantification of what 'meaningful' JV growth from Samsung would look like in 2026. He also inquired about the magnitude of rationalizing low-margin residential new construction (R&C) accounts, specifically what percentage of volume would be affected.
Answer
CEO Alok Maskara expects the Samsung JV to add about half a point to a point of growth annually for multiple years, with 2026 being the first year with a full product portfolio. CFO Michael Quenzer added that ductless products are about 2% of HCS sales, while the industry is closer to 10%, indicating multi-year benefit. Alok Maskara stated that the lowest 10% to 15% of R&C volume over multiple months would be rationalized, which would be margin accretive.