Lennox International, Inc. · NYSE:LII
Lennox International — Investor Day (March 2026)
101 slides from Lennox International's investor day presentation, Mar 4, 2026
Slide 1: Investor Day
Investor Day March 04, 2026 I NVES TO R DAY
Slide 2: Room Safety Overview
ROOM Shelter in place within SAFETY Stairwell outside in the hallway and OVERVIEW hallway restrooms Emergency In the event of an emergency, an alarm will sound. Stay calm and proceed to the evacuation routes. 2 I NVES TO R DAY
Slide 3: Forward-Looking Statements & Non-GAAP Financial Measures
FORWARD-LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES The statements in this presentation that are not historical statements, including statements regarding the 2026 full-year outlook and expected consolidated and segment financial results, as well as financial targets for future years, are forwa
Slide 4: Our Core Values and Guiding Behaviors
OUR CORE VALUES AND GUIDING BEHAVIORS INTEGRITY RESPECT EXCELLENCE We deliver on our commitments. We earn the loyalty of our customers. We embrace original ideas and creative solutions. We energize and motivate others. We care for our community and planet. We strive for continuous improvements. We a
Slide 5: Lennox Leadership Team
LENNOX LEADERSHIP TEAM Prakash Bedapudi Sarah Martin Dan Sessa Joe Nassab Chief Technology Officer President, Home Chief Human President, Building Comfort Solutions Resources Officer Climate Solutions Alok Maskara Chief Executive Officer Monica Brown Michael Quenzer Mary Ellen Mondi John MacQuarrie
Slide 6: Today's Agenda
TODAY’S ALOK MASKARA Chief Executive Officer Overview and Strategy AGENDA SARAH MARTIN Transforming to Accelerate Growth Home Comfort Solutions JOE NASSAB Scaling Up Building Climate Solutions Break & Mingle PRAKASH BEDAPUDI Innovating Sustainable Technologies Chief Technology Officer MICHAEL QUENZE
Slide 7: Overview and Strategy
ALOK MASKARA Chief Executive Officer OVERVIEW AND STRATEGY I NVES TO R DAY 7
Slide 8: Key Messages
KEY MESSAGES Lennox’s competitive differentiation will be 01 even more powerful in the future North American HVAC industry remains 02 attractive long term Differentiated initiatives drive above industry 03 growth for Lennox Enhanced shareholder value with consistent 04 execution and disciplined capi
Slide 9: Lennox at a Glance - 2025
LENNOX AT A GLANCE - 2025 (NYSE: LII) Employees Adj. Segment Profit Margin ROIC Net Debt to Adj. EBITDA ~13K 20.4% ~39% 1.2X REVENUE REVENUE BY REVENUE BY BY SEGMENT APPLICATION DISTRIBUTION MODEL 20% 25% 33% $5.2B 67% 80% 75% Home Comfort Solutions Replacement New Construction Building Climate Solu
Slide 10: Innovation Fuels Growth
INNOVATION FUELS GROWTH 1895 1965 2003 2022 First packaged Launched SL25XPV Founded by First 19.2 SEER direct multi-zone heat pump Dave Lennox air conditioner rooftop units 2023 1904 2007 • New S40 thermostat 1972 • AES acquired D.W. Norris buys Lennox First two-speed hermetic compressor 2024 First
Slide 11: Key Competitive Differentiators
KEY COMPETITIVE DIFFERENTIATORS W E L L P O S I T I O N E D TO S U CC E E D W I T H I N D U S T R Y T R E N D S LARGEST MANUFACTURING ~10K DIRECT–DEALER BASE Lennox dealers FULL LIFECYCLE COMMERCIAL Manufacture, install, service, recycle HVAC SOLUTIONS ONE STOP PARTNER FOR PARTS, ~250 owned DUCTLESS
Slide 12: Long-Term Macro Growth Drivers
LONG-TERM MACRO GROWTH DRIVERS Efficiency and Migration to Refrigerant Extreme Air Warmer Electrification Regulations Weather Quality Climates Growth in AI Macro trends are expanding HVAC demand I NVES TO R DAY 12
Slide 13: Industry Trends Driving Growth
INDUSTRY TRENDS DRIVING GROWTH 2025 RESET AND BEYOND OEM consolidation is Aging installed base Trade convergence improving brands, and heat pumps (Plumbing, HVAC) efficiencies, and accelerating leading to contractor MOVING quality replacement demand and channel BEYOND 2025 consolidation TO LONG-TERM
Slide 14: Industry Long-Term Growth Trends Are Still Attractive
INDUSTRY LONG-TERM GROWTH TRENDS ARE STILL ATTRACTIVE VA RIA BL ES MODEL S Install Base New Construction ➢ Useful Life 3+% Skilled Labor Shortage ➢ Failure Rate Industry Housing Unit Migration to the South Curve Shortage Extreme Weather Growth ➢ Installed Base Approach Repair Cost Electrification ➢
Slide 15: Promises Made, Promises Kept
2022 PROMISES MADE,PROMISES KEPT Investor Day Commitments LENNOX CORE REVENUE LENNOX ADJ. SEGMENT MARGIN (US$ MILLIONS) Focus on North America HVACR ~20.6% LT Targets ~$5.5B Invest in manufacturing, innovation and distribution $4.5B 16.4% Free Cash Flow conversion > 90% Recover Commercial growth and
Slide 16: Our Transformation Journey
OUR TRANSFORMATION JOURNEY FOUNDATION FOR FUTURE SUCCESS Core Revenue and Adj. Segment Profit Margin Emergency Strategic JV with Acquisition of Replacement Acquisition of Samsung & NSI HVAC Growth AES Ariston Division $4.5B $5.2B 16.4% 20.4% 5% Revenue CAGR 2022 2025 Expansion of Distribution Pricin
Slide 17: 2026-2030 Transformation Plan
2026-2030 TRANSFORMATION PLAN Growth Acceleration Expansion Elevation 2026 2027 – 2028 2029 + • Improve NPS scores • Increase share of wallet • One-stop customer value proposition • Better availability / fill rate • Drive ease of doing business through digital • Win regulatory transition • Drive pro
Slide 18: Lennox Value Creation Framework
LENNOX VALUE CREATION FRAMEWORK Relentless Heat Pumps Productivity Emergency Replacement DIFFERENTIATED MARGIN Distribution GROWTH EXPANSION Efficiency Parts And Services Attachment Market Reach Pricing JVs/Partnerships Excellence ENABLERS Digital Technologies Talent LUMS I NVES TO R DAY 18
Slide 19: Differentiated Growth Acceleration Plan
DIFFERENTIATED GROWTH ACCELERATION PLAN ATTACHMENT OF TAM/ EMERGENCY PARTS, SUPPLIES, AND SHARE OF WALLET HEAT PUMPS REPLACEMENT SERVICES EXPANSION • Local / utility rebates • Customer charters • One-stop solution • Ductless portfolio • Cold Climate Heat Pumps • Factory capacity addition • Parts and
Slide 20: Resilient Margin Expansion Plan
RESILIENT MARGIN EXPANSION PLAN • Customer retention, higher fill rates • Transportation cost reduction DISTRIBUTION • 98% coverage for one-day delivery • Logistics and freight optimization PROFITABILITY • Warehouse productivity • Improved customer quote response • Incentive plan optimization PRICIN
Slide 21: Digital Technologies Enabler
DIGITAL TECHNOLOGIES ENABLER FRONT END CUSTOMER ARTIFICIAL INTELLIGENCE SUSTAINABLE PRODUCT EXPERIENCE / AUTOMATION INNOVATION Well-positioned to capitalize on digital innovation and sustainable growth I NVES TO R DAY 21
Slide 22: AI Accelerators at Lennox
AI ACCELERATORS AT LENNOX Employee • Employees embracing AI productivity tools Best Positioned Productivity • Upgrade analytics and reporting to Leverage AI Customer • Make it easier for customer to work with Lennox Experience • Increase customer’s efficiency and win rate Process • Rewire processes
Slide 23: Lennox Digital Operating System
Lennox DIGITAL OPERATING SYSTEM Unified FOR BEST PRACTICES Management Critical for acquisition Scorecards and KPIs System for accountability integration GROWTH Disciplined Knowledge sharing RATIONS operating cadence for employees TALENT OPE MAKING IT EASIER FOR CUSTOMER TO FINANCE WORK WITH LENNOX I
Slide 24: LUMS: Improving Customer Experience
LUMS: IMPROVING CUSTOMER EXPERIENCE ATTRACT Enter the customer’s mindset as the one- 2x traffic at Lennox.com stop leader Improved SEO CONVERT Drive digital excellence with seamless ~50% LRH sales at LennoxPros experience Introduced Commercial Quotes SERVE Transition into a loyal customer by being 4
Slide 25: We Are Confident in the Future
WE ARE CONFIDENT IN THE FUTURE Execution Consistency and Disciplined Advanced Resilient Margin Capital Technology Business Deployment Solutions with Focused on Direct-to- Sustainable Dealer Network HVACR LENNOX Growth End Continues to Drive Talent & Markets with Strong Replacement Demand Value for S
Slide 26: Transforming to Accelerate Growth
02 SARAH MARTIN President & EVP, Home Comfort Solutions TRANSFORMING TO ACCELERATE GROWTH Home Comfort Solutions (HCS) I NVES TO R DAY 26
Slide 27: Key Messages
KEY MESSAGES Expanding the core Direct-to-Dealer model 01 Distribution network & digital infrastructure Differentiated growth initiatives 02 Attachment & TAM expansion Margin expansion relentless execution 03 Productivity & pricing I NVES TO R DAY 27
Slide 28: Home Comfort Solutions Overview
HOME COMFORT SOLUTIONS OVERVIEW Direct Indirect 5 Factory Locations Direct to Dealer/Contractor 75% Two-Step Distribution 28 Distribution Sites 25% Revenue By Application Core Revenue and Adj. Segment Margin ~250 Lennox Stores Replacement New Construction $3.6B $3.2B $3.2B $3.3B ~6,300 20% 21.3% 21.
Slide 29: Winning Regulatory Transitions
WINNING REGULATORY TRANSITIONS NAVIGATING NEAR-TERM BULLISH LONG-TERM OUTLOOK UNCERTAINTIES • Winning during regulatory changes • Gradual rebound in consumer confidence • Pricing excellence and mix benefits • Lower interest rates to increase consumer buying power • Maintain investments to drive futu
Slide 30: Transformation Journey
TRANSFORMATION JOURNEY Winning in Customer Experience Regulatory Changes ✓ Manufacturing capacity adds ✓ SEER2 standard (Coils, air handlers, MagicPak) ✓ Low GWP transition ✓ CX digital investments ✓ Heat pump portfolio ✓ NPS improvements Promises Made, Promises Revenue Excellence Kept Retooled Dist
Slide 31: Strategic Framework
STRATEGIC FRAMEWORK Relentless Heat Pumps Productivity Emergency Replacement DIFFERENTIATED MARGIN Distribution GROWTH EXPANSION Efficiency Parts And Services Attachment Market Reach Pricing JVs/Partnerships Excellence ENABLERS Digital Technologies Talent LUMS I NVES TO R DAY 31
Slide 32: Runway for Heat Pump Growth
RUNWAY FOR HEAT PUMP GROWTH HEAT PUMPS % OF SALES DUCTED HEAT PUMPS ~30% Under penetrated in southern climates • Stronger product portfolio Improved Cold Climate Heat Pump 10% technology shifts share opportunity ~15% 2% DUCTLESS HEAT PUMPS 20% 13% Samsung JV creates opportunity • High quality offeri
Slide 33: Attachment Creates More Opportunity
ATTACHMENT CREATES MORE OPPORTUNITY THE PARTNER DEALERS RELY ON ~40% EXPANDING BEYOND EQUIPMENT Scale the attachment engine • Expands addressable parts and accessory categories ~18% • ADP brings distribution reach • Extend to Water Heater market Data-enabled attachment through PIM • Compatibility, a
Slide 34: Two Step Channel Growth Drivers
TWO STEP CHANNEL GROWTH DRIVERS Strategic Product Partnerships Portfolio Customer experience and digital Multi-family, heat pumps & air handlers offerings New Business Gaining share with independent partners Leveraging scale and shared platforms for a unified experience across brands I NVES TO R DAY
Slide 35: Video
[t! LENNOX (VIDEO) INVESTOR DAY [HILENNOX
Slide 36: Joint Ventures Unlock Markets
JOINT VENTURES UNLOCK MARKETS EXPANDS LEVERAGES PHYSICAL & TECH & CHANNEL TOTAL ADDRESSABLE MARKET DIGITAL INFRASTRUCTURE CONVERGENCE • Increasing energy efficiency requirements, electrification and technology overlap with <5% ~10% heat pump adoption Lennox Sales Industry Sales • Integration with co
Slide 37: Transforming Distribution
TRANSFORMING DISTRIBUTION FACTORY OUTLETS TO ONE STOP CUSTOMER FULFILMENT CENTER Investments made and Margin and customer service Runway remains best practices adopted... benefits emerging… • Organizational redesign • Fill rate improvements Manufacturer + AOR o Regional autonomy distributor share ga
Slide 38: Pricing Excellence Journey
PRICING EXCELLENCE JOURNEY System control AI Driven Hybrid control Human Oversight + Automation Beyond Balanced Decision Semi-automated 2026 Fully system- Central Decisions controlled, Manual 2025 Deployment of new real-time, hyper personalization hybrid pricing tools 2022 AI-powered reporting prici
Slide 39: LUMS Customer Charter
PREMIUM PARTNER EXPERIENCE, LUMS CUSTOMER HIGHEST LEVEL OF SUPPORT CHARTER 2024 2025 2026 Written Analytical LIVE Commitment Improvement Deep Insights Our documented commitment to customer service levels I NVES TO R DAY 39
Slide 40: Video
[t! LENNOX (VIDEO) INVESTOR DAY [LENNOX
Slide 41: Dealer & Technician Journey
DEALER & TECHNICIAN JOURNEY MA KI NG I T EA SY FOR DEALERS WITH INNOVATIVE DIGITAL SOLUTIONS eCommerce & Delivery Training & Resources Sales & Service Tools AI driven attachment suggestions AI self-service to meet dealers AI Chat bot to help dealers save time and AHRI Match needs, anytime, anywhere
Slide 42: Home Comfort Solutions Recap
HOME COMFORT SOLUTIONS RECAP 01 Structurally resilient and operationally improving 02 Focused on sustained long-term margins 03 Investing in differentiated initiatives I NVES TO R DAY 42
Slide 43: Scaling Up
02 JOE NASSAB President & EVP, Building Climate Solutions SCALING UP Home Comfort Solutions (HCS) I NVES TO R DAY 43
Slide 44: Key Messages
KEY MESSAGES 01 Sustainable growth initiatives underway 02 Margin expansion driven by execution 03 Scaling up with a resilient core I NVES TO R DAY 44
Slide 45: Building Climate Solutions Overview
BUILDING CLIMATE SOLUTIONS OVERVIEW CHVAC Equip Services Refrigeration 4 Commercial Equipment Factory Locations 50% Refrigeration Commercial Services 25% 25% 19 Distribution Sites Core Revenue and Adj. Segment Margin 140 Service Locations $1.8B $1.9B $1.5B $1.3B 15.0% 22.6% 22.8% 23.4% ~4,400 Employ
Slide 46: Market Outlook: Light Commercial
MARKET OUTLOOK: LIGHT COMMERCIAL AGING ADVANCED INDOOR AIR ELECTRIFICATION & INSTALLED BASE STANDARDS EFFICIENCY Megatrends provide sustained tailwinds I NVES TO R DAY 46
Slide 47: Transformation Journey
TRANSFORMATION JOURNEY Supply Chain Resiliency Customer Experience ✓ New Saltillo factory ✓ Improved quality, delivery, lead times ✓ Dual sourced critical components ✓ Investing in digital infrastructure ✓ Labor productivity Promises Made, Promises Portfolio Refinement Kept E.R. Share Recovery ✓ Div
Slide 48: Strategic Framework
STRATEGIC FRAMEWORK Relentless Heat Pumps Productivity Emergency Replacement DIFFERENTIATED MARGIN Distribution GROWTH EXPANSION Efficiency Parts And Services Attachment Market Reach Pricing JVs/Partnerships Excellence ENABLERS Digital Technologies Talent LUMS I NVES TO R DAY 48
Slide 49: Winning Products
WINNING PRODUCTS Ultra High Efficiency XION Rooftop Heatcraft Dual-Convertible Heat Pump Units Refrigerant ● Co-developed with major customer ● Award-winning, service-friendly platform ● First OEM with A2L-ready solution ● Backwards-compatible electrical design ● Ideal for emergency replacement ● In
Slide 50: Emergency Replacement
EMERGENCY REPLACEMENT CAPACITY ENABLES SHARE RECOVERY AND GROWTH Regaining Share ~40% • New Factory doubled capacity • Xion and Raider Platforms <10% • 40% more distribution sites • Commercial Quick Quote Tool Lennox Full Opportunity E.R. % of RTU sales I NVES TO R DAY 50
Slide 51: Operations Driving Productivity
OPERATIONS DRIVING PRODUCTIVITY Dual-sourced Critical Labor Focused Components Productivity Factories 2X Light Commercial Production Capacity From Scarcity to Abundance STUTTGART, AR SALTILLO, MX I NVES TO R DAY 51
Slide 52: Commercial Services
COMMERCIAL SERVICES 140 branch locations 180,000 buildings serviced 1,000 technicians employed 15,000 HVAC units recycled 900,000 units under contract 200,000 lbs of refrigerant recovered I NVES TO R DAY 52
Slide 53: Services and Attachment Opportunity
SERVICES AND ATTACHMENT OPPORTUNITY FULL LIFECYCLE OFFERING DRIVES CROSS SELLING ~40% Winning Offerings ~25% • AES acquisition enables increased cross selling • Growth and synergies through DuroDyne acquisition • New business and national account expansion Lennox Full Opportunity Services % of Sales
Slide 54: Training and Customer Experience
TRAINING AND CUSTOMER EXPERIENCE COMMERCIAL DIGITAL AND LEARNING SOLUTIONS MAKING IT EASY Commercial Training & Quote Engine Experience Enhanced hands-on learning and training programs Centers Quotes for products with accessory Refrigeration & Technician Commercial Customer recommendations Training
Slide 55: Building Climate Solutions Recap
BUILDING CLIMATE SOLUTIONS RECAP 01 Resilient foundation with power of direct model 02 Operational focus to drive margins 03 Growth engines scaling up I NVES TO R DAY 55
Slide 56: Video
[t! LENNOX (VIDEO) INVESTOR DAY [LENNOX
Slide 57: Break
I N V E S T O R D AY BREAK Presentation will resume at 11:10 AM CT I NVES TO R DAY
Slide 58: Video
[t! LENNOX (VIDEO) INVESTOR DAY [LENNOX
Slide 59: Innovating Sustainable Technologies
PRAKASH BEDAPUDI Chief Technology Officer INNOVATING SUSTAINABLE TECHNOLOGIES Home Comfort Solutions (HCS) I NVES TO R DAY 59
Slide 60: Key Messages
KEY MESSAGES Front end customer experience 01 Smart thermostats and digital platforms Artificial Intelligence / Automation 02 AI-Driven diagnostics and faster service Sustainable Product Innovation 03 Regulatory wins and next-gen solutions I NVES TO R DAY 60
Slide 61: Global Technology Footprint
GLOBAL TECHNOLOGY FOOTPRINT DELIVERING INDUSTRY LEADING SOLUTIONS >48% Product Vitality1 EXPANDED INNOVATION CAPACITY SPEND 75+ Patents / Year Carrollton, Carrollton, TXTX >500K 2020 2025 HEADCOUNT Sq. Ft Lab Space 1,500+ Technologists LITC, India 2020 2025 1. Product Vitality – Percentage of sales
Slide 62: Development and Testing Facilities
DEVELOPMENT AND TESTING FACILITIES Lennox Lennox India Heatcraft Customer Waterview Campus Technology Center Innovation Center • Enhancing training Accelerating the for commercial • Advanced simulation, controls / component • Developing modular and scalable HFC / launch of innovative, customers test
Slide 63: Transformation Journey
TRANSFORMATION JOURNEY Regulatory Transitions Advanced Digital Solutions ✓ Completed SEER2 and ✓ Added AI-enabled digital A2L transition flawlessly diagnostics across product platforms ✓ Scaling New Product Vitality toward 50–55% of ✓ Strengthened e-commerce revenue by 2026 platforms, online tools f
Slide 64: Industry Leading Sustainable Solutions
INDUSTRY LEADING SUSTAINABLE SOLUTIONS Best-In-Class Innovation Led to 40+ Dealer Design/HVAC All Star Awards Over Last Decade Residential Commercial Awards & Recognition I NVES TO R DAY 64
Slide 65: Winning Regulatory Transitions
WINNING REGULATORY TRANSITIONS MET REGULATORY PERFORMANCE LEADERSHIP REQUIREMENTS High quality • Greater efficiency • Easier installs ACROSS INDUSTRY UNIQUE TO LENNOX Large multi-year effort involving global Took a strong approach to product safety engineering, product management, marketing, operati
Slide 66: New Products Focus Post A2L Conversion
NEW PRODUCTS FOCUS POST A2L CONVERSION Controls & Integrated Solutions Product Differentiation IAQ, smart thermostats, Leader in OEM manufactured Industry leading cooling, heating, and wireless zoning thermostats with highest attachment furnace efficiency Colder climate heat pump (CCHP) Lead in cool
Slide 67: Using AI to Accelerate Product Development
GROWTH USING AI TO ACCELERATE PRODUCT DEVELOPMENT ERATIONS TALENT M0 DPA M1 DP1 M2 DP2 M3 DP3 M4 DP4 FINANCE OP IDEATION NPI KICK-OFF DESIGN CONCEPT PRODUCT LAUNCH REFLECTION Lean – routine processes Automate – bandwidth, error reduction M – Marketing stage gate DP – Decision Point stage gate Collab
Slide 68: Winning Heat Pump Systems Portfolio
WINNING HEAT PUMP SYSTEMS PORTFOLIO OUTDOOR INDOOR UNITS UNITS Material Cost Own IP w/Power Differentiated Wall Mount Shortest Air Ceiling Reduction Electronics Side Discharge Air Handlers Handler in Mount Industry Regional Lowest Tier Furnace Optimization Product Line Replacement Air Handler Low co
Slide 69: Controls & Connectivity
CONTROLS & CONNECTIVITY L40 Thermostat Leading thermostat portfolio with entry level options Refined in-home Unified app with advanced UI/UX refreshes experience M40 / E40 Improved experience for superior HVAC performance Thermostats Top OEM in Connectivity Opportunity thermostat • Samsung SmartThin
Slide 70: AI Driving Customer Experience
AI DRIVING CUSTOMER EXPERIENCE GROWTH & CUSTOMER DELIGHT EFFICIENCY & PRODUCTIVITY 9,000+ technicians actively using the AI tool LennoxPros AI New Business Leads Process Genie Spaces 41,500+ Automation support sessions logged (Technicians + Homeowners) Technical Customer Contact SIOP GitHub 250+ Sup
Slide 71: Well Positioned to Win with AI and Future Regulations
End Au A nt ital ogy to I WELL g ol o & tio Fr n m Te Di a ch POSITIONED n TO WIN WITH AI AND at t e uc b l Te ras n a ai Inf FUTURE n t ch t o s d io ru log Su Pro v n ct y n o ur In REGULATIONS e Deliver the best customer experience. Be easiest to do business with by being fast and reliable. Ensur
Slide 72: Driving Performance and Long-Term Shareholder Value
Michael Quenzer Chief Financial Officer DRIVING PERFORMANCE AND LONG-TERM SHAREHOLDER VALUE I NVES TO R DAY 72
Slide 73: Promises Made Promises Kept
PROMISES MADE PROMISES KEPT +16% +400 bps Core Revenue Growth Margin Expansion $5.3B $5.2B $4.7B 19.5% 20.4% ✓ Successful navigation of $4.5B 16.4% 18.0% ✓ Disciplined pricing regulatory destocking ✓ Productivity and cost ✓ Favorable regulatory mix actions benefits 2022 2023 2024 2025 2022 2023 2024
Slide 74: Profit Growth
PROFIT GROWTH +$325M or +400 bps $125M ~$1.1B $150M $300M ($50M) ~$735M ROS ($200M) ROS 16.4% 20.4% 2022 Volume Mix Price / Cost Investments 2025 Cost Inflation Productivity I NVES TO R DAY See appendix for non-GAAP reconciliation 74
Slide 75: Free Cash Flow
FREE CASH FLOW FISCAL YEARS [2023 – 2025] $2.2B +$120M $1.9B +$450M ($340M) ($530M) Cumulative Inventory AR/AP Capex DA / Other FCF Net Income Efficiencies Strong Free Cash Flow conversion while investing for Long-Term growth I NVES TO R DAY See appendix for non-GAAP reconciliation 75
Slide 76: Capital Deployment Priorities
CAPITAL DEPLOYMENT PRIORITIES CAPITAL DEPLOYMENT (2023-2025) Investments in high ROI projects to support Capital profitable growth Share Repurchases Expenditures 23% 23% Efficiently return capital to shareholders by supplementing dividend with share repurchases $2.4B Invest in high quality Bolt-on M
Slide 77: Consistent Dividend Growth
CONSISTENT DIVIDEND GROWTH D I SCI P L I N E D , SU ST A I N A B L E S H A R E H O L D E R R E T U R N S Annual Dividend ($) $5.05 $4.10 $2.95 $1.65 13.7% $0.60 $0.92 CAGR from $0.53 1999 to 2025 $0.38 $0.39 2001 2004 2007 2010 2013 2016 2019 2022 2025 I NVES TO R DAY 77
Slide 78: Share Repurchase Track Record
SHARE REPURCHASE TRACK RECORD DRIVEN BY VALUATION AND LONG-TERM CONFIDENCE Cumulative Shares Repurchased As % Of 2006 Shares Outstanding 61.1% 62.5% 55.9% 48.3% 28.5% 37.3% $1B left on Board 10.5% Authorization approved in 2006 2007 2010 2013 2016 2019 2022 2025 2025 Diluted Shares Outstanding 67,89
Slide 79: Strategic Partnership & Acquisition
STRATEGIC PARTNERSHIP & ACQUISITION North American Strategic Technology Strong Financial Focused Value Creation to Win Case 2022 2023 2024 2025 2026-2030 Announced Divestiture 6x EBITDA New JV 10x EBITDA M&A Pipeline Focus of European HVAC / multiple multiple - Parts and Accessories Refrigeration Bu
Slide 80: Long Term Targets
LONG TERM TARGETS EXECUTION OF KEY INITIATIVE WILL ELIVER… $6.5B - $7.5B 22% - 23% +90% Net Income Conversion Revenue Profit Margin * Free Cash Flow I NVES TO R DAY * Segment profit margin 80
Slide 81: Path to Achieve Target Revenue
PATH TO ACHIEVE TARGET REVENUE $7.5B +175M +575M To +500M $6.5B +550M $5.2B Market Growth Price Acquisitions 2025 2030 Growth Initiatives (completed) Revenue Assumption ~1% to 3% ~1% to 2% ~1.5% to 2.5% ~0.5% ~4% to 8% CAGR I NVES TO R DAY 81
Slide 82: Path to Achieve Target Margin
PATH TO ACHIEVE TARGET MARGIN 23% ~850 bps ~150 bps To 20.4% ~(150 bps) 22% 30% Profit Incremental on Sales Growth ~(650 bps) Cost Price / Cost Investments Market & Growth 2025 2030 Inflation Productivity Initiatives Cost* 1.5% to 3% (1%) to (1.5%) ~0.5% Assumption CAGR I NVES TO R DAY *Cost: Cost o
Slide 83: Our Long-Term Objectives
OUR LONG-TERM OBJECTIVES A STEADY, COMPELLING, AND COMPOUNDING ALGORITHM Other Capital Deployment Debt Repayment & Sales Volume Share Repurchases Leverage & Cost Productivity 10%+ ~10% HSD MSD Sales Growth Op Margin Expansion Adj. EPS Total Shareholder Growth Return I NVES TO R DAY 83
Slide 84: Closing Remarks
ALOK MASKARA Chief Executive Officer CLOSING REMARKS I NVES TO R DAY 84
Slide 85: Next-Phase Value Drivers: Summary
NEXT-PHASE VALUE DRIVERS: SUMMARY Driving above-market growth Heat Pump, ER, Attachment, TAM expansion Expanding margins with discipline Productivity, distribution efficiency and pricing excellence Innovating for competitive advantage Executing on full-lifecycle customer model Product leadership, di
Slide 86: Talent Enables Success
TALENT ENABLES SUCCESS DEVELOPING LEADERSHIP BUILDING BENCH STRENGTH STRENGTHENING CULTURE • Continuously improve with regular • Achieve 60%+ internal promotions • Core Values and Guiding Behaviors two-way feedback for Manager-and-above roles define how we work and win • Promote employee upskilling
Slide 87: We Are Confident in the Future
WE ARE CONFIDENT IN THE FUTURE Execution Consistency and Disciplined Advanced Resilient Margin Capital Technology Business Deployment Solutions with Focused on Direct-to- Sustainable Dealer Network HVACR LENNOX Growth End Continues to Drive Talent & Markets with Strong Replacement Demand Value for S
Slide 88: Question & Answers
QUESTION & ANSWERS I NVES TO R DAY 88
Slide 89: Speaker and Leadership Team Bios
SPEAKER AND LEADERSHIP TEAM BIOS I NVES TO R DAY 89
Slide 90: Leadership Bios
ALOK MASKARA CEO LEADERHIP BIOS Alok Maskara joined Lennox as Chief Executive Officer on May 9, 2022. Most recently, he served for five years as CEO of Luxfer Holdings PLC, an international industrial company focused on advanced SPEAKER AND materials. Mr. Maskara also spent nearly a decade as presid
Slide 91: Leadership Bios
SARAH MARTIN President, Home Comfort Solutions LEADERHIP BIOS Sarah Martin was appointed Executive Vice President and President of the Lennox Home Comfort Solutions business segment in April 2025. She spent 13 years in leadership roles at Honeywell SPEAKER AND International Inc., including serving a
Slide 92: Leadership Bios
PRAKASH BEDAPUDI CTO LEADERHIP BIOS Prakash Bedapudi became Executive Vice President and Chief Technology Officer in July 2008. He previously served as Vice President of Global Engineering and Program Management for Trane Inc. SPEAKER AND Commercial Systems from 2006 to 2008, and as Vice President o
Slide 93: Leadership Bios
DANIEL SESSA CHRO LEADERHIP BIOS Daniel Sessa was appointed Executive Vice President and Chief Human Resources Officer in June 2007. Before joining Lennox, he held numerous senior human resources and legal leadership roles at United SPEAKER AND Technologies Corporation, where he served from 1996 to
Slide 94: Leadership Bios
JOHN MACQUARRIE LEADERHIP BIOS President, Contractor Supply Solutions SPEAKER AND John MacQuarrie joined Lennox as President of Lennox Contractor Supply Solutions in October 2025, following Lennox's acquisition of N I Industries’ HVAC division. Previously, he was President of N I Industries HVAC div
Slide 95: Financial Appendix
FINANCIAL APPENDIX I NVES TO R DAY 95
Slide 96: Core Revenue and Segment Profit
CORE REVENUE AND SEGMENT PROFIT Net Sales 2022 2023 2024 2025 Home Comfort Solutions $ 3,198 $ 3,223 $ 3,577 $ 3,343 Building Climate Solutions 1,286 1,512 1,764 1,852 Corporate and other (1) 234 247 - - Net sales, a GAAP measure $ 4,718 $ 4,982 $ 5,341 $ 5,195 Net sales from non-core business (1) 2
Slide 97: Adjusted EPS
ADJUSTED EPS 2022 2023 2024 2025 Per Per Per Per After Tax After Tax After Tax After Tax Diluted Diluted Diluted Diluted Amount Amount Amount Amount Share Share Share Share Net income, a GAAP measure $ 547.8 $ 15.30 $ 591.2 $ 16.58 $ 811.1 $ 22.66 $ 805.8 $ 22.79 Restructuring charges 1.2 0.03 2.4 0
Slide 98: Net Debt to Adj. EBITDA
NET DEBT TO ADJ. EBITDA 2022 2023 2024 2025 Income before taxes, a GAAP Measure $ 682.8 $ 738.9 $ 999.4 $ 996.8 Items in losses (gains) and other expenses, net before taxes 8.1 14.8 - - Restructuring charges, before tax 1.5 3.1 - 6.8 Interest expense, net 38.7 51.7 38.7 40.9 Pension settlements, bef
Slide 99: Return on Invested Capital
RETURN ON INVESTED CAPITAL 2022 2023 2024 2025 Operating income, a GAAP Measure $ 723.2 $ 791.5 $ 1,040.4 $ 1,041.5 Restructuring Charges, before tax 1.5 3.1 - 6.8 Special product quality adjustments, before tax - - - - Insurance recoveries received for property damage incurred from natural disast
Slide 100: Free Cash Flow
FREE CASH FLOW For the Years Ended December 31, (Unaudited) 2022 2023 2024 2025 Net Cash provided by operating activities, a GAAP measure $ 302.3 $ 736.2 $ 945.7 $ 757.6 Purchases of property, plant and equipment (101.1) (250.2) (163.6) (118.8) Proceeds from the disposal of property, plant and equip
Slide 101: 2022 LIFO to FIFO Adjustment
2022 LIFO TO FIFO ADJUSTMENT Adjusted Operating Profit & Net Income Adjusted Segment Profit Twelve Months Ended December 31, 2022 Twelve Months Ended December 31, 2022 As Reported Effect of Change As Adjusted As Reported Effect of Change As Adjusted Net sales $ 4,718.4 $ - $ 4,718.4 Segment Profit (