Lennox International

“The Samsung Ariston joint ventures, along with Durodyne and Subco acquisition, broadened our product offering and will increase our share of wallet.”

Lennox's Subco acquisition broadened its product offering alongside Durodyne, supporting BCS growth and share-of-wallet expansion.

“The Samsung Ariston joint ventures, along with Durodyne and Subco acquisition, broadened our product offering and will increase our share of wallet.”

Lennox acquired Durodyne (a commercial HVAC/ductwork business), a net add feeding its BCS segment growth and national-account strategy with margin-improvement upside.

“The Samsung Ariston joint ventures, along with Durodyne and Subco acquisition, broadened our product offering and will increase our share of wallet.”

Lennox's joint venture with Ariston broadens its product offering and share of wallet as part of its portfolio-diversification phase.

“The Samsung Ariston joint ventures, along with Durodyne and Subco acquisition, broadened our product offering and will increase our share of wallet.”

Lennox's joint venture with Samsung expands its ductless and ducted heat-pump portfolio, a growth channel Lennox is leaning into for 2026 electrification demand.

“Our bolt-on acquisition of AES Industries in 2023 helped accelerate the attachment of commercial services and was a tremendous success based on financial and strategic metrics.”

Lennox cites its 2023 AES Industries bolt-on as a success that more than doubled its commercial-services business, used as the template for the Durodyne deal.

“Similarly, the recent acquisition of Durodyne and Subco will help accelerate attachment of parts and accessories across both HCS and BCS segments.”

Lennox acquired Durodyne and Subco (~$225M revenue, strong margins) to accelerate parts-and-accessories attachment; the deal is expected to be accretive in 2026.

“Ariston JV adds value only in 2027 in a meaningful way, but it's gonna get some growth next year.”

Lennox's water-heater JV with Ariston is expected to contribute modest growth in 2026 and become meaningful in 2027 as products launch.

“we saw growth in our Samsung product for the first quarter for the first time in Q3. So really pleased with that progress.”

Lennox's ductless JV with Samsung produced its first quarter of growth, positioning Samsung's HVAC brand as an increasingly productive partner in Lennox's ductless expansion.

“Ariston contributes deep expertise in global heat pump water heating and our North American joint venture strengthens the position of both companies during the ongoing convergence of HVAC and water heating trades.”

Lennox's joint venture with Ariston brings global heat pump water heating expertise; the water heater product launch is planned for Q1 2026 with meaningful growth expected starting in 2027.

“Samsung brings advanced technology, smart things integration and strong brand recognition that will enhance our portfolio in both HCS and BCS through ductless mini splits and VRF products.”

Lennox's joint venture with Samsung is expected to expand its ductless mini split and VRF product portfolio, with meaningful growth contribution starting in 2026.

“So everybody might be experiencing different things, right? So let me just talk about Lennox. So we have no shortage of 454B for our production. And we're obviously working with our suppliers, the two suppliers we have to make sure that we get appropriate fair pricing because some of them are impacted on tariffs. And any indirect impact of tariffs through that is already captured in our overall inflation number. What we have heard from our dealers and contractors is there is shortage of retail canisters. So these are the Worthington-made tanks that they carry in their truck for service and repairs. They're not enough of 454B of those. I think that's where the shortage is. It's kind of unrelated to the Honeywell announcement, which also impacts the retail, and there's just a shortage of that, purely driven by filling capacity and purely driven by availability of tanks.”

An analyst asked about Honeywell's steep R-454B refrigerant price increase; Lennox management clarified the retail-canister shortage is industry-wide and separate from Honeywell's move, and does not affect Lennox's own contracted refrigerant pricing.

“These initiatives drive growth through enhanced customer digital experiences, expansion in the ductless market via our Samsung joint venture, new capacity for commercial replacement products and the continued growth of our parts and services portfolio.”

Lennox's joint venture with Samsung is a growth driver in the ductless HVAC market and also reduces Lennox's exposure to China-tariff risk since mini-splits are sourced from Samsung's Korean manufacturing.