Lennox International
Sector unknown·LII · USA (SEC 10-K)·Fiscal year to 31/12/2025
We manufacture and market a broad range of heat pumps, furnaces, air conditioners, packaged heating and cooling systems, equipment and accessories to improve indoor air quality, comfort control products, replacement parts and supplies and related products for both the residential replacement and new construction markets in North America.
Exposure profile
Derived from what the company itself writes. Empty directions mean the report doesn't mention themes of that type.
In their own words
Grouped by theme, from the management review in the annual report. A · The company itself is a verbatim quote, B · From the report is without a verified quote.
Construction
End markets
DriverPositive impact: strengthens
“Our business is affected by the performance of the U.S. construction industry. Our sales in the residential and commercial new construction markets correlate to the number of new homes and buildings that are built, which in turn is influenced by cyclical factors such as interest rates, inflation, availability of financing, consumer spending habits and confidence, employment rates and other macroeconomic factors over which we have no control.”
Annual report 2025A · The company itself
Market
“Home Comfort Solutions - We manufacture and market a broad range of furnaces, air conditioners, heat pumps, packaged heating and cooling systems, equipment and accessories to improve indoor air quality, comfort control products, replacement parts and supplies and related products for both the residential replacement and new construction markets in North America. These products are sold under various brand names and are sold either through direct sales to a network of independent installing dealers, including through our network of Lennox Stores or to independent distributors.”
Annual report 2025A · The company itself
Market
“We manufacture and market a broad range of heat pumps, furnaces, air conditioners, packaged heating and cooling systems, equipment and accessories to improve indoor air quality, comfort control products, replacement parts and supplies and related products for both the residential replacement and new construction markets in North America.”
Annual report 2025A · The company itself
Chains in: Interest rates weakens, Housing market strengthens, Public investment and infrastructure strengthens, Business cycle and GDP growth strengthens, Reconstruction of Ukraine strengthens
Consumer spending
Macro
DriverPositive impact: strengthens
“Our sales in the residential and commercial new construction markets correlate to the number of new homes and buildings that are built, which in turn is influenced by cyclical factors such as interest rates, inflation, availability of financing, consumer spending habits and confidence, employment rates and other macroeconomic factors over which we have no control.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“Our business may be materially and adversely impacted by changes in U.S. or global economic conditions, including recessions, economic downturns, inflation, deflation, fluctuations in interest rates, consumer spending rates, energy availability and commodity prices, and the effects of governmental initiatives to manage economic conditions.”
Annual report 2025A · The company itself
Market
“Home Comfort Solutions - We manufacture and market a broad range of furnaces, air conditioners, heat pumps, packaged heating and cooling systems, equipment and accessories to improve indoor air quality, comfort control products, replacement parts and supplies and related products for both the residential replacement and new construction markets in North America.”
Annual report 2025A · The company itself
Chains in: Inflation weakens
Chains out: this strengthens Retail, strengthens Hospitality and leisure, strengthens Premium consumers, strengthens Grocery retail and private label
United States
Geography
Market
“We own a 49.9% interest in a joint venture with Samsung that distributes Samsung ductless AC and heat pump products in the U.S. and Canada as well as "Lennox powered by Samsung" branded products through Lennox Stores and direct-to-dealer network.”
Annual report 2025A · The company itself
Geography
“(approximately 8,500 employees) and Mexico (approximately 3,200 employees).”
Annual report 2025A · The company itself
Geography
“We manufacture and market a broad range of heat pumps, furnaces, air conditioners, packaged heating and cooling systems, equipment and accessories to improve indoor air quality, comfort control products, replacement parts and supplies and related products for both the residential replacement and new construction markets in North America.”
Annual report 2025A · The company itself
Geography
“In North America, we manufacture and sell unitary heating and cooling equipment used in light commercial applications, such as low-rise office buildings, restaurants, retail centers, distribution, churches and schools.”
Annual report 2025A · The company itself
Geography
“The “Lennox” business and brands (“Dave Lennox Signature Collection,” “Elite Series,” “Merit Series,” “iComfort,” “ComfortSense” and “Healthy Climate Solutions”) are sold directly to independent installing dealers, making us one of the 1 largest wholesale distributors of residential heating, ventilation, and air conditioning products in North America. We operate a network of Lennox Stores across the U.S. and Canada.”
Annual report 2025A · The company itself
Geography
“The North American residential heating and cooling market provides an example of the competitive strength of our marketing and distribution strategy. We use three distinct distribution approaches in this market: the company-owned distribution system, the independent distribution system and direct sales to end-users.”
Annual report 2025A · The company itself
Geography
“The Allied Air Enterprise business and brands (“Armstrong Air,” “AirEase,” “Concord,” “Ducane,” “Allied,” and “MagicPak”) include a full line of heating, ventilation and air conditioning products and are sold through independent wholesale distributors in the U.S. and Canada.”
Annual report 2025A · The company itself
Geography
“Net sales outside of the U.S. comprised approximately 7% of our total net sales in 2025.”
Annual report 2025A · The company itself
Chains in: USD vs DKK/EUR mixed effect
Retail
End markets
Market
“Home Comfort Solutions - We manufacture and market a broad range of furnaces, air conditioners, heat pumps, packaged heating and cooling systems, equipment and accessories to improve indoor air quality, comfort control products, replacement parts and supplies and related products for both the residential replacement and new construction markets in North America. These products are sold under various brand names and are sold either through direct sales to a network of independent installing dealers, including through our network of Lennox Stores or to independent distributors.”
Annual report 2025A · The company itself
Market
“We manufacture and market a broad range of heat pumps, furnaces, air conditioners, packaged heating and cooling systems, equipment and accessories to improve indoor air quality, comfort control products, replacement parts and supplies and related products for both the residential replacement and new construction markets in North America.”
Annual report 2025A · The company itself
Market
“The “Lennox” business and brands (“Dave Lennox Signature Collection,” “Elite Series,” “Merit Series,” “iComfort,” “ComfortSense” and “Healthy Climate Solutions”) are sold directly to independent installing dealers, making us one of the 1 largest wholesale distributors of residential heating, ventilation, and air conditioning products in North America.”
Annual report 2025A · The company itself
Market
“National Account Services (“NAS”) provides installation, service and preventive maintenance for commercial HVAC national account customers in the U.S. and Canada.”
Annual report 2025A · The company itself
Market
“These products preserve food and other perishables in supermarkets, convenience stores, restaurants, warehouses and distribution centers.”
Annual report 2025A · The company itself
Market
“Segment Products or Services Markets Served Geographic Areas Home Comfort Solutions Furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, replacement parts and supplies Residential Replacement; Residential New Construction United States Canada Building Climate Solutions Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, variable refrigerant flow commercial products, curb, curb adapters, drop box diffusers, HVAC recycling and salvage service, condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, process chillers, controls, compressorized racks, replacement parts and supplies Light Commercial; Food Preservation; Non-Food Industry United States Canada Prior to January 1, 2023, we operated in three reportable business segments.”
Annual report 2025A · The company itself
Chains in: Consumer spending strengthens
Electricity
Raw materials and inputs
DriverNegative impact: weakens
“Our business may be materially and adversely impacted by changes in U.S. or global economic conditions, including recessions, economic downturns, inflation, deflation, fluctuations in interest rates, consumer spending rates, energy availability and commodity prices, and the effects of governmental initiatives to manage economic conditions.”
Annual report 2025A · The company itself
Market
“We manufacture and market a broad range of heat pumps, furnaces, air conditioners, packaged heating and cooling systems, equipment and accessories to improve indoor air quality, comfort control products, replacement parts and supplies and related products for both the residential replacement and new construction markets in North America.”
Annual report 2025A · The company itself
Market
“In North America, we manufacture and sell unitary heating and cooling equipment used in light commercial applications, such as low-rise office buildings, restaurants, retail centers, distribution, churches and schools.”
Annual report 2025A · The company itself
Market
“Our commercial refrigeration products include condensing units, unit coolers, fluid coolers, air-cooled condensers, air handlers and refrigeration rack systems. These products preserve food and other perishables in supermarkets, convenience stores, restaurants, warehouses and distribution centers.”
Annual report 2025A · The company itself
Market
“Duro Dyne and Supco manufacture and sell a robust portfolio of HVAC parts and supplies that complement our existing residential and commercial offerings, such as air distribution accessories, switches and controls, and other engineered components and accessories with HVACR applications.”
Annual report 2025A · The company itself
Chains in: Data centres strengthens, Electrification strengthens
Chains out: this strengthens Power grid expansion
Artificial intelligence
Technology
DriverPositive impact: strengthens
“Recent technological advances in artificial intelligence (“AI”) and machine-learning technology both present opportunities and pose risks to us. If we fail to keep pace with rapidly evolving technological developments in AI, our competitive position and business results may suffer.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“Artificial Intelligence Technologies Could Present Business, Compliance, and Reputational Risks.”
Annual report 2025A · The company itself
StrategyPositive impact: strengthens
“Our future success depends on our continued investment in research and new product development as well as our ability to commercialize new HVACR technological advances in domestic and global markets.”
Annual report 2025A · The company itself
StrategyPositive impact: strengthens
“Research, Development and Technology Research and development is a key pillar of our growth strategy. We operate an engineering and technology organization that focuses on new technology invention, product development, product quality improvements and process enhancements, including our development of next-generation control systems as well as heating, cooling and refrigeration products that include some of the most efficient products in their respective categories.”
Annual report 2025A · The company itself
Chains out: this strengthens Data centres, strengthens Semiconductors and electronic components, strengthens Semiconductor industry
Digitalisation
Technology
StrategyPositive impact: strengthens
“Our future success depends on our continued investment in research and new product development as well as our ability to commercialize new HVACR technological advances in domestic and global markets.”
Annual report 2025A · The company itself
StrategyPositive impact: strengthens
“We are investing in our sales force to expand customer touchpoints, enhancing the overall customer experience through digital innovations and output from our new commercial HVAC factory in Mexico.”
Annual report 2025A · The company itself
StrategyPositive impact: strengthens
“Research, Development and Technology Research and development is a key pillar of our growth strategy. We operate an engineering and technology organization that focuses on new technology invention, product development, product quality improvements and process enhancements, including our development of next-generation control systems as well as heating, cooling and refrigeration products that include some of the most efficient products in their respective categories.”
Annual report 2025A · The company itself
Chains in: Cybersecurity (products and services) strengthens, Public investment and infrastructure strengthens
Chains out: this strengthens IT consulting and public-sector IT
Energy efficiency
Technology
StrategyPositive impact: strengthens
“Business Strategy Lennox offers a full spectrum of cooling, heating, indoor air quality and refrigeration products to meet the energy-efficient climate-control needs of residential and commercial customers across North America.”
Annual report 2025A · The company itself
StrategyPositive impact: strengthens
“We are committed to sustaining resilient margins through pricing excellence, enhanced productivity from higher volumes, material cost reductions, and a favorable mix influenced by regulatory transitions.”
Annual report 2025A · The company itself
StrategyPositive impact: strengthens
“In 2023, we successfully updated our lines of HVAC equipment to comply with the latest energy conservation standards from the U.S. Department of Energy.”
Annual report 2025A · The company itself
Chains in: Carbon tax and ETS prices strengthens, EU climate and energy policy strengthens
Hospitality and leisure
End markets
Market
“National Account Services (“NAS”) provides installation, service and preventive maintenance for commercial HVAC national account customers in the U.S. and Canada.”
Annual report 2025A · The company itself
Market
“These products preserve food and other perishables in supermarkets, convenience stores, restaurants, warehouses and distribution centers.”
Annual report 2025A · The company itself
Market
“Segment Products or Services Markets Served Geographic Areas Home Comfort Solutions Furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, replacement parts and supplies Residential Replacement; Residential New Construction United States Canada Building Climate Solutions Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, variable refrigerant flow commercial products, curb, curb adapters, drop box diffusers, HVAC recycling and salvage service, condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, process chillers, controls, compressorized racks, replacement parts and supplies Light Commercial; Food Preservation; Non-Food Industry United States Canada Prior to January 1, 2023, we operated in three reportable business segments.”
Annual report 2025A · The company itself
Chains in: Consumer spending strengthens
Agriculture and food production
End markets
Market
“These products preserve food and other perishables in supermarkets, convenience stores, restaurants, warehouses and distribution centers.”
Annual report 2025A · The company itself
Market
“Segment Products or Services Markets Served Geographic Areas Home Comfort Solutions Furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, replacement parts and supplies Residential Replacement; Residential New Construction United States Canada Building Climate Solutions Unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, variable refrigerant flow commercial products, curb, curb adapters, drop box diffusers, HVAC recycling and salvage service, condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, process chillers, controls, compressorized racks, replacement parts and supplies Light Commercial; Food Preservation; Non-Food Industry United States Canada Prior to January 1, 2023, we operated in three reportable business segments.”
Annual report 2025A · The company itself
Chains in: Grain and agricultural commodities mixed effect, Climate change and extreme weather weakens, Grocery retail and private label weakens
Electrification
Technology
StrategyPositive impact: strengthens
“Business Strategy Lennox offers a full spectrum of cooling, heating, indoor air quality and refrigeration products to meet the energy-efficient climate-control needs of residential and commercial customers across North America.”
Annual report 2025A · The company itself
StrategyPositive impact: strengthens
“A focused strategy, investments in heat pump growth, and enhancements to our distribution network further exemplify our commitment to consistent management execution.”
Annual report 2025A · The company itself
Chains out: this strengthens Electricity, strengthens Power grid expansion, strengthens Copper
Europe
Geography
Market
“Joint Ventures Ariston JV. We own a 49.9% interest in a joint venture with Ariston Group that will manufacture and distribute water heaters through Lennox Stores and our direct-to-dealer network.”
Annual report 2025A · The company itself
Geography
“In the fourth quarter of 2023, we successfully completed the divestiture of our European operations.”
Annual report 2025A · The company itself
M&A and consolidation
Macro
StrategyPositive impact: strengthens
“In the fourth quarter of 2025, we acquired Sealed Unit Parts Buyer, Inc. (“Supco”), which sells HVAC parts and supplies with HVACR applications.”
Annual report 2025A · The company itself
StrategyPositive impact: strengthens
“From time to time, we may seek to complement or expand our businesses through strategic acquisitions, joint ventures, and strategic relationships. For example, in 2025, we completed the acquisition of Duro Dyne and Supco.”
Annual report 2025A · The company itself
Automotive
End markets
Market
“Home Comfort Solutions - We manufacture and market a broad range of furnaces, air conditioners, heat pumps, packaged heating and cooling systems, equipment and accessories to improve indoor air quality, comfort control products, replacement parts and supplies and related products for both the residential replacement and new construction markets in North America. These products are sold under various brand names and are sold either through direct sales to a network of independent installing dealers, including through our network of Lennox Stores or to independent distributors.”
Annual report 2025A · The company itself
Data centres
Technology
Market
“In addition, our products are used to cool a wide variety of industrial processes, including data centers, machine tooling, and other critical cooling applications.”
Annual report 2025A · The company itself
Chains in: Artificial intelligence strengthens
Chains out: this strengthens Electricity, strengthens Copper
Industrial manufacturing
End markets
Market
“In addition, our products are used to cool a wide variety of industrial processes, including data centers, machine tooling, and other critical cooling applications.”
Annual report 2025A · The company itself
Residential construction
End markets
Market
“We manufacture and market a broad range of heat pumps, furnaces, air conditioners, packaged heating and cooling systems, equipment and accessories to improve indoor air quality, comfort control products, replacement parts and supplies and related products for both the residential replacement and new construction markets in North America.”
Annual report 2025A · The company itself
Chains in: Interest rates weakens, Housing market strengthens
Aluminium
Raw materials and inputs
DriverNegative impact: weakens
“Our business may be materially and adversely impacted by changes in U.S. or global economic conditions, including recessions, economic downturns, inflation, deflation, fluctuations in interest rates, consumer spending rates, energy availability and commodity prices, and the effects of governmental initiatives to manage economic conditions.”
Annual report 2025A · The company itself
InputNegative impact: weakens
“Compressors, motors and controls constitute our most significant component purchases, while steel, aluminum and copper account for the bulk of our raw material purchases.”
Annual report 2025A · The company itself
InputNegative impact: weakens
“We depend on raw materials, such as steel, copper and aluminum, and components purchased from third parties to manufacture our products.”
Annual report 2025A · The company itself
InputNegative impact: weakens
“We utilize a cash flow hedging program to mitigate our exposure to volatility in the prices of metal commodities used in our production processes.”
Annual report 2025A · The company itself
Climate change and extreme weather
Macro
DriverMixed impact: mixed
“Cooler than Normal Summers and Warmer than Normal Winters May Depress Our Sales. Demand for our products and services is seasonal and strongly affected by the weather. Cooler than normal summers depress our sales of replacement air conditioning and refrigeration products and services. Similarly, warmer than normal winters have the same effect on our heating products and services.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“Additionally, the effects of extreme weather events and natural disasters, long-term changes in temperature levels, water availability, increased cost for decarbonizing process heating, supply costs impacted by increasing energy costs, or energy costs impacted by carbon prices or offsets, as a result of climate change or other factors, may exacerbate supply chain constraints and disruption.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“This inability to fully meet demand would be exacerbated if a single-location production facility is disrupted due to external factors including, but not limited to, a climate-related disaster, pandemic or epidemic, geopolitical instability, or war.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“External disruptions, including, but not limited to, conflicts, wars, natural disasters (the nature and severity of which may be impacted by climate change), public health crises, terrorist acts, or other civil or political disruptions, may cause significant damage or disruption to our operations, employees, facilities, systems, suppliers, supply chain, distributors, resellers, or customers in the U.S. and internationally for extended periods of time and could also affect demand for our products.”
Annual report 2025A · The company itself
Chains out: this weakens Agriculture and food production
Copper
Raw materials and inputs
DriverNegative impact: weakens
“Our business may be materially and adversely impacted by changes in U.S. or global economic conditions, including recessions, economic downturns, inflation, deflation, fluctuations in interest rates, consumer spending rates, energy availability and commodity prices, and the effects of governmental initiatives to manage economic conditions.”
Annual report 2025A · The company itself
InputNegative impact: weakens
“Compressors, motors and controls constitute our most significant component purchases, while steel, aluminum and copper account for the bulk of our raw material purchases.”
Annual report 2025A · The company itself
InputNegative impact: weakens
“We depend on raw materials, such as steel, copper and aluminum, and components purchased from third parties to manufacture our products.”
Annual report 2025A · The company itself
InputNegative impact: weakens
“We utilize a cash flow hedging program to mitigate our exposure to volatility in the prices of metal commodities used in our production processes.”
Annual report 2025A · The company itself
Chains in: Electrification strengthens, Data centres strengthens
Chains out: this strengthens Mining
EU climate and energy policy
Regulation
DriverNegative impact: weakens
“In 2020, in response to a global agreement to reduce greenhouse gasses, the bipartisan American Innovation and Manufacturing Act gave the U.S. Environmental Protection Agency (“EPA”) authority to regulate HFCs and begin the phase down of refrigerants with a higher global warming potential (“GWP”). Transition to refrigerants with a GWP of 700 or less for most commercial and residential HVAC products became effective January 1, 2025.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“The sales, gross margins, and profitability for each of our segments could be directly impacted by changes in legislation, government regulations, or policies (collectively, “LRPs”) relating to global climate change and other environmental initiatives and concerns. These LRPs, implemented under global, national, and sub-national climate objectives or policies, can include changes in environmental and energy efficiency standards and tend to target the global warming potential of refrigerants and hydrofluorocarbons, equipment energy efficiency, and combustion of fossil fuels as a heating source.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“Many of our products consume energy and use refrigerants and hydroflurocarbons. LRPs that seek to reduce greenhouse gas emissions may require us to make increased capital expenditures to develop or market new products to meet new LRPs.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“There continues to be a lack of consistent climate legislation and regulations, which creates economic and regulatory uncertainty. Such regulatory uncertainty could adversely impact the demand for energy efficient buildings and could increase costs of compliance.”
Annual report 2025A · The company itself
Chains out: this strengthens Circular economy and recycling, strengthens Energy efficiency
Steel
Raw materials and inputs
DriverNegative impact: weakens
“Our business may be materially and adversely impacted by changes in U.S. or global economic conditions, including recessions, economic downturns, inflation, deflation, fluctuations in interest rates, consumer spending rates, energy availability and commodity prices, and the effects of governmental initiatives to manage economic conditions.”
Annual report 2025A · The company itself
InputNegative impact: weakens
“Compressors, motors and controls constitute our most significant component purchases, while steel, aluminum and copper account for the bulk of our raw material purchases.”
Annual report 2025A · The company itself
InputNegative impact: weakens
“We depend on raw materials, such as steel, copper and aluminum, and components purchased from third parties to manufacture our products.”
Annual report 2025A · The company itself
InputNegative impact: weakens
“We utilize a cash flow hedging program to mitigate our exposure to volatility in the prices of metal commodities used in our production processes.”
Annual report 2025A · The company itself
Chains in: Wind power strengthens
Business cycle and GDP growth
Macro
DriverPositive impact: strengthens
“Our business is affected by the performance of the U.S. construction industry. Our sales in the residential and commercial new construction markets correlate to the number of new homes and buildings that are built, which in turn is influenced by cyclical factors such as interest rates, inflation, availability of financing, consumer spending habits and confidence, employment rates and other macroeconomic factors over which we have no control.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“Our business may be materially and adversely impacted by changes in U.S. or global economic conditions, including recessions, economic downturns, inflation, deflation, fluctuations in interest rates, consumer spending rates, energy availability and commodity prices, and the effects of governmental initiatives to manage economic conditions.”
Annual report 2025A · The company itself
Chains out: this strengthens Global trade volumes, strengthens Construction
Interest rates
Macro
DriverPositive impact: strengthens
“Our sales in the residential and commercial new construction markets correlate to the number of new homes and buildings that are built, which in turn is influenced by cyclical factors such as interest rates, inflation, availability of financing, consumer spending habits and confidence, employment rates and other macroeconomic factors over which we have no control.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“The tightening, unavailability or increased cost of credit adversely affects the ability of our customers to obtain financing for significant purchases and operations, resulting in a decrease in sales of our products and services and may impact the ability of 13 our customers to make payments to us.”
Annual report 2025A · The company itself
Chains in: Public debt and fiscal policy strengthens, Inflation strengthens
Chains out: this weakens Construction, weakens Real estate, weakens Wind power, weakens Housing market, weakens Office and commercial property, weakens Residential rental, weakens Residential construction
Labour and wages
Raw materials and inputs
DriverNegative impact: weakens
“We are committed to attracting, motivating, developing, and retaining our employees to remain an employer of choice. Despite our efforts, we have experienced, and could continue to experience, employee turnover, particularly in our manufacturing and distribution locations.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“Similarly, tightening of available credit may adversely affect our supplier base and increase the potential for one or more of our suppliers to experience financial distress or bankruptcy.”
Annual report 2025A · The company itself
Semiconductors and electronic components
Raw materials and inputs
InputNegative impact: weakens
“We depend on raw materials, such as steel, copper and aluminum, and components purchased from third parties to manufacture our products.”
Annual report 2025A · The company itself
InputNegative impact: weakens
“Compressors, motors and controls constitute our most significant component purchases, while steel, aluminum and copper account for the bulk of our raw material purchases.”
Annual report 2025A · The company itself
Chains in: Artificial intelligence strengthens
Tariffs and trade policy
Macro
DriverNegative impact: weakens
“These changes include renegotiating and terminating certain existing bilateral or multi-lateral trade agreements, such as the U.S.-Mexico-Canada Agreement (“USMCA”), and initiating tariffs on certain foreign goods from a variety of countries. In addition, the U.S. presidential administration has imposed increased tariffs on imports from Canada and Mexico for goods not covered by the USMCA.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“The USMCA is subject to review and renewal in 2026, and there can be no assurance that any newly negotiated terms in the USMCA will not adversely affect our business or operations.”
Annual report 2025A · The company itself
Chains in: Geopolitical uncertainty strengthens
Chains out: this weakens Global trade volumes
Carbon tax and ETS prices
Regulation
DriverNegative impact: weakens
“The sales, gross margins, and profitability for each of our segments could be directly impacted by changes in legislation, government regulations, or policies (collectively, “LRPs”) relating to global climate change and other environmental initiatives and concerns. These LRPs, implemented under global, national, and sub-national climate objectives or policies, can include changes in environmental and energy efficiency standards and tend to target the global warming potential of refrigerants and hydrofluorocarbons, equipment energy efficiency, and combustion of fossil fuels as a heating source.”
Annual report 2025A · The company itself
Chains out: this weakens Shipping and logistics, strengthens Energy efficiency, weakens Cement and building materials
Cybersecurity (products and services)
Technology
DriverNegative impact: weakens
“Despite our security measures as well as those of our business partners and third-party service providers, the information systems we rely upon may be vulnerable to interruption or damage from cyber attacks, computer viruses, worms or other destructive or disruptive software, process breakdowns, denial of service attacks, malicious social engineering or other malicious activities, or any combination thereof. Further, as AI technologies advance, new and increasingly sophisticated attack methods are emerging, including fraud involving impersonation technologies or other forms of generative AI that enhance the scale, frequency, and effectiveness of cyber threats.”
Annual report 2025A · The company itself
Chains in: Cyber attacks and IT security risk strengthens
Chains out: this strengthens Digitalisation
Inflation
Macro
DriverNegative impact: weakens
“Similarly, suppliers of components that we purchase for use in our products may be affected by rising material costs and inflation and pass these increased costs on to us.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“Price Volatility for Commodities and Components We Purchase or Significant Supply Interruptions Could Have an Adverse Effect on Our Cash Flow or Results of Operations.”
Annual report 2025A · The company itself
DriverMixed impact: mixed
“Our business may be materially and adversely impacted by changes in U.S. or global economic conditions, including recessions, economic downturns, inflation, deflation, fluctuations in interest rates, consumer spending rates, energy availability and commodity prices, and the effects of governmental initiatives to manage economic conditions.”
Annual report 2025A · The company itself
Chains out: this weakens Consumer spending, strengthens Interest rates
Geopolitical uncertainty
Macro
DriverNegative impact: weakens
“This inability to fully meet demand would be exacerbated if a single-location production facility is disrupted due to external factors including, but not limited to, a climate-related disaster, pandemic or epidemic, geopolitical instability, or war.”
Annual report 2025A · The company itself
DriverNegative impact: weakens
“External disruptions, including, but not limited to, conflicts, wars, natural disasters (the nature and severity of which may be impacted by climate change), public health crises, terrorist acts, or other civil or political disruptions, may cause significant damage or disruption to our operations, employees, facilities, systems, suppliers, supply chain, distributors, resellers, or customers in the U.S. and internationally for extended periods of time and could also affect demand for our products.”
Annual report 2025A · The company itself
Chains out: this strengthens Defence budgets, strengthens Energy security, strengthens Tariffs and trade policy, weakens Global trade volumes, strengthens Sea freight and freight rates, weakens Reconstruction of Ukraine
Employment
Macro
DriverNegative impact: weakens
“A number of factors may adversely affect the labor force available or increase labor costs, including labor shortages from high employment levels and related competition or labor stoppages due to disputes or strikes.”
Annual report 2025A · The company itself
Energy security
Regulation
DriverNegative impact: weakens
“Additionally, the effects of extreme weather events and natural disasters, long-term changes in temperature levels, water availability, increased cost for decarbonizing process heating, supply costs impacted by increasing energy costs, or energy costs impacted by carbon prices or offsets, as a result of climate change or other factors, may exacerbate supply chain constraints and disruption.”
Annual report 2025A · The company itself
Chains in: Geopolitical uncertainty strengthens, Reconstruction of Ukraine strengthens
Chains out: this strengthens Wind power, strengthens Power grid expansion
ESG and sustainability reporting
Regulation
DriverNegative impact: weakens
“Stakeholders are increasingly scrutinizing environmental, social and governance (“ESG”) practices, and stakeholders’ expectations regarding ESG practices are diverse, rapidly changing, and sometimes in conflict. If we are unable to satisfy the evolving ESG-related expectations of certain stakeholders, particularly as it relates to climate change, we may suffer reputational harm, which may cause our stock price to decrease or cause certain investors and financial institutions not to purchase our securities or provide us with capital or credit on favorable terms, which may cause our cost of capital to increase.”
Annual report 2025A · The company itself
Labour regulation
Regulation
DriverNegative impact: weakens
“In addition, as of December 31, 2025, approximately 26% of our core workforce locations were unionized.”
Annual report 2025A · The company itself
Subcontractors and haulage capacity
Raw materials and inputs
InputNegative impact: weakens
“We manufacture many of our products at single-location production facilities. In certain instances, we heavily rely on suppliers who also may concentrate production in single locations or source unique, necessary products from only one supplier.”
Annual report 2025A · The company itself
Nordics
Geography
Geography
“(approximately 8,500 employees) and Mexico (approximately 3,200 employees).”
Annual report 2025A · The company itself
Geography
“Net sales outside of the U.S. comprised approximately 7% of our total net sales in 2025.”
Annual report 2025A · The company itself
Latin America
Geography
Geography
“In addition, we own a 50% interest in a joint venture in Mexico that produces unit coolers, air-cooled condensers, condensing units, compressors and compressorized racks of the same design and quality as those manufactured by our U.S. business.”
Annual report 2025A · The company itself
Competitors mentioned in the report
No named competitors in the report.
Financial figures
| Revenue latest fiscal year | 5.2 bn USD |
| Revenue growth vs. the year before, same method | -2.7 % |
| EBITDA reported by the company | 1.15 bn USD |
| Net debt debt incl. leasing minus cash | 1.49 bn USD |
| Diluted EPS per share | 22.79 USD |
Source: 10-K (SEC) A. See the report
Criteria
| Profit | ✓ |
| Growing | ✗ |
| Healthy balance sheet | ✓ |
Only the criteria that can be computed from financial statements on this page. The remaining criteria (such as price and dividend) need a share price and are in the analysis.
Figures are in the report's currency (USD), not converted to DKK. Quotes are shown as the company's own words in English.