LII

AI Research

Enters water heating market via Ariston JV → 2030 revenue target of $6.5B-$7.5B set

Lennox entered the North American residential water heating market through a joint venture with Ariston Group, with dealer orders for Lennox-branded water heaters starting March 16, 2026. At its March 4 Investor Day, management reaffirmed 2026 guidance and set 2030 targets of $6.5B-$7.5B revenue with segment profit margins of 22%-23% and free cash flow conversion >90% of net income. Oppenheimer raised its price target to $645 from $630 with a Buy rating following the Investor Day.