LII
Lennox International Inc.
Is LII Halal?
Leading manufacturer of climate-control HVACR products for residential and commercial markets — permissible heating-cooling-and-refrigeration manufacturing business with manageable financial-screen profile.
What You Should Know
Lennox manufactures residential and commercial HVACR and refrigeration equipment. General-purpose manufacturing is generally permissible, while refrigerant, building and customer end-use mix require qualitative review. Its March 31, 2026 Form 10-Q reports total assets of $4,292.7 million, conservative debt and leases of $1,954.9 million, cash of $48.2 million, short-term investments of $2.0 million, receivables of $647.9 million and quarterly revenue of $1,135.1 million. Debt/assets is 45.54%, liquidity/assets is 1.17% and receivables plus cash/assets is 16.22%, so the examined FTSE, MSCI and Malaysia asset-based financial screens fail; interest-income and prohibited-revenue allocation remain incomplete.
⚠️ Concerns
- •The current filing-based debt/assets screen is 45.54%, above the examined 33.33% limit
- •Refrigerant transition and environmental impact require ongoing review
- •Customer-facing dealer and distributor financing arrangements may require qualitative review
- •The filing does not separately disclose an interest-income numerator; no fixed purification percentage is asserted
- •Residential construction, replacement demand and commercial end uses remain business-quality considerations
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
1,954.9 / 4,292.7
50.2 / 4,292.7
696.1 / 4,292.7
- Financial
- Fails
- Overall
- Fails
Debt/assets is 45.54%, above the examined 33.333% limit; liquidity/assets is 1.17% and receivables-plus-cash/assets is 16.22%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 45.54%, above the examined MSCI 33.33% limit; liquidity/assets is 1.17% and receivables-plus-cash/assets is 16.22%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 45.54%, above the examined Malaysia debt limit; HVACR activity and prohibited-revenue allocation remain qualitative.
- Financial
- Not calculated
- Overall
- Incomplete
A properly licensed and reproducible historical market-cap series is not stored; filing-based asset ratios remain documented.
Business-activity disclosure
Lennox manufactures heating, ventilation, air-conditioning and refrigeration equipment. General manufacturing is generally permissible, while refrigerant, building and customer end-use allocation requires qualitative review.
Limitation: The filing does not provide a universal prohibited-revenue numerator across products and end markets.
Purification
The filing does not separately disclose an interest-income numerator suitable for a purification calculation; no fixed percentage is asserted.
Inputs, assumptions and primary sources
- Amounts are USD millions from Lennox's March 31, 2026 Form 10-Q.
- Conservative debt combines $1,523.3 million of debt and capital lease obligations with $83.8 million current and $347.8 million noncurrent operating-lease liabilities.
- Cash is $48.2 million and short-term investments are $2.0 million; receivables are $647.9 million.
- Quarterly revenue is $1,135.1 million; the filing does not separately disclose an interest-income numerator usable for this screen.
- HVACR manufacturing is generally permissible, while building, refrigerant and customer end-use mix requires qualitative review.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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