As market volatility and sector rotations persist in 2025, companies sitting on strong balance sheets are leaning into one of the most shareholder-friendly strategies available: stock buybacks. A wave of fresh repurchase authorizations has hit the tape in recent weeks, signaling confidence from management teams about the future of their businesses and the current undervaluation of their stocks. These announcements are especially notable in the current environment, where selective value and capital return are once again top priorities for investors.
Multiple large-cap stocks just announced significant buyback programs. Among them is one of the hottest consumer discretionary names over the past few years. It now has buyback capacity equal to nearly 16% of its market cap, and its shares are down massively from highs. This suggests the company is highly confident in the ability of its shares to perform well going forward.
LII: Strong Mid-Term Industrials Performer Boosting Buybacks and Dividends
[content-module:CompanyOverview|NYSE: LII]First up is Lennox International (NYSE: LII), an approximately $20 billion player in the heating, ventilation, air conditioning, and refrigeration space. On May 22, the company announced an increase to its buyback capacity of $1 billion, bringing its total capacity to just under $1.3 billion.
As of the May 30 close, this is equal to about 6.4% of the company’s market capitalization. In addition, the company announced a very notable 13% increase to its quarterly dividend.
The next $1.30 per share dividend will be payable on July 15 to shareholders of record on June 30. This gives the stock an indicated dividend yield of 0.9%. Despite achieving relatively moderate sales growth over the last couple of years, Lennox has been a standout performer.
Since the end of 2022, the stock has provided a total return of nearly 142% as of the May 30 close. The company’s operating margin expanded significantly from around 14% in 2022 to nearly 19.5% in 2024. Its full-year adjusted earnings per share (EPS) grew by 54% over this period, supporting the rise in shares.
DECK: Ups Repurchase Capacity After Quarter of Record Buybacks
[content-module:CompanyOverview|NYSE: DECK]Next up is one of the most talked-about consumer discretionary stocks over the past several years, Deckers Outdoor (NYSE: DECK). From the beginning of 2022 to Jan. 30, 2025, the stock gained approximately 265%. However, since then, the trajectory of the Hoka shoemaker’s stock has pointed straight down. From that all-time high in January, the stock is down approximately 53% as of the May 30 close. The company’s recent share repurchase authorization announcement indicates that it may be looking to take advantage of this huge fall from grace.
On May 22, along with its fiscal Q4 2025 results, Deckers announced it had increased its buyback authorization to approximately $2.5 billion. This equates to an absolutely massive 15.8% of the company’s market capitalization as of the May 30 close. This gives the company a huge ability to decrease its outstanding share count and provide a large tailwind to its EPS.
The company already stepped up its buybacks in a big way in calendar Q1 as the huge drop in shares began to manifest. The company spent $266 million on repurchases, by far the highest amount in a single quarter in its history. In Q4, when shares were nearing their peak, the company spent just $50 million on buybacks.
This buyback authorization suggests the firm may be looking to step up repurchases even further. Decker’s cash balance of just under $1.9 billion, while only having $277 million in debt, gives it a very strong ability to do so. Adding to this ability is the fact that the company is relatively frugal when it comes to capital expenditures, spending an average of just $22 million over the last four quarters.
TS: Robust Balance Sheet, 5% Dividend, Substantial Buyback Capacity
[content-module:CompanyOverview|NYSE: TS]Last up is Tenaris (NYSE: TS). The large-cap steel pipe supplier for oil and gas companies recently approved a substantial new share repurchase program, valued at $1.2 billion.
As of the May 30 close, this number is equal to approximately 6.7% of the company’s market capitalization.
Tenaris also has a very strong dividend yield of just under 5%. Tenaris first started buying back shares at the beginning of 2024. The company has been making notable use of buybacks since, spending an average of $315 million on repurchases per quarter. This buyback pace suggests it could use its full capacity over the next 12 months.
Tenaris remains in a very strong position to continue this buyback pace if it chooses. It ended last quarter with a net cash balance of $4 billion and generated free cash flow of over $2.1 billion in the last 12 months. Thus, if operating results remain similar going forward, the company could execute its full buyback capacity without reducing its cash reserves.
Overall, these three firms are reiterating their commitment to returning capital to shareholders through their new buyback authorization. Deckers stands out due to the dramatic fall in its share price and its gigantic buyback authorization.
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