Lennox International (NYSE:LII – Get Free Report) announced its quarterly earnings data on Wednesday. The construction company reported $7.72 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $7.67 by $0.05, FiscalAI reports. The firm had revenue of $1.55 billion for the quarter, compared to the consensus estimate of $1.56 billion. Lennox International had a net margin of 14.89% and a return on equity of 73.27%. The business’s revenue for the quarter was up 3.0% on a year-over-year basis. During the same period in the prior year, the company posted $7.82 earnings per share. Lennox International updated its FY 2026 guidance to 23.000-24.000 EPS.
Here are the key takeaways from Lennox International’s conference call:
- Residential demand remained weak: Home Comfort Solutions revenue fell 7%, with unit volumes down 12% and new-construction revenue down approximately 30%. Lennox cited affordability pressures, low consumer confidence, and its decision to exit low-margin business.
- Lennox reduced its full-year adjusted EPS outlook to $23–$24 from its prior forecast, primarily because lower residential volumes are expected to outweigh stronger commercial demand. HCS revenue growth guidance was cut to approximately 1% from 4%, while productivity expectations declined to $60 million from $75 million.
- Building Climate Solutions continued to outperform: Revenue increased 24% and organic sales rose 12%, supported by national-account wins, emergency replacement demand, service growth, acquisitions, and favorable execution. Management said the segment is gaining share and expects continued volume growth.
- The recently completed Comfort-Aire, Century, and Coast Air acquisition expands Lennox’s small- and mid-size distributor reach and is expected to be EPS-accretive in 2027, with potential benefits from product integration, logistics, and SG&A synergies.
- Cash generation and the balance sheet remained strong, with $172 million of quarterly operating cash flow, 92% trailing-12-month free-cash-flow conversion, net debt at 1.3 times adjusted EBITDA, and unchanged full-year free-cash-flow guidance of $750–$850 million. Lennox also repurchased approximately $130 million of shares during the quarter.
Lennox International Trading Down 20.9%
Shares of Lennox International stock opened at $430.53 on Thursday. Lennox International has a 1 year low of $428.00 and a 1 year high of $634.02. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.57 and a quick ratio of 0.64. The firm has a market cap of $14.98 billion, a PE ratio of 19.38, a PEG ratio of 2.07 and a beta of 1.16. The company has a 50 day simple moving average of $530.72 and a two-hundred day simple moving average of $516.82.
Lennox International Increases Dividend
Insider Activity
In other Lennox International news, CAO Chris Kosel sold 971 shares of the company’s stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $544.80, for a total value of $529,000.80. Following the sale, the chief accounting officer owned 1,090 shares in the company, valued at approximately $593,832. This represents a 47.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 9.80% of the stock is owned by insiders.
Institutional Investors Weigh In On Lennox International
Several hedge funds have recently added to or reduced their stakes in LII. MUFG Securities EMEA plc purchased a new stake in shares of Lennox International in the second quarter worth $54,000. Brown Brothers Harriman & Co. grew its position in Lennox International by 54.1% during the 4th quarter. Brown Brothers Harriman & Co. now owns 410 shares of the construction company’s stock valued at $199,000 after purchasing an additional 144 shares during the last quarter. Quantitative Investment Management LLC purchased a new position in Lennox International in the third quarter worth about $249,000. United Capital Financial Advisors LLC purchased a new stake in shares of Lennox International during the third quarter valued at approximately $370,000. Finally, DF Dent & Co. Inc. purchased a new position in Lennox International in the 3rd quarter worth approximately $426,000. 67.07% of the stock is owned by institutional investors.
Analyst Ratings Changes
A number of analysts have weighed in on LII shares. William Blair reissued an “outperform” rating on shares of Lennox International in a research report on Wednesday. Royal Bank Of Canada lifted their target price on shares of Lennox International from $485.00 to $579.00 and gave the stock a “sector perform” rating in a research note on Thursday, April 30th. Barclays decreased their price target on Lennox International from $600.00 to $597.00 and set an “overweight” rating for the company in a report on Thursday, April 30th. Weiss Ratings upgraded Lennox International from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, June 18th. Finally, BNP Paribas Exane started coverage on Lennox International in a report on Tuesday, April 14th. They issued a “neutral” rating and a $535.00 target price for the company. Four equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Lennox International has an average rating of “Hold” and an average price target of $556.55.
Check Out Our Latest Analysis on LII
More Lennox International News
Here are the key news stories impacting Lennox International this week:
- Positive Sentiment: Second-quarter GAAP earnings per share were $7.72, slightly above analyst expectations, while revenue rose 3% year over year to approximately $1.5 billion. Operating income also increased 2% to $355 million. Lennox Reports 2026 Second Quarter Results
- Positive Sentiment: Management said pricing actions and tariff refunds helped offset some cost pressure. Lennox also received industry recognition for its Strategos commercial rooftop units, supporting its longer-term product and commercial HVAC positioning. Lennox Earns Two 2026 HVAC All-Star Awards
- Neutral Sentiment: Several analysts maintain constructive views, with reported price targets generally above the current market level. However, these targets were issued before the latest earnings release and may be reassessed following the guidance reduction.
- Negative Sentiment: Lennox reduced its fiscal 2026 EPS guidance to $23.00–$24.00 from $23.50–$25.00, below the roughly $24.43 analyst consensus. The lower outlook is the main catalyst behind the selloff. Lennox Falls After Cutting 2026 EPS Outlook
- Negative Sentiment: Second-quarter revenue missed expectations of about $1.56 billion, and EPS declined from $7.82 a year earlier despite the modest earnings beat.
- Negative Sentiment: The Home Comfort Solutions segment remained weak: revenue fell 7%, while its margin declined 130 basis points. Lower volumes, distribution costs, inflation and factory under-absorption outweighed pricing benefits, with residential new construction still a significant headwind. Why Lennox International Is Under Pressure After Earnings
Lennox International Company Profile
Lennox International Inc is a global manufacturer of climate control products and services, principally serving residential and commercial heating, ventilation and air conditioning (HVAC) markets. The company designs, engineers and produces a range of products including furnaces, air conditioners, heat pumps, air handlers, packaged rooftop units and related controls and indoor air quality equipment. Lennox also supplies aftermarket parts and accessories and supports its product lines with technical service, training and warranty programs for dealer and distribution partners.
Originally founded in 1895 by Dave Lennox, the company has grown from its early roots into a multinational business with operations concentrated in North America and a presence in other international markets.
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