Lennox International (NYSE:LII) Releases Earnings Results, Beats Estimates By $0.05 EPS

Lennox International (NYSE:LII) posted its quarterly earnings results on Wednesday. The construction company reported $7.72 earnings per share for the quarter, beating the consensus estimate of $7.67 by $0.05, FiscalAI reports. The firm had revenue of $1.55 billion for the quarter, compared to analyst estimates of $1.56 billion. Lennox International had a return on equity of 66.42% and a net margin of 14.61%.Lennox International’s quarterly revenue was up 3.0% on a year-over-year basis. During the same period in the previous year, the firm earned $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 Up 1.1%

Lennox International stock opened at $422.24 on Friday. Lennox International has a 52 week low of $411.40 and a 52 week high of $621.90. The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.64 and a current ratio of 1.57. The firm has a market capitalization of $14.69 billion, a PE ratio of 19.16, a PEG ratio of 1.68 and a beta of 1.16. The business’s 50-day simple moving average is $529.48 and its 200-day simple moving average is $516.03.

Lennox International Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were paid a $1.36 dividend. The ex-dividend date was Tuesday, June 30th. This is a boost from Lennox International’s previous quarterly dividend of $1.30. This represents a $5.44 dividend on an annualized basis and a dividend yield of 1.3%. Lennox International’s dividend payout ratio is presently 24.48%.

Analyst Ratings Changes

Several research analysts have weighed in on the stock. BNP Paribas Exane initiated coverage on shares of Lennox International in a research note on Tuesday, April 14th. They issued a “neutral” rating and a $535.00 price objective on the stock. Royal Bank Of Canada reduced their target price on shares of Lennox International from $579.00 to $469.00 and set a “sector perform” rating for the company in a research note on Thursday. William Blair restated an “outperform” rating on shares of Lennox International in a report on Wednesday. Wells Fargo & Company upped their price objective on shares of Lennox International from $480.00 to $555.00 and gave the stock an “equal weight” rating in a report on Thursday, April 30th. Finally, Weiss Ratings raised Lennox International from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, June 18th. Four equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $546.55.

Insider Transactions at Lennox International

In other Lennox International news, CAO Chris Kosel sold 971 shares of Lennox International stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $544.80, for a total value of $529,000.80. Following the transaction, the chief accounting officer directly owned 1,090 shares of the company’s stock, valued at $593,832. The trade was a 47.11% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 9.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On Lennox International

Institutional investors and hedge funds have recently bought and sold shares of the stock. Ameriprise Financial Inc. grew its position in Lennox International by 296.0% during the second quarter. Ameriprise Financial Inc. now owns 71,815 shares of the construction company’s stock worth $41,168,000 after buying an additional 53,679 shares in the last quarter. Danske Bank A S acquired a new position in shares of Lennox International in the third quarter valued at $7,249,000. Lazard Asset Management LLC lifted its position in Lennox International by 111.1% in the second quarter. Lazard Asset Management LLC now owns 18,659 shares of the construction company’s stock worth $10,696,000 after purchasing an additional 9,818 shares during the period. Entropy Technologies LP bought a new position in Lennox International in the third quarter worth $2,479,000. Finally, Dark Forest Capital Management LP acquired a new stake in Lennox International during the third quarter worth $2,043,000. Institutional investors own 67.07% of the company’s stock.

More Lennox International News

Here are the key news stories impacting Lennox International this week:

• Positive Sentiment: Lennox reported adjusted earnings of $7.72 per share, slightly above the $7.67 analyst consensus. Revenue increased 3% year over year to approximately $1.55 billion, while commercial-related operations provided some support. Lennox International Q2 2026 Earnings Call Summary
• Neutral Sentiment: Management described ongoing initiatives to offset costs through pricing, productivity improvements and tariff refunds, but the earnings call highlighted a mixed operating environment, with commercial gains offset by weakness in residential HVAC demand. Lennox International Balances Strength With HCS Weakness
• Negative Sentiment: Lennox reduced its 2026 adjusted EPS outlook to $23.00–$24.00 from $23.50–$25.00. The guidance cut signals that management expects business conditions and profitability to remain challenging. Lennox International Falls After Cutting 2026 EPS Outlook
• Negative Sentiment: Home Comfort Solutions revenue fell 7% year over year, hurt by weak residential demand and new-construction headwinds. Segment margin declined 130 basis points as lower volumes, distribution costs, inflation and factory under-absorption outweighed pricing benefits. LII Q2 Deep Dive
• Negative Sentiment: Royal Bank of Canada lowered its price target to $469 from $579 and moved to a “sector perform” rating, reflecting reduced confidence in near-term growth and margins. RBC Lennox Price Target Update
• Negative Sentiment: The broader HVAC group also sold off amid earnings-related margin concerns and questions about data-center demand, adding industry-wide pressure to LII. Shares are near their 12-month low of $411.40 and well below their 50-day and 200-day moving averages. HVAC Stocks Sell Off

About Lennox International

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.