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

Lennox International (NYSE:LII) released its quarterly earnings results on Wednesday. The construction company reported $7.72 earnings per share for the quarter, beating analysts’ consensus estimates of $7.67 by $0.05, FiscalAI reports. Lennox International had a return on equity of 73.27% and a net margin of 14.89%.The business had revenue of $1.55 billion for the quarter, compared to the consensus estimate of $1.56 billion. During the same quarter last year, the business posted $7.82 earnings per share. The company’s revenue for the quarter was up 3.0% on a year-over-year basis. 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 19.4%

Shares of Lennox International stock traded down $105.62 during trading on Wednesday, reaching $438.49. 1,076,073 shares of the stock were exchanged, compared to its average volume of 463,181. The company has a quick ratio of 0.64, a current ratio of 1.57 and a debt-to-equity ratio of 0.94. The stock’s fifty day moving average is $531.98 and its 200 day moving average is $517.43. The firm has a market cap of $15.26 billion, a price-to-earnings ratio of 19.78, a price-to-earnings-growth ratio of 2.08 and a beta of 1.16. Lennox International has a 1 year low of $431.41 and a 1 year high of $634.02.

Lennox International Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were paid a dividend of $1.36 per share. This represents a $5.44 annualized dividend and a dividend yield of 1.2%. This is a positive change from Lennox International’s previous quarterly dividend of $1.30. The ex-dividend date of this dividend was Tuesday, June 30th. Lennox International’s payout ratio is currently 24.48%.

Insider Buying and Selling at Lennox International

In other news, CAO Chris Kosel sold 971 shares of the business’s stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $544.80, for a total transaction of $529,000.80. Following the transaction, the chief accounting officer directly owned 1,090 shares of the company’s stock, valued at approximately $593,832. The trade was a 47.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 9.80% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in LII. Ameriprise Financial Inc. boosted its holdings in shares of Lennox International by 296.0% during the 2nd quarter. Ameriprise Financial Inc. now owns 71,815 shares of the construction company’s stock valued at $41,168,000 after buying an additional 53,679 shares in the last quarter. Danske Bank A S bought a new position in Lennox International during the 3rd quarter valued at approximately $7,249,000. Lazard Asset Management LLC raised its stake in Lennox International by 111.1% during the second quarter. Lazard Asset Management LLC now owns 18,659 shares of the construction company’s stock valued at $10,696,000 after buying an additional 9,818 shares during the last quarter. Entropy Technologies LP bought a new stake in Lennox International in the third quarter worth $2,479,000. Finally, Dark Forest Capital Management LP purchased a new stake in Lennox International during the 3rd quarter valued at about $2,043,000. Institutional investors own 67.07% of the company’s stock.

Analyst Ratings Changes

A number of analysts recently weighed in on LII shares. Wells Fargo & Company boosted their target price on Lennox International from $480.00 to $555.00 and gave the stock an “equal weight” rating in a research report on Thursday, April 30th. Royal Bank Of Canada upped their price objective on shares of Lennox International from $485.00 to $579.00 and gave the company a “sector perform” rating in a research note on Thursday, April 30th. Vertical Research upgraded shares of Lennox International from a “hold” rating to a “buy” rating and set a $600.00 target price on the stock in a research report on Thursday, April 30th. Barclays lowered their price target on shares of Lennox International from $600.00 to $597.00 and set an “overweight” rating for the company in a research note on Thursday, April 30th. Finally, Weiss Ratings raised Lennox International from a “hold (c)” rating to a “hold (c+)” rating in a research note 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 company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $556.55.

Key Headlines Impacting Lennox International

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

• Positive Sentiment: Lennox reported second-quarter revenue of approximately $1.5 billion, up 3% year over year, while GAAP operating income increased 2% to $355 million. EPS of $7.72 also exceeded analysts’ estimates of roughly $7.63-$7.67. Lennox Reports 2026 Second Quarter Results
• Positive Sentiment: Longer-term investor positioning remains supportive: 300 institutional investors added LII shares in the latest quarter versus 277 that reduced holdings. Several analysts also maintain bullish ratings or price targets above the current trading range, including Barclays’ $597 target. However, these holdings and targets may not reflect the latest earnings update.
• Neutral Sentiment: Lennox received two 2026 HVAC All-Star awards for its Strategos rooftop units and commercial HVAC innovation. The recognition supports the company’s product reputation but is unlikely to materially change near-term earnings expectations. Lennox Earns Two 2026 HVAC All-Star Awards
• Negative Sentiment: Lennox cut its 2026 EPS guidance to $23.00-$24.00 from $23.50-$25.00, below the analyst consensus of approximately $24.43. Revenue guidance was maintained at about $5.6 billion, indicating that the primary issue is profitability rather than sales growth. Lennox International Beats Q2 Earnings Estimates
• Negative Sentiment: The Home Comfort Solutions segment, which serves residential markets, reported a 7% revenue decline. Its margin fell 130 basis points as lower volumes, distribution costs, inflation and factory under-absorption outweighed pricing benefits and tariff refunds. New-home construction remains a significant headwind. Lennox International Falls After Cutting 2026 EPS Outlook
• Negative Sentiment: Second-quarter EPS was essentially flat versus $7.82 a year earlier despite higher revenue, reinforcing concerns that cost and volume pressures are limiting operating leverage. Recent insider activity also shows four sales and no purchases over six months, although such transactions are not necessarily related to the earnings release.

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.