Lennox International (NYSE:LII) Releases Quarterly Earnings Results, Misses Estimates By $0.52 EPS

Lennox International (NYSE:LII) released its quarterly earnings results on Wednesday. The construction company reported $6.84 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.36 by ($0.52), Zacks reports. The business’s revenue was up 10.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned $6.98 EPS.

Here are the key takeaways from Lennox International’s conference call:

• Third-quarter profitability declined despite strong revenue growth: revenue rose 10.2% to $1.6 billion, but total segment profit fell about 2% and adjusted EPS declined 7% to $6.84, as competitive pricing pressure and tariffs outpaced price realization.
• Lennox reduced its full-year outlook, now expecting approximately 6% revenue growth, adjusted EPS of $21.00–$21.50, and free cash flow of $700–$750 million. Home Comfort Solutions revenue is now expected to decline about 4%, while its full-year margin is projected to contract roughly 350 basis points.
• Building Climate Solutions remained a major growth driver, with revenue up 24% including 15% organic growth, supported by commercial equipment, services, emergency replacement demand, national accounts, and acquisitions; full-year segment growth is now expected to be approximately 23%.
• Management launched a recovery plan centered on more targeted pricing, cost and productivity actions, entry-tier product expansion, and deeper national-account relationships. The company expects these actions to support higher sales, EBIT, and EPS in 2027 without relying on a significant recovery in industry volumes, although the first half is expected to face continued tariff and inflation pressure.
• Cash generation and inventory management improved, with third-quarter operating cash flow of $395 million, trailing-12-month free-cash-flow conversion of 108%, and organic inventory units down more than 15%; Lennox also repurchased approximately $151 million of shares during the quarter.

Lennox International Stock Performance

Shares of LII stock traded down $31.04 on Wednesday, hitting $341.01. The stock had a trading volume of 868,740 shares, compared to its average volume of 490,862. The business has a 50 day moving average of $372.58 and a 200 day moving average of $474.85. Lennox International has a 12-month low of $337.23 and a 12-month high of $587.27.

Lennox International Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th were paid a $1.36 dividend. The ex-dividend date was Wednesday, September 30th. This represents a $5.44 annualized dividend and a dividend yield of 1.6%.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on the company. Wells Fargo & Company assumed coverage on Lennox International in a research note on Friday, September 25th. They issued an “equal weight” rating and a $424.00 price target on the stock. The Goldman Sachs Group downgraded Lennox International from a “buy” rating to a “neutral” rating and decreased their price objective for the company from $547.00 to $390.00 in a report on Wednesday, October 14th. Royal Bank Of Canada lowered their target price on Lennox International from $469.00 to $406.00 and set a “sector perform” rating on the stock in a research report on Wednesday, October 14th. Morgan Stanley decreased their price target on shares of Lennox International from $375.00 to $350.00 and set an “underweight” rating for the company in a research note on Thursday, October 15th. Finally, William Blair restated an “outperform” rating on shares of Lennox International in a report on Wednesday, July 29th. Four research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $480.00.

Key Stories Impacting Lennox International

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

• Positive Sentiment: Third-quarter revenue increased 10% year over year to approximately $1.6 billion, while GAAP operating income reached $312 million. The top-line growth suggests continued demand for Lennox’s building and home-comfort products. Lennox Reports 2026 Third Quarter Earnings Results
• Positive Sentiment: Lennox maintained a sizable full-year adjusted earnings outlook of $21.00 to $21.50 per share, providing investors with visibility despite near-term cost and margin pressures. Lennox Reports 2026 Third Quarter Earnings Results
• Neutral Sentiment: Analysts are focusing on quarterly operating metrics beyond revenue and EPS, including segment performance and margins, to assess whether Lennox’s sales growth can translate into sustainable profitability. Lennox Q3 Earnings: How Key Metrics Compare to Wall Street Estimates
• Negative Sentiment: Adjusted diluted EPS was $6.84, down from $6.98 a year earlier and below consensus estimates ranging from $7.18 to $7.36. GAAP diluted EPS was $6.41. Lennox International Q3 Earnings Lag Estimates
• Negative Sentiment: Total segment profit declined 2%, and tariff-related costs prompted Lennox to lower its 2026 earnings guidance. The guidance cut raises concerns about margins and the financial impact of trade-policy uncertainty. Lennox International Q3 2026: Tariffs Trigger a Sharp Guidance Cut

About Lennox International

Lennox International Inc is a heating, ventilation, air conditioning and refrigeration company headquartered in Richardson, Texas. Founded in 1895 by Dave Lennox, the company develops and markets products designed to provide climate control and improve indoor air quality in residential and commercial buildings.

Its product portfolio includes air conditioners, heat pumps, furnaces, air handlers, thermostats, indoor air-quality equipment and related controls. Lennox also provides commercial heating and cooling systems, replacement components, installation support and other services through distributors, dealers and contractors.

Lennox primarily serves customers in the United States and Canada, with products and services also marketed in selected international markets.