Lennox International (NYSE:LII) Posts Earnings Results, Misses Expectations By $0.31 EPS

Lennox International (NYSE:LII) issued its earnings results on Wednesday. The construction company reported $4.45 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.76 by ($0.31), FiscalAI reports. The business had revenue of $1.20 billion for the quarter, compared to analysts’ expectations of $1.27 billion. Lennox International had a return on equity of 91.96% and a net margin of 15.74%.The company’s revenue for the quarter was down 11.2% on a year-over-year basis. During the same period last year, the business earned $5.60 EPS. Lennox International updated its FY 2026 guidance to 23.500-25.000 EPS.

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

• Lennox delivered a record full-year 20.4% segment margin and adjusted EPS of $23.16 (up ~2% y/y), generated strong cash flow (free cash flow $640M in 2025) and returned capital via $482M of repurchases while deploying ~$545M into acquisitions and JVs.
• 2026 guidance calls for company revenue growth of 6%–7%, adjusted EPS of $23.50–$25 and free cash flow of $750M–$850M, driven by price/mix, M&A contributions and planned productivity actions.
• Near-term demand weakness and channel destocking hurt results—Q4 revenue fell 11% (Home Comfort Solutions down ~21% in Q4) and management expects a weak first half of 2026 with destocking completing by Q2 and a second-half recovery.
• Inventory is elevated after the FIFO adoption (about $300M higher vs Dec 2024 and roughly $200M above seasonal norms), which will create absorption headwinds in Q1 as the company holds stock to support peak Q2 demand.
• Management is investing for long-term growth—~$300M deployed since 2022, a planned $250M CapEx in 2026 (maintenance plus strategic projects), and a targeted ~$75M of productivity savings to offset ~2.5% cost inflation and help sustain margin expansion.

Lennox International Stock Down 0.1%

Shares of NYSE:LII opened at $487.05 on Thursday. Lennox International has a 52-week low of $443.19 and a 52-week high of $689.44. The company has a quick ratio of 0.80, a current ratio of 1.68 and a debt-to-equity ratio of 0.78. The business has a fifty day moving average of $501.28 and a two-hundred day moving average of $534.46. The stock has a market cap of $17.08 billion, a P/E ratio of 20.74, a PEG ratio of 1.88 and a beta of 1.18.

Lennox International Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, January 15th. Stockholders of record on Wednesday, December 31st were issued a dividend of $1.30 per share. This represents a $5.20 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Wednesday, December 31st. Lennox International’s payout ratio is currently 21.95%.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on LII shares. JPMorgan Chase & Co. boosted their price target on Lennox International from $493.00 to $541.00 and gave the company an “underweight” rating in a report on Friday, January 16th. Mizuho dropped their price target on shares of Lennox International from $650.00 to $565.00 and set a “neutral” rating on the stock in a research report on Friday, October 17th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Lennox International in a research report on Thursday, January 22nd. Northcoast Research upgraded Lennox International from a “sell” rating to a “neutral” rating and set a $525.00 target price on the stock in a research report on Monday, October 27th. Finally, Wells Fargo & Company reduced their price target on Lennox International from $525.00 to $520.00 and set an “equal weight” rating for the company in a report on Thursday. Four equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Lennox International has an average rating of “Hold” and an average target price of $596.83.

Key Headlines Impacting Lennox International

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

• Positive Sentiment: Margins improved and management emphasized margin recovery despite lower volumes and dealer destocking—cost control, pricing and mix helped protect profitability, a constructive sign for cash flow and earnings leverage. Lennox International Earnings Call: Margins Up, Volumes Down
• Neutral Sentiment: Company issued FY‑2026 guidance of $23.50–$25.00 EPS and revenue $5.5B–$5.6B, giving investors a clear baseline for the year but with a midpoint slightly under consensus—provides visibility but not a catalyst by itself. The company also moved from LIFO to FIFO accounting, which affects year‑over‑year comparisons. Lennox Reports Fourth Quarter and Full Year 2025 Results; Provides Full Year 2026 Guidance
• Negative Sentiment: Q4 results missed expectations: GAAP/adjusted EPS of $4.45 vs. consensus ~$4.76 and revenue $1.20B vs. ~$1.27B; revenue fell ~11% YoY and segment profit declined—these misses triggered the selloff. Lennox International (LII) Misses Q4 Earnings and Revenue Estimates
• Negative Sentiment: Street reaction: analysts and headlines highlighted the revenue and EPS shortfall and shares slid on the print; investor focus will be on whether volumes/stocks at dealers normalize and management can sustain margins. Lennox International shares slide after Q4 earnings and revenue miss

Insiders Place Their Bets

In related news, Director Todd J. Teske sold 600 shares of the company’s stock in a transaction that occurred on Tuesday, November 11th. The stock was sold at an average price of $491.85, for a total value of $295,110.00. Following the transaction, the director directly owned 7,581 shares in the company, valued at approximately $3,728,714.85. This represents a 7.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 10.40% of the stock is owned by insiders.

Institutional Trading of Lennox International

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LII. Ameriprise Financial Inc. lifted its position in shares of Lennox International by 18.5% during the 3rd quarter. Ameriprise Financial Inc. now owns 85,096 shares of the construction company’s stock worth $45,043,000 after purchasing an additional 13,281 shares during the last quarter. BNP Paribas Financial Markets lifted its holdings in Lennox International by 3.5% during the 3rd quarter. BNP Paribas Financial Markets now owns 67,766 shares of the construction company’s stock worth $35,873,000 after buying an additional 2,276 shares during the last quarter. California State Teachers Retirement System boosted its position in shares of Lennox International by 6.1% during the 2nd quarter. California State Teachers Retirement System now owns 48,533 shares of the construction company’s stock worth $27,821,000 after acquiring an additional 2,785 shares in the last quarter. Lazard Asset Management LLC increased its holdings in shares of Lennox International by 111.1% in the 2nd quarter. Lazard Asset Management LLC now owns 18,659 shares of the construction company’s stock valued at $10,696,000 after acquiring an additional 9,818 shares during the last quarter. Finally, Danske Bank A S acquired a new stake in shares of Lennox International during the 3rd quarter worth about $7,249,000. Hedge funds and other institutional investors own 67.07% of the company’s stock.

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.