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

Lennox International (NYSE:LII) posted its earnings results on Wednesday. The construction company reported $7.72 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $7.67 by $0.05, FiscalAI reports. The company had revenue of $1.55 billion during 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 firm’s quarterly revenue was up 3.0% on a year-over-year basis. During the same period in the previous year, the firm 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 Price Performance

LII stock traded down $107.33 during midday trading on Wednesday, reaching $436.78. The stock had a trading volume of 1,207,676 shares, compared to its average volume of 464,325. The company’s fifty day simple moving average is $531.98 and its 200 day simple moving average is $517.43. The company has a current ratio of 1.57, a quick ratio of 0.64 and a debt-to-equity ratio of 0.94. The company has a market cap of $15.20 billion, a price-to-earnings ratio of 19.64, a price-to-earnings-growth ratio of 2.08 and a beta of 1.16. Lennox International has a 52-week low of $431.41 and a 52-week high of $634.02.

Lennox International Increases Dividend

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

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on LII. Royal Bank Of Canada boosted their price target on Lennox International from $485.00 to $579.00 and gave the company a “sector perform” rating in a report on Thursday, April 30th. BNP Paribas Exane started coverage on shares of Lennox International in a research note on Tuesday, April 14th. They issued a “neutral” rating and a $535.00 target price for the company. William Blair restated an “outperform” rating on shares of Lennox International in a research report on Wednesday. Weiss Ratings raised Lennox International from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, June 18th. Finally, Wells Fargo & Company increased their price target 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. 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. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $556.55.

Key Stories 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. Diluted EPS of $7.72 surpassed analyst estimates near $7.63-$7.67. Lennox Reports 2026 Second Quarter Results
• Positive Sentiment: Management said pricing actions and tariff refunds helped offset some cost pressures. Analysts also maintain generally favorable views, with recent price targets above the current trading level, although these targets may not yet reflect the lower guidance.
• Neutral Sentiment: The broader market was under pressure as oil prices surged amid renewed U.S.-Iran tensions and investors awaited the Federal Reserve’s interest-rate decision. This risk-off environment added to pressure on economically sensitive and industrial stocks. Oil Spikes 7%, Nasdaq 100 Sinks Before Fed
• Negative Sentiment: Lennox lowered its 2026 EPS outlook to $23.00-$24.00 from $23.50-$25.00, below the consensus estimate of roughly $24.43. Revenue guidance was maintained near $5.6 billion, indicating that the main issue is earnings conversion rather than sales growth. Lennox International Falls After Cutting 2026 EPS Outlook
• Negative Sentiment: Home Comfort Solutions revenue fell 7%, with residential new construction remaining a significant headwind. The segment’s margin contracted 130 basis points because of lower volumes, distribution costs, inflation and factory under-absorption, despite pricing benefits.
• Negative Sentiment: Second-quarter EPS was down from $7.82 a year earlier, reinforcing concerns that Lennox is experiencing margin and demand pressure even while reported revenue grows. Recent insider activity also showed sales and no open-market purchases, though this is a secondary signal.

Insider Activity

In other news, CAO Chris Kosel sold 971 shares of the business’s stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $544.80, for a total transaction of $529,000.80. Following the transaction, the chief accounting officer owned 1,090 shares of the company’s stock, valued at approximately $593,832. The trade was a 47.11% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 9.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On Lennox International

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LII. Ameriprise Financial Inc. raised its position in Lennox International by 18.5% in the third quarter. Ameriprise Financial Inc. now owns 85,096 shares of the construction company’s stock valued at $45,043,000 after purchasing an additional 13,281 shares during the period. BNP Paribas Financial Markets lifted its stake 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 acquiring an additional 2,276 shares in the last quarter. California State Teachers Retirement System boosted its holdings in 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 valued at $27,821,000 after acquiring an additional 2,785 shares during the period. Lazard Asset Management LLC grew its position in 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 in the last quarter. Finally, Danske Bank A S purchased a new stake in Lennox International during the third 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.