Lennox International (NYSE:LII) Issues Earnings Results

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

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 Down 8.3%

Shares of LII traded down $31.04 during mid-day trading on Wednesday, hitting $341.01. 868,740 shares of the company’s stock were exchanged, compared to its average volume of 490,862. Lennox International has a 52 week low of $337.23 and a 52 week high of $587.27. The stock’s 50-day simple moving average is $372.58 and its 200-day simple moving average is $474.85.

Lennox International Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Investors 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 Ratings Changes

A number of brokerages recently issued reports on LII. Royal Bank Of Canada decreased their price objective on shares of Lennox International from $469.00 to $406.00 and set a “sector perform” rating for the company in a report on Wednesday, October 14th. William Blair reaffirmed an “outperform” rating on shares of Lennox International in a research report on Wednesday, July 29th. Deutsche Bank Aktiengesellschaft lowered Lennox International from a “buy” rating to a “hold” rating and decreased their price objective for the company from $609.00 to $444.00 in a research report on Monday, September 14th. Weiss Ratings lowered shares of Lennox International from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, August 11th. Finally, The Goldman Sachs Group lowered shares of Lennox International from a “buy” rating to a “neutral” rating and dropped their price objective for the stock from $547.00 to $390.00 in a report on Wednesday, October 14th. Four research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Lennox International has an average rating of “Hold” and a consensus target price of $480.00.

Lennox International News Roundup

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

Lennox International Company Profile

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.