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

Lennox International (NYSE:LII) released its quarterly earnings data on Wednesday. The construction company reported $6.84 EPS for the quarter, missing analysts’ consensus estimates of $7.36 by ($0.52), Zacks reports. Lennox International had a return on equity of 66.42% and a net margin of 14.61%. Lennox International’s quarterly revenue was up 10.2% on a year-over-year basis. During the same period last year, the company posted $6.98 earnings per share.

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

LII stock traded down $36.41 during midday trading on Wednesday, hitting $335.64. 1,212,773 shares of the company traded hands, compared to its average volume of 492,790. Lennox International has a twelve month low of $337.00 and a twelve month high of $587.27. The stock has a market capitalization of $11.60 billion, a price-to-earnings ratio of 15.21, a price-to-earnings-growth ratio of 1.57 and a beta of 1.16. The company has a quick ratio of 0.77, a current ratio of 1.57 and a debt-to-equity ratio of 0.89. The business has a 50 day simple moving average of $372.58 and a 200-day simple moving average of $474.85.

Lennox International Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th were issued a dividend of $1.36 per share. This represents a $5.44 annualized dividend and a yield of 1.6%. The ex-dividend date was Wednesday, September 30th. Lennox International’s dividend payout ratio (DPR) is 24.59%.

More Lennox International News

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, indicating continued demand for Lennox’s home-comfort and building solutions. Lennox Reports 2026 Third Quarter Earnings Results
• Neutral Sentiment: Institutional positioning was mixed in the latest quarter, with 315 investors adding LII shares and 308 reducing their holdings. This suggests divided views among large investors rather than a clear consensus. Lennox International Falls After Q3 Profit Miss and Lowered 2026 Outlook
• Negative Sentiment: Adjusted diluted EPS was $6.84, below analyst estimates ranging from $7.18 to $7.36, and down from $6.98 a year earlier. GAAP diluted EPS was $6.41. Lennox International Q3 Earnings Lag Estimates
• Negative Sentiment: Lennox cut its 2026 adjusted EPS guidance to $21.00–$21.50 from $23.00–$24.00, resetting investor expectations for full-year earnings.
• Negative Sentiment: Management cited persistent inflation, tariff-related expenses, competitive pressure and lower factory absorption as factors weighing on margins. In Home Comfort Solutions, pricing actions to defend and regain market share contributed to a sharp decline in segment profitability. Lennox International Q3 2026: Tariffs Trigger a Sharp Guidance Cut
• Negative Sentiment: An insider sale of 971 shares worth approximately $529,000 adds a modest negative signal, although one transaction alone does not establish a broader insider-selling trend. Lennox International Falls After Q3 Profit Miss and Lowered 2026 Outlook

Analyst Upgrades and Downgrades

Several research analysts have recently commented on LII shares. Royal Bank Of Canada dropped their price target on shares of Lennox International from $469.00 to $406.00 and set a “sector perform” rating on the stock in a research note on Wednesday, October 14th. Deutsche Bank Aktiengesellschaft lowered shares of Lennox International from a “buy” rating to a “hold” rating and reduced their price objective for the company from $609.00 to $444.00 in a research note on Monday, September 14th. Weiss Ratings cut shares of Lennox International from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, August 11th. Wells Fargo & Company started coverage on shares of Lennox International in a research report on Friday, September 25th. They set an “equal weight” rating and a $424.00 target price on the stock. Finally, Oppenheimer cut their target price on Lennox International from $575.00 to $548.00 and set an “outperform” rating on the stock in a report on Wednesday, October 14th. Four investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Lennox International currently has an average rating of “Hold” and an average target price of $480.00.

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.