Lennox Reports 2026 Third Quarter Earnings Results
Lennox reported Q3 revenue of $1.6 billion, up 10% year-over-year, but adjusted diluted EPS of $6.84 fell 7% and operating margin contracted 320 basis points to 19.8%. The miss was driven by a $45 million headwind from product cost inflation including tariffs, $15 million of higher fuel costs, and competitive price adjustments in Home Comfort Solutions, where segment margin dropped 490 basis points. Management cut full-year adjusted EPS guidance to $21.00-$21.50 from $23.00-$24.00, an approximately 10% reduction at the midpoint, while raising the revenue growth view to ~6% with a $5 point acquisition contribution.
Key figures
- Eps
- 6.41
- Guidance
- FY26 adjusted EPS updated to $21.00-$21.50 from prior $23.00-$24.00; revenue growth ~6%; FCF guidance $700M-$750M
- Revenue Yoy
- 10%
- Net income
- 221200000
- Adjusted eps
- 6.84
- Segment margin
- 20.6%
- Adjusted eps yoy
- -7%
- Operating income
- 312100000
- Operating margin
- 19.8%
- Free cash flow q3
- 362700000
- Operating cash flow
- 395300000
- Share repurchases q3
- 151000000
- Total segment profit
- 323300000
- Segment margin change
- -240 bps
- Building climate margin
- 26.2%
- Home comfort margin change
- -490 bps
- Building climate revenue yoy
- 24%
- Home comfort solutions revenue
- 937200000
- Building climate solutions revenue
- 635300000
AI analysis
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