Oppenheimer downgrades Lennox International to Perform from Outperform

Oppenheimer downgraded Lennox International (LII) to Perform from Outperform, citing reduced fiscal 2026 guidance due to inflation and competition. The stock has fallen 31% over the past year, trading near its 52-week low of $325.70. Eleven analysts have revised earnings downward, and the firm noted balanced risk-reward at current levels. Lennox reported Q3 revenue of $1.6B, beating estimates, but EPS missed forecasts.

Lennox International (LII) reported Q3 2026 revenue growth, but total segment profit declined 2% to $323M, and adjusted EPS fell 7% to $6.84, missing expectations. Home Comfort Solutions organic revenue declined 1%, with direct-to-contractor sales down 6%. Tariffs and inflation drove $47M in cost headwinds, leading to margin contraction. Full-year adjusted EPS guidance was reduced to $21-$21.50, and revenue growth outlook lowered to 6% from 8%. Free cash flow guidance was cut to $700-$750M.

Lennox International (LII) shares dropped 11% to a 52-week low after reporting Q3 adjusted EPS below estimates and lowering its full-year outlook. The company operates in heating, ventilation, air conditioning, and refrigeration markets.

Lennox International Inc. (LII) reported Q3 net income of $221.2M, or $6.41 per share, missing analyst estimates of $7.18 per share. Revenue was $1.57B, exceeding expectations. The company expects full-year earnings of $21-$21.50 per share.

Lennox International Inc. reported Q3 2026 earnings with profitability below expectations due to pricing pressures and inflation. HCS saw improved sales but constrained demand, while BCS achieved 24% revenue growth. The company lowered 2027 EPS guidance to $21-$21.50, citing tariffs and inflation. Management is implementing a recovery plan and plans $225M in CapEx for new products. Tariffs and restructuring actions impacted margins, with a focus on cost reduction and new product launches.

Lennox (LII) reported Q3 2026 revenue up 10%, driven by commercial equipment and M&A. Segment profit declined 2% due to competitive pressures. The company launched a recovery plan focusing on pricing, productivity, portfolio, and promoters. Q3 organic segment profit in Home Comfort Solutions declined $46M, while Building Climate Solutions saw 24% revenue growth. Full-year adjusted EPS guidance updated to $21-$21.50, citing lower price realization and tax rate changes.