Oppenheimer downgrades Lennox stock rating on inflation pressures

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.

Lennox International (LII) reported Q3 earnings, noting pricing challenges due to competition and inflation. Building Climate Solutions revenue rose 24%, while Home Comfort Solutions faced declines. The company reduced full-year guidance, expecting EPS of $21.00-$21.50 and revenue growth of 6%. Lennox launched a recovery plan targeting share, productivity, and entry-tier products. The company acquired Comfort-Aire and Century brands for $200M, expecting earnings contributions in 2027.