The lowered EPS guidance is the primary negative signal, indicating management sees continued residential weakness that commercial strength cannot fully offset. Monitor upcoming housing data and residential HVAC channel checks for further deterioration. The strong free cash flow and active buyback provide a floor, but the guidance cut suggests near-term downside risk to the stock.
Price Chart
Executive Summary
Lennox reported Q2 2026 EPS of $7.72, essentially flat YoY and in line with consensus of $7.70, on revenue of $1.545B (+3% YoY) which slightly missed the $1.56B estimate. The headline is mixed: Building Climate Solutions revenue grew 24% with margin expansion, but Home Comfort Solutions revenue declined 7% with margin compression. The key negative is guidance: the full-year EPS range was lowered to $23.00-$24.00 from $23.50-$25.00, signaling ongoing residential market headwinds that outweigh commercial strength for the overall outlook.
Key Financial Metrics
Key Facts
- Q2 2026 GAAP diluted EPS $7.72, flat vs $7.71 YoY, in line with $7.70 consensus
- Revenue $1.545B, up 3% YoY, slightly below $1.56B consensus
- Full-year EPS guidance lowered to $23.00-$24.00 from prior $23.50-$25.00
- Home Comfort Solutions revenue declined 7% YoY to $936M; segment margin down 130 bps to 23.7%
- Building Climate Solutions revenue grew 24% YoY to $610M; segment margin up 100 bps to 25.5%
- Operating cash flow improved to $172M from $87M in Q2 2025; FCF $137M vs $58.7M
- Share repurchases totaled $132M in Q2
Financial Impact
EPS guidance lowered by $0.50 at midpoint ($23.50 midpoint to $23.50 midpoint of new range), representing ~2% reduction in expected full-year earnings
Risk Factors
- Continued weakness in residential new construction and HVAC replacement demand
- Inflationary and tariff pressures on product costs and factory absorption
- Integration risk from recent acquisitions (Comfort-Aire, Century brands, Duro Dyne, Supco)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001069202-26-000085 |
| Document: lii-20260729.htm | 0001069202-26-000085 |
| Document: 0001069202-26-000085-index-headers.html | 0001069202-26-000085 |
| Document: 0001069202-26-000085-index.html | 0001069202-26-000085 |
| Document: 0001069202-26-000085.txt | 0001069202-26-000085 |
| 8-K Data (Synthetic) | 0001069202-26-000085 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 29, 2026 9w ago | 8-K | $430.02 $393.72 | ▲ +8.44% | ▲ +13.46% | $357.48 (+16.87%) |
Jun 23, 2026 14w ago | Court Ruling | $523.59 $533.58 | ▼ −1.91% | ▼ −0.75% | $357.48 (+31.73%) |
Jun 5, 2026 17w ago | Court Ruling | $508.43 $568.00 | ▲ +11.72% | ▲ +9.85% | $357.48 (−29.69%) |
May 28, 2026 18w ago | 8-K | $497.02 $563.87 | ▲ +13.45% | ▲ +16.60% | $357.48 (−28.08%) |
Apr 8, 2026 25w ago | DEFA14A | $478.08 $522.20 | ▲ +9.23% | ▲ +0.68% | $357.48 (−25.23%) |
US Market Status
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