Lennox International Inc. is a global manufacturer and distributor specializing in heating, ventilation, air conditioning (HVAC), and refrigeration solutions. The company operates ...
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Est. EPS $7.51 · Revenue $1.57B · 12 analysts
Est. EPS $5.09 · Revenue $1.33B · 12 analysts
Est. EPS $23.66 · Revenue $5.59B · 12 analysts
Est. EPS $3.84 · Revenue $1.23B · 5 analysts
$5.26 per share
$5.26 per share
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). | $5.2B | -2.7% | +36.1% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $786.2M | -2.6% | +129.5% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +33.0% | -0.5% | +12.8% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | +19.5% | +0.9% | +57.0% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | +15.1% | +0.2% | +68.6% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $638.8M | -18.3% | +445.9% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | +12.3% | -16.0% | +354.1% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 177.5% | +1.4% | -3.1% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | 1.60x | +11.3% | -0.2% |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $4.1B | +17.6% | +5.9% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | 22.22 vs 22.91 | -3.0% | 7.72 vs 7.51 | +2.7% |
| Revenue Surprise | $5.2B vs $5.3B | -1.4% | $1.5B vs $1.6B | -1.8% |
| Date | Executive | Title | Security | Side | Shares | Price |
|---|---|---|---|---|---|---|
| Aug 6, 2026 | NORRIS JOHN W III | director | Common Stock, Par Value $0.01 Per Share | D | 8,988 | — |
| May 28, 2026 | NORRIS JOHN W III | director | Common Stock, Par Value $0.01 Per Share | D | 990 | — |
| May 26, 2026 | Somasundaram Sivasankaran | director | Common Stock, Par Value $0.01 Per Share | D | 343 | — |
| May 21, 2026 | Buck Sherry | director | Common Stock, Par Value $0.01 Per Share | A | 343 | — |
| May 21, 2026 | Quintos Karen H | director | Common Stock, Par Value $0.01 Per Share | A | 343 | — |
Operator: Thank you for your continued patience. Your meeting will begin shortly. If you need assistance at any time, please press 0, and a member of our team will be happy to help you. Thank you for your continued patience. Your meeting will begin shortly. If you need assistance at any time, please press 0 and a member of our team will be happy to help you. Thank you for your continued patience. Your meeting will begin shortly. And a member of our team will be happy to help you. Welcome to the Lennox 2026 Second Quarter Earnings Call. All lines are in a listen-only mode. And there will be a question-and-answer session at the end of the presentation. You may enter the queue to ask a question by pressing star one on your phone. To exit the queue, press star two. As a reminder, this call is being recorded. Operator: I will now turn the call over to Chelsey Pulcheon from Lennox Investor Relations. Chelsey, please go ahead. Chelsey Pulcheon: Thank you, Madison. Good morning, everyone. Thank you for joining us as we share our 2026 second quarter results. Joining me today is CEO Alok Maskara and CFO Michael Quenzer. Each will share their prepared remarks before we move to the Q&A session. Turning to slide 2. A reminder that during today's call, we will be making certain forward-looking statements which are subject to numerous risks and uncertainties as outlined on this page. We may also refer to certain non-GAAP financial measures that management considers relevant indicators of underlying business performance. Please refer to our SEC filings available on our Investor Relations website for additional detail including a reconciliation of GAAP to non-GAAP measures. The earnings release today's presentation and the webcast archive link for today's call are available on our Investor Relations website at investor.lennox.com. Now, please turn to slide 3 as I turn the call over to our CEO, Alok Maskara. Alok Maskara: Thank you, Chelsey. Good morning, everyone. And thank you for joining us today. Please turn to slide 3. The second quarter demonstrated the strength of our direct-to-dealer business model, our dedicated talent, and proactive actions taken to manage the current operating environment. I want to thank our employees for improving our customer experience through enhanced digital and distribution capabilities. I also want to thank our customers and channel partners for navigating a dynamic market environment alongside us. Lennox delivered a solid second quarter. Revenue increased 3% to $1.5 billion. Total segment profit increased 2% to $355 million, and adjusted earnings per share were flat at $7.72. Within Home Comfort Solutions, year-over-year quarterly performance improved sequentially though the pace of end-market recovery remains muted. Elevated market rates, inflationary pressures and historically low consumer confidence are constraining underlying demand. Looking ahead, channel confidence is continuing to grow and consumer confidence is …
| Name | Title | Compensation | Gender | Year Born | Status |
|---|---|---|---|---|---|
Alok Maskara | Chief Executive Officer, President & Director | USD 2,783,779 | Male | 1971 | Active |
Monica Brown | Executive Vice President, Chief Legal Officer & Corporate Secretary | USD 1,474,641 | Female | 1973 | Active |
Sarah Martin | Executive Vice President & President of Home Comfort Solutions | USD 1,371,421 | Female | 1974 | Active |
Michael Quenzer | Executive Vice President & Chief Financial Officer | USD 1,172,807 | Male | 1978 | Active |
Joseph F. Nassab | Executive Vice President & President of Building Climate Solutions | USD 1,107,250 | Male | 1968 | Active |
Daniel Sessa | Executive Vice President & Chief HR Officer | USD 1,072,642 | Male | 1965 | Active |
Chelsey Pulcheon | Director of Investor Relations | — | Female | — | Active |
Prakash Bedapudi | Executive Vice President & Chief Technology Officer | — | Male | 1967 | Active |
Mary Ellen Mondi | Vice President of Marketing & Communication | — | Female | — | Active |
Chris A. Kosel | Vice President, Chief Accounting Officer & Controller | — | Male | 1967 | Active |
Lennox International NYSE: LII reported second-quarter revenue growth of 3% to $1.5 billion, while total segment profit increased 2% to $355 million and adjusted earnings per share was flat at $7.72. The company said strong performance in its commercial-focused Building Climate Solutions segment helped offset continued weakness in residential markets.
Lennox International Inc. shares plunged 20% after Q2 FY2026 results missed revenue and EPS expectations, with management lowering full-year earnings guidance. Home Comfort Solutions segment suffered from housing market headwinds, while Building Climate Solutions delivered robust 24% revenue growth and margin expansion. Despite attractive relative valuation, LII's projected growth and current multiples do not justify a bullish stance; annualized upside trails S&P 500 expectations.
A deepening sell-off gripped Wall Street midday Wednesday as crude oil spiked on a fresh U.S.-Iran escalation just hours before the Federal Reserve's rate verdict, dragging the S&P 500 to four-week lows and knocking the Nasdaq 100 down more than 10% from prior records.
Lennox International Inc. (LII) Q2 2026 Earnings Call Transcript
Lennox stock wouldn't be expensive if its earnings were growing -- but they're shrinking instead.
