Lennox reported third quarter revenue of $1.6 billion, up 10% year-over-year, marginally exceeding estimates. However, adjusted EPS of $6.84 fell 7% and missed consensus expectations of $7.18 as competitive pricing and persistent cost inflation eroded margins. Consequently, the company significantly lowered its full-year 2026 earnings outlook.
Key Highlights
- Home Comfort Solutions revenue grew only 3% to $937.2 million, missing the $1.1 billion estimate, while segment margins contracted 490 basis points to 18.7%.
- Building Climate Solutions outperformed with revenue growth of 24% to $635.3 million, driven by 15% organic growth and strong commercial HVAC demand.
- Full-year 2026 adjusted EPS guidance was slashed to a range of $21.00–$21.50, down from the previously issued guidance of $23.00–$24.00.