Lennox Reports 2026 Second Quarter Results

Revenue $1.5 billion, up 3% GAAP Operating Income $355 million, up 2% GAAP diluted EPS flat at $7.72 Updating full year EPS guidance range to $23.00 - $24.00 DALLAS , July 29, 2026 /PRNewswire/ -- Lennox (NYSE: LII ), a leader in energy-efficient building and home comfort solutions, today reported second quarter financial results with $1.5 billion of revenue, $355 million of operating income, and $7.72 GAAP diluted earnings per share. Revenue increased 3% to $1.5 billion. Total segment profit was $355 million, up 2%. Total segment margin was down 30 basis points to 23%. Adjusted diluted earnings per share were flat at $7.72. "Our results this quarter reflect the strength of our portfolio and team," said Alok Maskara, Chief Executive Officer. "Strong momentum in Building Climate Solutions and contributions from the Duro Dyne and Supco acquisitions mitigated the continued softness in the residential end market. We also expanded our portfolio through the acquisition of Comfort-Aire and Century brands and remain focused on executing our growth strategy through innovation, operational excellence, and disciplined capital allocation." In Home Comfort Solutions, residential market conditions remained challenging during the second quarter, although demand improved sequentially from the first quarter. Revenue declined 7% year over year, primarily reflecting lower sales volumes, partially offset by favorable mix-price and contributions from acquisitions. Demand improved across both distribution channels, though residential new construction activity remained a meaningful headwind. Segment margin declined 130 basis points, reflecting lower volumes and related absorption pressures. Pricing actions implemented in response to inflationary and tariff pressures largely offset those impacts, while earlier than expected tariff refunds provided a benefit during the quarter. The Building Climate Solutions segment drove 24% revenue growth in the second quarter, reflecting broad-based strength across the business and improving commercial market conditions. Organic revenue growth of 15% was driven by strong execution with national account customers, healthy emergency replacement activity, and growth in service offerings, while acquisitions added 9% to revenue growth. These results demonstrate our ability to invest for growth, execute in the marketplace, and deliver attractive returns for shareholders. SECOND QUARTER 2026 FINANCIAL HIGHLIGHTS Revenue: $1.5 billion was up 3%, driven by revenue from completed acquisitions. Operating Income: $355 million, up 2%, with operating profit margin of 23.0%, down 30 bps. Total Segment Profit: $355 million, up 2%, and total segment profit margin of 23.0%, down 30 basis points primarily driven by $39 million of mix/price benefits and $17 million from completed acquisitions. This was partially offset by $25 million decrease from lower sales volumes; $11 million product cost primarily reflecting inflation and factory under absorption, net of $30 million in tariff refunds; and $14 million of SG&A and distribution inflation and investments. Net Income: $269 million, or $7.72 per share, compared to $274 million, or $7.71 per share, in the prior-year quarter. Cash Flow: Operating cash flow was $172 million compared to $87 million in the prior-year quarter driven by reduced inventory levels. Net capital expenditure was $35 million compared to $28 million in the prior-year quarter. Share repurchases totaled $132 million. Home Comfort Solutions: Business segment revenue was $936 million, down 7%. Segment profit was $222 million, down 12%, and segment margin was 23.7%, down 130 basis points. Profit declined $30 million versus the prior-year quarter, primarily reflecting a $49 million profit headwind from lower sales volumes.