Lennox stock faces lower outlook after Q3 margin pressure
Published on 10/30/2026 at 02:41 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSQuartalsergebnis und neuer Ausblick
- Der Umsatz stieg im dritten Quartal um 10 Prozent auf 1,6 Milliarden US-Dollar.
- Das bereinigte verwässerte Ergebnis je Aktie sank um 7 Prozent auf 6,84 US-Dollar.
- Lennox senkte die Prognose für das bereinigte Jahresergebnis auf 21,00 bis 21,50 US-Dollar je Aktie.
Lennox reported stronger sales but weaker profitability for the third quarter on October 28, 2026. In its investor-relations release, the company said revenue increased 10 percent year over year to 1.6 billion US dollars, while total segment profit fell 2 percent to 323 million US dollars.
Revenue growth, margin pressure
GAAP operating income declined 5 percent to 312 million US dollars, and the operating margin was 19.8 percent. GAAP diluted earnings per share were 6.41 US dollars, compared with 7.38 US dollars in the prior-year quarter. Adjusted diluted earnings per share came to 6.84 US dollars, down 7 percent.
Management attributed the pressure to product-cost inflation, including tariffs, lower factory absorption, higher fuel costs and inflation in selling, general and administrative expenses. Chief Executive Officer Alok Maskara also cited heightened competitive pressure and said the company was working to improve price realization and productivity.
Segments develop unevenly
Building Climate Solutions was the stronger division. Its revenue rose 24 percent to 635 million US dollars, including 15 percent organic growth, while segment profit increased 19 percent to 167 million US dollars. The segment margin nevertheless declined 110 basis points to 26.2 percent.
Home Comfort Solutions revenue grew 3 percent to 937 million US dollars, but segment profit fell 18 percent to 176 million US dollars. Its margin declined 490 basis points to 18.7 percent. Operating cash flow increased to 395 million US dollars from 301 million US dollars a year earlier, helped by lower inventories.
Guidance reset for 2026
Lennox now expects full-year revenue growth of approximately 6 percent, including a 5 percent contribution from completed acquisitions. Adjusted earnings per share guidance was reduced from 23.00 to 24.00 US dollars to a range of 21.00 to 21.50 US dollars. Free-cash-flow guidance was also lowered to 700 million to 750 million US dollars.
At Lang & Schwarz, the Lennox share was quoted at 311.40 euros on October 29, 2026, at 22:58 Berlin time. This is a dated euro quote and not a comparison with a verified Xetra close.
Investors can follow the real-time quote of Lennox stock.
Lennox International Inc. at a glance
- ISIN: US5261071071
- Ticker: LII
- Exchange: New York Stock Exchange
- Lang & Schwarz quote: 311.40 euros on October 29, 2026, at 22:58 Berlin time
- Third-quarter revenue: 1.6 billion US dollars, up 10 percent year over year
- Adjusted diluted EPS: 6.84 US dollars, down 7 percent year over year
The S&P 500 provides the relevant broader US equity market context. Current market developments are available in the current market reports.
More news and analyses on Lennox stock are available on the company topic page.
