Lennox International Reports Q3 2026 Revenue Growth Amidst Margin Pressure and Lowered Full-Year Guidance
Lennox International (LII) reported third-quarter revenue of $1.6 billion, a 10% increase driven by strong organic growth in its Building Climate Solutions segment. However, adjusted diluted EPS fell 7% to $6.84 as the company faced significant headwinds from product cost inflation, tariffs, and lower price realization due to intense market competition. The company issued downward revisions for its full-year guidance across several key metrics, including revenue growth, adjusted EPS, and free cash flow. Management cited pricing fatigue in the residential market, homeowner affordability challenges linked to high mortgage rates, and ongoing inflationary pressures as primary drivers for the cautious outlook. While commercial segments showed strength, the Home Comfort Solutions segment saw margin compression due to strategic price adjustments intended to defend market share.
Tickers: $LII
Topics: cash flow eps decline guidance revision revenue growth segment performance