Lennox Q2 Revenue Up 3%, EPS Flat; Full-Year Guidance Narrowed to $23.00-$24.00
LII sits 16% above its 52-week low of $434.06 on elevated volume (2.4× avg).
Summary
Lennox reported Q2 revenue of $1.5B (+3% YoY) and flat EPS of $7.72, while narrowing full-year EPS guidance to $23.00-$24.00, down from the prior midpoint. Commercial strength offset residential weakness.
Key Events · Earnings and Guidance · LII
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Q2 Revenue Up 3%, EPS Flat
Revenue reached $1.5 billion, driven by acquisitions and commercial growth, but GAAP diluted EPS remained at $7.72 as residential headwinds persisted.
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Full-Year EPS Guidance Lowered
Management narrowed the 2026 EPS range to $23.00-$24.00 from $23.50-$25.00, reducing the midpoint by $0.50 and signaling caution on residential recovery.
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Segment Divergence: Commercial +24%, Residential -7%
Building Climate Solutions revenue surged 24% with 100 bps margin expansion, while Home Comfort Solutions revenue fell 7% with 130 bps margin contraction.
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Cash Flow and Buybacks Provide Support
Operating cash flow more than doubled to $172 million, and the company repurchased $132 million in shares during the quarter.
Analysis · LII · Technology
Lennox delivered mixed Q2 results: revenue grew 3% to $1.5 billion, but GAAP EPS was flat at $7.72. The real story is the guidance revision — the full-year EPS range was narrowed to $23.00-$24.00 from $23.50-$25.00, effectively lowering the midpoint. This signals management expects continued residential softness to offset strength in commercial. The Building Climate Solutions segment surged 24%, while Home Comfort Solutions declined 7%, highlighting a stark divergence in end markets. Operating cash flow more than doubled to $172 million, and the company bought back $132 million in shares, providing some support. Investors will focus on whether the commercial momentum can sustain and if residential demand stabilizes.
At the time of this filing, LII was trading at $505.00 on NYSE in the Technology sector, with a market capitalization of approximately $18.9B. The 52-week trading range was $434.06 to $663.90. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.