Highlights

  • Net sales were $1,545.3 million for the quarter ended June 30, 2026, and diluted earnings per share were $7.72.
  • Home Comfort Solutions net sales were $935.6 million and Building Climate Solutions net sales were $609.7 million in the quarter.
  • Management said on the call that it now expects full-year adjusted diluted EPS of $23 to $24 for 2026.
  • The company completed the Heat Controller acquisition on July 13, 2026, for a purchase price of $205.0 million.

Lennox International (NYSE: LII) shares were trading at USD 364.34 on October 27, 2026, down 0.36%, with a relative volume at time of 2.80. The HVACR company was named as a defendant in an antitrust class action complaint filed on March 20, 2026, completed its Heat Controller acquisition on July 13, 2026, and reported results for the quarter ended June 30, 2026 in a Form 10-Q filed on July 29, 2026.

Lennox International is incorporated in Delaware and lists its principal executive offices in Richardson, Texas. It operates in two reportable segments of the heating, ventilation, air conditioning and refrigeration industry. Home Comfort Solutions sells furnaces, air conditioners, heat pumps and water heaters to residential markets in the United States and Canada. Building Climate Solutions sells unitary and applied commercial heating and air conditioning equipment, controls and refrigeration products. Its fiscal year ends December 31.

Second Quarter 2026 Results

Net sales were $1,545.3 million for the quarter ended June 30, 2026, compared with $1,500.9 million in the same quarter of 2025, an increase of 3%. The company said sales volumes from completed acquisitions rose 4%, partly offset by a 4% decrease in sales volumes.

Gross profit was $539.5 million, and gross profit margin was 34.9%, compared with 34.5%. Operating income was $355.0 million, compared with $349.0 million. Net income was $269.0 million, compared with $273.9 million, and diluted earnings per share were $7.72, compared with $7.71.

Home Comfort Solutions net sales were $935.6 million, compared with $1,009.3 million, a decrease of 7%. The company said this reflected a 12% decrease in sales volumes. Segment profit was $221.8 million, compared with $252.0 million, and segment profit as a percent of net sales was 23.7%, compared with 25.0%.

Building Climate Solutions net sales were $609.7 million, compared with $491.6 million, an increase of 24%. Segment profit was $155.3 million, compared with $120.6 million.

Cash Flow, Debt and Capital Returns

Net cash provided by operating activities was $188.1 million for the six months ended June 30, 2026, compared with $51.0 million.

Total debt was $1,581.3 million at June 30, 2026, compared with $1,388.4 million at December 31, 2025. Commercial paper notes outstanding were $412.0 million. The debt-to-total-capital ratio was 55%, compared with 54% at December 31, 2025.

During the six months, the company repurchased $151 million of common stock and paid $91 million in dividends.

Litigation and Acquisition

On March 20, 2026, seven HVAC equipment manufacturers, including the company, were named as defendants in a complaint filed in the U.S. District Court for the Eastern District of Michigan on behalf of a putative class. The complaint alleges violations of Section 1 of the Sherman Antitrust Act and certain state laws. The company disputes the allegations and plans to defend itself. It said it cannot reasonably estimate the range of possible loss, if any, and that an adverse outcome could have a material adverse impact on its business, financial position, results of operations or cash flows.

On July 13, 2026, the company completed its acquisition of Heat Controller, LLC and related entities. The purchase price, excluding cash received at closing, was $205.0 million and is subject to final adjustments for net working capital.

2026 Outlook

On the earnings call, management said it updated its full-year adjusted EPS guidance to a range of $23 to $24 from $23.50 to $25. It said it expects overall revenue growth of approximately 8%, Home Comfort Solutions revenue growth of approximately 1% compared with a prior expectation of 4%, and Building Climate Solutions revenue growth of approximately 20% compared with 16%.

Management said free cash flow guidance remains $750 million to $850 million. It said capital expenditures are expected to be approximately $225 million, down from $250 million. Management said residential demand recovery has been slower than anticipated and that it expects the recovery benefit to extend into 2027.