LENNOX INTERNATIONAL INC — Form 8-K
Filed October 28, 2026 · analyzed by the 8-K Agent
8-K
▼ Likely negative
significance 62/100
What the filing says
Lennox reported Q3 2026 revenue of $1.6B (+10% YoY) but adjusted diluted EPS of $6.84, down 7% YoY, missing expectations. Total segment profit margin declined 240 basis points to 20.6%, pressured by $45M in product cost inflation/tariffs, $15M higher fuel costs, and competitive headwinds in Home Comfort Solutions (margin down 490 bps). Full-year 2026 adjusted EPS guidance cut from $23.00–$24.00 to $21.00–$21.50; revenue guidance lowered to ~6% growth (from prior implied guidance); free cash flow guidance cut to $700M–$750M. Building Climate Solutions grew 24% in revenue and maintained strong 26.2% margins; Home Comfort Solutions saw only 3% revenue growth with severe margin compression.
Why this rating
Profit guidance cut ~8% (midpoint $22.25 vs. $23.50 prior), representing ~$60M+ EPS headwind for ~$18.2B market cap (~0.3% of value). Material margin compression, tariff/cost pressures, and competitive intensity in largest segment signal operational headwinds. Not transformational, but real near-term earnings derating.
See more from October 28, 2026.
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