LII · Lennox International Inc.

Lennox International Inc. reported first quarter 2026 results with revenue of $1.1 billion, up 6% year-over-year, primarily driven by acquisitions contributing to Building Climate Solutions growth of 38%, including 26% organic and 12% from acquisitions. Home Comfort Solutions faced headwinds with a 10% revenue decline due to weak new home construction and channel softness, though sequential improvement from Q4's 21% drop was noted as distributors restocked. Total segment profit fell 3% to $164 million, with margin contracting 130 basis points to 14.4%, pressured by $32 million from lower volumes, $31 million in product cost inflation and under-absorption, and $14 million in SG&A inflation, offset by $63 million mix/price benefits and $9 million from acquisitions. Home Comfort margins dropped 390 bps to 13.3% from volume declines, inflation, and absorption issues, partially mitigated by pricing and acquisitions. Building Climate margins expanded 300 bps to 19.7% on strong volume, national account wins, and efficiency gains. CEO Alok Maskara highlighted stabilizing markets, Duro Dyne and Supco integrations, and focus on productivity, supply chain, and pricing to counter inflation. Full-year guidance updated revenue growth to 8% (4% from acquisitions), maintaining EPS at $23.50-$25.00 and free cash flow at $750-$850 million, signaling confidence despite macro uncertainties. Operating cash flow improved to $16 million from prior-year usage, with $20 million in share repurchases.