Lennox

Lennox makes heating, air conditioning, refrigeration and water heating equipment, mostly for North America. It has two segments. Home Comfort Solutions sells furnaces, air conditioners, heat pumps, thermostats, parts and supplies for homes, both directly to contractors through its own stores and through independent distributors. Building Climate Solutions sells rooftop units and other equipment for commercial buildings, refrigeration equipment for food stores and cold storage, and installation and service.

Most home sales replace old systems that break, but new home construction is also a market. In Q2 2026, Home Comfort Solutions had $936 million of revenue and Building Climate Solutions had $610 million. Lennox also buys smaller companies, such as Duro Dyne and Supco in 2025 and Heat Controller in 2026, to sell more parts and products to distributors.

The market prices Lennox for a long period of weak profit in home HVAC. Home Comfort Solutions revenue fell in Q4 2025, Q1 2026 and Q2 2026, because new home construction was weak and distributors bought less. In Q3 2026, home revenue grew 3%, but the segment margin fell 490 basis points to 18.7%. Lennox cut prices in some market segments to defend and recapture market share, and inflation and tariffs raised costs.

It cut its 2026 adjusted EPS guidance twice, to $21.00 to $21.50 in October 2026. Investors fear that competition and costs keep home margins low, and that the commercial growth cannot offset it. For the gap to close, three things must be true. Home Comfort Solutions must recover its margin through better price pass-through, productivity and new entry-tier products, while it keeps or regains market share.

Building Climate Solutions must keep its organic growth, which was 15% in Q3 2026, and its margin near 26%. Lennox must meet its new 2026 guidance of $21.00 to $21.50 of adjusted EPS and $700 million to $750 million of free cash flow. The Q4 report with the 2027 guidance in about late January 2027 is the next test, and the 2027 summer season shows whether home margins recover. If home margins recover, the gap can close over the next four to six quarters.

If price competition continues through 2027, it can stay open longer.

1. Oct 28, 2026Failed

   Q3 2026 results: home HVAC volumesA smaller fall or growth in Home Comfort Solutions revenue and a kept 2026 EPS range pass; another guidance cut fails.Outcome: Home Comfort Solutions revenue rose 3%, but Lennox cut its 2026 adjusted EPS guidance to $21.00 to $21.50 from $23.00 to $24.00.
2. Jan 28, 2027 · est.Pending

   Q4 2026 results and 2027 guidance2026 adjusted EPS of $21.00 to $21.50, free cash flow of $700 million to $750 million and 2027 guidance for higher home margins pass; guidance for another year of lower EPS fails.
3. Jul 2027 · est.Pending

   Q2 2027 results: home margin in the summer seasonA higher Home Comfort Solutions segment margin than a year earlier passes; a further fall from price competition fails.

Every passed and failed checkpoint across all picks

• October 30, 2026Joseph Nassab, who leads the Building Climate Solutions segment, told Lennox that he will retire from that role on December 31, 2026. He then becomes a strategic advisor until February 28, 2028. Geoffrey Dethlefsen, now Vice President and General Manager of Lennox Commercial HVAC, takes over the segment on January 1, 2027.
• October 28, 2026Lennox reported Q3 2026 results. Revenue rose 10% to $1.6 billion, and adjusted diluted EPS fell 7% to $6.84. GAAP diluted EPS was $6.41. Home Comfort Solutions revenue rose 3%, but its segment margin fell 490 basis points to 18.7%, because of price cuts to defend market share, inflation and tariffs. Building Climate Solutions revenue rose 24%, with 15% organic growth. Lennox cut its 2026 adjusted EPS guidance to $21.00 to $21.50 from $23.00 to $24.00, its revenue growth guidance to about 6% and its free cash flow guidance to $700 million to $750 million. It bought back $151 million of shares in the quarter.
• October 8, 2026Lennox said that it will report Q3 2026 results before the market opens on October 28, 2026.

Last earnings

October 28, 2026 (8-K on sec.gov)

Next earnings

Expected about January 28, 2027. The company has not confirmed the date.

• 8-KChange of directors or officers and Investor disclosureFiled November 2, 2026 · lii-20261030
• 10-QQuarterly report for the period ended Sep 30, 2026Filed October 28, 2026 · lii-20260930
• 8-KEarnings releaseFiled October 28, 2026 · Press release and exhibits
• 8-KChange of directors or officersFiled September 18, 2026 · lii-20260916
• 10-QQuarterly report for the period ended Jun 30, 2026Filed July 29, 2026 · lii-20260630
• 8-KEarnings releaseFiled July 29, 2026 · Press release and exhibits
• 8-KChange of directors or officers and Shareholder vote resultsFiled May 28, 2026 · lii-20260521
• 10-QQuarterly report for the period ended Mar 31, 2026Filed April 29, 2026 · lii-20260331
• 8-KEarnings releaseFiled April 29, 2026 · Press release and exhibits
• 10-KAnnual report for the period ended Dec 31, 2025Filed February 17, 2026 · lii-20251231

Every filing on SEC EDGAR (CIK 1069202)

• Home HVAC sales fell for several quarters before a 3% rise in Q3 2026. Competitors put pressure on prices, and Lennox cut some prices to defend market share. If price competition and weak demand continue, Home Comfort Solutions, the larger segment, loses margin.
• Steel, aluminum and copper prices and tariffs change product costs. Lennox raised prices to offset them, and tariff refunds of $30 million helped profit in Q2 2026, which may not repeat. In Q3 2026, product cost inflation, including tariffs, and lower factory absorption cut segment profit by $45 million.
• Lennox grows by buying companies such as Duro Dyne, Supco and Heat Controller. If it does not integrate them well, the expected sales and profits may not come.
• HVAC sales depend on the weather. A cool summer lowers replacement demand for air conditioners.

Debt is the amount on the balance sheet at September 30, 2026: $455.1 million of commercial paper, $319.2 million of current maturities of long-term debt and $847.1 million of long-term debt. These amounts include finance leases. Read more

Yield at the current rate

1.6% (current annual rate, at today’s price)

Dividend yield

1.5% (last 12 months, at today’s price of $350.73)

Paid per share

$5.32 in the last 12 months (4 payments)

Current annual rate

$5.44 ($1.36 × 4 a year)

Payout ratio

22% of the last fiscal year’s earnings (the year that ended December 31, 2025)

Latest ex-dividend date

September 30, 2026, $1.36 per share

Dividends per share by year

From 2020 to 2025, the dividend grew by about 10.4% a year. From 2015 to 2025, the dividend grew by about 13.9% a year.

Source: company filings and market data, read on November 13, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.