Lennox International (NYSE:LII) Issues Quarterly Earnings Results, Misses Expectations By $0.31 EPS

Lennox International (NYSE:LII) released its earnings results on Wednesday. The construction company reported $4.45 earnings per share for the quarter, missing analysts’ consensus estimates of $4.76 by ($0.31), FiscalAI reports. The firm had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.27 billion. Lennox International had a net margin of 15.13% and a return on equity of 80.23%. The business’s revenue for the quarter was down 11.2% compared to the same quarter last year. During the same period in the prior year, the company posted $5.60 EPS. Lennox International updated its FY 2026 guidance to 23.500-25.000 EPS.

Here are the key takeaways from Lennox International’s conference call:

• Lennox delivered a record full-year 20.4% segment margin and adjusted EPS of $23.16 (up ~2% y/y), generated strong cash flow (free cash flow $640M in 2025) and returned capital via $482M of repurchases while deploying ~$545M into acquisitions and JVs.
• 2026 guidance calls for company revenue growth of 6%–7%, adjusted EPS of $23.50–$25 and free cash flow of $750M–$850M, driven by price/mix, M&A contributions and planned productivity actions.
• Near-term demand weakness and channel destocking hurt results—Q4 revenue fell 11% (Home Comfort Solutions down ~21% in Q4) and management expects a weak first half of 2026 with destocking completing by Q2 and a second-half recovery.
• Inventory is elevated after the FIFO adoption (about $300M higher vs Dec 2024 and roughly $200M above seasonal norms), which will create absorption headwinds in Q1 as the company holds stock to support peak Q2 demand.
• Management is investing for long-term growth—~$300M deployed since 2022, a planned $250M CapEx in 2026 (maintenance plus strategic projects), and a targeted ~$75M of productivity savings to offset ~2.5% cost inflation and help sustain margin expansion.

Lennox International Stock Performance

LII stock traded down $3.66 during midday trading on Friday, hitting $492.45. The company’s stock had a trading volume of 115,411 shares, compared to its average volume of 482,534. The stock has a market cap of $17.27 billion, a price-to-earnings ratio of 22.14, a PEG ratio of 1.84 and a beta of 1.18. The company has a quick ratio of 0.80, a current ratio of 1.60 and a debt-to-equity ratio of 0.98. The stock’s 50-day moving average price is $502.30 and its 200 day moving average price is $534.19. Lennox International has a 1 year low of $443.19 and a 1 year high of $689.44.

Lennox International Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, January 15th. Investors of record on Wednesday, December 31st were given a dividend of $1.30 per share. This represents a $5.20 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend was Wednesday, December 31st. Lennox International’s dividend payout ratio (DPR) is presently 23.38%.

Wall Street Analysts Forecast Growth

A number of research firms have commented on LII. KeyCorp restated a “sector weight” rating on shares of Lennox International in a report on Thursday, October 23rd. Mizuho cut their price objective on shares of Lennox International from $650.00 to $565.00 and set a “neutral” rating on the stock in a research report on Friday, October 17th. Northcoast Research raised Lennox International from a “sell” rating to a “neutral” rating and set a $525.00 target price for the company in a research report on Monday, October 27th. Morgan Stanley cut their price target on Lennox International from $535.00 to $475.00 and set an “underweight” rating on the stock in a report on Thursday, October 23rd. Finally, Wells Fargo & Company decreased their price objective on Lennox International from $525.00 to $520.00 and set an “equal weight” rating for the company in a report on Thursday. Four investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $595.08.

Insiders Place Their Bets

In other news, Director Todd J. Teske sold 600 shares of the firm’s stock in a transaction that occurred on Tuesday, November 11th. The shares were sold at an average price of $491.85, for a total transaction of $295,110.00. Following the completion of the sale, the director owned 7,581 shares in the company, valued at $3,728,714.85. This trade represents a 7.33% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 9.73% of the stock is currently owned by insiders.

Institutional Trading of Lennox International

Several hedge funds have recently made changes to their positions in LII. California State Teachers Retirement System lifted its position in shares of Lennox International by 6.1% during the 2nd quarter. California State Teachers Retirement System now owns 48,533 shares of the construction company’s stock valued at $27,821,000 after buying an additional 2,785 shares during the last quarter. Ameriprise Financial Inc. lifted its holdings in Lennox International by 296.0% during the second quarter. Ameriprise Financial Inc. now owns 71,815 shares of the construction company’s stock valued at $41,168,000 after purchasing an additional 53,679 shares during the last quarter. Lazard Asset Management LLC boosted its position in Lennox International by 111.1% during the second quarter. Lazard Asset Management LLC now owns 18,659 shares of the construction company’s stock worth $10,696,000 after purchasing an additional 9,818 shares during the period. State of Tennessee Department of Treasury increased its stake in shares of Lennox International by 75.2% in the second quarter. State of Tennessee Department of Treasury now owns 7,082 shares of the construction company’s stock worth $4,060,000 after purchasing an additional 3,039 shares in the last quarter. Finally, MUFG Securities EMEA plc bought a new stake in shares of Lennox International in the second quarter valued at approximately $54,000. 67.07% of the stock is currently owned by institutional investors.

Trending Headlines about Lennox International

Here are the key news stories impacting Lennox International this week:

• Positive Sentiment: Management said margins improved even as volumes fell, signaling operating leverage and pricing helped profitability — a factor that can support earnings recovery expectations. Earnings Call: Margins Up, Volumes Down
• Positive Sentiment: Management set FY‑2026 guidance (EPS range $23.50–$25.00) and said it expects market stabilization in 2026, which provides forward visibility and a constructive signal for future earnings. Q4 2025 Earnings Call Highlights
• Neutral Sentiment: Full earnings call transcript and presentation were published — useful for investors digging into segment detail, inventory commentary and management Q&A but not new market-moving facts by themselves. Earnings Call Transcript
• Neutral Sentiment: Analysis pieces and a valuation check are circulating as investors reassess multiples after the revenue drop; these help frame whether the current price reflects the new outlook. Valuation Check
• Negative Sentiment: Q4 results missed expectations: EPS $4.45 vs. consensus $4.76 and revenue $1.20B vs. $1.27B expected; revenue fell ~11% YoY. Management cited customer destocking and softer markets—key near-term demand headwinds that weigh on growth forecasts. Q4 Highlights / Market Softness
• Negative Sentiment: Analysts cut price targets and lowered sentiment: Royal Bank of Canada trimmed its PT to $534 and moved to “sector perform,” and Wells Fargo cut its PT to $520 with an “equal weight” rating — immediate downward pressure on the stock from reduced upside expectations. RBC Price Target Cut Wells Fargo Price Target Cut

Lennox International Company Profile

Lennox International Inc is a global manufacturer of climate control products and services, principally serving residential and commercial heating, ventilation and air conditioning (HVAC) markets. The company designs, engineers and produces a range of products including furnaces, air conditioners, heat pumps, air handlers, packaged rooftop units and related controls and indoor air quality equipment. Lennox also supplies aftermarket parts and accessories and supports its product lines with technical service, training and warranty programs for dealer and distribution partners.

Originally founded in 1895 by Dave Lennox, the company has grown from its early roots into a multinational business with operations concentrated in North America and a presence in other international markets.