Lennox Q3 2026: revenue up 10.2%, adjusted EPS down 7.3%, guidance cut
Lennox grew third-quarter revenue 10.2% to $1.57 billion but kept less of every dollar: adjusted EPS fell 7.3% to $6.84, missed the $7.4376 consensus, and full-year adjusted EPS guidance was cut about 9.6% at the midpoint. Read this as growth without profit — commercial HVAC is compounding, while residential is defending share with price and paying for it in margin.
1 · Expected vs. Actual
Free preview belowGAAP diluted EPS of $6.41 and adjusted EPS of $6.84 both fell from $7.38 a year ago, down 13.1% and 7.3% respectively. Against the $7.4376 consensus, adjusted EPS missed by $0.60 (8.0%) and GAAP missed by $1.03 (13.8%). Net income of $221.2 million was down 14.9% even as sales grew double digits — a clean illustration of cost inflation and price investment eating the volume gains.
Revenue of $1.57 billion rose 10.2% from $1.43 billion, driven by Building Climate Solutions at $635.3 million (+23.6%) while Home Comfort Solutions grew only 2.7% to $937.2 million. The problem sits one line down: gross margin fell to 31.6% from 34.1%, so gross profit barely moved, to $497.2 million. Operating margin dropped 320 basis points to 19.8%.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-03
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