Lennox (NYSE: LII) Q1 2026 revenue rises 6% as EPS slips 8%
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Lennox International reported first quarter 2026 revenue of $1.1 billion, up 6% year over year, driven largely by completed acquisitions. GAAP operating income was $164 million, down 3%, and GAAP diluted EPS was $3.35, down 8%.
Home Comfort Solutions revenue fell 10% to $650 million with segment profit down 30% as weaker new home construction and channel softness compressed margins. Building Climate Solutions offset this with 38% revenue growth to $485.1 million and a 63% segment profit increase, lifting segment margin to 19.7%.
Net income was $117.2 million. Operating cash flow improved to $16.1 million from a use of $35.8 million a year earlier, while free cash flow was -$38.7 million after higher capital spending. Management reaffirmed full-year 2026 EPS guidance of $23.50–$25.00 and free cash flow guidance of $750–$850 million, and updated revenue growth guidance to approximately 8%, including a 4% benefit from acquisitions.
Positive
- None.
Negative
- None.
Insights
Mixed quarter: modest growth, margin pressure, guidance intact.
Lennox posted Q1 2026 revenue of $1.1 billion, up 6%, but operating income slipped to $164 million and diluted EPS declined 8% to $3.35. Results reflect acquisition-driven growth alongside cost and volume headwinds.
The portfolio is diverging: Home Comfort Solutions revenue fell 10% to $650 million with segment profit down 30%, while Building Climate Solutions grew revenue 38% to $485.1 million and expanded segment margin by 300 basis points to 19.7%.
Operating cash flow improved to $16.1 million versus a prior-year outflow, but free cash flow remained negative at -$38.7 million due to higher capex. Management maintained full-year EPS guidance of $23.50–$25.00 and free cash flow of $750–$850 million, and now targets about 8% revenue growth in 2026, including 4% from completed acquisitions.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 Revenue: $1.1 billion
Q1 2026 Operating Income: $164 million
Q1 2026 Diluted EPS: $3.35
+5 more
8 metrics
Q1 2026 Revenue
$1.1 billion
Up 6% year over year
Q1 2026 Operating Income
$164 million
Down 3% year over year
Q1 2026 Diluted EPS
$3.35
Down 8% year over year
Home Comfort Solutions Revenue
$650 million
Q1 2026, down 10% year over year
Building Climate Solutions Revenue
$485.1 million
Q1 2026, up 38% year over year
Q1 2026 Free Cash Flow
-$38.7 million
From $16.1M operating cash flow and $55.5M capex
2026 EPS Guidance
$23.50–$25.00
Full-year 2026 guidance range reaffirmed
2026 Free Cash Flow Guidance
$750–$850 million
Full-year 2026 outlook
Key Terms
segment profit, segment margin, free cash flow, basis points, +2 more
6 terms
segment profit financial
"Total segment profit 1 was $164 million, down 3%."
Segment profit is the portion of a company's earnings produced by a single business unit or division after subtracting the costs directly tied to that unit. It shows how much money that part of the company actually contributes, like checking which room in a house uses most of the electricity. Investors use it to identify strong or weak businesses inside a company, guide capital allocation, and make clearer comparisons between divisions.
segment margin financial
"Total segment margin 1 was down 130 basis points to 14.4%."
Segment margin measures how much profit a particular business unit or division keeps from its own sales after the costs directly tied to that unit are taken out, usually expressed as a percentage of that unit’s revenue. Think of each division as a separate shop: segment margin shows which shops are making and keeping more money from their sales. Investors use it to compare divisions’ efficiency, spot stronger or weaker areas, and decide where growth or cuts might improve overall company returns.
free cash flow financial
"Free Cash Flow is still estimated to be within the range of $750 million to $850 million."
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
basis points financial
"Total segment margin 1 was down 130 basis points to 14.4%."
Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.
bolt-on M&A financial
"through differentiated growth and bolt-on M&A opportunities"
A bolt-on M&A is a relatively small acquisition made by a company to add a specific product, customer base, technology or geographic presence that fits closely with its existing business, like snapping a new module onto an existing machine. For investors it matters because these deals can boost revenue or cut costs more quickly and with less risk than big takeovers, often improving short-term growth prospects and the company’s valuation without radically changing its core operations.
non-GAAP financial measures financial
"This document includes forward-looking statements regarding segment profit, adjusted net income, adjusted diluted earnings per share, and free cash flow, which are non-GAAP financial measures."
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Revenue: $1.1 billion · Guidance included
Q1 2026
Revenue
$1.1 billion
+6% YoY
Operating income
$164 million
-3% YoY
Diluted EPS
$3.35
-8% YoY
Guidance
For full year 2026, revenue growth is guided to approximately 8%, including 4% from acquisitions, EPS is expected between $23.50 and $25.00, and free cash flow is estimated at $750–$850 million.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (date of earliest event reported): April 29, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (972 )497-5000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.*
On April 29, 2026, Lennox International Inc. (the “Company”) issued a press release announcing its financial results for the first quarter of 2026. A copy of the press release is furnished as Exhibit 99.1 to this report.
Item 9.01 Financial Statements and Exhibits.
| (d) | Exhibits. | ||||
EXHIBIT NUMBER | DESCRIPTION | ||||
| 99.1 | Press release dated April 29, 2026 (furnished herewith).* | ||||
| 104 | Inline XBRL for the cover page of this Current Report on Form 8-K. | ||||
| * | The information contained in Item 2.02 and Exhibit 99.1 of this report is being “furnished” with the Securities and Exchange Commission and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that section. Furthermore, such information shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, unless specifically identified as being incorporated therein by reference. | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
LENNOX INTERNATIONAL INC.
Date: April 29, 2026 | ||||||||
| By: | /s/ Jennifer S. Perry | |||||||
| Name: | Jennifer S. Perry | |||||||
| Title: | Assistant Secretary | |||||||
Exhibit 99.1
Lennox Reports 2026 First Quarter Results
____________________________________________________________________________
Highlights
(All comparisons are year-over-year, unless otherwise noted)
•Revenue $1.1 billion, up 6%
•GAAP Operating Income $164 million, down 3%
•GAAP diluted EPS $3.35, down 8%
•Maintaining full year EPS guidance range of $23.50 - $25.00
__________________________________________________________________________________
DALLAS, April 29, 2026 – Lennox (NYSE: LII), a leader in energy-efficient building and home comfort solutions, today reported first quarter financial results with $1.1 billion of revenue, $164 million of operating income, and $3.35 GAAP diluted earnings per share.
Revenue increased 6% to $1.1 billion. Total segment profit 1 was $164 million, down 3%. Total segment margin 1 was down 130 basis points to 14.4%. Adjusted diluted earnings per share decreased 8% to $3.35.
“Our results this quarter were supported by stabilizing end-markets and encouraging momentum across our strategic initiatives, including the integration of Duro Dyne and Supco. We remain confident in our strategy to deliver long-term shareholder value through differentiated growth and bolt-on M&A opportunities,” said CEO, Alok Maskara. “While macro uncertainties persist, we are focused on productivity measures, supply chain optimization, and thoughtful pricing actions to offset inflationary pressures.”
In Home Comfort Solutions, industry conditions started stabilizing during the first quarter, as expected. Revenue declined by 10%. While the segment experienced continued softness across both the one step and two step channels, this is a sequential improvement from the 21% decline in the fourth quarter. One-step results continued to be impacted by weak new home construction, while sentiment in the two step channel improved as distributors began to restock ahead of the summer season. Segment margins declined 390 bps primarily driven by inflation and unfavorable absorption, partially offset by positive mix and price, acquisition contributions, and disciplined cost actions.
The Building Climate Solutions segment delivered another strong quarter, with organic sales increasing 26% and acquisitions contributing an additional 12% of growth. Segment margins improved by approximately 300 basis points, largely driven by volume improvement, including contributions from national account activity. Emergency replacement activity remained strong, and there were new national account wins across both equipment and service. As inventory levels normalize, the resulting absorption impact was partially offset by productivity and manufacturing efficiency improvements.
1 Includes unallocated corporate expenses
FIRST QUARTER 2026 FINANCIAL HIGHLIGHTS
(All comparisons are year-over-year, unless otherwise noted)
Revenue: $1.1 billion was up 6%, driven by revenue from completed acquisitions.
Operating Income: $164 million, down 3%, with operating profit margin of 14.4%, down 130 bps.
Total Segment Profit1: $164 million, down 3%, and total segment profit margin of 14.4%, down 130 basis points primarily driven by $32 million decrease from lower sales volumes; $31 million product cost primarily related to recent inflationary impacts and factory under absorption; and, $14 million of SG&A and distribution inflation and investments. This was partially offset by $63 million of mix/price benefits and $9 million from completed acquisitions.
Net Income: $117 million, or $3.35 per share, compared to $130 million, or $3.63 per share, in the prior-year quarter.
Adjusted Net Income: $117 million, or $3.35 per share, compared to $130 million, or $3.63 per share, in the prior-year quarter.
Cash Flow: Operating cash flow was $16 million compared to $36 million cash used in the prior-year quarter driven by less inventory growth. Net capital expenditures were $55 million compared to $25 million in the prior-year quarter. Share repurchases totaled $20 million.
Home Comfort Solutions: Business segment revenue was $650 million, down 10%. Segment profit was $87 million, down 30%, and segment margin was 13.3%, down 390 basis points. Segment profit declined $37 million compared to the prior-year quarter. The decrease was driven by lower sales volumes, resulting in a $56 million profit headwind, along with $23 million of product cost inflation and lower factory absorption and $1 million in other costs. This was partially offset by $41 million in mix/price benefits and $2 million from completed acquisitions.
Building Climate Solutions: Business segment revenue was $485 million, up 38%. Segment profit was $96 million, up $37 million or 63%, and segment margin improved 300 basis points to 19.7%. This increase reflects a $24 million profit benefit from higher sales volumes, $22 million in mix/price benefits, and $7 million from completed acquisitions. This was partially offset by $8 million in product cost inflation and lower factory absorption; and $8 million from other costs, including SG&A and distribution inflation and investments.
Corporate and Other: Corporate expenses were $19 million, up $4 million from the prior-year quarter.
1 Includes unallocated corporate expenses
FULL YEAR 2026 GUIDANCE
For full year 2026, we are updating revenue growth guidance to approximately 8%, including 4% benefit from completed acquisitions.
Earnings per share is still expected to be within the range of $23.50 to $25.00.
Free Cash Flow is still estimated to be within the range of $750 million to $850 million.
CONFERENCE CALL INFORMATION
A conference call to discuss the company’s first quarter results will be held this morning at 8:30 a.m. Central Time. To participate in the earnings conference, please call 800-267-6316 (U.S.) or +1 203-518-9783 (international) at least 10 minutes prior to the scheduled start time and use conference ID LIIQ126. The conference call also will be webcast live on the company’s investor relations web site at investor.lennox.com. A replay of the conference call will be available until May 6, 2026, by calling toll-free 800-388-6197 (U.S.) or +1 402-220-1115 (international). The call will also be archived on the company's investor relations website at investor.lennox.com.
ABOUT LENNOX
Lennox (NYSE: LII) is a leader in energy-efficient building solutions and is committed to creating healthier and more comfortable environments. Serving residential and commercial customers, the company delivers innovative heating, cooling, indoor air quality, refrigeration, and water heating systems. Through trusted products, parts, and services, and advanced technology, Lennox delivers connected solutions that support the full lifecycle of customer needs. Additional information on Lennox is available at Lennox.com or by contacting investor@lennox.com.
FORWARD-LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES
The statements in this document that are not historical statements, including statements regarding the 2026 full-year outlook and expected consolidated and segment financial results, as well as financial targets for future years, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on information currently available as well as management’s assumptions and beliefs today. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from the results expressed or implied by the statements, and investors should not place undue reliance on them. Risks and uncertainties that could cause actual results to differ materially from such statements include risks that the North American HVAC and refrigeration markets perform worse than current assumptions. Additional risks include but are not limited to competition in the HVACR business; our ability to successfully develop and market new products or execute our business strategy; our ability to meet and anticipate customer demands; our ability to continue to license or enforce our intellectual property rights; our ability to attract, motivate, develop, and retain our employees, as well as labor relations problems; artificial intelligence technologies; a decline in new construction activity and related demand for our products and services; the impact of weather on our business; the impact of higher raw material prices and significant supply interruptions; product liability, warranty claims, or recalls; changes in environmental and climate-related legislation or government regulations or policies; changes in tax legislation; the impact of new or increased trade tariffs; improper conduct by any of our employees, agents, or business partners; litigation risks; general economic conditions in the United States and abroad; extraordinary events beyond our control; risks associated with our international operations; cyber-attacks and other disruptions or misuse of information systems; and our ability to successfully realize, complete and integrate acquisitions.
For information concerning these and other risks and uncertainties, see LII’s publicly available filings with the Securities and Exchange Commission. LII disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
A reconciliation of non-GAAP financial measures appearing in this document to financial measures prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) are included in the Annex to this document.
This document includes forward-looking statements regarding segment profit, adjusted net income, adjusted diluted earnings per share, and free cash flow, which are non-GAAP financial measures. These non-GAAP financial measures are derived by excluding certain amounts from the corresponding financial measures determined in accordance with GAAP. The determination of the amounts excluded is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period and the high variability of certain amounts, such as unusual gains and losses, the ultimate outcome of
pending litigation, fluctuations in foreign currency exchange rates, changes in environmental liabilities, the impact and timing of potential acquisitions and divestitures, future restructuring costs, and other structural changes or their probable significance. We are unable to present a quantitative reconciliation of the aforementioned forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort or expense. The unavailable information could have a significant impact on LII’s full year GAAP financial results.
LENNOX INTERNATIONAL INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
| (Amounts in millions, except per share data) | For the Three Months Ended March 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Net sales | $ | 1,135.1 | $ | 1,072.6 | |||||||
| Cost of goods sold | 783.8 | 731.7 | |||||||||
| Gross profit | 351.3 | 340.9 | |||||||||
| Operating Expenses: | |||||||||||
| Selling, general and administrative expenses | 185.2 | 171.3 | |||||||||
| Losses and other expenses, net | 2.2 | 2.8 | |||||||||
| Loss (income) from equity method investments | 0.4 | (1.2) | |||||||||
| Operating income | 163.5 | 168.0 | |||||||||
| Pension settlements | 0.5 | 0.1 | |||||||||
| Interest expense, net | 15.2 | 6.2 | |||||||||
| Other expense, net | 0.9 | 0.9 | |||||||||
| Net income before income taxes | 146.9 | 160.8 | |||||||||
| Provision for income taxes | 29.7 | 31.2 | |||||||||
| Net income | $ | 117.2 | $ | 129.6 | |||||||
Earnings per share – Basic(1): | $ | 3.37 | $ | 3.65 | |||||||
Earnings per share – Diluted(1): | $ | 3.35 | $ | 3.63 | |||||||
| Weighted Average Number of Shares Outstanding - Basic | 34.8 | 35.5 | |||||||||
| Weighted Average Number of Shares Outstanding - Diluted | 35.0 | 35.7 | |||||||||
(1) Amounts may not recalculate due to rounding.
Note: The 2025 amounts are adjusted to reflect the accounting method change from LIFO to FIFO that occurred in the fourth quarter of 2025.
| LENNOX INTERNATIONAL INC. AND SUBSIDIARIES | |||||||||||
| Segment Net Sales and Profit | |||||||||||
(Unaudited) | |||||||||||
| (Amounts in millions) | For the Three Months Ended March 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Net Sales | |||||||||||
| Home Comfort Solutions | $ | 650.0 | $ | 721.4 | |||||||
| Building Climate Solutions | 485.1 | 351.2 | |||||||||
| Total net sales | $ | 1,135.1 | $ | 1,072.6 | |||||||
Segment Profit(1) | |||||||||||
| Home Comfort Solutions | $ | 86.5 | $ | 123.9 | |||||||
| Building Climate Solutions | 95.6 | 58.8 | |||||||||
| Total segment profit | 182.1 | 182.7 | |||||||||
Corporate and other expenses(2) | (18.6) | (14.7) | |||||||||
| Total segment profit, including unallocated Corporate and other expenses | 163.5 | 168.0 | |||||||||
| Reconciliation to Operating income: | |||||||||||
| Restructuring charges | — | — | |||||||||
| (Gain) loss on sale from previous dispositions | — | — | |||||||||
| Acquisition costs | — | — | |||||||||
| Operating income | $ | 163.5 | $ | 168.0 | |||||||
(1) We define segment profit as a segment's operating income (loss) included in the accompanying Consolidated Statements of Operations, excluding:
•Restructuring charges,
•Gain (loss) on sale of previous dispositions, and;
•Acquisition costs
(2) Corporate and other expenses include unallocated corporate costs related to corporate administrative functions such as tax, treasury, accounting, internal audit, legal and human resources.
Note: The 2025 amounts are adjusted to reflect the accounting method change from LIFO to FIFO that occurred in the fourth quarter of 2025.
LENNOX INTERNATIONAL INC. AND SUBSIDIARIES
Consolidated Balance Sheets
| (Amounts in millions, except shares and par values) | As of March 31, 2026 | As of December 31, 2025 | |||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 48.2 | $ | 34.2 | |||||||
| Short-term investments | 2.0 | 0.5 | |||||||||
Accounts and notes receivable, net of allowances of $9.1 and $8.5 in 2026 and 2025, respectively | 647.9 | 578.8 | |||||||||
| Inventories, net | 1,209.7 | 1,152.6 | |||||||||
| Other current assets | 124.3 | 137.7 | |||||||||
| Total current assets | 2,032.1 | 1,903.8 | |||||||||
| Restricted cash equivalents | 19.0 | 18.5 | |||||||||
Property, plant and equipment, net of accumulated depreciation of $1,064.3 and $1,043.9 in 2026 and 2025, respectively | 917.6 | 887.2 | |||||||||
| Right-of-use assets from operating leases | 404.4 | 356.3 | |||||||||
| Goodwill | 503.7 | 497.2 | |||||||||
Intangible assets, net of accumulated amortization of $42.4 and $38.3 in 2026 and 2025, respectively | 269.7 | 273.0 | |||||||||
| Deferred income taxes | 12.6 | 12.9 | |||||||||
| Other assets, net | 133.6 | 132.9 | |||||||||
| Total assets | $ | 4,292.7 | $ | 4,081.8 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current Liabilities: | |||||||||||
| Accounts payable | $ | 464.6 | $ | 438.0 | |||||||
| Accrued expenses | 301.5 | 374.2 | |||||||||
| Income taxes payable | 63.4 | 46.4 | |||||||||
| Commercial paper | 361.0 | 226.0 | |||||||||
| Current maturities of long-term debt | 18.2 | 18.3 | |||||||||
| Current operating lease liabilities | 83.8 | 88.9 | |||||||||
| Total current liabilities | 1,292.5 | 1,191.8 | |||||||||
| Long-term debt | 1,144.1 | 1,144.1 | |||||||||
| Long-term operating lease liabilities | 347.8 | 293.4 | |||||||||
| Pensions | 19.4 | 18.7 | |||||||||
| Other liabilities | 275.0 | 270.7 | |||||||||
| Total liabilities | 3,078.8 | 2,918.7 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders' equity: | |||||||||||
Preferred stock, $0.01 par value, 25,000,000 shares authorized, no shares issued or outstanding | — | — | |||||||||
Common stock, $0.01 par value, 200,000,000 shares authorized, 87,170,197 shares issued | 0.9 | 0.9 | |||||||||
| Additional paid-in capital | 1,249.7 | 1,243.0 | |||||||||
| Retained earnings | 4,963.0 | 4,891.1 | |||||||||
| Accumulated other comprehensive loss | (48.0) | (48.5) | |||||||||
Treasury stock, at cost, 52,360,280 shares and 52,374,147 shares for 2026 and 2025, respectively | (4,951.7) | (4,923.4) | |||||||||
| Total stockholders' equity | 1,213.9 | 1,163.1 | |||||||||
| Total liabilities and stockholders' equity | $ | 4,292.7 | $ | 4,081.8 | |||||||
LENNOX INTERNATIONAL INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
| (Amounts in millions) | For the Three Months Ended March 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 117.2 | $ | 129.6 | |||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
| Loss (income) from equity method investments | 0.4 | (1.2) | |||||||||
| Provision for credit losses | 2.1 | 1.3 | |||||||||
| Unrealized losses (gains), net on derivative contracts | 2.1 | (0.5) | |||||||||
| Stock-based compensation expense | 6.3 | 6.3 | |||||||||
| Depreciation and amortization | 29.2 | 25.6 | |||||||||
| Deferred income taxes | 3.3 | (1.1) | |||||||||
| Pension expense | 1.0 | 1.1 | |||||||||
| Pension contributions | (0.3) | (0.3) | |||||||||
| Changes in assets and liabilities, net of effects of acquisitions and divestitures: | |||||||||||
| Accounts and notes receivable | (73.6) | 8.3 | |||||||||
| Inventories | (62.6) | (209.4) | |||||||||
| Other current assets | 13.7 | (1.7) | |||||||||
| Accounts payable | 31.0 | 85.2 | |||||||||
| Accrued expenses | (74.3) | (105.1) | |||||||||
| Income taxes payable and receivable, net | 18.8 | 27.1 | |||||||||
| Leases, net | 1.3 | 3.4 | |||||||||
| Other, net | 0.5 | (4.4) | |||||||||
| Net cash provided by (used in) operating activities | 16.1 | (35.8) | |||||||||
| Cash flows from investing activities: | |||||||||||
| Proceeds from the disposal of property, plant and equipment | 0.7 | 0.5 | |||||||||
| Purchases of property, plant and equipment | (55.5) | (25.5) | |||||||||
| Acquisitions, net of cash | (0.2) | — | |||||||||
| (Purchases of) proceeds from investments and other | (1.6) | 1.5 | |||||||||
| Net cash used in investing activities | (56.6) | (23.5) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Commercial paper borrowings | 434.1 | — | |||||||||
| Commercial paper payments | (299.1) | — | |||||||||
| Payments on debt arrangements | (5.3) | (5.0) | |||||||||
| Proceeds from employee stock purchases | 2.6 | 1.2 | |||||||||
| Repurchases of common stock | (19.5) | (85.2) | |||||||||
| Repurchases of common stock to satisfy employee withholding tax obligations | (10.5) | (11.3) | |||||||||
| Cash dividends paid | (45.2) | (40.9) | |||||||||
| Net cash provided by (used in) financing activities | 57.1 | (141.2) | |||||||||
| Increase (decrease) in cash, cash equivalents and restricted cash | 16.6 | (200.5) | |||||||||
| Effect of exchange rates on cash, cash equivalents and restricted cash equivalents | (2.1) | 2.6 | |||||||||
| Cash, cash equivalents and restricted cash, beginning of period | 52.7 | 415.1 | |||||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 67.2 | $ | 217.2 | |||||||
| Supplemental disclosures of cash flow information: | |||||||||||
| Interest paid | $ | 23.5 | $ | 19.2 | |||||||
| Income taxes paid (net of refunds) | $ | 7.0 | $ | 5.1 | |||||||
Note: The 2025 amounts are adjusted to reflect the accounting method change from LIFO to FIFO that occurred in the fourth quarter of 2025.
| LENNOX INTERNATIONAL INC. AND SUBSIDIARIES | |||||||||||||||||
| Reconciliation to U.S. GAAP (Generally Accepted Accounting Principles) Measures | |||||||||||||||||
| (Unaudited, in millions, except per share and ratio data) | |||||||||||||||||
| Use of Non-GAAP Financial Measures | |||||||||||||||||
| To supplement the Company's consolidated financial statements and segment net sales and profit (loss) presented in accordance with U.S. GAAP, additional non-GAAP financial measures are provided and reconciled in the following tables. The Company believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results and enhance the ability of investors to analyze the Company's business trends and operating performance. | |||||||||||||||||
| Reconciliation of Net Cash Provided by (Used in) Operating Activities, a GAAP measure, to Free Cash Flow, a Non-GAAP measure | |||||||||||
| For the Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net cash provided by (used in) operating activities | $ | 16.1 | $ | (35.8) | |||||||
| Purchases of property, plant and equipment | (55.5) | (25.5) | |||||||||
| Proceeds from the disposal of property, plant and equipment | 0.7 | 0.5 | |||||||||
| Free cash flow, a Non-GAAP measure | $ | (38.7) | $ | (60.8) | |||||||
FAQ
How did Lennox International (LII) perform in Q1 2026?
Lennox reported Q1 2026 revenue of $1.1 billion, up 6% year over year. GAAP operating income was $164 million, down 3%, and diluted EPS was $3.35, down 8%, reflecting acquisition-driven growth but some margin pressure.
What were Lennox International (LII) segment results for Q1 2026?
Home Comfort Solutions revenue was $650 million, down 10%, with profit down 30% and margin at 13.3%. Building Climate Solutions revenue reached $485.1 million, up 38%, with segment profit up 63% and margin improving to 19.7%.
Did Lennox International (LII) change its 2026 earnings guidance?
Lennox maintained its full-year 2026 earnings guidance, expecting EPS between $23.50 and $25.00. The company also reaffirmed its free cash flow outlook of $750 million to $850 million for 2026, indicating confidence in the annual financial plan.
What revenue growth is Lennox International (LII) targeting for 2026?
Lennox now expects approximately 8% revenue growth for full year 2026. This outlook includes about 4% growth from completed acquisitions, highlighting both organic and acquisition-related contributions to the company’s top-line expansion.
How did Lennox International (LII) cash flow trend in Q1 2026?
Operating cash flow was $16.1 million, an improvement from $35.8 million used in the prior-year quarter. After $55.5 million of capital expenditures and $0.7 million of asset sale proceeds, free cash flow was negative $38.7 million for the quarter.
What were Lennox International (LII) Q1 2026 net income and EPS?
Net income for Q1 2026 was $117.2 million, compared with $129.6 million a year earlier. Basic EPS was $3.37 and diluted EPS was $3.35, both lower than the prior-year levels of $3.65 and $3.63, respectively.