Lennox International (NYSE:LII) Hits New 1-Year Low on Disappointing Earnings

Key Points

• Lennox International shares fell 9.6% to a new 52-week low after the company reported adjusted EPS of $6.84, missing the $7.36 consensus estimate and declining from $6.98 a year earlier.
• Management lowered its 2026 adjusted EPS outlook to $21.00–$21.50 from $23.00–$24.00, citing inflation, tariffs, competitive pricing pressure and weaker factory absorption that reduced margins.
• Despite the earnings setback, quarterly revenue rose 10.2% year over year to roughly $1.6 billion, and the company maintained its $1.36 quarterly dividend, an annualized yield of about 1.6%.

Lennox International, Inc. (NYSE:LII - Get Free Report)'s share price hit a new 52-week low on Wednesday following a weaker than expected earnings announcement. The company traded as low as $337.00 and last traded at $338.9210, with a volume of 1,177,808 shares traded. The stock had previously closed at $372.05.

The construction company reported $6.84 earnings per share for the quarter, missing the consensus estimate of $7.36 by ($0.52). Lennox International had a net margin of 14.61% and a return on equity of 66.42%. The firm's revenue for the quarter was up 10.2% compared to the same quarter last year. During the same period in the prior year, the company earned $6.98 EPS.

Lennox International Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th were paid a $1.36 dividend. The ex-dividend date was Wednesday, September 30th. This represents a $5.44 dividend on an annualized basis and a dividend yield of 1.6%. Lennox International's payout ratio is currently 24.59%.

Trending Headlines about Lennox International

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

• Positive Sentiment: Third-quarter revenue increased 10% year over year to approximately $1.6 billion, indicating continued demand for Lennox’s home-comfort and building solutions. Lennox Reports 2026 Third Quarter Earnings Results
• Neutral Sentiment: Institutional positioning was mixed in the latest quarter, with 315 investors adding LII shares and 308 reducing their holdings. This suggests divided views among large investors rather than a clear consensus. Lennox International Falls After Q3 Profit Miss and Lowered 2026 Outlook
• Negative Sentiment: Adjusted diluted EPS was $6.84, below analyst estimates ranging from $7.18 to $7.36, and down from $6.98 a year earlier. GAAP diluted EPS was $6.41. Lennox International Q3 Earnings Lag Estimates
• Negative Sentiment: Lennox cut its 2026 adjusted EPS guidance to $21.00–$21.50 from $23.00–$24.00, resetting investor expectations for full-year earnings.
• Negative Sentiment: Management cited persistent inflation, tariff-related expenses, competitive pressure and lower factory absorption as factors weighing on margins. In Home Comfort Solutions, pricing actions to defend and regain market share contributed to a sharp decline in segment profitability. Lennox International Q3 2026: Tariffs Trigger a Sharp Guidance Cut
• Negative Sentiment: An insider sale of 971 shares worth approximately $529,000 adds a modest negative signal, although one transaction alone does not establish a broader insider-selling trend. Lennox International Falls After Q3 Profit Miss and Lowered 2026 Outlook

Analyst Ratings Changes

Several brokerages recently issued reports on LII. Mizuho dropped their target price on shares of Lennox International from $450.00 to $395.00 and set a "neutral" rating on the stock in a report on Thursday, October 15th. Wells Fargo & Company started coverage on shares of Lennox International in a research note on Friday, September 25th. They set an "equal weight" rating and a $424.00 target price for the company. Morgan Stanley lowered their price target on Lennox International from $375.00 to $350.00 and set an "underweight" rating on the stock in a report on Thursday, October 15th. William Blair restated an "outperform" rating on shares of Lennox International in a research note on Wednesday, July 29th. Finally, Royal Bank Of Canada cut their price objective on Lennox International from $469.00 to $406.00 and set a "sector perform" rating for the company in a report on Wednesday, October 14th. Four investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $480.00.

Hedge Funds Weigh In On Lennox International

Large investors have recently made changes to their positions in the business. Burkett Financial Services LLC bought a new position in Lennox International in the 3rd quarter worth approximately $26,000. SBI Securities Co. Ltd. raised its position in shares of Lennox International by 3,500.0% during the third quarter. SBI Securities Co. Ltd. now owns 72 shares of the construction company's stock valued at $26,000 after buying an additional 70 shares during the last quarter. Root Financial Partners LLC lifted its holdings in shares of Lennox International by 137.9% in the first quarter. Root Financial Partners LLC now owns 69 shares of the construction company's stock worth $32,000 after buying an additional 40 shares in the last quarter. N.E.W. Advisory Services LLC purchased a new position in shares of Lennox International in the second quarter worth $37,000. Finally, Global Retirement Partners LLC bought a new position in shares of Lennox International during the second quarter worth $50,000. 67.07% of the stock is currently owned by hedge funds and other institutional investors.

Lennox International Trading Down 9.6%

The stock has a market cap of $11.62 billion, a P/E ratio of 15.27, a price-to-earnings-growth ratio of 1.57 and a beta of 1.16. The stock's 50-day moving average is $372.58 and its two-hundred day moving average is $474.85. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.57 and a quick ratio of 0.77.

Lennox International Company Profile

Lennox International Inc is a heating, ventilation, air conditioning and refrigeration company headquartered in Richardson, Texas. Founded in 1895 by Dave Lennox, the company develops and markets products designed to provide climate control and improve indoor air quality in residential and commercial buildings.

Its product portfolio includes air conditioners, heat pumps, furnaces, air handlers, thermostats, indoor air-quality equipment and related controls. Lennox also provides commercial heating and cooling systems, replacement components, installation support and other services through distributors, dealers and contractors.

Lennox primarily serves customers in the United States and Canada, with products and services also marketed in selected international markets.

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