Lennox stock faces lower outlook after third-quarter margin pressure

Lennox reported stronger sales but weaker profitability for the third quarter on October 28, 2026. In its third-quarter earnings release, the company said revenue rose 10 percent year over year to 1.6 billion US dollars, while adjusted diluted earnings per share fell 7 percent to 6.84 US dollars.

Guidance reset after margin pressure

Lennox lowered its full-year adjusted earnings outlook to 21.00 to 21.50 US dollars per share from the previous range of 23.00 to 24.00 US dollars. Revenue growth guidance was revised to approximately 6 percent, including a 5 percent contribution from completed acquisitions. The company also expects free cash flow of 700 million to 750 million US dollars.

Total segment profit declined 2 percent to 323 million US dollars, and total segment margin fell to 20.6 percent. Lennox attributed the pressure to competitive conditions, product cost inflation, tariffs, higher fuel costs and lower factory absorption. GAAP operating income fell 5 percent to 312 million US dollars.

Commercial business outpaces residential unit

Building Climate Solutions revenue increased 24 percent to 635 million US dollars, supported by commercial HVAC, refrigeration and services. Home Comfort Solutions revenue rose 3 percent to 937 million US dollars, while segment profit fell 18 percent and margin declined to 18.7 percent. Management said it plans to focus on productivity, tariff mitigation, pricing and new entry-tier products.

Trading remains a separate signal

Lennox stock traded at 319.70 euros on Lang & Schwarz at 22:59 CET on Wednesday, November 4, 2026. Investors can follow the real-time quote of Lennox stock.

US equities remain influenced by developments in the S&P 500, tracked in the latest market coverage.

More news and analyses on Lennox stock are available here.