Lennox International Inc. (LII) Earnings Call Transcripts
Lennox International Inc.'s Latest Earnings Call - Q2 FY2026
In the second quarter of fiscal 2026, Lennox International Inc. reported revenue of $1.5 billion, a 3% increase year-over-year, but adjusted earnings per share (EPS) remained flat at $7.72. The company has lowered its full-year adjusted EPS guidance to a range of $23 to $24, primarily due to weaker residential demand, which is now expected to decline by high single digits. Despite challenges in the residential segment, the Building Climate Solutions segment performed strongly, with revenue growth of 24%. Management signaled that while the recovery in residential demand is slower than anticipated, they remain confident in long-term growth prospects.
Reported metrics
| Metric | Value |
|---|---|
| Revenue | $1.5B (beat) |
| Adjusted EPS | $7.72 (miss) |
| Home Comfort Solutions Revenue Growth | -7% (miss) |
| Building Climate Solutions Revenue Growth | +24% (beat) |
| Operating Cash Flow | $172M (positive) |
| Free Cash Flow Conversion | 92% (positive) |
Guidance from management
Management has lowered its full-year adjusted EPS guidance to $23-$24, reflecting slower residential demand recovery. Revenue growth outlook remains unchanged at approximately 8%.
What management said
Sure. Ryan, majority of the decline was due to residential new construction, where we talked earlier about, we walked away from really low margin business. And a large portion of that impact is beet in Q2 due to seasonality. That doesn't mask that the underlying sell-through also remains weak, but is improving both sequentially and as we look at this going forward. So that's really we kind of look at the negative 20%...
That's correct. On the tariff guidance, we had built an inflation assumption of 5%. That includes the net impact of all increases within the 232 tariffs that we saw earlier in the year. And the IEPA refunds that we expected initially in the second half of the year that we've now gotten most of them in the second quarter now.
What analysts pressed on
Analysts expressed concerns regarding the significant decline in residential unit volumes and the impact of inflation on margins. There were questions about the sustainability of the recent gains in emergency replacement and how pricing strategies would evolve in a competitive market environment.
Main topics on the call
- Revenue Growth — Lennox reported a revenue increase of 3% to $1.5 billion, driven by a strong performance in the Building Climate Solutions segment, which saw a 24% revenue increase. CEO Alok Maskara noted, 'The second quarter demonstrat...
- Adjusted EPS Guidance Cut — Management reduced the full-year adjusted EPS guidance to $23-$24 from prior expectations, citing lower residential demand as a key factor. CFO Michael Quenzer stated, 'Reduction in our EPS outlook is primarily driven by...
- Residential Demand Challenges — The Home Comfort Solutions segment experienced a 7% revenue decline year-over-year, primarily due to a 12% drop in unit volumes. Maskara highlighted that 'elevated market rates, inflationary pressures and historically lo...
- Building Climate Solutions Strength — Building Climate Solutions segment revenue increased by 24%, with organic sales up 12%. Management noted, 'We are seeing signs of progress across commercial end markets, momentum in emergency replacement and strong execu...
Read the full Lennox International Inc. transcript (Q2 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.
About Lennox International Inc.
Lennox International Inc. (LII) is a publicly listed company in the Building Products industry, within the Industrials sector. It trades on NYSE and is based in US. EarningsCalls.dev maintains a free, full-text archive of its earnings call transcripts — 69 calls on record spanning February 4, 2020 to July 29, 2026. Every transcript is split into speaker-by-speaker segments with headline metrics, free to read or available through our REST API.
Earnings Call History
EarningsCalls.dev has 69 Lennox International Inc. earnings call transcripts on record, spanning February 4, 2020 to July 29, 2026. Based on this history, Lennox International Inc. reports quarterly. The most recent call on file is dated July 29, 2026. The full list is below — each row opens the complete, free-to-read transcript.
- Ticker
- LII
- Exchange
- NYSE
- Country
- US
- Sector
- Industrials
- Industry
- Building Products
- Calls on record
- 69
- First call
- February 4, 2020
- Most recent
- July 29, 2026
- Reporting cadence
- quarterly