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LII · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Lennox International Inc. (LII) stock moving?
Lennox's Q3 2026 results on Oct 28 missed expectations: adjusted EPS was $6.84 versus $7.36 expected, and sales were $1.573B versus $1.578B, with adjusted EPS down 7% despite 10% revenue growth. Management cut FY2026 adjusted EPS guidance to $21.00-$21.50 from $23.00-$24.00 and sales guidance to $5.507B from $5.611B, both below consensus. The stock fell 10.6% that day from $372.05 to $332.64 on about 2.4M shares, roughly 2.7 times the 30-day average of about 880K. It bottomed near $322 on Oct 29 and has since traded in a $341-$369 range, with the Nov 4-5 highs near $368-$370 acting as resistance. Analysts followed with a downgrade to Perform from Oppenheimer and price target cuts to $378 (RBC), $355 (Wells Fargo) and $350 (BNP Paribas), all with neutral ratings. The last close of $347.93 sits close to the lowest target, and volume has faded to about 430K shares on Nov 10. The Nov 2 leadership change is an orderly internal succession, so it adds little new risk. Overall the evidence leans negative, and the outlook depends on whether margins and demand stabilize after the guidance reset.
News behind the analysis
- Lennox International Announces Executive Leadership TransitionGeoff Dethlefsen will become executive vice president and president of Building Climate Solutions effective January 1, 2027, succeeding Joe Nassab, who moves to a strategic advisor role.
- BNP Paribas Maintains Neutral on Lennox International, Lowers Price Target to $350BNP Paribas kept a Neutral rating and cut its price target to $350 after the third-quarter results.
- RBC Capital Maintains Sector Perform on Lennox International, Lowers Price Target to $378RBC Capital kept a Sector Perform rating and lowered its price target to $378.
- Wells Fargo Maintains Equal-Weight on Lennox International, Lowers Price Target to $355Wells Fargo kept an Equal-Weight rating and cut its price target to $355.
- Oppenheimer Downgrades Lennox International to PerformOppenheimer downgraded Lennox International to Perform following the quarterly results.
- Lennox Intl Q3 2026 Earnings Call TranscriptTranscript of the third-quarter 2026 earnings call, held on Wednesday, October 28.
- Lennox Reports 2026 Third Quarter Financial ResultsRevenue rose 10% to $1.57 billion, while adjusted diluted EPS fell 7% to $6.84.
- Lennox Intl Q3 Adj. EPS $6.84 Misses $7.36 Estimate, Sales $1.573B Miss $1.578B EstimateAdjusted EPS and sales both came in below analyst estimates for the third quarter.
- Lennox International Lowers FY2026 Adj EPS Guidance from $23.00-$24.00 to $21.00-$21.50 vs $23.39 Est; Lowers FY2026 Sales Guidance from $5.611B to $5.507B vs $5.588B EstFull-year 2026 adjusted EPS guidance was cut to $21.00-$21.50 and sales guidance to $5.507B, both below prior targets and consensus.
About Lennox International Inc.
Lennox International is a Dallas-based maker of heating, air-conditioning, indoor air quality and refrigeration equipment for homes and commercial buildings, sold mainly in North America. It stands out for selling much of its residential equipment directly to dealers through its own network of stores rather than through independent distributors. It also has a growing HVAC parts and supplies business, built up with recent acquisitions such as Duro Dyne, Supco and Heat Controller.
How it makes money
Lennox earns most of its money by selling HVAC equipment, parts and services. Its larger segment, Home Comfort Solutions (roughly two-thirds of sales), sells residential furnaces, air conditioners, heat pumps and replacement parts to contractors. Its Building Climate Solutions segment sells commercial rooftop units, refrigeration equipment and service work. Replacing aging systems makes up most of the demand, rather than new construction. Total revenue is roughly $5.5 billion a year (approximate).
What usually moves LII
- Residential HVAC replacement demand and summer weather
- Commercial construction and rooftop unit demand
- Tariffs, steel/copper costs and pricing power
- Refrigerant and efficiency regulation changes
- Acquisition integration and share buybacks