Lennox International Inc. designs, manufactures, and markets products for the heating, ventilation, air conditioning, and refrigeration markets in the United States, Canada, and internationally. Its Home Comfort Solutions segment offers furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, and replacement parts and supplies under brands including Lennox, Armstrong Air, Ducane, AirEase, and others. The Building Climate Solutions segment provides unitary heating and air conditioning equipment, controls, installation and service of commercial heating and cooling equipment, variable refrigerant flow commercial systems, and refrigeration products under brands such as Lennox, Model L, CORE, and Heatcraft Worldwide Refrigeration. The company sells through direct sales, distributors, and company-owned parts and supplies stores, and was founded in 1895 with headquarters in Richardson, Texas.
CSW Posts Record Q2 Revenue of $350.7 Million, Up 33% Year on Year
CSW reported record second-quarter revenue of $350.7 million, up 33% year on year and 2.4% above analysts' consensus estimates, as the HVAC and water systems group as a whole beat revenue expectations by 4.7%. The company's Contractor Solutions Segment delivered organic revenue growth of 6%, while acquisitions also contributed to the top line. Earnings per diluted share rose 25% to $3.04 from $2.43, and adjusted EPS hit a record $3.84, up 35% from $2.85. Net income attributable to CSW rose 22% to $50 million from $41 million, adjusted EBITDA climbed 48% to a record $102 million, and cash flows from operations reached a record $76 million, up 25%. Among the nine HVAC and water systems stocks tracked, AAON posted the strongest quarter with revenue of $627 million, up 101% year on year and 24.6% above estimates, while Lennox reported the weakest performance, with revenue of $1.55 billion, up 3% but 1% short of expectations, and full-year EPS guidance missing significantly. Despite the strong results across the group, share prices have fallen an average of 11.1% since the latest earnings reports, with CSW up 8% since reporting and trading at $294.55.
CSW · Capital · Positive CSW reported record Q2 revenue of $350.7 million, up 33% year on year and 2.4% above consensus, with record adjusted EPS and EBITDA.
LII · Capital · Negative Lennox reported the weakest performance, with revenue up 3% but 1% short of expectations and full-year EPS guidance missing significantly.
AAON · Capital · Positive AAON posted the strongest quarter with revenue of $627 million, up 101% year on year and 24.6% above estimates.
Lennox Opens Fort Lauderdale Technician Training Center as Commercial HVAC Grows 24%
Lennox International opened a new 6,000-square-foot technician training center in Fort Lauderdale, Florida, on September 3, housing its National Account Services division and its Build-A-Tech apprenticeship, which has trained nearly 1,600 technicians since 2016. The company is also building an 18,000-square-foot commercial HVAC training and experience center near its Richardson, Texas headquarters, which will join nine existing Lennox LIVE residential training labs and a refrigeration training site in Stone Mountain, Georgia. The investment follows 24% revenue growth last quarter in Lennox's Building Climate Solutions segment, with 15 percentage points from existing operations, as segment profit rose 29% to $155 million and margin expanded 100 basis points to 25.5%. The residential Home Comfort Solutions segment declined, with revenue down 7% and segment profit down 12% to $222 million as margin slipped 130 basis points to 23.7%. Companywide, GAAP diluted earnings per share were flat at $7.72 on 3% higher total revenue, and Lennox trimmed full-year earnings guidance to $23.00 to $24.00 from $23.50 to $25.00, with about 5 percentage points of its roughly 8% expected revenue growth projected to come from acquisitions including Duro Dyne, Supco, Comfort-Aire and Century.
LII · Capital · Negative Lennox trimmed full-year earnings guidance to $23.00-$24.00 from $23.50-$25.00 and its residential segment profit fell 12%.
LII · Demand · Positive Lennox opened a Fort Lauderdale technician training center and is building a Texas commercial HVAC training site amid 24% growth in its Building Climate Solutions segment.
HVAC and Water Systems Q2 Earnings: Trane Beats, AAON and Lennox Diverge
In the second quarter, the nine HVAC and water systems companies tracked by StockStory reported revenues that beat analyst consensus estimates by 4.7% as a group, though their shares have since fallen 5.8% on average. Trane Technologies reported revenues of $6.35 billion, up 10.6% year on year, exceeding expectations by 2.3%, and raised its full-year EPS guidance above analyst forecasts; its stock is up 1.3% since reporting. AAON posted the strongest results, with revenues of $627 million, up 101% year on year, beating estimates by 24.6%, yet its shares dropped 20% after the report. Lennox was the weakest, with revenues of $1.55 billion, up 3% year on year, missing expectations by 1%, and its stock fell 24.9%. CSW reported revenues of $350.7 million, up 33%, beating by 2.4%, and Advanced Drainage reported revenues of $1.00 billion, up 20.6%, beating by 2%, though it gave the weakest full-year guidance among peers.
U.S. shipments of central air conditioners and air-source heat pumps surged 21.7% in June to a combined 1.02 million units, according to the Air-Conditioning, Heating and Refrigeration Institute. Central air-conditioner shipments rose 26.8% to 605,033 units, while heat-pump shipments increased 15.1% to 418,538. For the first half of the year, combined shipments rose 3% to 4.72 million units, nearly unchanged from the same period in 2024. Gas warm-air furnace shipments increased 15.2% in June to 320,281 units, but fell 6.2% for the first half to 1.55 million units. Residential gas storage water heater shipments rose 6.7% in June to 363,347 units, while electric models edged up 0.8% to 422,813, though first-half shipments for both categories remained lower than a year earlier.
Lennox Schedules Second Quarter 2026 Results Announcement for July 29
Lennox will report its second quarter 2026 financial results before the market opens on Wednesday, July 29, 2026. An earnings conference call and webcast are scheduled for the same day at 8:30 a.m. Central Time, where CEO Alok Maskara and CFO Michael Quenzer will provide a summary of the company's financial results and outlook, followed by a question-and-answer session. To participate in the call, dial 800-267-6316 in the U.S. or +1 203-518-9783 internationally at least 10 minutes prior to the start time and use conference ID LIIQ226. The call will also be webcast live at www.investor.lennox.com, and a replay will be available until August 5, 2026 by calling 800-839-5484 in the U.S. or +1 402-220-1522 internationally.
Lennox International Q2 2026 Earnings Expected to Show 2.8% Profit Decline
Lennox International is expected to report a fiscal second-quarter 2026 profit of $7.60 per share, down 2.8% from $7.82 per share a year ago. The company beat consensus estimates in three of the last four quarters. For the full year, analysts project earnings of $24.35 per share, a 5.1% increase from $23.16 in fiscal 2025, with further growth to $26.68 expected in fiscal 2027. Lennox shares have underperformed the S&P 500's 20.9% gain over the past 52 weeks, and the stock carries a Moderate Buy rating from analysts with a Street-high price target of $650, implying 13.4% upside.
Lennox Marks One-Year Anniversary of Ariston Joint Venture with Strong Water Heater Launch
Lennox is marking the one-year anniversary of its joint venture with Ariston Group, a partnership that has introduced a line of residential gas, electric, and heat pump water heaters in North America. The joint venture, announced in 2025, was created to broaden Lennox's product offering through complementary heat pump technologies while leveraging Ariston's water heating expertise. Early dealer adoption has exceeded plans, with sales and demand reflecting strong interest in sourcing multiple product categories from a single supplier. Lennox and Ariston are now focused on scaling distribution across North America, particularly in underpenetrated U.S. regions, by expanding Lennox store locations carrying water heaters and continuing dealer training. The partnership also positions Lennox to address demand for high-efficiency and heat pump water heaters as regulatory changes are expected to influence product adoption.
HVAC and Water Systems Stocks Post Strong Q1 with Revenue Beats
The nine HVAC and water systems stocks tracked by StockStory reported a very strong first quarter, with aggregate revenues beating analysts' consensus estimates by 6.9%. CSW Industrials posted all-time record revenue of $309 million, up 34% year on year, while AAON delivered the fastest revenue growth among peers at 54.3% to $496.9 million, exceeding expectations by 29.5%. Lennox reported $1.14 billion in revenue, a 5.8% increase that topped estimates by 6.7%, and Advanced Drainage Systems raised its full-year guidance the most after revenue rose 9.9% to $676.8 million. A. O. Smith was the weakest performer, with revenue down 1.9% to $945.6 million and full-year EPS guidance missing expectations. Share prices across the group have risen 11.3% on average since the latest earnings results.
AOS · Capital · Negative Revenue down 1.9% and full-year EPS guidance missing expectations
AOS · Demand · Negative A. O. Smith was the weakest performer, with revenue down 1.9% to $945.6 million and full-year EPS guidance missing expectations.
AAON · Demand · Positive AAON delivered the fastest revenue growth among peers at 54.3% to $496.9 million, exceeding expectations by 29.5%.
CSW · Demand · Positive CSW Industrials posted all-time record revenue of $309 million, up 34% year on year.
LII · Demand · Positive Lennox reported $1.14 billion in revenue, a 5.8% increase that topped estimates by 6.7%.
WMS · Demand · Positive Advanced Drainage Systems raised its full-year guidance the most after revenue rose 9.9% to $676.8 million.
Lennox International Stock Outperforms Dow Over Three Months but Lags Over 52 Weeks
Lennox International Inc. has gained 14.6% over the past three months, outperforming the Dow Jones Industrials Average's 11.9% gain during the same period. On a year-to-date basis, the stock rose 10.4%, also ahead of the Dow's 7.6% advance. However, over the past 52 weeks, Lennox International dipped 2.6%, underperforming the Dow's 21.4% return. The company reported first-quarter earnings per share of $3.35 on revenue of $1.14 billion, both exceeding Wall Street forecasts, and expects full-year earnings per share between $23.50 and $25. Wall Street analysts have a consensus Moderate Buy rating on the stock with a mean price target of $570.57, implying a potential upside of 6.4% from current levels.
Platinum Equity has signed a definitive agreement to sell Heat Controller, a leading HVAC equipment supplier, to Lennox. Financial terms were not disclosed. Heat Controller, headquartered in Jackson, Michigan, serves distributors across North America through its Comfort-Aire and Century brands. The sale represents the final exit of Platinum Equity's investment in HVAC/R distributor Motors & Armatures, which it acquired in July 2024. The transaction is expected to close later this year, subject to customary closing conditions and regulatory approvals.
Lennox has signed a definitive agreement to acquire Heat Controller, a leading HVAC equipment supplier. The acquisition expands Lennox's portfolio with the Comfort-Aire and Century brands, strengthening its ability to serve small and mid-size HVAC distributors across North America. Lennox CEO Alok Maskara said the deal enhances flexibility and customer service for distributor partners, while Heat Controller CEO Philip Windham highlighted the benefits of Lennox's scale and operational strength. The transaction is expected to close later this year, subject to customary closing conditions and regulatory approvals.
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