EarningsQ2 2026 Earnings Report
MX:LII Q2 2026 EPS Results
Actual EPS$140.21
Consensus EPS$139.29
Beat/MissBeat by +$0.93
One Year Ago EPS$142.03
MX:LII Q2 2026 Revenue Results
Actual Revenue$28.07B
Expected Revenue$28.33B
Beat/MissMissed by -$262.43M
YoY Revenue Growth+2.96%
Earnings Announcement Details
QuarterQ2 2026
Date07/29/2026
TimeBefore Open
Conference CallWednesday, July 29, 2026
MX:LII Upcoming Earnings
Lennox International's next earnings date is estimated for October 28, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:LII Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Neutral
The call presented a mixed picture: strong performance, cash generation, and substantial outperformance in Building Climate Solutions (24% revenue growth, organic +12%) and disciplined strategic actions (acquisitions, share repurchases, inventory reduction) were offset by pronounced weakness in the core Home Comfort Solutions residential business (HCS revenue -7%, unit volumes -12%, one-step channel mid-teens decline, new construction down ~30%) and a downward EPS revision driven by lower residential volumes. Management emphasized portfolio balance, long-term confidence, and continued investment while acknowledging that the residential recovery has been delayed into 2027. Given meaningful operational and financial positives but material near-term headwinds concentrated in the core residential segment, the overall tone is balanced between encouraging execution and clear demand challenges.Company Guidance
Company-Level Revenue and EPS
Total revenue increased 3% year-over-year to $1.5 billion; total segment profit increased 2% to $355 million; adjusted EPS was flat at $7.72.
Building Climate Solutions (BCS) Outperformance
BCS revenue grew 24% year-over-year with organic sales up 12%; mix and price contributed ~3% and acquisitions (primarily DuraDyne) added ~9%. Segment profit increased, driven by higher volumes, favorable mix/price and strong execution across commercial end-markets and emergency replacement.
Cash Generation and Free Cash Flow Strength
Delivered strong cash performance with 92% trailing 12-month free cash flow conversion; management reiterated full-year free cash flow outlook of $750 million to $850 million despite guidance changes.
Disciplined Capital Allocation and Balance Sheet
Repurchased approximately $130 million of shares in Q2; net debt to adjusted EBITDA was 1.3x at quarter-end; after quarter-end completed Comfort-Aire/Century acquisition financed with ~ $200 million of debt; capex guidance refined to ~$225 million (down from $250 million).
Strategic Acquisitions and Synergies
Completed acquisition of Comfort-Aire/Century/Coast-Air brands to expand reach in small/midsized distribution channels, broaden product offering, enable one-order/one-invoice capabilities, and target margin improvement via product integration and logistics synergies; management expects the business to be accretive to EPS in 2027.
HCS Pricing, Mix and Acquisition Offsets
Home Comfort Solutions saw favorable mix and pricing contributing ~3% to revenue and acquisitions contributed ~2%, partially offsetting a decline in unit volumes; tariff refunds provided ~ $25 million benefit to product costs in the quarter.
Sequential Improvement in Residential Volumes
Residential unit decline improved sequentially from a 21% decline in Q1 to a 12% decline in Q2, indicating some stabilization in sell-in trends.
Operational Focus and Inventory Progress
Unit inventory levels continued to decline and management remains on track with inventory reduction plans; inventory dollars were flat to December (inflation and tariffs), supporting free cash flow guidance and working capital discipline.
MX:LII Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed