LII US S&P 500Russell 1000 Earnings call
Lennox International (LII) · Q2 2026 results and valuation
Share price: $350.73 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 29 Jul 2026 and 29 Apr 2026
Net income up 129.5% on the previous quarter, guidance cut. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+129.5%
Net income vs Q1 2026
Guidance cut
Net income 269.0M vs 117.2M
Revenue +36.1%
Against the same quarter last year (Q2 2025) it is −3.1%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Typical
Less upbeat than 61% of company calls
Answers to analysts: cautious, in line with the script.
Similar to last call.
3 · What stood out
Guidance ↓
LII lowered its EPS outlook due to lower net volume expectations.
Valuation
Is Lennox International undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 3.3% growth a year (3-year revenue growth), the model's fair value is $222.79 a share — the stock trades 57% above it. Today's price assumes 8.6% growth a year.
Current price
$350.73
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+8.6% for 10 yrs
Fair value / share
$222.79
Buy below
$167.09
Price vs fair value
Overvalued 57%
Price vs buy-below price
Overvalued 110%
Read between the lines
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Guidance ↓
While Lennox International is reducing its earnings outlook, several key elements of its 2026 financial framework such as revenue and free cash conversion, have not changed.
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Figure
Revenue increased 3% to $1.5 billion, indicating growth in the company's revenue drivers for the quarter.
Source quote
“Revenue increased 3% to $1.5 billion.”
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Dropped
The company's product and advanced technology portfolios continue to expand, enabling the company to capture a greater share of wallet.
Source quote
“Our product and advanced technology portfolios continues to expand, enabling us to capture a greater share of wallet. What excites me most is that innovation is always at the forefront. Of course, not all this would be possible without the strong foundation that is our culture.”
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Fading
Organic volumes are expected to decline low single digits, while HCS revenue guidance increased from 2% to 4% and BCS growth is now expected to be approximately 16%.
Source quote
“Organic volumes are still expected to decline low single digits, net of approximately 1 point of growth from parts and accessories... Looking at the segment revenue guidance, HCS is now expected to grow 4% compared to the previous guidance of 2% and BCS is now expected to grow approximately 16%. Cost inflation is now expected to be up approximately 5% from up 2% driven by recent increases in tariffs and input costs for...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“While we have strong growth in the first quarter, Building Climate Solutions maintained its momentum in the second quarter, supported by improving commercial end-markets, and continued execution on our growth...”
“We are seeing signs of progress across commercial end-markets, momentum in emergency replacement, and strong execution in the field to gain share and grow margins.”
“Growth was driven by success with national account customers and an increase in emergency replacement activity.”
Full figures
USD · ROIC.AI fundamentals (NYSE:LII, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.55B | 1.14B | +36.1% | 1.50B | +3.0% |
| Gross profit | 539.5M | 351.3M | +53.6% | 522.5M | +3.3% |
| Operating income | 356.4M | 163.5M | +118.0% | 354.0M | +0.7% |
| Net income | 269.0M | 117.2M | +129.5% | 277.6M | −3.1% |
| EPS | 7.75 | 3.35 | +131.4% | 7.82 | −0.9% |
| P/E today 16.0 | — | 20.6 | — | 24.4 | — |
Topics
Most discussed now
- Within Home Comfort Solutions, year-over-year quarterly performance improved sequentially though the pace of end-market recovery remains…
- Total segment profit increased 2% to $355 million, and adjusted earnings per share were flat at $7.72.
- Cash generation and a disciplined focus on working capital management supported strong cash flow performance during the quarter.
- Lennox International continues to navigate cost inflation and factory absorption pressures associated with lower residential production…
- Residential market conditions remain challenging during the second quarter.
Faded since Q1 2026
- Dropped Lennox International tracks vitality where it does not consider refringent changes as a new product.
- Dropped Think of that as $150 million reduction compared to what Lennox International normally build because it has to build a lot...
- Fading Revenue was $1.1 billion, up 6% year-over-year as growth initiatives gain traction and channel conditions stabilize.
- Fading In Building Climate Solutions, emergency replacement momentum and disciplined execution contributed to record quarterly performance.
Latest announcements
Official filings, newest first.
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change; Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K