Q2 2026 Lennox International Inc Earnings Call Transcript
Key Points
- Lennox International Inc (LII) reported a 3% increase in revenue to $1.5 billion for the second quarter.
- The Building Climate Solutions segment showed strong performance with a 24% revenue increase, driven by national account successes and emergency replacement activity.
- The company completed the acquisition of Comfort-Aire, Century, and Coast Air brands, which is expected to be accretive to EPS in 2027.
- Lennox International Inc (LII) maintained a strong balance sheet with a net debt to adjusted EBITDA ratio of 1.3 times.
- The company generated $172 million of operating cash flow in the second quarter, with a trailing 12-month free cash flow conversion of 92%.
- Residential demand remains challenging, with a 7% decline in revenue driven by a 12% decline in unit volumes.
- The company reduced its full-year adjusted EPS guidance due to lower net volume expectations in the residential segment.
- Lennox International Inc (LII) faced cost inflation and factory absorption pressures, impacting profitability.
- The residential new construction market saw a significant decline, with revenues down approximately 30% during the quarter.
- The company experienced a reduction in expected productivity from $75 million to $60 million due to ongoing absorption headwinds and delayed material cost reduction initiatives.
Welcome to the Lennox 2026 second-quarter earnings call. (Operator Instructions) As a reminder, this call is being recorded.
I will now turn the call over to Chelsea Pulchan from Lennox Investor Relations. Chelsea, please go ahead.
Thank you, Madison. Good morning, everyone. Thank you for joining us as we share our 2026 second quarter results. Joining me today is CEO Alok Maskara; and CFO, Michael Quenzer. Each will share their prepared remarks before we move to the Q&A session.
Turning to slide 2. A reminder that during today's call, we will be making certain forward-looking statements, which are subject to numerous risks and uncertainties as outlined on this page. We may also refer to certain non-GAAP financial measures that management considers relevant indicators of underlying business performance.
Please refer to our SEC filings available on our Investor Relations website for additional details, including a reconciliation of GAAP to non-GAAP measures. The
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
