Lennox International Inc. reported third-quarter 2026 revenue of $1.6 billion, representing a 10% increase compared to the prior year. The company’s GAAP operating income for the quarter was $312 million, with an operating margin of 19.8%. GAAP diluted earnings per share were reported at $6.41, while adjusted diluted EPS was $6.84, a decrease of 7% from the prior year.
Lennox operates two primary business segments. Home Comfort Solutions generated revenue of $937 million, up 3%, but saw its segment margin decline by 490 basis points to 18.7%. The Building Climate Solutions segment reported revenue of $635 million, up 24% year-over-year, and maintained a strong segment margin of 26.2%, though this declined by 110 basis points from the prior period.
The company cited heightened competitive pressure and persistent inflation as factors impacting profitability. Specific headwinds included $45 million in product cost inflation, including tariffs, and $15 million in higher fuel costs. These were partially offset by $21 million from mix and price benefits and $20 million from completed acquisitions.
Lennox has updated its full-year 2026 financial outlook. The company now anticipates revenue growth of approximately 6%, including a 5% benefit from completed acquisitions. Adjusted diluted EPS guidance has been revised to a range of $21.00 to $21.50, down from the previous range of $23.00 to $24.00. Free cash flow guidance is also updated to $700 million to $750 million.
