Lennox Q1 revenue beats estimates on building climate growth

Lennox International

29/04/2026 11:57

Overview

U.S. HVAC solutions provider's Q1 revenue rose 6%, beating analyst expectations

GAAP diluted EPS for Q1 fell 8% to $3.35

Company maintained full-year EPS guidance, citing stabilizing markets and acquisition benefits

Outlook

Lennox maintains full-year 2026 EPS guidance of $23.50 to $25.00

Company updates 2026 revenue growth guidance to approximately 8%, including 4% from acquisitions

Lennox still estimates 2026 free cash flow at $750 mln to $850 mln

Result Drivers

HOME COMFORT WEAKNESS - Segment revenue fell 10% due to continued softness in distribution channels and weak new home construction, though sequentially improved from prior quarter

INFLATION AND LOWER ABSORPTION - Segment margins declined due to inflationary product costs and lower factory absorption, partially offset by price/mix and acquisition contributions

BUILDING CLIMATE GROWTH - Segment revenue rose 38% with improved margins, driven by higher sales volumes, acquisitions, and strong emergency replacement activity

Company press release: ID:nPn9nLJmLa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$1.14 bln
$1.08 bln (15 Analysts)
Q1 EPS
$3.35


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 13 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the electrical components & equipment peer group is "buy."

Wall Street's median 12-month price target for Lennox International Inc is $540.00, about 9% above its April 28 closing price of $495.52

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)