Lennox Q4 revenue misses on Home Comfort Solutions unit weakness

Overview

• Climate-control solutions firm's Q4 revenue declined 11%, missing analyst expectations

• Adjusted EPS for Q4 decreased by 22%

• Company attributes revenue decline to unfavorable sales volumes and macroeconomic uncertainties

Outlook

• Lennox anticipates 2026 revenue to grow by 6% to 7%

• Company expects 2026 adjusted EPS between $23.50 and $25.00

• Lennox projects 2026 capital expenditures at $250 mln

Result Drivers

• HOME COMFORT DECLINE - Revenue in Home Comfort Solutions fell 21% due to channel destocking and weak new construction sales

• BUILDING CLIMATE GROWTH - Building Climate Solutions revenue grew 8% on steady parts acquisition and services demand

• COST CONTROL - Lennox credited cost reduction actions and favorable mix for achieving over 20% annual margins

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 12 "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 $556.50, about 11.6% above its January 27 closing price of $498.80

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nPn1kZhtKa

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