Lennox Reports Q1 Revenue Growth of 6% Amid Market Stabilization
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy LII?
Source: PRnewswire
- Revenue Growth: Lennox reported Q1 revenue of $1.1 billion, a 6% year-over-year increase primarily driven by revenue from completed acquisitions, although operating income fell 3% to $164 million, indicating challenges amid market stabilization.
- Home Comfort Solutions: This segment generated $650 million in revenue, down 10% year-over-year, yet showed improvement from a 21% decline in Q4, suggesting a gradual recovery in market demand despite ongoing pressures from weak new home construction.
- Building Climate Solutions: The segment delivered robust performance with a 38% revenue increase to $485 million and a 63% profit rise to $96 million, largely due to volume growth and new national account wins, reflecting strong demand in the emergency replacement market.
- Future Outlook: Lennox updates its 2026 revenue growth guidance to approximately 8%, including a 4% contribution from completed acquisitions, demonstrating confidence in future growth despite macroeconomic uncertainties and inflationary pressures.
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Analyst Views on LII
Wall Street analysts forecast LII stock price to rise
11 Analyst Rating
3 Buy
6 Hold
2 Sell
Hold
Current: 502.240
Low
475.00
Averages
577.90
High
680.00
Current: 502.240
Low
475.00
Averages
577.90
High
680.00
About LII
Lennox International Inc. focuses on climate-control solutions. The Company designs, manufactures and markets a range of products for the heating, ventilation, air conditioning and refrigeration markets. The Company's segments include Home Comfort Solutions and Building Climate Solutions. Its Home Comfort Solutions segment's products and services include furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, replacement parts and supplies. Its brands include Lennox, Ducane, AirEase, Concord, MagicPak, Supco, among others. Its Building Climate Solutions segment's products and services include unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment. Its brands include Enlight, Xion, Energence, Prodigy, Duro Dyne, among others. It sells its products and services through a combination of direct sales, distributors and Company-owned stores.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Lennox (LII) to Announce Q1 Earnings on April 29
- Earnings Announcement: Lennox (LII) is set to release its Q1 2023 earnings report on April 29 before market open, with consensus EPS estimated at $3.18, reflecting a 5.6% year-over-year decline, and revenue expected at $1.07 billion, down 2.7%, indicating significant pressure on profitability.
- Historical Performance: Over the past two years, Lennox has beaten EPS estimates 88% of the time and revenue estimates 50% of the time, highlighting considerable volatility in its earnings performance, which may pose challenges moving forward.
- Estimate Revisions: In the last three months, there have been no upward revisions to EPS estimates and 12 downward revisions, while revenue estimates saw 2 upward and 9 downward revisions, reflecting a pessimistic outlook from the market regarding the company's future performance.
- Market Analysis: Recent analyst downgrades suggest that Lennox is expected to underperform the market going forward, indicating concerns about the company's growth potential in the current economic environment, which may impact investor confidence.
See More
Lennox Q1 Earnings Beat Expectations, Full Year Guidance Maintained
- Earnings Performance: Lennox reported a Q1 non-GAAP EPS of $3.35, beating expectations by $0.17, indicating strong market performance despite economic uncertainties.
- Robust Revenue Growth: The company achieved Q1 revenue of $1.14 billion, a 6.5% year-over-year increase, surpassing market expectations by $70 million, reflecting sustained product demand and boosting market confidence.
- Improved Cash Flow: Operating cash flow stood at $16 million, an improvement from $36 million used in the prior year, showcasing effective inventory management, although capital expenditures rose to $55 million.
- Stable Full-Year Guidance: Lennox maintains its 2026 EPS guidance range of $23.50 to $25.00, with revenue growth projected at approximately 8%, including a 4% benefit from completed acquisitions, demonstrating confidence in future growth.
See More
Lennox Reports Q1 Revenue Growth of 6% Amid Market Stabilization
- Revenue Growth: Lennox reported Q1 revenue of $1.1 billion, a 6% year-over-year increase primarily driven by revenue from completed acquisitions, although operating income fell 3% to $164 million, indicating challenges amid market stabilization.
- Home Comfort Solutions: This segment generated $650 million in revenue, down 10% year-over-year, yet showed improvement from a 21% decline in Q4, suggesting a gradual recovery in market demand despite ongoing pressures from weak new home construction.
- Building Climate Solutions: The segment delivered robust performance with a 38% revenue increase to $485 million and a 63% profit rise to $96 million, largely due to volume growth and new national account wins, reflecting strong demand in the emergency replacement market.
- Future Outlook: Lennox updates its 2026 revenue growth guidance to approximately 8%, including a 4% contribution from completed acquisitions, demonstrating confidence in future growth despite macroeconomic uncertainties and inflationary pressures.
See More
U.S. Stocks Near All-Time Highs as Investors Eye Tech Giants' Earnings
- Strong Market Performance: The S&P 500 and Nasdaq Composite indices reached new all-time highs in April, rising over 8% and 13% respectively, indicating robust market resilience despite ongoing geopolitical tensions and AI disruption concerns, reflecting investor confidence in tech stocks.
- Earnings Pressure on Tech Giants: Next week, five of the 'Magnificent Seven' companies will report earnings, with market expectations for them to demonstrate sufficient revenue growth to justify their high AI expenditures; Alphabet, Amazon, Meta, and Microsoft have all seen stock price increases of over 10% this month, highlighting the market's keen interest in their performance.
- Federal Reserve Meeting Impact: This is expected to be Jerome Powell's last meeting as chair, with the market widely anticipating that the Fed will keep interest rates unchanged, although rising oil prices could complicate future monetary policy, necessitating close attention to how this dynamic may affect the market.
- Cautious Investor Sentiment: As the traditional market adage 'Sell in May' approaches, investors remain wary of potential downside risks, particularly in light of poor software stock performance and rising oil prices, which could further dampen market sentiment.
See More
US Stocks Close: S&P 500 Hits All-Time High
- Market Performance: On Wednesday, the S&P 500 rose by 0.80% and the Nasdaq 100 by 1.40%, reaching all-time highs, reflecting investor optimism regarding a potential peace deal in the Middle East, which may boost market confidence.
- Economic Data: The April Empire Manufacturing Survey index increased by 11.2 to 11.0, surpassing expectations and indicating improved economic activity that could support the stock market, while the NAHB housing market index fell to a 7-month low, signaling weakness in the real estate sector.
- Interest Rate Dynamics: The 10-year Treasury yield rose to 4.276% as optimism over the US-Iran ceasefire eased safe-haven demand for Treasuries, potentially leading investors to reassess future rate policies amid mixed economic signals.
- Sector Volatility: Software stocks surged, with Atlassian up over 10%, while industrial stocks fell broadly due to concerns over US metals tariffs, exemplified by Carrier Global's decline of over 9%, highlighting significant sector divergence.
See More
Lennox to Report Q1 2026 Financial Results on April 29
- Earnings Release Schedule: Lennox is set to announce its Q1 2026 financial results before the market opens on April 29, highlighting its ongoing performance in energy-efficient building solutions.
- Conference Call Details: The earnings conference call will take place at 8:30 a.m. Central Time on the same day, with CEO Alok Maskara and CFO Michael Quenzer summarizing financial results and providing future outlook.
- Participation Instructions: Participants are required to call 800-267-6316 (U.S.) or +1 203-518-9783 (international) at least 10 minutes prior to the scheduled start time, using conference ID LIIQ126 to ensure smooth participation.
- Replay Information: A replay of the conference call will be available until May 6, 2026, by calling 800-388-6197 (U.S.) or +1 402-220-1115 (international), and the call will also be archived on the company's investor relations website.
See More
Lennox (LII) to Announce Q1 Earnings on April 29
- Earnings Announcement: Lennox (LII) is set to release its Q1 2023 earnings report on April 29 before market open, with consensus EPS estimated at $3.18, reflecting a 5.6% year-over-year decline, and revenue expected at $1.07 billion, down 2.7%, indicating significant pressure on profitability.
- Historical Performance: Over the past two years, Lennox has beaten EPS estimates 88% of the time and revenue estimates 50% of the time, highlighting considerable volatility in its earnings performance, which may pose challenges moving forward.
- Estimate Revisions: In the last three months, there have been no upward revisions to EPS estimates and 12 downward revisions, while revenue estimates saw 2 upward and 9 downward revisions, reflecting a pessimistic outlook from the market regarding the company's future performance.
- Market Analysis: Recent analyst downgrades suggest that Lennox is expected to underperform the market going forward, indicating concerns about the company's growth potential in the current economic environment, which may impact investor confidence.
See More
Lennox Q1 Earnings Beat Expectations, Full Year Guidance Maintained
- Earnings Performance: Lennox reported a Q1 non-GAAP EPS of $3.35, beating expectations by $0.17, indicating strong market performance despite economic uncertainties.
- Robust Revenue Growth: The company achieved Q1 revenue of $1.14 billion, a 6.5% year-over-year increase, surpassing market expectations by $70 million, reflecting sustained product demand and boosting market confidence.
- Improved Cash Flow: Operating cash flow stood at $16 million, an improvement from $36 million used in the prior year, showcasing effective inventory management, although capital expenditures rose to $55 million.
- Stable Full-Year Guidance: Lennox maintains its 2026 EPS guidance range of $23.50 to $25.00, with revenue growth projected at approximately 8%, including a 4% benefit from completed acquisitions, demonstrating confidence in future growth.
See More
Lennox Reports Q1 Revenue Growth of 6% Amid Market Stabilization
- Revenue Growth: Lennox reported Q1 revenue of $1.1 billion, a 6% year-over-year increase primarily driven by revenue from completed acquisitions, although operating income fell 3% to $164 million, indicating challenges amid market stabilization.
- Home Comfort Solutions: This segment generated $650 million in revenue, down 10% year-over-year, yet showed improvement from a 21% decline in Q4, suggesting a gradual recovery in market demand despite ongoing pressures from weak new home construction.
- Building Climate Solutions: The segment delivered robust performance with a 38% revenue increase to $485 million and a 63% profit rise to $96 million, largely due to volume growth and new national account wins, reflecting strong demand in the emergency replacement market.
- Future Outlook: Lennox updates its 2026 revenue growth guidance to approximately 8%, including a 4% contribution from completed acquisitions, demonstrating confidence in future growth despite macroeconomic uncertainties and inflationary pressures.
See More
U.S. Stocks Near All-Time Highs as Investors Eye Tech Giants' Earnings
- Strong Market Performance: The S&P 500 and Nasdaq Composite indices reached new all-time highs in April, rising over 8% and 13% respectively, indicating robust market resilience despite ongoing geopolitical tensions and AI disruption concerns, reflecting investor confidence in tech stocks.
- Earnings Pressure on Tech Giants: Next week, five of the 'Magnificent Seven' companies will report earnings, with market expectations for them to demonstrate sufficient revenue growth to justify their high AI expenditures; Alphabet, Amazon, Meta, and Microsoft have all seen stock price increases of over 10% this month, highlighting the market's keen interest in their performance.
- Federal Reserve Meeting Impact: This is expected to be Jerome Powell's last meeting as chair, with the market widely anticipating that the Fed will keep interest rates unchanged, although rising oil prices could complicate future monetary policy, necessitating close attention to how this dynamic may affect the market.
- Cautious Investor Sentiment: As the traditional market adage 'Sell in May' approaches, investors remain wary of potential downside risks, particularly in light of poor software stock performance and rising oil prices, which could further dampen market sentiment.
See More
US Stocks Close: S&P 500 Hits All-Time High
- Market Performance: On Wednesday, the S&P 500 rose by 0.80% and the Nasdaq 100 by 1.40%, reaching all-time highs, reflecting investor optimism regarding a potential peace deal in the Middle East, which may boost market confidence.
- Economic Data: The April Empire Manufacturing Survey index increased by 11.2 to 11.0, surpassing expectations and indicating improved economic activity that could support the stock market, while the NAHB housing market index fell to a 7-month low, signaling weakness in the real estate sector.
- Interest Rate Dynamics: The 10-year Treasury yield rose to 4.276% as optimism over the US-Iran ceasefire eased safe-haven demand for Treasuries, potentially leading investors to reassess future rate policies amid mixed economic signals.
- Sector Volatility: Software stocks surged, with Atlassian up over 10%, while industrial stocks fell broadly due to concerns over US metals tariffs, exemplified by Carrier Global's decline of over 9%, highlighting significant sector divergence.
See More
Lennox to Report Q1 2026 Financial Results on April 29
- Earnings Release Schedule: Lennox is set to announce its Q1 2026 financial results before the market opens on April 29, highlighting its ongoing performance in energy-efficient building solutions.
- Conference Call Details: The earnings conference call will take place at 8:30 a.m. Central Time on the same day, with CEO Alok Maskara and CFO Michael Quenzer summarizing financial results and providing future outlook.
- Participation Instructions: Participants are required to call 800-267-6316 (U.S.) or +1 203-518-9783 (international) at least 10 minutes prior to the scheduled start time, using conference ID LIIQ126 to ensure smooth participation.
- Replay Information: A replay of the conference call will be available until May 6, 2026, by calling 800-388-6197 (U.S.) or +1 402-220-1115 (international), and the call will also be archived on the company's investor relations website.
See More
