Lennox Stock Tumbles 6%, Wiping Out $734 Million, After Profit Forecast Cut
The HVAC maker's weaker outlook followed a sharp margin drop in home comfort, even as commercial revenue grew.
Lennox International, which designs and sells heating, cooling and refrigeration equipment, saw its shares fall 5.71% to $350.81 in Wednesday trading, as of 9:57 a.m. ET, erasing $734 million in market value. The drop came the day the company cut its full-year adjusted earnings outlook to $21.00 to $21.50 per share, from $23.00 to $24.00.
Home comfort margins take the hit
The company said a 490-basis-point drop in home comfort margins, or 4.9 percentage points, drove the cut. It pointed to targeted price adjustments meant to defend market share, plus tariff and inflation costs.
Product cost inflation, tariffs included, weighed on third-quarter profit by $45 million, the company said.
Third-quarter adjusted earnings fell 7% to $6.84 per share, while revenue rose 10% to $1.57 billion, the company reported.
A stock already down 23% this year
Lennox makes furnaces, air conditioners and heat pumps for residential replacement and new construction in its Home Comfort Solutions segment, which had net sales of $3,343.4 million in 2025. Its Building Climate Solutions segment, which makes rooftop equipment for light commercial buildings and refrigeration gear for supermarkets, warehouses and data centers, had $1,851.9 million.
The stock was on pace for its biggest one-day drop since July 29, when it fell 21.0%. At Tuesday's close it was down about 23% year to date, while the S&P 500 was up about 13%, and it sat 35% below its highest close of the past year, set on June 30.
In July, CEO Alok Maskara said the residential market was soft because new housing construction remained stagnant, according to MarketWatch.
The stock's market value stood at $12.1 billion at the time of the Wednesday move.
Sources
- Lennox Non-GAAP EPS of $6.84 misses by $0.52, revenue of $1.6B beats by $20M, lowers FY guidance (LII:NYSE) | Seeking Alpha — seekingalpha.com
- Lennox International (LII) Q3 Earnings Lag Estimates — Yahoo Finance
- Lennox Says Higher Costs Are Weighing on Residential HVAC Business — MarketWatch
- Lennox Reports 2026 Third Quarter Earnings Results — prnewswire.com
- The company's filing (Lennox International) — SEC filing
