Lennox International cuts 2026 adjusted earnings outlook to $21.00 to $21.50 per share
Free cash flow for 2026 is now forecast at $700 million to $750 million.
Published
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Lennox International cut its full-year earnings outlook after third-quarter results fell short of expectations. Earnings per share for the quarter came in at $6.84, which was $0.58 below expectations. Revenue was $1.60 billion.
The company now expects adjusted earnings per share of $21.00 to $21.50 for 2026. Its previous range was $23.00 to $24.00. It expects revenue growth of about 6 per cent for the year, including a 5 per cent benefit from acquisitions it has completed.
Chief executive Alok Maskara said margins and results fell short because of heightened competitive pressure and persistent inflation. He said the company is changing its processes so it can pass through costs and speed up productivity.
Excluding acquisitions, underlying revenue growth is near 1 per cent. Management blames competition and inflation for the shortfall, and its plan to pass through costs and raise productivity has not yet shown up in reported margins. With the new earnings range well below the old one, any delay in raising prices would likely keep pressure on the earnings outlook.
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