Description

Lennox International’s Acquisition Engine: Duro Dyne And Supco Fuel Growth!

Lennox International operates within the heating, ventilation, and air conditioning (HVAC) industry, reporting first-quarter 2026 revenue growth of 6% year-over-year to $1.1 billion. This growth was supported by Duro Dyne and Supco acquisitions, which contributed approximately 6%, alongside stabilization in channel conditions and momentum from growth initiatives. The company’s segment margin declined by 130 basis points to 14.4%, mainly due to factory underabsorption resulting from production declines and inventory adjustments. Operating cash flow improved significantly to $16 million, and adjusted earnings per share reached $3.35. Lennox reaffirmed its full-year adjusted earnings per share guidance of $23.50 to $25, with an updated revenue growth expectation of approximately 8%, reflecting stronger mix and pricing actions. Within its two primary segments, Home Comfort Solutions (HCS) faced ongoing challenges primarily due to weakened new home construction and remodel activity, with organic revenue declining 12% year-over-year.