Description

Lennox International Adds Comfort-Aire, Century And Coast Air To Expand Distribution; What’s Next?

Lennox International, Inc. reported its financial results for the second quarter of 2026, reflecting mixed performance amid a challenging residential market and stronger commercial segment execution. The company’s total revenue grew by 3% to $1.5 billion, while segment profits increased by 2% to $355 million. Adjusted earnings per share remained flat at $7.72 compared to the prior year. The Home Comfort Solutions (HCS) segment faced headwinds, with residential new construction volumes declining significantly—12% lower year-over-year in one-step channels and approximately 30% lower revenues in new residential construction. The decline was partly due to the company’s strategic decision to exit low-margin new construction businesses. Despite this, sequential improvement in residential demand was noted. The slower-than-anticipated residential recovery has prompted management to shift the expectation for a meaningful market rebound into 2027 rather than the back half of 2026.