Lennox International reported fourth-quarter adjusted earnings of $4.45 per share, falling short of the Zacks Consensus Estimate of $4.76 and representing a 20.5% decline from the $5.60 per share posted in the year-ago quarter. The miss on the bottom line reflected continued pressure on unit margins as raw material costs remained elevated and pricing actions lagged inflationary inputs. While management highlighted a modest improvement in order rates late in the quarter, overall HVAC demand softened in North America, contributing to revenue that was below internal forecasts. Lennox’s gross margin contracted by approximately 220 basis points year-over-year, partially offset by disciplined overhead controls and a 3% reduction in operating expenses. During the earnings call, the company reiterated its commitment to returning cash to shareholders through its existing buyback program, authorizing an additional $500 million of repurchases for fiscal 2026.