Lennox (LII) jumps after Q1 earnings beat and 2026 outlook reaffirmed
Lennox International shares jumped after the company reported Q1 2026 results that beat expectations, with EPS of $3.35 on revenue of about $1.14 billion. The company reaffirmed full-year EPS guidance of $23.50–$25.00 and guided for ~8% revenue growth in 2026, supporting the rally.
1) What’s moving the stock
Lennox International (LII) is rallying after posting a quarterly earnings beat and reiterating its full-year outlook. The company reported Q1 2026 GAAP diluted EPS of $3.35 and revenue of $1.1 billion, while keeping its 2026 EPS guidance range intact at $23.50 to $25.00. (sec.gov)
2) Key numbers investors focused on
Revenue rose 6% year over year to $1.1 billion, while operating income was $164 million and operating margin was 14.4%. Lennox reiterated 2026 free cash flow guidance of $750 million to $850 million, and said it is updating revenue growth guidance to approximately 8% (including a 4% benefit from completed acquisitions). (sec.gov)
3) Segment drivers and management commentary
Lennox said Building Climate Solutions delivered strong performance, with organic sales up 26% and acquisitions adding 12% growth, alongside margin improvement to 19.7% tied to volume and national account activity. In Home Comfort Solutions, revenue declined 10%, but the company described industry conditions as stabilizing and noted improved distributor sentiment and restocking ahead of the summer season. (sec.gov)