Lennox International, Inc. · NYSE:LII
Lennox International — Q3 2026 Earnings Presentation
16 slides from Lennox International's earnings presentation, Oct 28, 2026
Slide 1: Third Quarter 2026 Earnings Release
INTEGRITY | RESPECT | EXCELLENCE THIRD QUARTER 2026 EARNINGS RELEASE OCTOBER 28, 2026
Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures
FORWARD-LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES The statements in this presentation that are not historical statements, including statements regarding the 2026 full-year outlook and expected consolidated and segment financial results, as well as financial targets for future years, are forwa
Slide 3: Q3 2026 Financial Highlights
Q3 2026 FINANCIAL HIGHLIGHTS Navigating competitive dynamics and continued inflation REVENUE TOTAL SEGMENT TOTAL SEGMENT PROFIT * PROFIT MARGIN * $1.6B $323M 20.6% Updating +10% YoY (2%) YoY (240 bps) YoY EPS Guidance Full Year ADJUSTED EPS OPERATING NET DEBT / * Adj. Earnings Per Share * CASH FLOW
Slide 4: Recovery Plan: Regaining Share, Restoring Margins
RECOVERY PLAN: REGAINING SHARE, RESTORING MARGINS STARTING LONG-TERM MEDIUM-TERM RECOVERY POINT ALGORITHM Share pressure PRICING PORTFOLIO LII Residential volume Superior business lagging recovery Dynamic pricing to Reinvigorated entry- model supported defend and restore share level product platform
Slide 5: Q3 2026 Lennox Results
Q3 2026 LENNOX RESULTS REVENUE TOTAL SEGMENT PROFIT* (US$ MILLIONS) (US$ MILLIONS) +10% ($6M) or (2%) +6% $1,573 +2% +$21 +2% +$13 $6.84, (7%) $1,427 $329 +$5 $323 Adjusted ($45) EPS* BCS growth ROS ROS 23.0% 20.6% M&A accretion Tariff and inflation related costs 2025 Volume Mix/Price Other 2026 202
Slide 6: Q3 2026 Home Comfort Solutions
Q3 2026 HOME COMFORT SOLUTIONS REVENUE SEGMENT PROFIT (US$ MILLIONS) (US$ MILLIONS) $913 $937 $215 $176 Organic Revenue: ROS ROS YoY decline narrows to 1% in Q3 23.6% 18.7% Product Cost: Higher tariffs and material inflation 2025 2026 2025 2026 Other Cost: ~$6M M&A accretion; +3% ($40) higher fuel l
Slide 7: Q3 2026 Building Climate Solutions
Q3 2026 BUILDING CLIMATE SOLUTIONS REVENUE SEGMENT PROFIT (US$ MILLIONS) (US$ MILLIONS) $635 $167 $514 $140 Volume: Strong light commercial equipment and service ROS ROS 27.3% 26.2% Product Cost: Higher tariffs and material inflation 2025 2026 2025 2026 Other: ~$13M M&A accretion partially offset by
Slide 8: Cash Flow and Capital Deployment
CASH FLOW AND CAPITAL DEPLOYMENT CASH CONVERSION 500 395 Continued Cash Conversion Improvement 180% 160% 400 300 301 92% 108% 140% Inventory $ up slightly YoY 120% 78% 82% 100% OPERATING CASH FLOW 62% 80% (US$ MILLIONS) 200 60%• $100M acquisition-related inventory plus inflation 100 40% TTM FCF CONV
Slide 9: 2026 Financial Guidance
2026 FINANCIAL GUIDANCE GROWTH OTHER GUIDANCE ITEMS Current Prior Current Prior Segment Revenue Revenue Segment Profit Inflation** ~+5% ~+5% Profit ∆ YoY ∆ YoY Incremental* Incremental* COST Investments +$35M +$35M ∆ YoY Volume (LSD) (~35%) (LSD) (~35%) M&A Amortization +$25M +$25M Productivity ($60
Slide 10: 2027 Early Thinking
2027 EARLY THINKING HEADWIND NEUTRAL OUR FOCUS PRICE / INFLATION SALES VOLUMES COST PRODUCTIVITY • Input inflation continues — tariffs, • Industry demand remains muted • New products with lower material cost components and commodities • Replacement resilient; new construction soft • Manufacturing pr
Slide 11: Attractive Investment Opportunity
ATTRACTIVE INVESTMENT OPPORTUNITY Execution Consistency and Disciplined Advanced Resilient Margin Capital Technology Business Deployment Solutions with Focused on Direct-to- Sustainable Dealer Network HVACR LENNOX Growth End Continues to Enhance Talent & Markets with Strong Replacement Demand Value
Slide 12: Thank You!
INTEGRITY | RESPECT | EXCELLENCE THANK YOU!
Slide 13: Revenue and Segment Profit
REVENUE AND SEGMENT PROFIT Change Year-over-Year Net Sales Q3 2026 Q3 2025 Volume Mix/Price Other Total Home Comfort Solutions $ 937 $ 913 (3%) 2% 4% 3% Building Climate Solutions 635 514 13% 2% 9% 24% Net sales, a GAAP measure $ 1,573 $ 1,427 2% 2% 6% 10% Product Segment Profit (1) Q3 2026 Q3 2025
Slide 14: Adjusted EPS
ADJUSTED EPS For the Three Months Ended September 30, (Unaudited) 2026 2025 After Tax Per Diluted After Tax Per Diluted Amount Share Amount Share Net income, a GAAP measure $ 221.2 $ 6.41 $ 259.9 $ 7.38 Restructuring charges 6.4 $ 0.19 - - Acquisition costs (a) 8.6 $ 0.25 - - Loss (gain) on sale fro
Slide 15: Net Debt to Adjusted EBITDA
NET DEBT TO ADJUSTED EBITDA For the Twelve Months Ended September 30, (Unaudited) 2026 2025 Income before taxes, a GAAP Measure $ 958.5 $ 1,062.5 Restructuring charges, before tax 15.0 - Interest expense, net 63.3 30.5 Pension settlements, before tax 0.7 0.3 Other expense (income), net before tax 3.
Slide 16: Free Cash Flow & FCF Conversion
FREE CASH FLOW & FCF CONVERSION For the Three Months Ended September 30, For the Twelve Months Ended (Unaudited) (Unaudited) 2026 2025 3Q 2025 4Q 2025 1Q 2026 2Q 2026 3Q 2026 Net Cash provided by operating activities, a GAAP measure $ 395.3 $ 300.7 $ 684.1 $ 757.6 $ 809.5 $ 894.7 $ 989.3 Purchases o