Lennox International Inc. (LII) SEC Filings & Earnings Calls

Residential HVAC demand weakness

“Home Comfort Solutions ... Net sales decreased 7% ... primarily due to a 12% decrease in sales volumes”

Tariff cost pressure

“Gross margins ... partially offset by 80 bps from higher product costs, primarily reflecting inflation and factory under absorption, net of $30 million in tariff refunds”

Increased leverage

“Our debt-to-total-capital ratio increased to 55% at June 30, 2026, as compared to 54% at December 31, 2025.” · word for word

Residential market softness persists with new construction headwind; tariff impacts partially offset by refunds.

“residential market conditions remained challenging during the second quarter... residential new construction activity remained a meaningful headwind” · word for word

Product cost inflation and factory under absorption impacting margins, partially offset by tariff refunds.

“Product cost inflation and lower factory absorption, net of $25 million in tariff refunds, resulted in a $2 million decrease” · word for word

Residential HVAC demand weakness with sequential improvement but still negative

“Home Comfort Solutions revenue -10%; industry conditions started stabilizing but continued softness across both channels.”

Inflationary pressures on product costs and factory under absorption

“$31M product cost primarily related to recent inflationary impacts and factory under absorption.”

Macro uncertainties persist

“While macro uncertainties persist, we are focused on productivity measures.” · word for word

Residential HVAC demand weakness

“Home Comfort Solutions segment faced volume headwinds driven by market softness.” · word for word

Tariff cost pressure

“These tariffs apply broadly to manufactured goods and component parts.” · word for word

Gross margin compression

“Gross profit margins in the first quarter of 2026 decreased 90 basis points ("bps") to 30.9% as compared to 31.8% in the same period in 2025.” · word for word

Softer end markets and macroeconomic headwinds

“Despite softer end markets and macroeconomic headwinds, Lennox delivered solid results.” · word for word

Tariff impact on costs

“The Committee did not apply any discretion to adjust for tariffs or any other unexpected headwinds.” · word for word

Residential demand weakness

“Net sales decreased 7% in 2025 compared to 2024 as a 17% decrease in sales volumes was partially offset by a 10% increase in price and mix.” · word for word

Input cost inflation

“Gross profit margin increased 290 bps from higher price and favorable mix, which was partially offset by 160 bps from higher products costs and 120 bps from higher freight and distribution costs.” · word for word

Weather dependency

“The demand for our products and services is seasonal and can be significantly impacted by the weather.” · word for word

Interest rate sensitivity

“demand for our products and services is influenced by national and regional economic and demographic factors, such as interest rates, the availability of financing” · word for word

Channel destocking and soft new construction sales impacting Home Comfort Solutions.

“Home Comfort Solutions revenue declined 21% in the fourth quarter, driven by expected channel destocking and continued softness in new construction sales.” · word for word

Broader macroeconomic uncertainty tempering consumer and dealer activity.

“Broader macroeconomic uncertainty continued to temper both consumer and dealer activity which has led to an increase in deferred system replacements.” · word for word

Changes to executive compensation could impact retention, but no material risk.

“updates to the restrictive covenant provisions to expand the Company's remedies and other administrative and conforming changes.” · word for word