Why Is LENNOX INTL INC (LII) Stock Down Today?

LII stock closed down 20.16% at $434.41 after the company reported second quarter results and updated its full-year guidance. The stock gapped down sharply from $544.11 to $497.00 at the open and continued to fall throughout the session, reaching a low of $432.72. The decline followed a report of GAAP earnings per share of $7.72, which missed estimates by $0.01, and revenue of $1.5 billion, which fell short by $60 million.

What Happened

The company announced a 3% year-over-year revenue increase to $1.5 billion, with GAAP operating income at $355 million and GAAP diluted EPS flat at $7.72. Despite a 24% year-over-year increase in Building Climate Solutions revenue, the residential segment faced headwinds. Lennox updated its full-year 2026 EPS guidance range from $23.50-$25.00 to $23.00-$24.00, below the $24.51 estimate. William Blair maintained its Outperform rating, but the revised guidance contributed to the sharp selloff. An 8-K filing disclosed the preliminary results and financial statements, confirming the earnings and guidance changes.

What The Data Shows

The stock opened with an 8.7% gap down and traded in a steeply declining pattern throughout the session. Volume reached 0.7 million shares, more than double the 3-month average. The stock is currently near its 52-week low of $434.06, with a market cap of $19.0 billion and a P/E ratio of 24.1. Revenue has declined 2.0% in the trailing twelve months, and the stock has a beta of 1.16. The stock’s net margin remains strong at 15.1%, but the earnings and revenue misses weighed on sentiment.

What To Watch

The company is scheduled to host its earnings call on July 29, 2026. Investors will monitor coverage breadth and any further updates on the full-year outlook, including the impact of the recently announced acquisition of Heat Controller.