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

Why LII stock is down today

Lennox International Inc. shares fell 20.97% to $430.02 on Wednesday, marking one of the largest declines in the U.S. market. The drop followed the company’s second-quarter FY2026 earnings report and a downward revision of its full-year guidance. The stock’s sharp decline reflects investor concern over earnings performance and reduced expectations for the year ahead.

What Happened

Lennox International reported adjusted earnings per share of $7.72 for the second quarter, slightly above estimates but revenue of $1.545 billion fell short of the $1.564 billion forecast. The company also cut its full-year adjusted EPS guidance from $23.50 to $25.00 to a new range of $23.00 to $24.00, below the $24.51 estimate. The CEO affirmed sales guidance of $5.611 billion for the year. The stock’s decline was further amplified by broader market weakness, as U.S. markets fell on concerns over inflation and interest rates. The company also announced an agreement to acquire Heat Controller, though financial terms were not disclosed.

What The Data Shows

Over the past eight trading sessions, the stock has declined 19.4%, from $533.58 to $430.02, reinforcing a downward trend. The stock currently trades at a price-to-earnings ratio of 24.1, with trailing twelve-month revenue declining 2.0%. The stock’s beta of 1.16 suggests it is more volatile than the broader market. In the last 90 days, there have been four congressional trades involving LII, all purchases by Donald J. Trump. Retail traders on social media noted the earnings update and the EPS guidance cut, but no unusual options activity or insider transactions were reported.

What To Watch

The stock is currently approaching the lower end of its 52-week range of $434.06 to $663.90. Investors will need to monitor the company’s ability to meet its revised guidance and any further updates on its acquisition of Heat Controller. No upcoming earnings date was provided in the available data.