Lennox International, Inc. · NYSE:LII
Lennox International — Q1 2026 Earnings Presentation
15 slides from Lennox International's earnings presentation, Apr 29, 2026
Slide 1: First Quarter 2026 Earnings Release
INTEGRITY | RESPECT | EXCELLENCE FIRST QUARTER 2026 EARNINGS RELEASE APRIL 29, 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: Q1 2026 Financial Highlights
Q1 2026 FINANCIAL HIGHLIGHTS Navigating industry headwinds and mitigating tariff impacts REVENUE TOTAL SEGMENT TOTAL SEGMENT PROFIT * PROFIT MARGIN * $1.1B $164 14.4% Reaffirming +6% YoY (3%) YoY (130 bps) YoY EPS Guidance Full Year ADJUSTED EPS OPERATING NET DEBT / * Earnings Per Share* CASH FLOW A
Slide 4: Economic Outlook
ECONOMIC OUTLOOK Revenue Growth • Sales improved sequentially within Q1 HOME COMFORT • Restocking in two step channel • Channel destocking complete in early Q2 SOLUTIONS • Replace vs. repair stabilizing • Dealer and contractor confidence recovering • Successful launch of water heaters • Consumer rem
Slide 5: Recent Product Introductions
RECENT PRODUCT INTRODUCTIONS Strategos Commercial Rooftop Heat Pump Residential Heat Pumps ✓ Backwards electrical ✓ Signature collection cold climate compatibility for cost savings (down to –20°F) ✓ Elite series side discharge ✓ Flexible heating options; electric, space-savings design gas, or dual-f
Slide 6: Q1 2026 Lennox Results
Q1 2026 LENNOX RESULTS REVENUE TOTAL SEGMENT PROFIT* (US$ MILLIONS) (US$ MILLIONS) +6% ($5M) or (3%) +5% $1,135 $1,073 +9% Adjusted (8%) +$63 EPS* (8%) to $3.35 $168 $164 ($31) ($5) Commercial and M&A ROS ($32) ROS led growth 15.7% 14.4% Residential markets soft but improved versus Q4 2025 Volume Mi
Slide 7: Q1 2026 Home Comfort Solutions
Q1 2026 HOME COMFORT SOLUTIONS REVENUE SEGMENT PROFIT (US$ MILLIONS) (US$ MILLIONS) $721 $650 $124 $87 Revenue: One step: ~(10%) ROS ROS Two Step: ~(15%) 17.2% 13.3% M&A: ~+2% Product Cost: Materials inflation and factory absorption 2025 2026 2025 2026 (10%) ($37) Other Cost: ~$2M M&A gain and SG&A
Slide 8: Q1 2026 Building Climate Solutions
Q1 2026 BUILDING CLIMATE SOLUTIONS REVENUE SEGMENT PROFIT (US$ MILLIONS) (US$ MILLIONS) $485 $96 $351 Volume: Strong Light Commercial $59 National Accounts equipment and service ROS ROS 16.7% 19.7% Product Cost: Materials inflation and production absorption, partially offset by factory productivity
Slide 9: Cash Flow and Capital Deployment
CASH FLOW AND CAPITAL DEPLOYMENT 100% 400 82% CASH CONVERSION 300 95% Cash Conversion Temporarily Constrained 80% 81% 78% 200 62% 60% • Inventory well positioned for summer OPERATING CASH FLOW 100 16 40% • 20% Good collections and payment leverage (US$ MILLIONS) 0 TTM FCF CONVERSION %*-200 -100 (36)
Slide 10: 2026 Financial Guidance
2026 FINANCIAL GUIDANCE GROWTH OTHER GUIDANCE ITEMS Current Prior Current Prior Revenue Segment Profit Revenue Segment Profit Inflation** ~+5% ~+2.5% ∆ YoY Incremental* ∆ YoY Incremental* COST Investments +$35M +$35M ∆ YoY Volume (LSD) (~35%) (LSD) (~35%) M&A Amortization +$15M +$15M Price | Mix +MS
Slide 11: Attractive Investment Opportunity
ATTRACTIVE INVESTMENT OPPORTUNITY Execution Consistency and Disciplined Capital Deployment Advanced Technology Resilient Margin Solutions with Business Focused on Direct-to-Dealer Network Sustainable HVACR Talent & Culture Driven by Growth End Core Values, Guiding Markets with Strong Behaviors and P
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 Q1 2026 Q1 2025 Volume Mix/Price Other Total Home Comfort Solutions $ 650 $ 721 (21%) 9% 2% (10%) Building Climate Solutions 485 351 17% 9% 12% 38% Net sales, a GAAP measure $ 1,135 $ 1,073 Product Segment Profit (1) Q1 2026 Q1 2025 Volume M
Slide 14: Net Debt to Adjusted EBITDA
NET DEBT TO ADJUSTED EBITDA For the Twelve Months Ended March 31, (Unaudited) 2026 2025 Income before taxes, a GAAP Measure $ 983.0 $ 1,005.9 Restructuring charges, before tax 6.8 - Interest expense, net 49.9 33.1 Pension settlements, before tax 0.8 0.5 Other expense (income), net before tax 3.4 2.0
Slide 15: Free Cash Flow & FCF Conversion
FREE CASH FLOW & FCF CONVERSION For the Three Months Ended March 31, For the Twelve Months Ended (Unaudited) (Unaudited) 2026 2025 1Q 2025 2Q 2025 3Q 2025 4Q 2025 1Q 2026 Net Cash provided by (used in) operating activities, a GAAP measure $ 16.1 $ (35.8) $ 932.7 $ 835.5 $ 684.1 $ 757.6 $ 809.5 Purch