Lennox International, Inc. · NYSE:LII
Lennox International — Q2 2026 Earnings Presentation
15 slides from Lennox International's earnings presentation, Jul 29, 2026
Slide 1: Second Quarter 2026 Earnings Release
INTEGRITY | RESPECT | EXCELLENCE SECOND QUARTER 2026 EARNINGS RELEASE JULY 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: Q2 2026 Financial Highlights
Q2 2026 FINANCIAL HIGHLIGHTS Navigating residential headwinds and mitigating inflationary impact REVENUE TOTAL SEGMENT TOTAL SEGMENT PROFIT * PROFIT MARGIN * $1.5B $355M 23.0% (30 bps) YoY Updating +3% YoY +2% YoY EPS Guidance Full Year ADJUSTED EPS OPERATING NET DEBT / * Earnings Per Share* CASH FL
Slide 4: Bolt-On Acquisition to Accelerate Growth
BOLT-ON ACQUISITION TO ACCELERATE GROWTH Trusted Comfort-Aire, Century and Coast Air brands ~ $205M ~ $140M ~ 9X PURCHASE PRICE FY25 PROFORMA REVENUE EBITDA MULTIPLE STRONG STRATEGIC FIT GROWTH SYNERGIES CUSTOMER EXPERIENCE MARGIN OPPORTUNITIES • Small & mid-sized distributor reach • Elevate digital
Slide 5: Navigating Temporary Demand Dynamics
NAVIGATING TEMPORARY DEMAND DYNAMICS New Weather Consumer Inflationary Construction Dynamics Sentiment Impacts CONTINUED INVESTMENT THROUGH CHALLENGING MARKET CONDITIONS Demand Capture Aftermarket Growth Customer Experience Growth Investments • Emergency replacement • Parts and accessories • Digita
Slide 6: Q2 2026 Lennox Results
Q2 2026 LENNOX RESULTS REVENUE TOTAL SEGMENT PROFIT* (US$ MILLIONS) (US$ MILLIONS) +$6M or +2% +3% +4% $1,545 $1,501 +3% $349 +$39 +$3 $355 Adjusted (4%) ($25) ($11) EPS* Flat, $7.72 BCS growth and accretive ROS ROS acquisition 23.3% 23.0% Residential markets soft but improved versus Q1 2025 Volume
Slide 7: Q2 2026 Home Comfort Solutions
Q2 2026 HOME COMFORT SOLUTIONS REVENUE SEGMENT PROFIT (US$ MILLIONS) (US$ MILLIONS) $1,009 $936 $252 $222 Revenue: One step: ~(12%) Two Step: ~(2%) ROS ROS M&A: ~+2% 25.0% 23.7% Product Cost: Inflation & factory absorption headwinds partially offset 2025 2026 2025 2026 by tariff refunds (7%) ($30) O
Slide 8: Q2 2026 Building Climate Solutions
Q2 2026 BUILDING CLIMATE SOLUTIONS REVENUE SEGMENT PROFIT (US$ MILLIONS) (US$ MILLIONS) $610 $155 $492 $121 Volume: Strong Light Commercial ROS ROS equipment and service 24.5% 25.5% Product Cost: Inflation and production costs 2025 2026 2025 2026 Other: ~$11M M&A accretion +24% +$35 partially offset
Slide 9: Cash Flow and Capital Deployment
CASH FLOW AND CAPITAL DEPLOYMENT 92% 100% 400 81% 82% Strong 1H Cash Conversion 78% CASH CONVERSION 300 62% 80% 172 60% • On track to meet FY inventory target 200 100 87 40% OPERATING CASH FLOW • 20% Good collections and payment leverage (US$ MILLIONS) 0 -100 0% TTM FCF CONVERSION %*-200 -20% 2Q25 3
Slide 10: 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 +$15M Productivity ($60
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 Q2 2026 Q2 2025 Volume Mix/Price Other Total Home Comfort Solutions $ 936 $ 1,009 (12%) 3% 2% (7%) Building Climate Solutions 610 492 12% 3% 9% 24% Net sales, a GAAP measure $ 1,545 $ 1,501 (4%) 3% 4% 3% Product Segment Profit (1) Q2 2026 Q2
Slide 14: Net Debt to Adjusted EBITDA
NET DEBT TO ADJUSTED EBITDA For the Twelve Months Ended June 30, (Unaudited) 2026 2025 Income before taxes, a GAAP Measure $ 982.6 $ 1,039.0 Restructuring charges, before tax 6.8 - Interest expense, net 56.3 28.9 Pension settlements, before tax 0.8 0.3 Other expense (income), net before tax 3.4 2.3
Slide 15: Free Cash Flow & FCF Conversion
FREE CASH FLOW & FCF CONVERSION For the Three Months Ended June 30, For the Twelve Months Ended (Unaudited) (Unaudited) 2026 2025 2Q 2025 3Q 2025 4Q 2025 1Q 2026 2Q 2026 Net Cash provided by operating activities, a GAAP measure $ 172.0 $ 86.8 $ 835.5 $ 684.1 $ 757.6 $ 809.5 $ 894.7 Purchases of prop