Lennox International, Inc.

• LII Stock Price 24h change: -2.27%. From 498.80 USD to 487.49 USD.
The price drop was primarily driven by Lennox International reporting Q4 2025 earnings of $4.45 per share and revenue of $1.2 billion, both missing Wall Street consensus estimates due to weak residential and commercial end markets and channel destocking.
• From a technical perspective, the stock is showing a "short-term bearish reversal" following the earnings miss, breaking below its 50-day moving average of $500.46. With a 14-day RSI of 51, the stock has moved into a neutral zone, though it remains below its 200-day moving average of $534.79, indicating a primary downtrend.
• Lennox International reported Q4 2025 adjusted EPS of $4.45, missing the $4.76 estimate, and revenue of $1.2 billion, which fell short of the $1.27 billion forecast as residential new construction slowed.
• The company issued FY 2026 guidance with EPS expected between $23.50 and $25.00, compared to a consensus of $24.52, while shifting its accounting method from LIFO to FIFO to improve margin transparency.
• Following the earnings report, several analysts adjusted their outlooks: Barclays lowered its price target from $680 to $667, while JPMorgan maintains an "Underweight" rating despite a slight price target increase to $541.
• The broader HVAC equipment market is projected to grow from $179.25 billion in 2025 to $193.06 billion in 2026 (CAGR 7.7%), driven by urbanization and demand for energy-efficient "smart" climate-control solutions.
• Industry data reveals a significant "supply chain correction" in early 2026, with factory shipments of heat pumps and AC units down over 40% as distributors work through excess inventory stockpiled in late 2024.

• LII Stock Price 24h change: -8.80%. From 494.58 USD to 451.06 USD (Estimated based on market close performance). The sharp decline was triggered by a significant Q4 2025 earnings and revenue miss, alongside concerns over residential market destocking and softer new construction demand.
• From a technical perspective, the stock is showing a "bearish breakdown": LII has recently fallen below its 200-day moving average ($545.29) following the earnings sell-off. While the 14-day RSI is currently near neutral (51.2), the sudden high-volume drop indicates a strong shift in momentum toward a "Strong Sell" technical rating in the short term, despite a historically long-term bullish trend.
• Lennox reported Q4 2025 adjusted EPS of $4.45 (vs. $4.77 expected) and revenue of $1.2 billion (vs. $1.27 billion expected), leading to an 8.8% share price tumble on January 28, 2026.
• Management transitioned inventory accounting from LIFO to FIFO effective Q4 2025 to align with industry standards, though this shift complicated year-over-year performance comparisons for investors.
• Despite the quarterly miss, Lennox issued 2026 guidance projecting 6-7% revenue growth and adjusted EPS of $23.50–$25.00, expressing optimism that channel destocking is nearly complete.
• Global demand for cooling is projected to surge due to rising temperatures, benefiting major HVAC players like Carrier and Trane as cooling degree days (CDDs) exceed historical projections.
• Residential HVAC sales are seeing a shift from full system replacements to repairs as high costs and regulatory changes temper consumer spending, according to recent industry reports.