LENNOX INTERNATIONAL INC

For the period ended Mar 31, 2026. Filed Apr 29, 2026.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2026 · Filed Apr 29, 2026

LII$349.47+2.2%Stored close · as of Nov 9, 2026

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Contents

Financial

Item 1. Financial Statements

CONSOLIDATED BALANCE SHEETS

(Amounts in millions, except shares and par values)	As of March 31, 2026	As of December 31, 2025
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$48.2	$34.2
Short-term investments	2.0	0.5
Accounts and notes receivable, net of allowances of $9.1 and $8.5 in 2026 and 2025, respectively	647.9	578.8
Inventories, net	1,209.7	1,152.6
Other current assets	124.3	137.7
Total current assets	2,032.1	1,903.8
Restricted cash equivalents	19.0	18.5
Property, plant and equipment, net of accumulated depreciation of $1,064.3 and $1,043.9 in 2026 and 2025, respectively	917.6	887.2
Right-of-use assets from operating leases	404.4	356.3
Goodwill	503.7	497.2
Intangible assets, net of accumulated amortization of $42.4 and $38.3 in 2026 and 2025, respectively	269.7	273.0
Deferred income taxes	12.6	12.9
Other assets, net	133.6	132.9
Total assets	$4,292.7	$4,081.8
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$464.6	$438.0
Accrued expenses	301.5	374.2
Income taxes payable	63.4	46.4
Commercial paper	361.0	226.0
Current maturities of long-term debt	18.2	18.3
Current operating lease liabilities	83.8	88.9
Total current liabilities	1,292.5	1,191.8
Long-term debt	1,144.1	1,144.1
Long-term operating lease liabilities	347.8	293.4
Pensions	19.4	18.7
Other liabilities	275.0	270.7
Total liabilities	3,078.8	2,918.7
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value, 25,000,000 shares authorized, no shares issued or outstanding	—	—
Common stock, $0.01 par value, 200,000,000 shares authorized, 87,170,197 shares issued	0.9	0.9
Additional paid-in capital	1,249.7	1,243.0
Retained earnings	4,963.0	4,891.1
Accumulated other comprehensive loss	(48.0)	(48.5)
Treasury stock, at cost, 52,360,280 shares and 52,374,147 shares for 2026 and 2025, respectively	(4,951.7)	(4,923.4)
Total stockholders' equity	1,213.9	1,163.1
Total liabilities and stockholders' equity	$4,292.7	$4,081.8

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in millions, except per share data)	For the Three Months Ended March 31,
	2026	2025
Net sales	$1,135.1	$1,072.6
Cost of goods sold	783.8	731.7
Gross profit	351.3	340.9
Operating Expenses:
Selling, general and administrative expenses	185.2	171.3
Losses and other expenses, net	2.2	2.8
Loss (income) from equity method investments	0.4	(1.2)
Operating income	163.5	168.0
Pension settlements	0.5	0.1
Interest expense, net	15.2	6.2
Other expense, net	0.9	0.9
Net income before income taxes	146.9	160.8
Provision for income taxes	29.7	31.2
Net income	$117.2	$129.6
Earnings per share – Basic(1):	$3.37	$3.65
Earnings per share – Diluted(1):	$3.35	$3.63
Weighted Average Number of Shares Outstanding - Basic	34.8	35.5
Weighted Average Number of Shares Outstanding - Diluted	35.0	35.7

(1)Amounts may not recalculate due to rounding.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in millions)	For the Three Months Ended March 31,
	2026	2025
Net income	$117.2	$129.6
Other comprehensive income (loss):
Foreign currency translation adjustments	(0.7)	4.2
Net change in pension and post-retirement liabilities	(1.0)	(0.2)
Reclassification of pension and post-retirement benefit losses into earnings	0.5	0.4
Pension settlements	0.5	0.1
Net change in fair value of cash flow hedges	12.8	10.7
Reclassification of cash flow hedge gains into earnings	(10.8)	(2.6)
Other comprehensive income before taxes	1.3	12.6
Tax (expense) benefit	(0.8)	0.5
Other comprehensive income, net of tax	0.5	13.1
Comprehensive income	$117.7	$142.7

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

For the three months ended March 31, 2026 and 2025

(In millions, except per share data)

Common Stock Issued · Additional Paid-In Capital · Retained Earnings · Accumulated Other Comprehensive Loss · Treasury Stock at Cost · Total Stockholders' Equity
(For the three months ended March 31, 2026) · Shares · Amount
Balance as of December 31, 2025	$0.9	$1,243.0	$4,891.1	$(48.5)	52.4	$(4,923.4)	$1,163.1
Net income	—	—	117.2	—	—	—	117.2
Dividends, $1.30 per share	—	—	(45.3)	—	—	—	(45.3)
Foreign currency translation adjustments	—	—	—	(0.7)	—	—	(0.7)
Stock-based compensation expense	—	5.8	—	—	—	—	5.8
Purchase of common stock under Employee Stock Purchase Program	—	0.5	—	—	—	—	0.5
Change in cash flow hedges	—	—	—	1.2	—	—	1.2
Treasury shares reissued for common stock	—	0.4	—	—	(0.1)	2.2	2.6
Treasury stock purchases	—	—	—	—	0.1	(30.5)	(30.5)
Balance as of March 31, 2026	$0.9	$1,249.7	$4,963.0	$(48.0)	52.4	$(4,951.7)	$1,213.9

Common Stock Issued · Additional Paid-In Capital · Retained Earnings · Accumulated Other Comprehensive Loss · Treasury Stock at Cost · Total Stockholders' Equity
(For the three months ended March 31, 2025) · Shares · Amount
Balance as of December 31, 2024	$0.9	$1,213.3	$4,262.7	$(93.7)	51.6	$(4,421.1)	$962.1
Net income	—	—	129.6	—	—	—	129.6
Dividends, $1.15 per share	—	—	(40.8)	—	—	—	(40.8)
Foreign currency translation adjustments	—	—	—	4.2	—	—	4.2
Pension and post-retirement liability changes	—	—	—	0.2	—	—	0.2
Stock-based compensation expense	—	6.3	—	—	—	—	6.3
Change in cash flow hedges	—	—	—	8.7	—	—	8.7
Treasury shares reissued for common stock	—	(0.6)	—	—	(0.1)	1.7	1.1
Treasury stock purchases	—	—	—	—	0.2	(97.7)	(97.7)
Balance as of March 31, 2025	$0.9	$1,219.0	$4,351.5	$(80.6)	51.7	$(4,517.1)	$973.7

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in millions)	For the Three Months Ended March 31,
	2026	2025
Cash flows from operating activities:
Net income	$117.2	$129.6
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Loss (income) from equity method investments	0.4	(1.2)
Provision for credit losses	2.1	1.3
Unrealized losses (gains), net on derivative contracts	2.1	(0.5)
Stock-based compensation expense	6.3	6.3
Depreciation and amortization	29.2	25.6
Deferred income taxes	3.3	(1.1)
Pension expense	1.0	1.1
Pension contributions	(0.3)	(0.3)
Changes in assets and liabilities, net of effects of acquisitions and divestitures:
Accounts and notes receivable	(73.6)	8.3
Inventories	(62.6)	(209.4)
Other current assets	13.7	(1.7)
Accounts payable	31.0	85.2
Accrued expenses	(74.3)	(105.1)
Income taxes payable and receivable, net	18.8	27.1
Leases, net	1.3	3.4
Other, net	0.5	(4.4)
Net cash provided by (used in) operating activities	16.1	(35.8)
Cash flows from investing activities:
Proceeds from the disposal of property, plant and equipment	0.7	0.5
Purchases of property, plant and equipment	(55.5)	(25.5)
Acquisitions, net of cash	(0.2)	—
(Purchases of) proceeds from investments and other	(1.6)	1.5
Net cash used in investing activities	(56.6)	(23.5)
Cash flows from financing activities:
Commercial paper borrowings	434.1	—
Commercial paper payments	(299.1)	—
Payments on debt arrangements	(5.3)	(5.0)
Proceeds from employee stock purchases	2.6	1.2
Repurchases of common stock	(19.5)	(85.2)
Repurchases of common stock to satisfy employee withholding tax obligations	(10.5)	(11.3)
Cash dividends paid	(45.2)	(40.9)
Net cash provided by (used in) financing activities	57.1	(141.2)
Increase (decrease) in cash, cash equivalents and restricted cash	16.6	(200.5)
Effect of exchange rates on cash, cash equivalents and restricted cash equivalents	(2.1)	2.6
Cash, cash equivalents and restricted cash, beginning of period	52.7	415.1
Cash, cash equivalents and restricted cash, end of period	$67.2	$217.2
Supplemental disclosures of cash flow information:
Interest paid	$23.5	$19.2
Income taxes paid (net of refunds)	$7.0	$5.1

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.