Lennox International Inc. shares dropped to a 52-week low of $410.52 on Wednesday, extending a year-long decline to a 32.67% loss amid weaker-than-expected demand and a reduced earnings outlook.
The stock last traded at $411.25, near the session low, after closing at $416.13 on Tuesday. The decline contrasts with broader market gains, with the company’s shares trailing peers such as Siemens Energy, which rose 231.5% over the past year, and Sandisk, up 189%.
Second-quarter 2026 adjusted earnings per share came in at $7.72, exceeding the Wall Street consensus of $7.61, but revenue rose just 3% to $1.5 billion, missing the $1.56 billion estimate. Lennox cited soft residential demand as the primary driver behind the revenue shortfall and the downward revision to full-year profit guidance.
William Blair maintained its "Outperform" rating on Lennox International, though analyst Ryan Merkel noted the guidance cut signals weaker margins expected for the second half of the year. The firm’s outlook adjustment reflects broader pressures in the residential HVAC and heating markets, where demand has softened due to higher interest rates and elevated home prices.
Technical indicators also pointed to bearish sentiment, with the Relative Strength Index signaling oversold conditions. Lennox International’s shares were also highlighted on InvestingPro’s list of most undervalued stocks, though the company’s revised guidance and macro headwinds continue to weigh on investor sentiment.
