Lennox shares surge 5.46% intraday as management signals completion of channel destocking and optimistic 2026 guidance.

Lennox International Inc. (LII) surged 5.46% intraday following its Q4 2025 earnings call, where management outlined a timeline for resolving channel destocking and expressed cautious optimism about 2026 market recovery. Despite missing revenue and EPS estimates due to weak residential and commercial HVAC demand, the company highlighted that one-step destocking would conclude by Q1 2026 and two-step destocking by Q2 2026. CEO Alok Maskara and CFO Michael Quenzer emphasized progress on cost controls, operational efficiency, and a projected 6-7% revenue growth for 2026. The stock’s intraday rebound suggests investor focus on the company’s guidance and confidence in post-destocking demand normalization, outweighing near-term earnings shortfalls.