Lennox shares rise 5.12% intraday on improved margins and 2026 guidance.

Lennox International Inc. (LII) surged 5.12% intraday following its Q4 earnings report and 2026 guidance, which highlighted improved operational efficiency and robust cash flow projections despite revenue declines. The company reported a 11.2% year-on-year revenue drop and missed earnings estimates, but emphasized a 20% operating margin and 15.74% profit margin, signaling strong cost discipline. Management projected 6–7% revenue growth for 2026, with adjusted EPS guidance of $23.50–$25.00 and $750 million–$850 million in free cash flow, bolstering investor confidence. Analysts noted that improved margins, disciplined cost controls, and optimism around demand recovery underpinned the rally, despite below-average trading volume. The stock’s rise reflects renewed focus on Lennox’s long-term profitability and strategic initiatives, aligning with its full-year segment profit growth and 20% margin milestone.