Lennox International (LII) official guidance

We are also refining our full-year capital expenditure outlook to approximately $225 million, down from $250 million.

For 2026, we continue to expect approximately $250 million of capital expenditures focused on innovation and training centers, digital capabilities, distribution network optimization, ERP modernization, and targeted AI capabilities.

Looking ahead to 2026, we plan to invest $250 million in capital expenditures, targeting strong return opportunities across innovation and training centers, digital technology, distribution network optimization, ERP modernization, and AI tools.

Capital expenditures are projected to be approximately $250 million, and Free Cash Flow is estimated to fall within the range of $750 million to $850 million.

We expect a tax rate of roughly 20%.

Adjusted earnings per share guidance has been updated to a range of $21.00 to $21.50 compared to the prior range of $23.00 to $24.00.

As Alok outlined, we are updating our full-year adjusted EPS guidance range to $23-$24.

We are reaffirming our full-year adjusted earnings per share guidance range of $23.50-$25.00.

Based on these assumptions, we expect adjusted EPS of $23.50-$25.

Adjusted earnings per share is expected to be within the range of $23.50 to $25.00.

Free cash flow guidance updated to $700 million to $750 million.

Importantly, our free cash flow outlook remains unchanged at $750 million-$850 million, reflecting confidence in our inventory reduction plans and working capital execution.

Free Cash Flow is still estimated to be within the range of $750 million to $850 million.

Free cash flow remains expected to be $750 million-$850 million, driven by inventory normalization and higher profitability.

Free Cash Flow is still estimated to be within the range of $750 million to $850 million.

Free cash flow is expected to be between $750 million and $850 million, driven by inventory normalization and higher profitability.

Capital expenditures are projected to be approximately $250 million, and Free Cash Flow is estimated to fall within the range of $750 million to $850 million.

You're correct, within BCS, organically, we expect margins to be up there.

Within BCS, it's gonna be up more.

Within HCS, organically, we expect them to be down.

Within HCS, it's gonna be flat to slightly down, as end markets there are down.

Now with the increase to revenue and costs, we expect a slight decline in the margin.

So overall, the guide implies EBIT ROS expansion of about 20 basis points.

Building Climate Solutions revenue growth is now expected to be approximately 20% compared to our prior expectation of 16%.

Looking at the segment revenue guidance, HCS is now expected to grow 4% compared to the previous guidance of 2%, and BCS is now expected to grow approximately 16%.

For BCS, we expect approximately 15% growth, supported by industry shipments returning to growth, strong emergency replacement and national account performance, and a high single digit contribution from M&A.

Net-net, I would expect 2026 to be a growth year for both the segments.

At the segment level, we now expect Home Comfort Solutions revenue growth of approximately 1% compared to our prior expectation of 4%.

Looking at the segment revenue guidance, HCS is now expected to grow 4% compared to the previous guidance of 2%, and BCS is now expected to grow approximately 16%.

At the segment level, we expect approximately 2% growth in HCS, reflecting down but improving end markets and a low single digit contribution from M&A.

Net-net, I would expect 2026 to be a growth year for both the segments.

For full year 2026, we are revising the revenue growth guidance at approximately 6% growth, including 5% benefit from completed acquisitions.

While our overall revenue growth outlook holds at approximately 8%, the composition of that growth has evolved since our prior guidance.

For full year 2026, we are reaffirming revenue growth guidance at approximately 8% growth, including an updated 5% benefit from completed acquisitions.

Revenue is now expected to grow approximately 8% compared to prior guidance of 6%-7%.

For full year 2026, we are updating revenue growth guidance to approximately 8%, including 4% benefit from completed acquisitions.

For revenue, we expect total company growth of 6%-7%.

For full year 2026, revenue is anticipated to increase by approximately 6% to 7%, with growth from completed acquisitions contributing approximately 4%.

For full year 2026, we are reaffirming revenue growth guidance at approximately 8% growth, including an updated 5% benefit from completed acquisitions.

For full year 2026, we are updating revenue growth guidance to approximately 8%, including 4% benefit from completed acquisitions.

For full year 2026, revenue is anticipated to increase by approximately 6% to 7%, with growth from completed acquisitions contributing approximately 4%.

Cost inflation is now expected to be up approximately 5% from up 2%, driven by recent increases in tariffs and input costs for aluminum, steel, copper, and fuel.

On costs, inflation ex- is expected to be up approximately 2.5%, reflecting tariff carryovers and moderating price-cost pressures.

Interest expense is expected to be approximately $65 million, reflecting the impact of our recent M&A activity and share repurchases.