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INTEGRITY | RESPECT | EXCELLENCE THIRD QUARTER 2026 EARNINGS RELEASE OCTOBER 28, 2026
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2 The statements in this presentation that are not historical statements, including statements regarding the 2026 full-year outlook and expected consolidated and segment financial results, as well as financial targets for future years, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on information currently available as well as management’s assumptions and beliefs today. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from the results expressed or implied by the statements, and investors should not place undue reliance on them. Risks and uncertainties that could cause actual results to differ materially from such statements include risks that the North American HVAC and refrigeration markets perform worse than current assumptions. Additional risks include but are not limited to competition in the HVACR business; our ability to successfully develop and market new products or execute our business strategy; our ability to meet and anticipate customer demands; our ability to continue to license or enforce our IP rights; our ability to attract, motivate, develop, and retain our employees, as well as labor relations problems; AI technologies; a decline in new construction activity and related demand for our products and services; the impact of weather on our business; the impact of higher raw material prices and significant supply interruptions; product liability, warranty claims, or recalls; changes in environmental and climate-related legislation or government regulations or policies; changes in tax legislation; the impact of new or increased trade tariffs; improper conduct by our employees, agents, or business partners; litigation risks; general economic conditions in the US and abroad; extraordinary events beyond our control; risks associated with our international operations; cyber attacks and other disruptions or misuse of information systems; and our ability to successfully realize, complete and integrate acquisitions, including the acquisitions of Duro Dyne, Supco, and Heat Controller. For information concerning these and other risks and uncertainties, see LII’s publicly available filings with the Securities and Exchange Commission. LII disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. A reconciliation of non-GAAP financial measures appearing in this document to financial measures prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) are included in the Annex to this document. This document includes forward-looking statements regarding segment profit, adjusted net income, adjusted earnings per share, free cash flow, ROS, and Debt to EBITDA, which are non-GAAP financial measures. These non-GAAP financial measures are derived by excluding certain amounts from the corresponding financial measures determined in accordance with GAAP. The determination of the amounts excluded is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period and the high variability of certain amounts, such as unusual gains and losses, the ultimate outcome of pending litigation, fluctuations in foreign currency exchange rates, changes in environmental liabilities, the impact and timing of potential acquisitions and divestitures, future restructuring costs, and other structural changes or their probable significance. We are unable to present a quantitative reconciliation of the aforementioned forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort or expense. The unavailable information could have a significant impact on LII’s full year GAAP financial results. FORWARD -LOOKING STATEMENTS & NON -GAAP FINANCIAL MEASURES
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Q3 2026 FINANCIAL HIGHLIGHTS * See appendix for reconciliation to GAAP performance; total segment profit includes unallocated corporate expenses Navigating competitive dynamics and continued inflation Updating EPS Guidance Full Year Adj. Earnings Per Share * REVENUE $1.6B +10% YoY TOTAL SEGMENT PROFIT MARGIN * $323M TOTAL SEGMENT PROFIT * (2%) YoY $21.00 - $21.50 Prior $23.00 – $24.00 ADJUSTED EPS * $6.84 (7%) YoY OPERATING CASH FLOW $395M +$95M YoY 20.6% (240 bps) YoY NET DEBT / ADJ. EBITDA * 1.4x +0.6x YoY 3
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RECOVERY PLAN: REGAINING SHARE, RESTORING MARGINS STARTING POINT MEDIUM-TERM RECOVERY LONG-TERM ALGORITHM Share pressure LII Residential volume lagging recovery Market backdrop Demand uncertainty and recent competitive dynamics Channel mix Traditional dealer growth unable to offset residential national account declines PRICING Dynamic pricing to defend and restore share Short-term and flexible PORTFOLIO Reinvigorated entry- level product platform Increasing affordability PRODUCTIVITY Manufacturing, distribution, tariff, SG&A productivity Resizing Capacity PROMOTERS Higher NPS, higher fill rates optimize cost to serve Accelerate CX gains Remaining long term margin opportunities Superior business model supported by end market recovery 4
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Q3 2026 LENNOX RESULTS 2025 Volume Mix/Price Product Cost Other 2026 2025 Volume Mix/Price Other 2026 * See appendix for reconciliation to GAAP performance; total segment profit includes unallocated corporate expenses REVENUE TOTAL SEGMENT PROFIT * (US$ MILLIONS) (US$ MILLIONS) +10% ROS 23.0% ROS 20.6% ($6M) or (2%) +$13 ($45) +$5 +$21 $329 $323 BCS growth M&A accretion Tariff and inflation related costs $6.84, (7%) Adjusted EPS* $1,573 $1,427 +2% +2% +6% 5
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Q3 2026 HOME COMFORT SOLUTIONS REVENUE SEGMENT PROFIT (US$ MILLIONS) (US$ MILLIONS) $913 $937 2025 2026 $215 $176 2025 2026 +3% (3%) +2% +4% Volume Mix/Price Other ($40) ($12) +$13 ($32) ($9) Volume Mix/Price Product Cost Other ROS 23.6% ROS 18.7% Organic Revenue: YoY decline narrows to 1% in Q3 Product Cost: Higher tariffs and material inflation Other Cost: ~$6M M&A accretion; higher fuel logistic inflation and SG&A 6 Note: Totals above may not foot due to rounding
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Q3 2026 BUILDING CLIMATE SOLUTIONS REVENUE SEGMENT PROFIT (US$ MILLIONS) (US$ MILLIONS) $514 $635 2025 2026 $140 $167 2025 2026 +24% +$26 +13% +2% +9% Volume Mix/Price Other +$24 +$8 ($14) +$8 Volume Mix/Price Product Cost Other ROS 27.3% ROS 26.2% Volume: Strong light commercial equipment and service Product Cost: Higher tariffs and material inflation Other: ~$13M M&A accretion partially offset by logistic and SG&A inflation Note: Totals above may not foot due to rounding 7
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~225 0.5 0.6 0.7 0.8 0.9 1 1.1 0 100 200 2022 2023 2024 2025 2026 CASH FLOW AND CAPITAL DEPLOYMENT 0.8x 1.4x 0.0 1.0 2.0 3Q25 4Q25 1Q26 2Q26 3Q26 301 395 62% 78% 82% 92% 108% 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 0 100 200 300 400 500 3Q25 4Q25 1Q26 2Q26 3Q26 CAPEX OPERATING CASH FLOW TTM FCF CONVERSION %* * See appendix for reconciliation to GAAP performance. Net debt is net of cash balances INVESTING FOR GROWTH LEVERAGE Maintain a Strong Balance Sheet • Q3 Comfort-Aire and Century brands acquisition • Increased share repurchases focus (US$ MILLIONS) NET DEBT TO ADJUSTED EBITDA* (TTM) Customer Experience and Cost Efficiency • Entry-tier product portfolio • Contractor training facilities • Innovation labs for data center cooling solutions • AI growth and productivity tools (US$ MILLIONS) CASH CONVERSION Continued Cash Conversion Improvement Inventory $ up slightly YoY • $100M acquisition-related inventory plus inflation largely offset by ~15% lower organic units YoY 8
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2026 FINANCIAL GUIDANCE GROWTH OTHER GUIDANCE ITEMS *Before the impact of cost: inflation, investments, productivity, and M&A amortization ** Impact on Total Cost COST ∆ YoY Current Prior Inflation** ~+5% ~+5% Investments +$35M +$35M M&A Amortization +$25M +$25M Productivity ($60M) ($60M) Interest $70M $70M Tax Rate ~21% ~20% Share Count ~35M ~35M Adjusted EPS $21.00 – $21.50 $23.00 – $24.00 Free Cash Flow $700M to $750M $750M to $850M Current Prior Revenue ∆ YoY Segment Profit Incremental* Revenue ∆ YoY Segment Profit Incremental* Volume (LSD) (~35%) (LSD) (~35%) Price | Mix +LSD ~90% +MSD ~90% M&A +MSD ~25% +MSD ~25% Total LII ~6% ~8% HCS ~(4%) ~1% BCS ~23% ~20% 9
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10 2027 EARLY THINKING • Input inflation continues — tariffs, components and commodities • Price realization builds through the year • Dynamic price-cost discipline • Industry demand remains muted • Replacement resilient; new construction soft • HCS: share recapture, value tier, parts, JVs • BCS: national accounts, emergency replacement & services Growth driven by self-help and portfolio • New products with lower material cost • Manufacturing productivity, including Saltillo at full efficiency • Distribution productivity, logistics efficiency and fill rates Controllable margin lever Preliminary framework — 2027 guidance to be provided with fourth quarter results PRICE / INFLATION SALES VOLUMES COST PRODUCTIVITY Price-cost narrows but not immediately HEADWIND NEUTRAL OUR FOCUS
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11 ATTRACTIVE INVESTMENT OPPORTUNITY Talent & Culture Driven by Core Values Advanced Technology Solutions with Direct-to- Dealer Network Execution Consistency and Disciplined Capital Deployment Resilient Margin Business Focused on Sustainable HVACR Growth End Markets with Strong Replacement Demand Continues to Enhance Value for Shareholders LENNOX
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INTEGRITY | RESPECT | EXCELLENCE THANK YOU!
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13 Change Year-over-Year Net Sales Q3 2026 Q3 2025 Volume Mix/Price Other Total Home Comfort Solutions $ 937 $ 913 (3%) 2% 4% 3% Building Climate Solutions 635 514 13% 2% 9% 24% Net sales, a GAAP measure $ 1,573 $ 1,427 2% 2% 6% 10% Segment Profit (1) Q3 2026 Q3 2025 Volume Mix/Price Product Cost Other Total Home Comfort Solutions $ 176 $ 215 $ (12) $ 13 $ (32) $ (9) $ (40) Building Climate Solutions 167 140 $ 24 $ 8 $ (14) $ 8 $ 26 Total segment profit, a Non-GAAP measure $ 342 $ 356 $ 13 $ 21 $ (45) $ (2) $ (14) Corporate and other(3) (19) (27) - - - $ 8 $ 8 Total segment profit, including unallocated Corporate and other expenses, a Non-GAAP measure $ 323 $ 329 $ 13 $ 21 $ (45) $ 5 $ (6) Gain on sale from previous dispositions (4) - Acquisition costs(2) 4 - Restructuring charges 8 - Special litigation charges(2) 3 - Operating income $ 312 $ 329 (1) We define segment profit as a segment's operating income included in the accompanying Consolidated Statements of Operations, excluding: • Restructuring charges, • Gain (loss) on sale of previous dispositions • Special litigation charges, and; • Acquisition costs (2) Recorded in Losses (gains) and other expenses, net in the accompanying Consolidated Statement of Operations. (3) Corporate and other expenses include unallocated corporate costs related to corporate administrative functions such as tax, treasury, accounting, internal audit, legal and human resources. Note: The 2025 amounts are adjusted to reflect the accounting method change from LIFO to FIFO. Note: Totals above may not foot due to rounding REVENUE AND SEGMENT PROFIT
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ADJUSTED EPS 14 For the Three Months Ended September 30, (Unaudited) 2026 2025 After Tax Amount Per Diluted Share After Tax Amount Per Diluted Share Net income, a GAAP measure $ 221.2 $ 6.41 $ 259.9 $ 7.38 Restructuring charges 6.4 $ 0.19 - - Acquisition costs (a) 8.6 $ 0.25 - - Loss (gain) on sale from previous dispositions (3.0) $ (0.09) - - Special Litigation Charge (a) 2.7 $ 0.08 - - Adjusted net income, a non-GAAP measure $ 235.9 $ 6.84 $ 259.9 $ 7.38 (a) Recorded in Losses and other expenses, net in the Consolidated Statements of Operations Note: The 2025 amounts are adjusted to reflect the accounting method change from LIFO to FIFO. Note: Totals above may not foot due to rounding
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NET DEBT TO ADJUSTED EBITDA 15 For the Twelve Months Ended September 30, (Unaudited) 2026 2025 Income before taxes, a GAAP Measure $ 958.5 $ 1,062.5 Restructuring charges, before tax 15.0 - Interest expense, net 63.3 30.5 Pension settlements, before tax 0.7 0.3 Other expense (income), net before tax 3.9 2.7 Loss (gain) on sale from previous dispositions (4.7) 3.1 Depreciation and amortization expense 129.5 104.9 Adjusted EBITDA, a non-GAAP measure $ 1,166.2 $ 1,204.0 As of September 30, (Unaudited) 2026 2025 Total Debt $ 1,621.4 $ 1,012.1 Less Cash 43.3 52.9 Less Short-term investments 2.2 6.3 Net Debt, a non-GAAP measure $ 1,575.9 $ 952.9 Debt to Adjusted EBITDA ratio 1.4 0.8 Note: Totals above may not foot due to rounding
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FREE CASH FLOW & FCF CONVERSION Note: Totals above may not foot due to rounding 16 For the Three Months Ended September 30, (Unaudited) For the Twelve Months Ended (Unaudited) 2026 2025 3Q 2025 4Q 2025 1Q 2026 2Q 2026 3Q 2026 Net Cash provided by operating activities, a GAAP measure $ 395.3 $ 300.7 $ 684.1 $ 757.6 $ 809.5 $ 894.7 $ 989.3 Purchases of property, plant and equipment (33.2) (35.6) (149.8) (118.8) (148.8) (156.0) (153.6) Proceeds from the disposal of property, plant and equipment 0.6 0.2 1.7 1.4 1.6 1.9 2.3 Free cash flow, a Non-GAAP measure $ 362.7 $ 265.3 $ 536.0 $ 640.2 $ 662.3 $ 740.6 $ 838.0 After Tax Amount After Tax Amount After Tax Amount After Tax Amount After Tax Amount Net income, a GAAP measure $ 865.1 $ 805.8 $ 793.3 $ 788.5 $ 749.9 Restructuring charges - 5.1 5.1 5.1 11.5 Acquisition costs (a) - 8.9 8.9 8.9 17.5 Loss (gain) on sale from previous dispositions 3.1 (0.7) (0.7) (0.7) (3.7) Special litigation charges (a) - - - - 2.7 Adjusted net income, a non-GAAP measure $ 868.2 $ 819.1 $ 806.6 $ 801.8 $ 777.9 FCF Conversion 62% 78% 82% 92% 108% (a) Recorded in Losses and other expenses, net in the Consolidated Statements of Operations Note: The 2025 amounts are adjusted to reflect the accounting method change from LIFO to FIFO.