Divergent Segment Performance
Building Climate Solutions net sales surged 24% YoY to $609.7M with segment profit rising 29% to $155.3M due to higher sales volumes and acquisitions, while Home Comfort Solutions net sales fell 7% to $935.6M and profit declined 12% to $221.8M due to market softness and volume headwinds.
Tariff Policy Impacts and Refunds
Gross margin expanded 40 bps YoY to 34.9%, supported by $30M in tariff refunds following a Supreme Court ruling on IEEPA tariffs, which helped offset underlying product cost inflation and factory under-absorption.
Improved Cash Generation and Shareholder Returns
For the first six months of 2026, operating cash flow reached $188.1M compared to $51.0M in the prior year period. LII allocated $151M to share repurchases, $91M to dividends, and $91M to capital expenditures.