A new ETF built on diesel engines, truck fleets, and air conditioners is pitching itself as a refuge from software-heavy portfolios, but its biggest holding may already be cashing in on the very trend it claims to avoid.

Lennox has significantly underperformed the broader market amid weaker residential demand and reduced guidance, while analysts remain moderately optimistic about its prospects.

Over the last six months, Lennox’s shares have sunk to $437.64, producing a disappointing 17.3% loss - a stark contrast to the S&P 500’s 10.9% gain. This might have investors contemplating their next move.

Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the industry has underperformed the market over the past six months as its 1.3% return lagged the S&P 500 by 9.7 percentage points.

Residential weakness offset by commercial growth; recovery pushed to 2027.

Modine's fiscal Q1 earnings beat estimates as data center sales surge 90%. However, revenues miss, and supply-chain pressure squeezes margins.

Lennox International recently reported its second-quarter 2026 results, showing modest sales growth to US$1,545.3 million but slightly lower net income of US$269 million, while also trimming full-year earnings guidance to US$23.00–US$24.00 per share. Beneath the headline numbers, a 24% revenue increase in the commercial Building Climate Solutions segment contrasted sharply with a 7% residential decline, underlining how shifting demand between non-residential projects and pressured homeowners...

Climate control solutions innovator Lennox International (NYSE:LII) missed Wall Street’s revenue expectations in Q2 CY2026 as sales rose 3% year on year to $1.55 billion. Its GAAP profit of $7.73 per share was in line with analysts’ consensus estimates.

The market looked past a small earnings beat to a profit that is still shrinking and a raised target that leans heavily on the back half of the year.

Shares of climate control solutions innovator Lennox International (NYSE:LII) fell 20.1% in the afternoon session after the company reported second-quarter results that missed revenue estimates and provided a full-year profit forecast that fell short of Wall Street's expectations.