Lennox delivered a solid but bifurcated second quarter of 2026, with revenue up 3% to $1.5 billion, total segment profit up 2% to $355 million, and adjusted (and GAAP) diluted EPS flat at $7.72 (net income $269 million, an operating margin around 23%). The story was a tale of two markets: Building Climate Solutions (commercial) grew revenue 24% (organic up 12%) on national-account wins, emergency-replacement momentum, and service growth, with large Lennox share gains as that end market finally turned after 17-18 months of AHRI declines. Home Comfort Solutions (residential), by contrast, saw revenue fall 7% on a 12% unit-volume decline, led by a ~30% drop in residential new construction where Lennox walked away from more low-margin business than expected; the volume shortfall drove roughly $50 million of EBIT headwind plus about $10 million of factory absorption, partly cushioned by ~$25 million of pulled-forward IEEPA tariff refunds. As a result, management reduced full-year adjusted EPS guidance to $23-$24 and now expects the most meaningful residential recovery to extend into 2027, while holding overall revenue growth at ~8% (HCS trimmed to ~1%, BCS raised to ~20%), cutting productivity to ~$60 million (from $75 million) as engineering resources shifted to tariff mitigation, and maintaining free cash flow guidance of $750-$850 million. The balance sheet remained strong at 1.3x net leverage with $172 million of operating cash flow, 92% free-cash-flow conversion, ~$130 million of buybacks, capex trimmed to ~$225 million, and the completed ~$200 million Comfort-Aire/Century/Coast Air bolt-on acquisition (EPS-accretive in 2027). Management framed residential pressures (affordability, low consumer confidence, a replace-to-repair shift) as temporary, with channel inventory normalized and the long-term demand outlook unchanged.