A. O. Smith Q2 Sales $1B, EPS $0.91; Raises Buyback Target to $300M
A. O. Smith Corporation reported Q2 2026 sales of $1 billion, a 1% decrease year-over-year. Net earnings were $125 million, or $0.91 diluted EPS, down 18% and 15% respectively, while adjusted EPS decreased 4% to $1.03. North America sales grew 5% due to the Leonard Valve acquisition and boiler sales, partially offset by lower residential water heater volumes, but Rest of World sales declined 19% due to a weak China market. The company increased its full-year 2026 share repurchase target to $300 million and narrowed its full-year sales and adjusted EPS guidance.
Key Highlights
- Q2 2026 Sales were $1 billion, a 1% decrease year-over-year.
- Q2 2026 Diluted EPS was $0.91, a 15% decrease year-over-year.
- Q2 2026 Adjusted EPS was $1.03, a 4% decrease year-over-year.
- Increased full-year 2026 share repurchase target to $300 million from $200 million.
- Updated 2026 full-year sales growth guidance to 2-3% (previously 2-4%).
- Updated 2026 full-year adjusted EPS guidance to $3.70-$3.85 (previously $3.70-$4.00).
- North America segment sales increased 5% to $820.5 million, driven by an acquisition and boiler sales.
- Rest of World segment sales decreased 19% to $194.9 million, reflecting continued weakness in China.
Price Impact
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