A. O. Smith Q3 Net Sales $940.5M; Net Earnings $126.3M; Acquires Leonard Valve
A. O. Smith Corporation reported its third-quarter financial results, showing a slight decrease in net sales and net earnings compared to the prior year. For the nine months ended September 30, 2026, both net sales and net earnings also declined year-over-year. The company completed a significant acquisition of Leonard Valve for $469.5 million in January 2026, which impacted its balance sheet with increased goodwill and intangible assets. Restructuring charges were recorded in the second quarter related to the water treatment business. Dividends paid increased for the nine-month period.
Key Highlights
- A. O. Smith reported net sales of $940.5 million for Q3 2026, a slight decrease from $942.5 million in Q3 2025.
- Net earnings for Q3 2026 were $126.3 million, or $0.93 per diluted share, down from $132.0 million, or $0.94 per diluted share, in Q3 2025.
- For the nine months ended September 30, 2026, net sales were $2,890.4 million, compared to $2,917.7 million in the prior year period.
- Nine-month net earnings decreased to $369.2 million ($2.68 per diluted share) in 2026 from $420.8 million ($2.95 per diluted share) in 2025.
- The company acquired Leonard Valve for $469.5 million in cash on January 6, 2026, significantly increasing goodwill and intangible assets.
- Restructuring and impairment expenses of $22.6 million were recognized in Q2 2026 related to the water treatment business.
- Dividends paid increased to $148.7 million for the nine months ended September 30, 2026, from $145.1 million in the same period of 2025.
Price Impact
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