Quarterly ResultApr 30, 2026, 07:02 AM
AOS Q1 EPS $0.85, Sales $945.6M; Lowers Full-Year 2026 Outlook
AI Summary
A. O. Smith Corporation reported first quarter 2026 results with sales of $945.6 million, a 2% decrease year-over-year, and diluted EPS of $0.85, an 11% decrease. The company lowered its full-year 2026 diluted EPS guidance to $3.60-$3.90 and adjusted EPS guidance to $3.70-$4.00, primarily due to continued challenging conditions in China and softer residential water heater demand in North America. Despite these challenges, the North America segment saw a 1% sales increase, benefiting from the Leonard Valve acquisition and pricing actions, while the company generated strong operating and free cash flow.
Key Highlights
- AOS Q1 2026 sales $945.6M, -2% YoY
- Net earnings $118.0M, -14% YoY; diluted EPS $0.85, -11% YoY
- North America segment sales $753.4M, +1% YoY, aided by Leonard Valve acquisition
- Rest of World segment sales $200.7M, -11% YoY, due to weak China demand
- Full-year 2026 diluted EPS guidance lowered to $3.60-$3.90 (from $3.85-$4.15)
- Full-year 2026 adjusted EPS guidance lowered to $3.70-$4.00 (from $3.85-$4.15)
- Cash provided by operations $129.4M; free cash flow $118.9M
- Repurchased 0.7M shares for $51.3M in Q1 2026; approved $0.36/share dividend