AOS
FY2026 Q1 · Calendar Q2 2026
A. O. Smith Corporation
A. O. Smith's fiscal Q1 2026 marked a clear deterioration from the record pace of 2025. EPS of $0.85 missed consensus by 9.8% and revenue of $945.6 million fell short by 2.9%, driven by an 11% decline in Rest of World sales as China demand weakened further. Management lowered full-year EPS guidance to $3.70-$4.00 from the $3.85-$4.15 range set in Q4 2025, with downward revisions to water-treatment growth (now 5-6%) and China sales (now low double-digit decline). Offsetting measures include announced 4-7% Q3 price increases, a water-treatment restructuring targeting $6-8 million in annual savings from 2027, and $119 million in free cash flow. The DOE's delay of the commercial water-heater rule to October 2027 altered pre-buy dynamics, and Leonard Valve contributed $16 million in its first partial quarter. The market reacted negatively: a 3.9% abnormal decline on the event session…
EPS surprise-9.8%
Market move-2.9%
