A.O. Smith Reports Q2 Earnings Amid Mixed Performance
A.O. Smith (NYSE: AOS) reported second-quarter earnings for fiscal year 2026, with net sales reaching $1 billion driven by growth in North America but offset by a sharp decline of 28% in China's local currency sales. Adjusted EPS came to $1.03 as weak consumer demand and higher input costs weighed on performance. North American segment sales rose 5%, supported by organic growth and the acquisition of Leonard Valve, while boiler sales grew significantly due to strong commercial demand. However, North America’s adjusted margin dipped slightly year-over-year amid rising steel prices and inflationary pressures. The Rest of World segment saw a 19% drop in sales primarily from lower volumes in China. The company revised its full-year guidance for both sales and earnings per share downward due to softer residential water heater demand, while also increasing its share repurchase target by 50%. A.O. Smith is navigating ongoing challenges in the Chinese premium appliance market and anticipates higher steel costs throughout the year.
Tickers: $AOS
Topics: adjusted_eps guidance_update organic_growth sales segment_performance