A. O. Smith (NYSE:AOS – Get Free Report) released its earnings results on Thursday. The industrial products company reported $1.03 EPS for the quarter, topping analysts’ consensus estimates of $0.96 by $0.07, FiscalAI reports. A. O. Smith had a net margin of 13.84% and a return on equity of 28.42%. The company had revenue of $1 billion for the quarter, compared to analysts’ expectations of $994.89 million. During the same quarter last year, the business earned $1.07 EPS. The firm’s revenue was down .7% compared to the same quarter last year. A. O. Smith updated its FY 2026 guidance to 3.700-3.850 EPS.
Here are the key takeaways from A. O. Smith’s conference call:
- North America organic sales grew 3% in Q2, led by a 21% increase in boiler sales and pricing benefits, while Leonard Valve added $16 million of revenue.
- Free cash flow rose 67% to $233 million in the first half, prompting A. O. Smith to increase its 2026 share-repurchase target by 50% to $300 million.
- The company lowered its 2026 outlook to 2%-3% sales growth and adjusted EPS of $3.70-$3.85, citing weaker-than-expected North American residential water-heater demand and low-double-digit industry volume declines.
- Q3 earnings are expected to be lower than both Q2 and Q4 as customer pre-buy activity pulls demand forward, while higher steel, tariff, transportation, and other input costs pressure margins.
- China sales fell 28% in local currency, and management expects to announce the outcome of its nearly year-long strategic assessment by the next earnings call; all options, including a potential partner-led change or continued self-management, remain under consideration.
A. O. Smith Price Performance
Shares of NYSE:AOS traded down $2.40 during midday trading on Thursday, reaching $59.65. 1,425,164 shares of the company were exchanged, compared to its average volume of 1,598,250. The stock has a market cap of $8.22 billion, a PE ratio of 15.88, a price-to-earnings-growth ratio of 1.43 and a beta of 1.16. The business’s fifty day moving average is $59.45 and its two-hundred day moving average is $65.50. A. O. Smith has a one year low of $54.16 and a one year high of $81.86. The company has a current ratio of 1.56, a quick ratio of 1.00 and a debt-to-equity ratio of 0.31.
A. O. Smith Dividend Announcement
Wall Street Analysts Forecast Growth
A number of analysts have recently issued reports on the stock. Weiss Ratings cut shares of A. O. Smith from a “hold (c)” rating to a “hold (c-)” rating in a research note on Wednesday, May 27th. JPMorgan Chase & Co. reaffirmed an “underweight” rating and issued a $60.00 target price (down from $65.00) on shares of A. O. Smith in a report on Friday, May 15th. The Goldman Sachs Group cut their price target on A. O. Smith from $69.00 to $61.00 and set a “sell” rating for the company in a research note on Monday, April 13th. DA Davidson set a $67.00 price target on A. O. Smith and gave the company a “neutral” rating in a report on Monday, May 4th. Finally, Stifel Nicolaus set a $76.00 price objective on A. O. Smith and gave the company a “buy” rating in a research report on Monday, July 20th. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, A. O. Smith currently has a consensus rating of “Reduce” and a consensus price target of $68.62.
Institutional Trading of A. O. Smith
Several hedge funds have recently bought and sold shares of AOS. Los Angeles Capital Management LLC purchased a new position in shares of A. O. Smith during the fourth quarter valued at about $35,000. Larson Financial Group LLC lifted its position in shares of A. O. Smith by 67.9% in the third quarter. Larson Financial Group LLC now owns 487 shares of the industrial products company’s stock worth $36,000 after buying an additional 197 shares in the last quarter. Johnson Financial Group Inc. boosted its stake in A. O. Smith by 398.1% during the third quarter. Johnson Financial Group Inc. now owns 782 shares of the industrial products company’s stock valued at $57,000 after buying an additional 625 shares during the last quarter. EverSource Wealth Advisors LLC boosted its stake in A. O. Smith by 78.0% during the second quarter. EverSource Wealth Advisors LLC now owns 963 shares of the industrial products company’s stock valued at $63,000 after buying an additional 422 shares during the last quarter. Finally, Headlands Technologies LLC purchased a new position in A. O. Smith during the 2nd quarter valued at approximately $72,000. Hedge funds and other institutional investors own 76.10% of the company’s stock.
A. O. Smith Company Profile
A. O. Smith Corporation, based in Milwaukee, Wisconsin, is a leading manufacturer of water heating and water treatment products for residential and commercial applications. Since its founding in 1874, the company has built a reputation for producing reliable, energy-efficient water heaters, boilers and pressure vessels. Its product portfolio encompasses gas, electric, condensing and tankless water heaters, as well as specialty boilers designed to meet a variety of building and industrial needs.
The company operates through two primary segments: North America and Asia.
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