A.O. Smith's new split heat pump water heater targets apartments, mobile homes, and cold snaps

A. O. Smith (AOS) reported 21% year-over-year sales growth in its North America boiler business in Q2 2026. The company expects 2-3% total sales growth for 2026, with acquisitions contributing $70M. It repurchased $162.4M in shares and paid $99.8M in dividends in the first half of 2026. However, China segment revenues declined 15.3% due to lower volumes, and operating expenses rose 3.3%.

A. O. Smith (AOS) shares have underperformed the S&P 500 and Global X Clean Water ETF (AQWA) over the past year. Q2 earnings beat estimates, but margin pressure and weak China sales led to a 3.6% share drop. Analysts are mixed, with a consensus 'Hold' rating and a mean price target of $69.36.

A. O. Smith reported Q2 updates on water treatment and water heating demand. North America water treatment sales fell 2% and adjusted segment earnings were $200 million, with margin down to 24.4%. Rest of World sales dropped 19% to $195 million as China sales fell 28% in local currency. The company raised its 2026 repurchase target to $300 million, narrowed 2026 guidance to adj. EPS $3.70-$3.85, and expects China decline to persist.

A. O. Smith reported Q2 2026 results on an earnings call, citing 3% North America organic growth despite weaker residential water heater volumes. Boiler sales rose 21%. China sales fell 28% in local currency. Full-year 2026 adjusted EPS guidance was narrowed to $3.70 to $3.85, and the 2026 buyback target increased 50% to $300M.

Stephen M. Shafer: Thank you, Helen, and good morning, everyone. Before we get into our results, I want to start by recognizing Chuck Lauber, and thanking him for his many years of service as our CFO. Chuck has had a long and meaningful career with A. O. Smith. And his leadership has had a significant impact on our company. On behalf of all of us, Chuck, thank you for your many contributions and we wish you all the best in retirement. At the same time, I am very pleased to welcome Carrie L.

A. O. Smith (NYSE:AOS) reported Q2 CY2026 revenue of about $1.00 billion, flat year over year but 1.4% above estimates, and adjusted non-GAAP EPS of $1.03, up 11.5% versus analysts’ consensus. The company guided full-year revenue to about $3.93 billion and expected EPS to rise to $4.03. Shares rose 2.1% to $63.34 after results.