Earnings Releases·Oct 29, 2026, 6:57 AM ET

A. O. Smith — Third Quarter 2026 Earnings Summary

Q3 2026 net sales were flat at $940.5 million versus $942.5 million in Q3 2025; net earnings declined 4% to $126.3 million and diluted EPS fell 1% to $0.93.
Full-year 2026 guidance has been updated to exclude the China business, projecting net sales growth of approximately 4% and adjusted EPS between $3.42 and $3.52.
The company announced a definitive agreement to sell an 81% interest in its China business for approximately $400 million, retaining a 19% stake and brand license, with the transaction expected to close in the first half of 2027.
Capital allocation included $260.6 million in share repurchases year-to-date and a 6% dividend increase approved in October 2026, while free cash flow for the first nine months rose 4% to $396.2 million.
North America segment sales grew 3% driven by pricing and the Leonard Valve acquisition, though segment margin declined to 23.6% due to lower residential water heater volumes and higher input costs.