EarningsQ2 2026 Earnings Report
MX:AOS Q2 2026 EPS Results
Actual EPS$18.71
Consensus EPS$17.38
Beat/MissBeat by +$1.33
One Year Ago EPS$19.43
MX:AOS Q2 2026 Revenue Results
Actual Revenue$18.24B
Expected Revenue$18.07B
Beat/MissBeat by +$170.85M
YoY Revenue Growth-0.69%
Earnings Announcement Details
QuarterQ2 2026
Date07/30/2026
TimeBefore Open
Conference CallThursday, July 30, 2026
MX:AOS Upcoming Earnings
A. O. Smith Corporation's next earnings date is estimated for October 29, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:AOS Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a constructive operational and financial performance in North America—notably strong boiler growth, solid free cash flow (+67% year-to-date), disciplined capital returns (share buyback increased to $300M) and the Leonard Valve acquisition beginning to contribute—while being candid about significant headwinds: pronounced China weakness (‑28% in local currency), margin pressure from elevated steel (≈20% higher in Q2; ~15% expected full-year) and other material and tariff cost inflation which trim near‑term earnings and create a weaker Q3. Management maintained a generally stable full-year outlook but narrowed guidance and signaled strategic actions (China assessment, footprint optimization) to address challenges. Overall the positives around cash generation, North America execution, and capital allocation modestly outweigh the notable geographic and cost pressures, producing a cautiously optimistic tone.Company Guidance
Company-Level Results
Q2 sales approximately $1.0 billion and adjusted EPS of $1.03 for the quarter; updated full-year adjusted EPS guidance narrowed to $3.70–$3.85 (from $3.70–$4.00).
North America Sales Growth
North America segment sales of $821 million, up 5% year-over-year; organic sales (ex‑Leonard Valve) grew 3% driven by boilers and carryover pricing.
Boiler Business Outperformance
North America boiler sales increased 21% in the quarter (contributing to 12% growth year-to-date); company reiterates full-year boiler growth target of 6%–8%.
Leonard Valve Acquisition Contribution
Leonard Valve contributed $16 million in Q2 sales; management targets double-digit growth for Leonard Valve and expects approximately $70 million of sales from Leonard Valve for the year.
Strong Cash Flow and Capital Return
Free cash flow of $233 million in the first half, a 67% increase versus 2025; repurchased ~2.6 million shares for $162 million in H1 and increased 2026 share repurchase target by 50% to $300 million; board declared $0.36 dividend per share.
Operational Actions and Expected Savings
Advanced footprint optimization and brand portfolio streamlining in North America, expected annual savings of approximately $6–$8 million beginning in 2027.
Balance Sheet Positioning
Ended quarter with $181 million cash, net debt $456 million and leverage (total debt/total capital) of 25.7% after funding Leonard Valve acquisition; management states balance sheet retains flexibility for growth and M&A.
Strategic Process Underway in China
Management nearing completion of strategic assessment for China business; multiple outcomes remain under consideration and company expects to provide conclusions by next quarterly call.
MX:AOS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed