A. O. Smith Corporation (AOS) AI Stock Analysis

Company Guidance

For full year 2026, sales excluding China are expected to grow approximately 4%, with adjusted EPS between $3.42 and $3.52 per share; the residential water heater industry outlook remains down low single digits, the commercial water heater industry flat to 2025, full year boiler sales are expected to grow 10% to 12%, North America water treatment sales approximately 3% to 4%, priority dealer channel sales approximately 10%, and Leonard Valve sales approximately $55 million compared with approximately $70 million previously; excluding currency impacts, India sales are expected to grow double digits in local currency, while foreign currency translation is expected to be a meaningful headwind to Rest of World businesses excluding China, full year steel and freight costs are expected to each increase approximately 15% compared to 2025, adding approximately 5% to full year North America segment cost of goods sold, North America margin guidance remains approximately 24%, annual water treatment savings are expected to be approximately $6 million to $8 million with approximately $1 million realized in the second half of 2026, and pricing includes a 4% to 7% increase on most North America water heater and boiler products and an additional price increase of up to 9.5% on most water heater products effective in December.