A O Smith misses Q1 revenue estimates, cuts FY adj. EPS outlook

A O Smith

30/04/2026 12:05

Overview

Water technology firm's Q1 revenue fell 2% yr/yr, missing analyst expectations

Q1 net earnings and diluted EPS declined from prior year

Company lowered full-year 2026 adjusted EPS outlook due to China market challenges

Outlook

A. O. Smith lowers 2026 full-year diluted EPS outlook to $3.60-$3.90

Company lowers 2026 adjusted EPS outlook to $3.70-$4.00

A. O. Smith expects 2026 sales growth of 2%-4%, lowering high end from prior guidance

Result Drivers

CHINA WEAKNESS - Co said continued weak consumer demand in China drove a 17% local currency sales decline in the Rest of World segment

NORTH AMERICA DISRUPTIONS - Weather-related production and shipping constraints, including storm damage at the Ashland City, Tennessee plant, hurt North America results

LOWER WATER HEATER VOLUMES - Lower residential water heater volumes in North America offset benefits from the Leonard Valve acquisition and pricing actions

Company press release: ID:nPn78QRzTa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$945.60 mln
$977.69 mln (12 Analysts)
Q1 EPS
$0.85
Q1 Net Income
$118 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the electrical components & equipment peer group is "buy"

Wall Street's median 12-month price target for A O Smith Corp is $77.00, about 20.9% above its April 29 closing price of $63.68

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)