A O Smith Q4 revenue misses

A O Smith

29/01/2026 12:02

Overview

Water technology firm's Q4 revenue missed analyst expectations

Adjusted EPS for Q4 beat analyst expectations

Company closed Leonard Valve acquisition, enhancing water management platform

Outlook

A. O. Smith projects 2026 sales to rise 2% to 5% from 2025

Company expects 2026 EPS between $3.85 and $4.15

Company anticipates mid-single digit sales decline in China for 2026

Result Drivers

NORTH AMERICA PERFORMANCE - Pricing benefits and higher commercial water heater volumes drove profitability in North America, offsetting lower residential volumes and higher input costs

CHINA MARKET CHALLENGES - Lower sales in China impacted Rest of World segment, but restructuring actions improved margins

LEONARD VALVE ACQUISITION - Acquisition expected to enhance water management platform and align with higher growth opportunities

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$912.50 mln
$928.32 mln (13 Analysts)
Q4 Adjusted EPS
Beat
$0.90
$0.84 (13 Analysts)
Q4 EPS
$0.90
Q4 Adjusted Net Income
Beat
$125.40 mln
$119.94 mln (12 Analysts)
Q4 Net Income
$125.40 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 9 "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 $75.50, about 8.6% above its January 28 closing price of $69.49

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nPnngKHQa

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.)