A. O. Smith (NYSE:AOS) Releases FY 2026 Earnings Guidance

A. O. Smith (NYSE:AOS) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 3.700-3.850 for the period, compared to the consensus earnings per share estimate of 3.770. The company issued revenue guidance of $3.9 billion-$3.9 billion, compared to the consensus revenue estimate of $3.9 billion.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on AOS. DA Davidson set a $67.00 target price on A. O. Smith and gave the company a “neutral” rating in a research report on Monday, May 4th. Zacks Research downgraded A. O. Smith from a “hold” rating to a “strong sell” rating in a research report on Wednesday, May 6th. Stifel Nicolaus set a $76.00 price target on shares of A. O. Smith and gave the stock a “buy” rating in a research note on Monday, July 20th. Robert W. Baird set a $70.00 price objective on shares of A. O. Smith in a report on Friday, May 1st. Finally, Weiss Ratings lowered shares of A. O. Smith from a “hold (c)” rating to a “hold (c-)” rating in a research report on Wednesday, May 27th. Two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and a consensus target price of $68.62.

A. O. Smith Stock Down 3.6%

Shares of NYSE AOS traded down $2.24 during mid-day trading on Thursday, hitting $59.80. The company had a trading volume of 3,045,349 shares, compared to its average volume of 1,609,957. The company has a current ratio of 1.56, a quick ratio of 1.00 and a debt-to-equity ratio of 0.31. The firm has a 50-day simple moving average of $59.45 and a two-hundred day simple moving average of $65.50. The company has a market capitalization of $8.24 billion, a PE ratio of 15.90, a price-to-earnings-growth ratio of 1.43 and a beta of 1.16. A. O. Smith has a one year low of $54.16 and a one year high of $81.86.

A. O. Smith (NYSE:AOS) last released its earnings results on Thursday, July 30th. The industrial products company reported $1.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.96 by $0.07. A. O. Smith had a return on equity of 28.42% and a net margin of 13.84%.The business had revenue of $1 billion for the quarter, compared to analyst estimates of $994.89 million. During the same quarter in the prior year, the company posted $1.07 earnings per share. A. O. Smith’s revenue was down .7% on a year-over-year basis. A. O. Smith has set its FY 2026 guidance at 3.700-3.850 EPS. On average, equities analysts expect that A. O. Smith will post 3.74 EPS for the current year.

A. O. Smith Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 17th. Stockholders of record on Friday, July 31st will be paid a dividend of $0.36 per share. The ex-dividend date is Friday, July 31st. This represents a $1.44 dividend on an annualized basis and a dividend yield of 2.4%. A. O. Smith’s dividend payout ratio is currently 38.30%.

A. O. Smith News Roundup

Here are the key news stories impacting A. O. Smith this week:

• Positive Sentiment: Second-quarter adjusted EPS was $1.03, above the $0.96 analyst consensus, while sales of approximately $1.0 billion also exceeded expectations. North America sales increased 5% to $820.5 million, supported by the Leonard Valve acquisition, 21% growth in boiler sales and pricing actions. A. O. Smith Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Cash generation improved substantially: year-to-date operating cash flow rose 42% to $254 million and free cash flow increased 67% to $233 million. The company also raised its 2026 share-repurchase target to $300 million. A. O. Smith Reports Second Quarter 2026 Results
• Positive Sentiment: A. O. Smith declared a quarterly dividend of $0.36 per share, supporting the stock’s income appeal. A. O. Smith Declares Dividend
• Neutral Sentiment: Management maintained 2026 adjusted EPS guidance of $3.70–$3.85 and expects sales growth of 2%–3%, broadly consistent with analyst expectations. A. O. Smith 2026 Guidance
• Negative Sentiment: Revenue declined 0.7% year over year, and reported diluted EPS fell from $1.07 to $0.91; the adjusted figure benefited from excluding restructuring and impairment charges.
• Negative Sentiment: Rest of World sales dropped 19% to $194.9 million because of persistent weakness in China’s consumer-appliance market. Higher input costs and lower residential water-heater volumes also pressured profitability, helping explain the negative market reaction despite the headline earnings beat. A. O. Smith Q2 Earnings Beat Estimates

Hedge Funds Weigh In On A. O. Smith

A number of institutional investors have recently added to or reduced their stakes in the company. Goldman Sachs Group Inc. grew its position in shares of A. O. Smith by 19.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 939,302 shares of the industrial products company’s stock valued at $61,393,000 after acquiring an additional 154,201 shares during the period. EverSource Wealth Advisors LLC lifted its stake in A. O. Smith by 78.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 963 shares of the industrial products company’s stock valued at $63,000 after purchasing an additional 422 shares during the last quarter. Marshall Wace LLP acquired a new stake in A. O. Smith in the 2nd quarter valued at about $5,212,000. California Public Employees Retirement System grew its holdings in A. O. Smith by 11.4% during the second quarter. California Public Employees Retirement System now owns 211,176 shares of the industrial products company’s stock worth $13,847,000 after purchasing an additional 21,657 shares during the period. Finally, Bank of Nova Scotia increased its position in A. O. Smith by 165.3% during the second quarter. Bank of Nova Scotia now owns 32,874 shares of the industrial products company’s stock worth $2,156,000 after buying an additional 20,485 shares during the last quarter. 76.10% of the stock is currently owned by institutional investors and hedge funds.

About A. O. Smith

A. O. Smith Corporation, based in Milwaukee, Wisconsin, is a leading manufacturer of water heating and water treatment products for residential and commercial applications. Since its founding in 1874, the company has built a reputation for producing reliable, energy-efficient water heaters, boilers and pressure vessels. Its product portfolio encompasses gas, electric, condensing and tankless water heaters, as well as specialty boilers designed to meet a variety of building and industrial needs.

The company operates through two primary segments: North America and Asia.