A. O. Smith Corporation is an American manufacturer of both residential and commercial water heaters and boilers and the largest manufacturer and marketer of water heaters in North America. It also supplies water treatment products in the Asian market.
| Revenue (TTM) | $3.80B |
| Gross Profit (TTM) | $1.47B |
| EBITDA | $783.70M |
| Operating Margin | 18.90% |
| Return on Equity | 27.10% |
| Return on Assets | 12.50% |
| Revenue/Share (TTM) | $27.45 |
| Book Value | $13.55 |
| Price-to-Book | 4.26 |
| Price-to-Sales (TTM) | 2.10 |
| EV/Revenue | 2.193 |
| EV/EBITDA | 11.00 |
| Quarterly Earnings Growth (YoY) | -15.00% |
| Quarterly Revenue Growth (YoY) | -0.70% |
| Shares Outstanding | $110.05M |
| Float | $107.88M |
| % Insiders | 0.46% |
| % Institutions | 118.02% |
Volatility is currently contracting
The Zacks Manufacturing - Electronics industry gains from solid momentum in the manufacturing sector and strength across major end markets. ETN, EMR, AOS and ENS are some notable stocks in the industry.
A. O. Smith is rated Buy due to resilient replacement demand, energy-efficiency tailwinds, and an attractive valuation. Approximately 80-85% of North American water heater demand is replacement-driven, providing downside protection and medium-term growth potential. Earnings are expected to recover from Q4 2026, driven by pricing realization, cost savings, and a favorable product mix shift.
AOS benefits from strong North America boiler demand, acquisitions and shareholder returns, though China weakness and rising costs pose challenges.
The top five contributors for the quarter were MKS, Amphenol, Arista Networks, Bio-Techne, and Waters. The bottom five detractors for the quarter were Ross Stores, Arch Capital, Copart, Gartner, and Brown & Brown. We purchased shares in Verisk Analytics, the dominant provider of data and analytics to property and casualty insurers in the U.S.
A. O. Smith Corporation (AOS) Q2 2026 Earnings Call Transcript
AOS beats Q2 earnings and sales estimates, boosted by North America strength, while higher input costs and weaker China demand pressured profitability.
While the top- and bottom-line numbers for A.O. Smith (AOS) give a sense of how the business performed in the quarter ended June 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
A.O. Smith (AOS) came out with quarterly earnings of $1.03 per share, beating the Zacks Consensus Estimate of $0.96 per share. This compares to earnings of $1.07 per share a year ago.
Second Quarter 2026 Highlights (Comparisons are year-over-year ("YoY"), unless otherwise noted) Sales of $1 billion; net earnings of $125 million and diluted earnings per share (EPS) of $0.91; adjusted earnings of $142 million1 and adjusted EPS of $1.031 North America segment sales of $820.5 million increased 5% driven by the Leonard Valve acquisition, 21% boiler sales growth and carryover pricing actions, partially offset by lower residential water heater volumes Rest of World segment sales of $194.9 million decreased 19%, reflecting continued weakness in China's consumer appliance market Year-to-date operating cash flow increased 42% to $254 million and free cash flow increased 67% to $233 million 2026 full year share repurchase target increased to $300 million 2026 full year sales EPS guidance updated to: Sales growth of between 2% and 3% Diluted EPS of between $3.60 and $3.75 Adjusted EPS of between $3.70 and $3.85 1 Adjusted earnings and adjusted EPS exclude the impact of restructuring and impairment expenses associated with targeted restructuring actions taken in the North America water treatment business. MILWAUKEE, July 30, 2026 /PRNewswire/ -- Global water technology company A.
A.O. Smith (AOS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
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