A. O. Smith cuts 2026 EPS outlook as Q1 net earnings fall 14% on China weakness
A. O. Smith reported first-quarter 2026 net sales of $945.6 million, down 2%, and net earnings of $118.0 million, down 14%, with diluted EPS of $0.85 versus $0.95 a year earlier. The company lowered its full-year 2026 adjusted EPS outlook to $3.70 to $4.00 from $3.85 to $4.15, which it attributed primarily to continued challenges in China, and narrowed its sales growth outlook to 2% to 4%.
Key points
- Q1 2026 net sales $945.6 million, down 2% from $963.9 million; net earnings $118.0 million, down 14%; diluted EPS $0.85 versus $0.95
- 2026 adjusted EPS outlook lowered to $3.70 to $4.00 from $3.85 to $4.15; sales growth outlook revised to 2% to 4% from 2% to 5%
- Rest of World sales fell 11% to $200.7 million; China sales fell 17% in local currency
- Free cash flow was $118.9 million versus $17.4 million a year earlier; restructuring and impairment expenses of about $20 million are expected in Q2
The filing
Written by AI (Anthropic Claude, claude-haiku-5-5) on Nov 8, 2026, 1:17 AM ET, from the text of the filing and its press-release exhibits only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on April 30, 2026.
Briefs are written by AI from the filing text (each brief's own page names the model) and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the model's reading of the filing for shareholders, not a price forecast. Not investment advice.