A. O. Smith Q2 sales fall 1%, diluted EPS falls 15%; 2026 EPS guidance narrowed
A. O. Smith reported second quarter 2026 net sales of $1,004.3 million, down 1% from a year earlier, and net earnings of $124.9 million, down 18%. The company narrowed its full-year 2026 sales growth outlook to 2% to 3% and its adjusted EPS outlook to $3.70 to $3.85, which lowers the top end of the prior range, while raising its share repurchase target to $300 million.
Key points
- Q2 2026 net sales were $1,004.3 million, down 1% from $1,011.3 million; net earnings were $124.9 million versus $152.2 million.
- Diluted EPS was $0.91 versus $1.07; adjusted EPS was $1.03, excluding $22.6 million of restructuring and impairment expenses.
- Full-year 2026 adjusted EPS guidance is $3.70 to $3.85, narrowed from $3.70 to $4.00; sales growth outlook is 2% to 3%, down from 2% to 4%.
- Share repurchase target increased 50% to $300 million; quarterly dividend of $0.36 per share is payable August 17.
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 July 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.