Company expects 2026 adjusted EPS between $3.70 and $3.85
A. O. Smith raises 2026 share repurchase target to $300 mln
Result drivers
North America sales mix - Growth in North America driven by Leonard Valve acquisition, 21% boiler sales growth and carryover pricing actions, partially offset by lower residential water heater volumes
China weakness - Rest of World sales fell 19% due to continued weakness in China's consumer appliance market
Higher input costs - Adjusted North America segment margin declined as higher steel and other input costs largely offset realized pricing
Quarterly results
Water technology firm's Q2 revenue slightly beat analyst expectations
Adjusted EPS for Q2 beat consensus, adjusted net income also topped estimates
Company raised 2026 share repurchase target to $300 mln
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst coverage and valuation
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 7 "hold" and 2 "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 $72.50, about 16.9% above its July 29 closing price of $62.04
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago
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