A. O. Smith Q3 revenue flat, misses expectations on China weakness
AOS•A. O. Smith’s third-quarter revenue was flat year over year at $940.5 million, below the $960.23 million consensus, while adjusted EPS of $0.93 beat expectations of $0.90. The company announced the sale of an 81% stake in its China business and forecast 2026 sales of $3.27 billion to $3.29 billion and adjusted EPS of $3.42 to $3.52, excluding China.
1. Quarterly results
A. O. Smith reported third-quarter revenue of $940.5 million, flat year over year and below analyst expectations of $960.23 million. Adjusted EPS was $0.93, above the $0.90 consensus, and net income was $126.3 million.
2. China business sale
The company announced the sale of an 81% stake in its China business, retaining a 19% stake and a brand license. It said continued weak consumer demand in China weighed on Rest of World sales.
3. 2026 outlook
A. O. Smith updated its 2026 guidance to exclude the China business for the full year. It expects net sales excluding China of $3.27 billion to $3.29 billion and adjusted EPS excluding China of $3.42 to $3.52. North America sales rose on higher boiler volumes, pricing actions and the Leonard Valve acquisition, offset by lower residential water heater volumes; higher input costs and lower water heater volumes also weighed on North America margins.
