Water heater maker A.O. Smith trims annual forecasts on soft China demand
AOS•Quarterly results beat estimates
Total revenue for the quarter ended June 30 fell 0.7% from a year earlier to $1 billion, beating analysts' expectations of $994.9 million, according to data compiled by LSEG.
Its second-quarter sales in North America rose 5% to $820.5 million from a year earlier.
Rest of World sales fell 19% to $194.9 million and China sales dipped 28% from the year-ago period.
A.O. Smith posted second-quarter adjusted profit of $1.03 per share, above analysts' estimate of 92 cents per share.
Management comments on China and guidance
“In China, we managed through a significantly weaker market environment and continue our strategic assessment of the business,” said CEO Steve Shafer.
The Milwaukee, Wisconsin-based company narrowed its 2026 adjusted profit forecast, trimming the upper end of its range to $3.85 per share from $4.00, while maintaining the lower end at $3.70 per share.
The company also cut its annual net sales outlook, narrowing the upper end at from a prior expectation of , keeping the lower end at .
