A.O. Smith cuts FY26 adjusted EPS view to $3.70-$4.00 from $3.85-$4.15

Consensus $3.98. Narrows FY26 revenue view to $3.9B-$4B from $3.9B-$4.02B, consensus $3.95B. Shafer concluded, “Primarily based on our latest view of our China business and partially due to increased uncertainty around regulatory changes scheduled to take effect later this year in North America, we have updated our full-year expectations. In China, we expect market conditions to remain challenging through the year and have identified several actions to improve performance. These actions are pending the conclusion of our assessment of the business. In North America, we remain confident in our competitive positioning and the underlying strength of the business despite a slower-than-expected start to the year driven by softer macro conditions.”