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A. O. Smith Corporation (AOS)
NYSE:AOS
Earnings Data
Report Date
Apr 23, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.96Last Year’s EPS
0.95Same Quarter Last Year
Based on 8 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlighted strong profitability execution (record EPS, margin expansion in North America and water treatment, 15% free cash flow growth, continued shareholder returns) and strategic progress (Leonard Valve acquisition, India/PURIT growth). However, material headwinds persist—most notably meaningful China weakness, wholesale channel pressure in North America, modest overall revenue growth, and rising input and financing costs. On balance, operational improvements and cash generation materially offset the key challenges, supporting a constructive outlook with some caution around China and cost trends.Company Guidance
Record EPS and Year-over-Year Earnings Growth
2025 diluted EPS reached a record $3.85, up 6% versus adjusted 2024 EPS of $3.73, driven by profitability improvements across segments.
Solid Free Cash Flow and Strong Shareholder Returns
Generated $546 million of free cash flow in 2025, a 15% increase over 2024 with 100% free cash flow conversion; returned $597 million to shareholders (including ~$401 million for 5.9 million share repurchases) and announced dividend continuation ($0.36 quarterly), plus an additional $200 million repurchase expectation for 2026.
North America Segment Margin and Revenue Strength
North America full-year sales of ~$3.0 billion increased slightly; segment earnings of $728 million rose 2% YoY and segment margin expanded 20 basis points to 24.4%. North America boiler sales grew 8% and water heater sales grew ~1% in 2025.
Water Treatment Profitability Improvement
North America water treatment sales down 2% (strategic channel shift) but priority channel sales (dealer direct + e-commerce) grew 10%; operating margin expanded ~400 basis points to nearly 13% in 2025 with management targeting an additional ~200 basis points improvement in 2026.
Resilient Rest of World Margins Despite China Headwinds
Full-year Rest of World segment margin improved 40 basis points to 8.7% and segment earnings were roughly flat YoY as restructuring and cost controls offset lower China sales.
Accretive Acquisition — Leonard Valve
Acquisition of Leonard Valve completed to expand water management and digital capabilities; Leonard expected to contribute about $70 million of sales in 2026, with ~30% of Leonard sales from connected/digital products and a historical revenue CAGR in the low double-digits.
2026 Financial Guidance and Outlook
2026 EPS guidance $3.85–$4.15 (midpoint ~4% above 2025); projected organic top-line growth ~2%–5%; free cash flow guidance $525–$575 million; North America margin guidance 24.0%–24.5% and Rest of World margin 8%–9%.
India Growth and PURIT Integration
Legacy India business delivered ~13% sales growth and management expects India (including PURIT) to grow ~10% in 2026, reflecting continued double-digit growth and expanded scale from the PURIT acquisition.
AOS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
AOS Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Jan 29, 2026 | $69.15 | $72.81 | +5.30% |
Oct 28, 2025 | $67.90 | $66.15 | -2.58% |
Jul 24, 2025 | $70.31 | $72.83 | +3.59% |
Apr 29, 2025 | $63.48 | $65.68 | +3.46% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does A. O. Smith Corporation (AOS) report earnings?
A. O. Smith Corporation (AOS) is schdueled to report earning on Apr 23, 2026, Before Open (Confirmed).
What is A. O. Smith Corporation (AOS) earnings time?
A. O. Smith Corporation (AOS) earnings time is at Apr 23, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is AOS EPS forecast?
AOS EPS forecast for the fiscal quarter 2026 (Q1) is 0.96.