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Sentiment · FY2026 Q2
As of FY2026 Q1, the Tellvest earnings-call sentiment score for A. O. Smith (AOS) is 1/10.
A.O. Smith's first quarter of 2026 was a difficult one, with revenue declining 2% and EPS falling 11% as China weakness deepened, weather disrupted a key manufacturing facility, and Leonard Valve transaction costs weighed on earnings. Management lowered full-year EPS guidance by $0.15 at the midpoint, reflecting a deteriorating China outlook (now down low double digits), the DOE's one-year delay of commercial regulatory enforcement (eliminating expected prebuy), and accelerating steel and freight costs. The announced 4-7% North America price increases won't benefit results until Q3, creating a near-term margin squeeze. Bright spots included Leonard Valve's strong $16 million first-quarter contribution, wholesale channel share stabilization, and continued water treatment margin progress, but the overall quarter reflects a company navigating multiple simultaneous headwinds.
Scored from A. O. Smith’s FY2026 Q1 earnings call. The newest quarter is available with Tellvest Pro.
| Quarter | Revenue | Rev YoY | EPS | EPS YoY | Gross margin | Op margin | Net margin | FCF |
|---|---|---|---|---|---|---|---|---|
| FY2024 Q4 | $912M | -7.7% | $0.75 | -18.5% | 37.1% | 17.1% | 12.0% | $191M |
| FY2025 Q1 | $964M | -1.5% | $0.95 | -5.0% | 38.9% | 19.0% | 14.2% | $17M |
| FY2025 Q2 | $1.01B | -1.3% | $1.07 | +0.9% | 39.3% | 20.4% | 15.0% | $123M |
| FY2025 Q3 | $943M | +4.4% | $0.94 | +14.6% | 38.7% | 18.6% | 14.0% | $241M |
| FY2025 Q4 | $913M | +0.0% | $0.90 | +20.0% | 38.4% | 18.0% | 13.7% | $166M |
| FY2026 Q1 | $946M | -1.9% | $0.85 | -10.5% | 38.7% | 17.1% | 12.5% | $119M |
| FY2026 Q2 | $1.00B | -0.7% | $0.91 | -15.0% | 38.6% | 16.7% | 12.4% | $114M |
All prior quarters are free.
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