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Sentiment · FY2026 Q1
What companies say about each other on earnings calls — extracted verbatim from public transcripts. Mentions from the newest quarter are a Pro feature.
“The continued double-digit growth of our India business now complemented by the addition of Purit to drive continued growth at an even greater scale.”
Purit is an acquired India water-treatment business now integrated into A. O. Smith's India operations, contributing to double-digit India growth at greater scale.
“In the fourth quarter, we announced the acquisition of Leonard Valve, which we completed earlier this month.”
A. O. Smith acquired Leonard Valve (premium Leonard and Heat Timer brands) to enter the water management market; ~30% of Leonard's sales are connected products and ~80% repair/replacement, expected to add ~$70M in 2026 sales.
“Rest of the World segment sales of $208 million decreased slightly compared to last year and included $17 million of sales from the Pureit acquisition.”
A.O. Smith's acquired Pureit water-purification business contributed $17 million of sales in the quarter and is being integrated, expected to add roughly $55 million in 2025.
A.O. Smith closed 2025 with record EPS of $3.85 despite a challenging environment, driven by pricing discipline and margin expansion in both segments. The company made a significant strategic move with the Leonard Valve acquisition, signaling expansion into the broader water management market with connected/digital products. However, headwinds persist: China sales fell 12% with continued weakness expected in 2026, and the wholesale residential channel faces growing competitive intensity from slowing new construction and retail encroachment. Management introduced 2026 EPS guidance of $3.85-$4.15, reflecting cautious optimism anchored by commercial strength, boiler momentum, and water treatment profitability gains.
Demand | Competitive Dynamics | Margin | Revenue Growth | Trade Tariffs | Cost Pressure | Pricing | M&A | |
|---|---|---|---|---|---|---|---|---|
| 2024Q4 | 5 | 5 | 4 | 6 | 1 | 4 | 2 | 2 |
| 2025Q1 | 7 | 3 | 1 | 1 | 10 | 2 | 5 | |
| 2025Q2 | 6 | 9 | 5 | 4 | 3 | 2 | 4 | 4 |
| 2025Q3 | 9 | 4 | 3 | 3 | 1 | 2 | 2 | 2 |
| 2025Q4 | 3 | 3 | 4 | 4 | 1 | 2 | 4 | |
| 2026Q1 | 6 | 3 | 1 | 1 | 4 | 2 | 2 |
| '24Q4 | '25Q1 | '25Q2 | '25Q3 | '25Q4 | '26Q1 | |
|---|---|---|---|---|---|---|
| Demand | 5 | 7 | 6 | 9 | 3 | 6 |
| Competitive Dynamics | 5 | 3 | 9 | 4 | 3 | 3 |
| Margin | 4 | 1 | 5 | 3 | 4 | 1 |
| Revenue Growth | 6 | 1 | 4 | 3 | 4 | |
| Trade Tariffs | 1 | 10 | 3 | 1 | 1 | 1 |
| Cost Pressure | 4 | 2 | 2 | 2 | 2 | 4 |
| Pricing | 2 | 5 | 4 | 2 | 2 | |
| M&A | 2 | 4 | 2 | 4 | 2 |
| Analyst | Firm | Questions (Challenge)Percentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions. |
|---|---|---|
| Mike Halloran | Robert W. Baird | 12 (0%) |
| Andy Kaplowitz | Citigroup | 12 (0%) |
| Jeff Hammond | KeyBanc Capital Markets |
| 11 (0%) |
| Bryan Blair | Oppenheimer | 10 (0%) |
| Saree Boroditsky | Jefferies | 9 (33%) |
| Scott Graham | Seaport Research Partners | 9 (11%) |
| Dave MacGregor | Longbow Research | 7 (0%) |
| Damian Karas | UBS | 6 (17%) |
| Matt Summerville | D.A. Davidson | 6 (33%) |
| Susan Maklari | Goldman Sachs | 6 (0%) |
| Firm | Analysts | Questions (Challenge)Percentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions. |
|---|---|---|
| Citigroup | 1 | 12 (0%) |
| Robert W. Baird | 1 | 12 (0%) |
| Longbow Research | 2 | 11 (0%) |
| KeyBanc Capital Markets | 1 | 11 (0%) |
| Oppenheimer | 1 | 10 (0%) |
| Jefferies | 1 | 9 (33%) |
| Seaport Research Partners | 1 | 9 (11%) |
| Stifel | 2 | 9 (0%) |
| Company | Score | Trend | Rev YoY |
|---|---|---|---|
AOS A. O. Smith | 1 | -1.9% | |
| AME Ametek | 8 | +11.3% | |
| CMI Cummins | 7 | +2.7% | |
| DOV Dover Corporation | 7 | +10.1% | |
| EMR Emerson Electric | 6 | +2.9% | |
| ETN Eaton Corporation | 8 | +16.8% | |
| GNRC Generac | 9 | +12.4% | |
| HWM Howmet Aerospace | 9 | +19.1% | |
| IEX IDEX Corporation | 8 | +8.9% | |
| IR Ingersoll Rand | 5 | +7.6% | |
| ITW Illinois Tool Works | 7 | +4.6% | |
| NDSN Nordson Corporation | 9 | +8.5% | |
| OTIS Otis Worldwide | 4 | +6.5% | |
| PH Parker Hannifin | 8 | +10.6% | |
| PNR Pentair | 6 | +2.6% | |
| ROK Rockwell Automation | 9 | +11.8% | |
| ROP Roper Technologies | 8 | +11.3% | |
| XYL Xylem Inc. | 5 | +2.7% |