Q2 2026 A O Smith Corp Earnings Call Transcript

Jul 30, 2026 / 02:00 PM GMT

Release Date Price: €51.36 (-4.57%)

Transcript 8-K

Key Points

Positve

North America sales increased 5% to $821 million, with organic growth of 3% driven by strong boiler sales.
Free cash flow surged nearly 70% in the first half of 2026, reflecting strong operational efficiency.
Boiler business delivered exceptional 21% sales growth in Q2, with year-to-date growth of 12%.
Increased 2026 share repurchase target by 50% to $300 million, demonstrating confidence in cash flow and shareholder returns.
Leonard Valve acquisition contributed $16 million in sales and is on track for double-digit growth for the full year.

Negative

China sales declined 28% in local currency due to persistent weakness in the premium appliance market.
North America residential water heater demand remains soft, with industry outlook revised to down low single-digits.
Steel costs rose approximately 20% year-over-year in Q2, pressuring margins despite pricing actions.
Adjusted segment margin in North America decreased 100 basis points to 24.4% due to higher input costs.
Q3 earnings expected to be lower than Q2 and Q4 due to demand pull-forward, higher steel costs, and tariff headwinds.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

AOS.N - A O Smith Corp
Q2 2026 A O Smith Corp Earnings Call
Jul 30, 2026 / 02:00PM GMT

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Presentation
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Unidentified_1 [1]
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Standing by.

Welcome to the second quarter 2026 earnings conference call.

At this time, all participants are in a listen-only mode after the speaker's presentation, there'll be a question-and-answer session.

To ask a question during the session, you'll need to press star 11 on your telephone, you will then hear an automated message advising your hand is raised.

To withdraw your question, please press 11 again.

Please be advised that today's conference is being recorded.

I would now like to turn the conference over to your speaker today, Helen Gerhardt, please go ahead.

Thank you, Lisa.

Good morning, everyone, and welcome to the AO Smith second quarter conference call.

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