A. O. Smith said its second quarter Q2 2026 sales were $1,004.3 million, slightly lower than second quarter Q2 2025 sales of $1,011.3 million. The company said the decrease was primarily driven by lower sales in China, partially offset by the sales contribution from the acquisition of Leonard Valve and three percent organic growth in its North America business.

1. 01

   A. O. Smith said its second quarter Q2 2026 sales were $1,004.3 million, slightly lower than second quarter Q2 2025 sales of $1,011.3 million. The company said the decrease was primarily driven by lower sales in China, partially offset by the sales contribution from the acquisition of Leonard Valve and three percent organic growth in its North America business.

2. 02

   A. O. Smith said its North America segment earnings for the second quarter of Q2 2026 were $177.2 million, lower than prior-year segment earnings of $198.1 million by $20.9 million. Adjusted segment earnings, excluding restructuring and impairment expenses of $22.6 million, were $199.8 million with an adjusted segment margin of 24.4%.

3. 03

   A. O. Smith said its Rest of World sales for the second quarter of Q2 2026 were $194.9 million, a decrease of $45.2 million from prior-year second quarter sales of $240.1 million. Segment earnings for the same quarter were $10.2 million with a segment margin of 5.2%, compared to 10.5% in the prior-year quarter.

4. 04

   A. O. Smith said it completed the acquisition of Leonard Valve in the first quarter of Q1 2026 for $470 million, funded under a new three-year, $470 million term loan. The company's leverage, as measured by the ratio of total debt to total capitalization, was 25.7% as of June 30, 2026 and 7.7% as of December 31, 2025.

Key figures

Quarter ended June 30, 2026

Revenue

$1.0B

Operating income

$166M

Net income

$125M

EPS

$0.91

Gross profit

$388M

Analysis scope · Management's discussion (MD&A)We analyzed the Management's Discussion and Analysis (MD&A) section. Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

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