A.O. Smith Slashes 2026 Outlook as China Sales Plunge 28%
AOS sits 16% above its 52-week low of $54.16.
Summary
A.O. Smith cut its full-year profit and revenue forecasts, citing a sharp 28% drop in China sales. The company narrowed its adjusted EPS guidance to $3.70-$3.85 from $3.70-$4.00 and trimmed its revenue outlook to $3.9B-$3.95B from $3.9B-$4.0B. While Q2 results beat estimates—revenue of $1B vs. $994.9M expected and adjusted EPS of $1.03 vs. $0.92—the China weakness is accelerating, with Rest of World sales down 19%. This follows the Q1 earnings miss and guidance cut in April, signaling persistent headwinds in a key growth market. The company is conducting a strategic review of its China business, which could lead to restructuring or divestiture. North America remains steady with 5% sales growth, but the China drag is overshadowing the beat.
At the time of this announcement, AOS was trading at $62.95 on NYSE in the Manufacturing sector, with a market capitalization of approximately $8.6B. The 52-week trading range was $54.16 to $81.87. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.