A.O. Smith CorporationNYSE: AOS
Industrials · Building Products
$60.33
+5.53%
Vol: 72K
Research Digest
Monday, June 15, 2026
No significant overnight updates
No material news in the last 48 hours.
Previous Market Intelligence
13 daysJun 14No significant overnight updatesNeutral▶
No material news in the last 48 hours.
May 21A.O. Smith named Carrie L. Anderson as new CFO effective July 1, 2026, succeeding retiring CFO Charles T. Lauber after 26+ years at the company.Mixed▶
On May 19, 2026, A.O. Smith announced a major leadership transition with Carrie L. Anderson appointed Executive Vice President and Chief Financial Officer effective July 1, succeeding retiring CFO Charles T. Lauber. CEO Steve Shafer praised Anderson's deep experience across complex industrial and manufacturing organizations, citing her capabilities in strategic execution, corporate development and operational excellence. The transition comes amid challenging fundamentals, as Q1 2026 results missed expectations with sales of $946M (down 2% YoY) and adjusted EPS of $0.85 (down 11%). Management cut 2026 adjusted EPS guidance to $3.70-$4.00, citing weaker China demand, softer commercial project timing and higher input costs. JPMorgan downgraded AOS to Underweight from Neutral on May 4, with DA Davidson, Citi, and Baird also lowering price targets in early May.
May 20A.O. Smith named Carrie Anderson as new CFO effective July 1 amid analyst downgrades following Q1 miss and guidance cut.Negative▶
A.O. Smith announced that Carrie L. Anderson will succeed retiring CFO Charles Lauber on July 1, 2026, bringing experience in industrial and manufacturing operations. The CFO transition follows a weak Q1 2026 report showing revenue of $946M (-2% YoY) and adjusted EPS of $0.85 (-11% YoY), with management cutting full-year EPS guidance to $3.70-$4.00 due to China weakness, softer commercial demand, and higher input costs. JPMorgan downgraded the stock to Underweight from Neutral on May 4, while DA Davidson, Citi, Baird, and JPMorgan all cut price targets. Shares have fallen 8.4% over the past six months versus the S&P 500's 11.5% gain. The company is facing significant headwinds in both China and North America.
May 19A.O. Smith cut 2026 EPS guidance to $3.70-$4.00 after Q1 miss on China weakness, prompting JPMorgan downgrade to Underweight on May 4, 2026.Negative▶
A.O. Smith reported Q1 2026 EPS of $0.85 vs. $0.95 expected and revenue of $946M vs. $975.7M expected, with sales down 2% YoY amid weather disruptions and China market weakness. Management trimmed full-year adjusted EPS guidance to $3.70-$4.00, citing softer demand in China, commercial project timing, and higher input/logistics costs. JPMorgan downgraded the stock to Underweight from Neutral on May 4, while DA Davidson cut its PT to $67 from $75, Citi to $65 from $74, with Baird and Oppenheimer also lowering targets. Shares traded in the $56-$61 range in mid-May, down sharply from the 52-week high of $81.86. Shareholders have lost about 8.4% over the past six months, underperforming the S&P 500's 11.5% gain.
May 18A.O. Smith was cut to Underweight from Neutral at J.P. Morgan on May 4 with PT trimmed to $60, citing deteriorating China demand after Q1 2026 EPS miss and FY guidance cut.Negative▶
J.P. Morgan downgraded A.O. Smith to Underweight from Neutral with a $60 price target (trimmed from $65), citing deteriorating demand in China. The downgrade followed Q1 2026 results posted earlier in May showing sales of $946M (down 2% YoY, missing $975.73M estimate) and adjusted EPS of $0.85 (down 11% YoY, missing $0.95 estimate), as lower volumes, weather-related disruptions and Leonard Valve acquisition transaction costs weighed on performance. Management cut FY26 adjusted EPS guidance to $3.70-$4.00 (from $3.85-$4.15) due to weaker China demand, softer commercial project timing, and higher material/logistics costs. The board declared a regular quarterly dividend of $0.36 per share. The stock has fallen to around $57.98, with shareholders losing 8.4% over the past six months while the S&P 500 climbed 11.5%. Multiple price target cuts compound the negative outlook.
May 15A.O. Smith dropped 5.2% premarket after Q1 EPS miss as DA Davidson, Citi, and Baird cut targetsNegative▶
A.O. Smith missed Q1 2026 expectations with EPS of $0.85 vs $0.95 forecast (-10.5% surprise) and a 3.05% revenue miss. Shares slid 5.23% pre-market from $63.68 to $60.35 and trade around $58.52. Multiple analysts trimmed targets in early May - DA Davidson to $67 from $75, Citi to $65 from $74, and Baird to $70 from $75 - all on May 1-4. China-related headwinds continue to pressure performance. The stock's fair value estimate sits at $55.93 suggesting current price is roughly aligned with fundamentals, but ongoing macro pressure keeps the risk profile elevated.
May 14A.O. Smith misses Q1 and slashes 2026 guidance on China weakness; multiple analysts cut price targets to mid-$60sNegative▶
A.O. Smith reported Q1 2026 EPS of $0.85 (missing $0.95 estimate) with revenue of $946M against $975.73M consensus, citing lower volumes, weather disruptions and Leonard Valve acquisition costs. China sales fell 17% in local currency; management expects full-year China sales down low double digits. The company lowered FY 2026 adjusted EPS guidance to $3.70-$4.00. North America price increases of 4-7% on water heaters and boilers were announced, benefits expected in Q3. Free cash flow was strong at $119M. Multiple analysts cut PTs in early May: Baird to $70 (from $75), JPMorgan to $65 (from $75), DA Davidson to $67 (from $75), Oppenheimer to $80 (from $85). Stock closed at $58.88 on May 5, well below the 52-week high of $81.86. Risk: prolonged China consumer weakness and tariff-related cost pressure on margins.
May 13A.O. Smith cut its 2026 EPS guidance to $3.70-$4.00 after a Q1 miss (sales -2%, EPS -11%) and triggered a wave of analyst price target cuts; the stock hit a new 52-week low of $58.18 on May 12.Negative▶
A.O. Smith reported Q1 2026 sales of $946M (down 2% YoY) and adjusted EPS of $0.85 (down 11%), missing expectations, and cut full-year adjusted EPS guidance to $3.70-$4.00 citing weaker China demand, softer commercial project timing, and higher material/logistics costs. Five major analysts cut price targets on May 1-4: Citi to $65 from $74 (Neutral), DA Davidson to $67 from $75, Baird to $70 from $75, JPMorgan to $65 from $75, and Oppenheimer to $80 from $85. The stock hit a new 52-week low of $58.18 on May 12, trading near $61 in early May vs a 52-week high of $81.86. Average analyst rating is Hold with a 12-month target of $73. The risk is continued China weakness and prolonged commercial demand softness pressuring full-year results.
May 12A.O. Smith missed Q1 with EPS of $0.85 vs $0.95 consensus and cut the high end of FY26 sales growth to 2-4% as China weakened and Tennessee weather disrupted shipments.Negative▶
A.O. Smith reported Q1 2026 EPS of $0.85 (vs $0.95 expected) on revenue of $946M (vs $975.7M expected), with revenue down 2% YoY on weather disruption at the Ashland City, TN water heater facility and weak China demand. Management lowered FY26 sales growth guidance to 2-4% from 2-5%, with a mid-May price increase and a Q2 restructuring charge in North America water treatment ahead. The stock dropped ~5.2% pre-market to $60.35 and analysts cut targets broadly: Oppenheimer to $80 from $85, DA Davidson to $67 from $75, Citi to $65 from $74, Baird to $70 from $75, and JPMorgan to $65 from $75. Bear case: persistent China softness combined with US residential water heater demand below expectations suggests cyclical and structural pressure into 2H.
May 11A.O. Smith missed Q1 2026 estimates on weak China demand, cut FY guidance, and faced multiple analyst price target reductions.Negative▶
A.O. Smith reported disappointing Q1 2026 results with total sales of $946M (down 2%), as Rest of World sales fell 11% to $201M due to weak China demand. Management cut 2026 adjusted EPS guidance to $3.70-$4.00, citing cost inflation and volume pressures. North America price increases of 4-7% will take effect mid-May. Multiple analysts cut targets: Oppenheimer to $80 from $85, Baird to $70 from $75, JPMorgan to $65 from $75, DA Davidson to $67, Citi to $65. The Board declared a $0.36 quarterly dividend payable May 15, 2026. Stock traded at $58.88 as of May 5.
May 8Disappointing Q1 with EPS -11% and sales -2% YoY; China weakness drives multiple downgradesNegative▶
A.O. Smith reported Q1 2026 sales down 2% YoY with EPS down 11% due to weak China demand and operational challenges. 2026 guidance calls for 2-5% sales growth and EPS of $3.85-$4.15. Multiple analysts cut targets on May 2026: DA Davidson to $67 (Neutral), Citigroup to $65 from $74 (Neutral), JPMorgan to $65 from $75 (Neutral). The board declared a dividend of $0.36 per share. The company faces flat sales, diminishing returns on capital, and increasing competition while exploring M&A and new product lines. North America remains resilient in boilers and water treatment but China weakness persists.
May 7A.O. Smith Q1 2026 EPS declines 11% as China sales plummet 17%; multiple analysts slash price targets to $65-$80Negative▶
A.O. Smith reported Q1 2026 sales down 2% year-over-year with EPS down 11%, reflecting weak demand in China and operational disruptions. China sales declined 17% in local currency due to reduced government stimulus and low consumer confidence. North America showed resilience in boilers and water treatment. The company launched a price increase effective mid-May with minimal pull-forward effects so far. Management is pursuing 200 basis points of segment margin expansion in 2026 through brand leverage and manufacturing footprint rationalization. Multiple major analysts lowered targets in early May: DA Davidson to $67 (neutral), Citigroup to $65 (neutral), JPMorgan to $65 (neutral), and Oppenheimer to $80 (underperform). The stock traded near $60 with 12-month consensus at $71.67.
May 6A.O. Smith Q1 2026 Results Miss; Lowers Full-Year Guidance Amid Demand SoftnessNegative▶
A.O. Smith reported weaker-than-expected Q1 2026 results with revenue down 1.9% YoY to $945.6 million and adjusted EPS of $0.85, missing estimates. Company announced targeted restructuring plan within North America water treatment business for Q2 recognition as part of business simplification and margin enhancement efforts. Directors declared quarterly dividend of $0.36 per share payable May 15, representing $1.44 annualized yield of 2.4%. Recent analyst downgrades: DA Davidson new $67 target (neutral), Citigroup reduced to $65 from $74 (neutral), JPMorgan to $65 from $75 (neutral). Oppenheimer reaffirmed outperform at $80. Average 12-month target: $73.00.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| AOSSMITH | $60.33 | +5.53% | +0.8% | 13.7x | 1.22 | $7.9B |
| TTTRANE | $467.31 | +4.39% | -2.8% | 26.3x | 1.26 | $99.0B |
| JCIJOHNSON | $147.75 | +9.06% | -1.3% | 23.8x | 1.39 | $82.7B |
| CARRCARRIER | $71.72 | +15.34% | -3.6% | 19.4x | 1.38 | $51.6B |
| LIILENNOX | $526.87 | +9.65% | -4.2% | 18.1x | 1.23 | $16.7B |
| MASMASCO | $75.35 | +12.20% | +2.5% | 14.3x | 1.34 | $13.5B |
Key Fundamentals
RSI (14-Day)
52-Week Range
Moving Averages
Price below 200d MA — bearish structure.