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Leonard Valve acquisition closes at $470M; 2026 EPS guided ~$4.00; 6% dividend increase

A.O. Smith completed the acquisition of Leonard Valve (LVC Holdco LLC) for $470M on January 6, 2026, expanding its water management and digital capabilities and expected to be EPS-accretive in 2026. Management projected full-year 2026 earnings of ~$4.00 per share at the midpoint, slightly below analyst consensus. The company announced a 6% quarterly dividend increase to $0.36 per share, and J.P. Morgan maintained a Hold rating, with the stock trading near $67.44.