aos-20260630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________________________________________

FORM 10-Q

______________________________________________________


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026.


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number 1-475

________________________________

A. O. Smith Corporation

(Exact name of registrant as specified in its charter)

________________________________

Delaware

(State of Incorporation)

11270 West Park Place, Milwaukee, Wisconsin

(Address of Principal Executive Office)

39-0619790

(I.R.S. Employer

Identification No.)

53224-9508

(Zip Code)

(414) 359-4000

(Registrant’s telephone number, including area code)

_________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading
Symbol

Name of Each Exchange
on Which Registered

Common Stock (par value $1.00 per share)

AOS

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated Filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act.) ☐ Yes ☒ No

Class A Common Stock Outstanding as of July 28, 2026 - 25,861,359 shares

Common Stock Outstanding as of July 28, 2026 - 110,047,214 shares

Index

A. O. Smith Corporation


		Page
Part I.	FINANCIAL INFORMATION

	Condensed Consolidated Statements of Earnings - Three and Six Months Ended June 30 , 2026 and 2025	3

	Condensed Consolidated Statements of Comprehensive Earnings - Three and Six Months Ended June 30, 2026 and 2025	3

	Condensed Consolidated Balance Sheets - June 30 , 2026 and December 31, 2025	4

	Condensed Consolidated Statements of Cash Flows - Six Months Ended June 30 , 2026 and 2025	5

	Condensed Consolidated Statements of Stockholders’ Equity - Three and Six Months Ended June 3 0 , 2026 and 2025	6

	Notes to Condensed Consolidated Financial Statements - June 30 , 2026	7-19

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20-28

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	28

Item 4.	Controls and Procedures	29

Part II.	OTHER INFORMATION

Item 1.	Legal Proceedings	29

Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	29

Item 5.	Other Information	29

Item 6.	Exhibits	29

Index to Exhibits		30

Signatures		31

Table of Contents

PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

A. O. SMITH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(dollars in millions, except for per share data)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net sales	$	1,004.3	$	1,011.3	$	1,949.9	$	1,975.2
Cost of products sold	616.5		614.2		1,196.4		1,202.7
Gross profit	387.8		397.1		753.5		772.5
Selling, general and administrative expenses	197.7		191.3		401.6		383.9
Restructuring and impairment expenses	22.6		—		22.6		—
Interest expense	8.1		4.6		15.2		7.5
Other expense (income), net	1.4		(0.4)		1.4		(1.6)
Earnings before provision for income taxes	158.0		201.6		312.7		382.7
Provision for income taxes	33.1		49.4		69.8		93.9
Net Earnings	$	124.9	$	152.2	$	242.9	$	288.8
Basic Net Earnings Per Share of Common Stock	$	0.91	$	1.07	$	1.76	$	2.03
Diluted Net Earnings Per Share of Common Stock	$	0.91	$	1.07	$	1.75	$	2.01
Dividends Per Share of Common Stock	$	0.36	$	0.34	$	0.72	$	0.68

A. O. SMITH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS

(dollars in millions)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net earnings	$	124.9	$	152.2	$	242.9	$	288.8
Other comprehensive (loss) earnings
Foreign currency translation adjustments	(3.7)		14.5		(7.2)		15.2
Unrealized net gains (losses) on cash flow derivative instruments, less related income tax (provision) benefit of $(0.1) and $(0.5) in 2026, $0.0 and $(0.2) in 2025	0.2		(0.2)		1.5		0.6
Adjustment to pension liability, less related income tax provision of $0.0 and $0.0 in 2026 and $0.1 and $0.1 in 2025	—		0.1		0.1		0.2
Comprehensive Earnings	$	121.4	$	166.6	$	237.3	$	304.8

See accompanying notes to unaudited condensed consolidated financial statements.

Table of Contents

A. O. SMITH CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(dollars in millions, except for shares)


	(unaudited) June 30, 2026		December 31, 2025
Assets
Current Assets
Cash and cash equivalents	$	181.3	$	174.5
Marketable securities	—		18.7
Receivables	669.8		582.3
Inventories	482.7		479.3
Other current assets	55.5		36.7
Total Current Assets	1,389.3		1,291.5
Property, plant and equipment	1,589.3		1,564.5
Less accumulated depreciation	(970.3)		(929.4)
Net property, plant and equipment	619.0		635.1
Goodwill	915.2		710.6
Other intangibles	589.0		362.3
Operating lease assets	49.7		46.3
Other assets	82.3		97.0
Total Assets	$	3,644.5	$	3,142.8
Liabilities
Current Liabilities
Trade payables	$	525.7	$	504.1
Accrued payroll and benefits	74.0		93.6
Accrued liabilities	160.9		147.5
Product warranties	71.6		75.0
Debt due within one year	39.5		42.3
Total Current Liabilities	871.7		862.5
Long-term debt	598.0		112.7
Product warranties	142.0		134.7
Long-term operating lease liabilities	39.2		37.1
Other liabilities	151.7		137.8
Total Liabilities	1,802.6		1,284.8
Stockholders’ Equity
Class A Common Stock (shares issued, 25,991,739 and 25,993,539 as of June 30, 2026 and December 31, 2025, respectively)	130.0		130.0
Common Stock (shares issued 164,715,855 and 164,714,053 as of June 30, 2026 and December 31, 2025, respectively)	164.7		164.7
Capital in excess of par value	623.1		614.4
Retained earnings	4,094.9		3,951.8
Accumulated other comprehensive loss	(104.2)		(98.6)
Treasury stock at cost	(3,066.6)		(2,904.3)
Total Stockholders’ Equity	1,841.9		1,858.0
Total Liabilities and Stockholders’ Equity	$	3,644.5	$	3,142.8

See accompanying notes to unaudited condensed consolidated financial statements.

Table of Contents

A. O. SMITH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in millions)

(unaudited)


	Six Months Ended June 30,
	2026		2025
Operating Activities
Net earnings	$	242.9	$	288.8
Adjustments to reconcile net earnings to cash provided by (used in) operating activities:
Depreciation and amortization	48.5		41.2
Share-based compensation expense	9.3		8.6
Deferred income taxes	25.1		(9.1)
Non-cash impairment	12.4		—
Net changes in operating assets and liabilities:
Current assets and liabilities	(97.1)		(159.0)
Noncurrent assets and liabilities	12.7		7.8
Cash Provided by Operating Activities	253.8		178.3
Investing Activities
Capital expenditures	(20.5)		(38.4)
Acquisition of business	(470.0)		—
Investments in marketable securities	—		(22.6)
Net proceeds from sale of marketable securities	18.7