Thu Jan 29 12:10:00 UTC 2026: ### A.O. Smith Beats Earnings Expectations but Misses on Revenue

The Story:

A.O. Smith Corp. (AOS) reported its fourth-quarter results on Thursday, announcing a net income of $125.4 million, or 90 cents per share, surpassing Wall Street expectations of 84 cents per share. However, the Milwaukee-based water heater and boiler manufacturer reported revenue of $912.5 million for the quarter, falling short of the anticipated $923.1 million. Despite the revenue miss, the company’s full-year profit reached $546.2 million, or $3.85 per share, with revenue reported at $3.83 billion.

Looking ahead, A.O. Smith forecasts full-year earnings between $3.85 and $4.15 per share, with projected revenue ranging from $3.9 billion to $4.02 billion. The company’s stock has seen a nearly 4% increase since the start of the year but has decreased by 0.5% over the past 12 months.

Key Points:

  • A.O. Smith’s Q4 net income: $125.4 million (90 cents per share).
  • Earnings per share (EPS) beat analysts’ expectations of 84 cents.
  • Q4 revenue: $912.5 million, missed the expected $923.1 million.
  • Full-year profit: $546.2 million, or $3.85 per share.
  • Full-year revenue: $3.83 billion.
  • 2026 earnings guidance: $3.85 to $4.15 per share.
  • 2026 revenue guidance: $3.9 billion to $4.02 billion.

Key Takeaways:

  • A.O. Smith’s earnings beat indicates effective cost management or higher margins despite lower-than-expected revenue.
  • The mixed results (earnings beat, revenue miss) reflect a complex business environment, possibly influenced by fluctuating demand or pricing pressures.
  • The provided historical context suggests that the market is closely watching A. O. Smith’s valuation, particularly after recent earnings and share price movements.
  • A.O. Smith’s record 2025 Diluted Earnings Per Share (EPS) of $3.85 sets a high benchmark for the coming year.

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