Form 10-Q · Quarterly report
A. O. Smith 10-Q, filed Oct 29, 2026
- Filed
- CIK
- 0000091142
- Accession no.
- 0000091142-26-000104
Summary
A. O. Smith agreed to sell an 81% interest in its China business to alternative asset manager CPE for about $400 million on a cash-free, debt-free basis, expecting the deal to close in the first half of 2027 while retaining a 19% stake and a long-term brand license. The company reported third-quarter 2026 net sales of $940.5 million and net earnings of $126.3 million, with North America sales up 3% and Rest of World sales down 7%.
Key points
- A. O. Smith's third-quarter 2026 net sales were $940.5 million versus $942.5 million a year earlier, and net earnings were $126.3 million versus $132.0 million.
- The China sale values the business at approximately $400 million on a cash-free, debt-free basis, with A. O. Smith retaining a 19% interest and a long-term brand licensing agreement; the transaction is expected to close in the first half of 2027, subject to regulatory approvals.
- North America segment sales rose 3% on the Leonard Valve acquisition and a 13% increase in boiler sales, partly offset by a 1% decline in water heater sales; Rest of World sales fell 7%, with China local-currency sales down 17%.
- A. O. Smith acquired Leonard Valve in January 2026 for $469.5 million, and in October 2026 announced North America water heater price increases of up to 9.5% effective December 2026.
Written by an AI model from the filing text. It can be incomplete or wrong; the filing on SEC.gov is the record.
From the filing
ITEM 2 - MANAGEMENT’S DISCUSSION Overview Our Company is comprised of two reporting segments: North America and Rest of World. Our Rest of World segment is primarily comprised of China, India, and Europe. Both segments manufacture and market comprehensive lines of residential and commercial gas, heat pump and electric water heaters, boilers, tanks, and water treatment products. Both segments primarily manufacture and market in their respective region of the world. In our North America segment, sales increased three percent in the third quarter of 2026 compared to the third quarter last year. …
An excerpt of the text as filed with the SEC, cut for length.
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