A. O. Smith (AOS) Q1 FY2026 earnings: revenue $946 million, down 1.9% on the year

A. O. Smith Corp. (AOS) reported revenue of $946 million for Q1 FY2026, the quarter ended 31 March 2026, down 1.9% on the same quarter a year earlier. Net income was $118 million, down 13.6% on the year, and diluted earnings per share $0.85. The figures are the company's own, from the 10-Q it filed with the SEC on 30 April 2026.

Revenue

$946 million

-1.9% on the year · +3.6% on the quarter

Q2 FY2024Q1 FY2026

Operating margin

17.1%

19.1% a year earlier

Q2 FY2024Q1 FY2026

Net income

$118 million

-13.6% on the year · -5.9% on the quarter

Q2 FY2024Q1 FY2026

Diluted EPS

$0.85

-10.5% on the year · -5.6% on the quarter

Q2 FY2024Q1 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 2 lowered, 2 narrowed, 1 new, 1 kept.

Sales and earnings declined year over year: Net sales were $945.6 million, down 2%. Net earnings were $118.0 million, down 14%, and diluted EPS was $0.85 against $0.95 a year earlier.
Lower volumes and deal costs cut earnings: Management attributed the net earnings decline to lower volumes and transaction-related expenses recognized in the quarter for the Leonard Valve acquisition.
North America sales rose 1%: Sales were $753.4 million, up 1%, as pricing and $16 million from Leonard Valve offset lower residential water heater volumes.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Revenue	946	912	964	+3.6%	-1.9%
Cost of revenue	580	562	588	+3.2%	-1.5%
Gross profit	366	350	375	+4.4%	-2.6%
Gross margin	38.7%	38.4%	38.9%
Selling, general and administrative	204	187	193	+9.3%	+5.9%
Operating income	162	163	184	-0.7%	-12.1%
Operating margin	17.1%	17.9%	19.1%
Interest expense	7.1	2.4	2.9	+195.8%	+144.8%
Pre-tax income	155	161	181	-3.7%	-14.6%
Income tax	36.7	35.2	44.5	+4.3%	-17.5%
Effective tax rate	23.7%	21.9%	24.6%
Net income	118	125	137	-5.9%	-13.6%
Net margin	12.5%	13.7%	14.2%
Diluted EPS	$0.85	$0.90	$0.95	-5.6%	-10.5%

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Operating cash flow	129	183	38.7	-29.3%	+234.4%
Capital expenditure	10.5	17.6	21.3	-40.3%	-50.7%
Free cash flow	119	166	17.4	-28.2%	+583.3%
Free cash flow margin	12.6%	18.1%	1.8%
Cash from investing	-480	-16.3	-10.8
Cash from financing	361	-146	-95.1
Depreciation and amortisation	23.9	22.3	20.7	+7.2%	+15.5%
Share-based compensation	6.6	2.5	6.1	+164.0%	+8.2%
Buybacks	51.3	65.4	121	-21.6%	-57.5%
Dividends paid	50.2	50.6	49.2	-0.8%	+2.0%
Dividend per share	$0.36	n/a	$0.34		+5.9%
Diluted shares, weighted	139m	142m	144m	-1.9%	-3.6%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Shareholders' equity	1,878	1,858	1,855	+1.1%	+1.2%
Debt	616	155	270	+297.3%	+128.2%
Operating lease liabilities	40.7	37.1	25.2	+9.7%	+61.5%
Other liabilities	1,116	1,093	1,118	+2.1%	-0.2%
Total liabilities and equity	3,650	3,143	3,268	+16.1%	+11.7%
Fixed assets	632	635	634	-0.5%	-0.3%
Goodwill	920	711	707	+29.5%	+30.1%
Intangible assets	599	362	374	+65.2%	+60.1%
Investments	18.7	18.7	27.2	0.0%	-31.2%
Cash and equivalents	185	174	173	+6.1%	+7.1%
Receivables	634	582	642	+8.9%	-1.2%
Inventory	488	479	533	+1.9%	-8.3%
Other assets	173	180	178	-3.9%	-2.8%
Total assets	3,650	3,143	3,268	+16.1%	+11.7%

Questions

What was A. O. Smith's revenue in Q1 FY2026?

A. O. Smith (AOS) reported revenue of $946 million for Q1 FY2026, the quarter ended 31 March 2026, down 1.9% on the same quarter a year earlier.

How much did A. O. Smith earn in Q1 FY2026?

Net income for Q1 FY2026 was $118 million, down 13.6% on the year, and diluted earnings per share $0.85.

When did A. O. Smith report Q1 FY2026 results?

A. O. Smith filed its 10-Q for the quarter ended 31 March 2026 with the SEC on 30 April 2026.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024 †	Q2 FY2024 †	Q3 FY2024 †	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	996	978	966	874	936	966	961	938	988	979	1,024	903	912	964	1,011	942	912	946	1,004	940
Cost of revenue	635	636	632	569	588	592	576	581	618	594	628	565	574	588	614	578	562	580	616	576
Gross profit	361	342	334	305	349	374	385	356	370	385	396	337	338	375	397	364	350	366	388	365
Gross margin	36%	35%	35%	35%	37%	39%	40%	38%	37%	39%	39%	37%	37%	39%	39%	39%	38%	39%	39%	39%
SG&A	184	180	167	156	169	187	180	175	185	192	188	177	182	193	191	189	187	204	198	190
Operating income	197	176	178	164	-156	194	227	193	195	194	208	158	n/a	184	206	175	163	162	166	174
Operating margin	20%	18%	18%	19%	-17%	20%	24%	21%	20%	20%	20%	18%	n/a	19%	20%	19%	18%	17%	17%	19%
Interest expense	1.4	1.5	2.1	2.4	3.4	4.0	4.5	2.4	1.1	1.0	1.8	1.5	2.4	2.9	4.6	3.6	2.4	7.1	8.1	7.7
Pre-tax income	182	157	165	145	-243	171	209	176	177	193	207	157	145	181	202	172	161	155	158	167
Tax rate	23%	23%	24%	24%	n/a	26%	25%	23%	22%	23%	24%	23%	24%	25%	25%	23%	22%	24%	21%	24%
Net income	140	120	126	110	-120	127	157	135	137	148	156	120	110	137	152	132	125	118	125	126
Net margin	14%	12%	13%	13%	-13%	13%	16%	14%	14%	15%	15%	13%	12%	14%	15%	14%	14%	12%	12%	13%
Diluted EPS	$0.87	$0.76	$0.81	$0.71	-$0.78	$0.84	$1.04	$0.90	$0.92	$1.00	$1.06	$0.82	$0.75	$0.95	$1.07	$0.94	$0.90	$0.85	$0.91	$0.93
Operating cash flow	264	16.5	37.9	160	177	120	140	179	231	107	57.4	196	222	38.7	140	255	183	129	124	176
Capital expenditure	29.8	12.9	17.8	20.2	19.4	10.7	13.5	18.5	29.9	22.0	22.9	32.5	30.6	21.3	17.1	14.8	17.6	10.5	10.0	12.7
Free cash flow	234	3.6	20.1	140	157	109	127	160	201	84.6	34.5	163	191	17.4	122	241	166	119	114	163
Buybacks	154	108	82.5	91.6	122	53.1	16.5	91.8	145	74.5	78.7	83.9	68.7	121	131	84.1	65.4	51.3	111	98.2
Dividends paid	44.7	44.2	43.7	43.2	46.1	45.4	45.2	45.1	47.8	47.3	46.9	46.7	49.5	49.2	48.3	47.6	50.6	50.2	49.6	48.9
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. A quarter marked † is shown as the company last restated it in a later filing, so it compares with the quarters around it on one basis; rest on a figure for the one first filed. EPS is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 31 March 2026, filed 30 April 2026: the filing.