A. O. Smith Q3 FY2026: flat sales, EPS beat, China exit reframes guidance

Sales were $940.5 million, down 0.2% from $942.5 million a year ago — effectively flat, but only because two opposite trends cancelled out. North America rose 3% to $761.6 million on boiler growth, pricing and a $15 million lift from Leonard Valve, while Rest of World fell 7% to $192.8 million as China sales dropped 17% in local currency. Organic sales were down 2% overall, so nothing here is growing on its own volume.

Management now points to $3.27–$3.29 billion of net sales and $3.42–$3.52 of adjusted EPS for 2026, both excluding China for the whole year. Measured against 2025's China-excluded base of $3,155.3 million in sales and $3.42 in adjusted EPS, the midpoints imply roughly 4% sales growth and only about 1.5% EPS growth. The low end of the EPS range is exactly 2025's $3.42, so at the bottom of the range the company is guiding to no earnings growth at all.