Stifel Reviews A. O. Smith (AOS) After Q4 Beat and Mixed 2026 Outlook

A. O. Smith Corporation (NYSE:AOS) is included among the Dividend Growth Stocks: 25 Aristocrats.

Stifel Reviews A. O. Smith (AOS) After Q4 Beat and Mixed 2026 Outlook

On January 30, Stifel analyst Nathan Jones raised his price objective on A. O. Smith Corporation (NYSE:AOS) to $85 from $80. The analyst also maintained a Buy rating on the stock. He pointed to a fourth-quarter earnings beat, even as the company’s 2026 revenue outlook came in lighter than expected and the midpoint of EPS guidance fell below consensus. Despite the mixed results, shares rose about 5%. Stifel believes the move was likely driven by short covering.

The company reported higher fourth-quarter profit on January 29, supported by solid demand for residential and commercial boilers and water treatment products in North America. Management highlighted continued challenges in China, but margins still improved. “Our China margins expanded despite ongoing pressure on volumes due to challenging market conditions,” CEO Steve Shafer said. The company has previously said it is exploring strategic partnerships and other options for its China business.

Adjusted net income for the quarter climbed to $125.4 million, or $0.90 per share, up from $109.7 million, or $0.75 per share, a year earlier. Sales in North America increased 3.5% to $713.7 million, helped by pricing and stronger water treatment profitability that offset higher input costs.

Total revenue for the quarter ended December 31 was $912.5 million, essentially flat from the prior year. Looking ahead, A.O. Smith expects full-year earnings per share to fall between $3.85 and $4.15.

A. O. Smith Corporation (NYSE:AOS) designs and applies technology-driven solutions across products sold globally. The company operates through two main segments: North America and the rest of the world.

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