16 slides from A.o. Smith's earnings presentation, Jul 30, 2026
Slide 1: Second Quarter 2026 Results
Second Quarter 2026 Results July 30, 2026
Slide 2: Presenters
Carrie L. Anderson Executive Vice President and Chief Financial Officer Helen E. Gurholt Vice President - Investor Relations, Financial Planning Analysis Stephen Chief Executive M. Shafer Officer Chairman and Charles T. Lauber Executive Vice President Stephen M. Shafer Carrie L. Anderson Charles T.
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains statements that we believe are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of words such as “may,” “will,” “expect,” “i
Slide 4: Second Quarter Performance and Highlights
Second Quarter Performance and Highlights Sales ($B) Adjusted EPS Segment Sales ($M) Adj. Segment Earnings ($M) $1.0B $1.0B $1.07 $821M $1.03 $200M -1% -4% YOY YOY $195M $10M Q2 2025 Q2 2026 Q2 2025 Q2 2026 North America Rest of World North America Rest of World Highlights North America Rest of Worl
Slide 5: Second Quarter North America Segment
Second Quarter North America Segment Segment Sales ($M) Adj. Segment Operating Earnings ($M) $26 $16 $821 $17 $4 $(19) $779 $200 $198 5% YOY 25.4% 24.4% 1 1 Q2 2025 Sales Organic Growth Acquisition Q2 2026 Sales Q2 2025 Earnings Organic Growth Acquisition Input and Q2 2026 Adj Earnings Other Costs •
Slide 6: Second Quarter Rest of World Segment
Second Quarter Rest of World Segment Segment Sales ($M) Segment Operating Earnings ($M) $240 $(51) $(24) $25 $6 $195 -19% 10.5% $9 $10 YOY 5.2% 1 1 Q2 2025 Sales Organic Growth FX Q2 2026 Sales Q2 2025 Earnings Organic Growth SG&A Q2 2026 Earnings Other • Sales decreased 19% primarily due to lower C
Slide 7: Cash Flow and Liquidity
Cash Flow and Liquidity1 $181M Free Cash Flow ($M) Cash Flow From Operations ($M) Cash balance2 $254 $233 25.7% Debt to capital ratio $178 $140 $456M Net debt position ~2.6M Shares repurchased YTD1 totaling ~$162M Q2 2025 Q2 2026 Q2 2025 Q2 2026 1As of June 30, 2026 2Includes cash, cash equivalents
Slide 8: Capital Allocation Priorities
Capital Allocation Priorities • Driving organic growth: developing products through product innovation, investing in Organic Growth productivity and continuing to build the strength of the core • Disciplined focus on transactions that expand/grow the core, enable geographic Acquisitions growth, expa
Slide 9: 2026 Outlook and Assumptions
2026 Outlook and Assumptions1 Diluted EPS (GAAP) Restructuring Expense Adjusted EPS2 (non-GAAP) 2026 Outlook $3.60 - $3.75 $0.10 $3.70 - $3.85 2025 Actual $3.85 - $3.85 Revenue Increase ~2% to 3% Free Cash Flow ~$525M to $575M U.S. Residential Water Heater Industry ~-LSD Capital Expenditures ~$60M t
Slide 10: Second Quarter 2026 Messages
Second Quarter 2026 Messages 1 2 3 4 5 Total Company 21% boiler Confidence in Strategic Strong free sales were sales growth in underlying assessment of cash flow $1B, with North the quarter led strength of China business supports 50% America to YTD boiler North America nearing increase in organic gr
Slide 11: Appendix
Appendix Second Quarter 2026 Results
Slide 12: Adjusted Earnings and Adjusted EPS
Adjusted Earnings and Adjusted EPS ($ in Millions, except per share data) Second Quarter 2026 Results 12
Slide 13: Sales Growth (Decline)
Sales Growth (Decline) Second Quarter 2026 Results 13
Slide 14: Adjusted Segment Earnings
Adjusted Segment Earnings ($ in Millions) Second Quarter 2026 Results 14
Slide 15: Free Cash Flow
Free Cash Flow ($ in Millions) Second Quarter 2026 Results 15
Slide 16: A. O. Smith. Innovation has a name.
(<6 Smith. Innovation has a name.