A.O. Smith Corporation (AOS) Q1 2026 Earnings Call

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WEBVTT 00:00:00.031 -- 00:00:05.337 As we announced this morning, we are taking actions to continue improving our profitability 00:00:05.337 -- 00:00:11.862 and accelerate long-term growth through footprint optimization and brand rationalization. 00:00:11.924 -- 00:00:16.188 These steps are part of our ongoing water treatment strategy evolution and allow us to 00:00:16.188 -- 00:00:22.213 further focus on the areas where we expect to be most competitive going forward. 00:00:22.235 -- 00:00:26.520 We expect to recognize a restructuring charge of approximately $20 million in the second 00:00:26.520 -- 00:00:31.931 quarter and a projected annual savings of between $6 and $8 million beginning 00:00:31.931 -- 00:00:34.051 in 2027. 00:00:34.675 -- 00:00:39.181 These exciting new tools that help us reimagine our operating processes and our continued 00:00:39.181 -- 00:00:44.308 strategic focus on prioritizing around our strengths are two ways in which we 00:00:44.308 -- 00:00:47.273 are bringing operational excellence to life at A.O. 00:00:47.273 -- 00:00:52.460 Smith. I look forward to sharing more details as this focus area for us matures 00:00:52.460 -- 00:00:54.760 going forward. 00:00:55.104 -- 00:00:57.785 Moving to slide 11. 00:00:57.912 -- 00:01:02.158 Our team responded well, faced with pressure in several of our key markets in the first 00:01:02.158 -- 00:01:03.921 quarter. 00:01:03.921 -- 00:01:08.107 I am pleased with the market share improvement we saw in residential water heating, the 00:01:08.107 -- 00:01:12.693 double-digit valve sales growth that Leonard Valve contributed to the quarter, and the 00:01:12.693 -- 00:01:18.221 strong free cash flow achieved through diligent working capital management. 00:01:18.221 -- 00:01:22.648 With the strategic actions tha...