Revenue Decline Across the Business
Total revenue fell 1.9% YoY to $945.6M in Q1 FY2026 from $963.9M in the prior-year period, reflecting softness in demand that outpaced modest cost-of-revenue improvements (-1.5% YoY to $579.9M).
SMITH A O CORP is expected to release its Q2 2026 10-Q filing in the upcoming earnings season. Last quarter: AOS reported a challenging Q1 FY2026 with revenue declining 1.9% YoY to $945.6M and net income falling 13.6% to $118.0M, pressured by rising SG&A costs and higher long-term debt from a significant acquisition-related investment.
Drawn from management commentary in the Q1 2026 10-Q:
Total revenue fell 1.9% YoY to $945.6M in Q1 FY2026 from $963.9M in the prior-year period, reflecting softness in demand that outpaced modest cost-of-revenue improvements (-1.5% YoY to $579.9M).
Operating income dropped 12.1% YoY to $161.8M as SG&A expenses surged 5.9% YoY to $203.9M, compressing operating margin by approximately 2 percentage points to 17.1% from 19.1%.
Long-term debt more than doubled (+121.0% YoY) to $574.2M, and investing cash outflows ballooned to -$480.5M from -$10.8M in the prior year, strongly suggesting a major acquisition or capital investment was completed during the quarter.
Revenue
$945.6M
-1.90% YoY
EPS (Basic)
$0.85
-10.53% YoY
Gross Margin
38.7%
-0.27% YoY
Operating Income
$161.8M
-12.07% YoY
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