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AOS · Q2 2026
Archived report (Q2 2026). Latest deep dive →
The quarter in brief
Revenue fell 0.7% y/y to $1.00B, operating margin 16.7% vs 20.4%, net income $125M (−17.9% y/y).
Net earnings
$125M
down 17.9% y/y
Net sales
$1,004M
down 0.7% y/y
Operating income (calculated)
$168M
down 18.6% y/y
Gross profit
$388M
down 2.3% y/y
All figures in $M.
| Line item | Amount and change |
|---|---|
| Net sales | $1,004 · −0.7% |
| Cost of products sold | $617 · +0.4% |
| Gross profit | $388 · −2.3% · 38.6% margin |
| Selling, general and administrative expenses | $198 · +3.3% |
| Restructuring and impairment expenses | $22.6 · vs $0 |
| Operating income (calculated) | $168 · −18.6% · 16.7% margin |
| Interest expense | $8.1 · +76.1% |
| Other expense (income), net | $1.4 · vs $0.4 |
| Earnings before provision for income taxes | $158 · −21.6% |
| Provision for income taxes | $33.1 · −33.0% · 20.9% effective rate |
| Net earnings | $125 · −17.9% · $0.91/sh · 12.4% margin |
Verdict: revenue fell 0.7% y/y to $1.00B, operating margin 16.7% vs 20.4%, net income $125M (−17.9% y/y).
Source and notation
Source: A. O. Smith press release, 8-K EX-99.1 of 07/30/2026 (SEC EDGAR). Every figure was matched against the income statement in the release and checked against SEC XBRL. Operating income is calculated (revenue less costs and operating expenses): the release does not report it.
Open as an image: AOS, Q2 2026 (PNG) ↗ · for sharing and presentations · free to reuse, CC BY 4.0
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Chart: “AOS Q2 2026: where the revenue went” by Who Reports Today, https://whoreportstoday.com/t/aos/q2-2026. Licensed under CC BY 4.0.
<figure> <a href="https://whoreportstoday.com/t/aos/q2-2026"><img src="https://whoreportstoday.com/t/aos/q2-2026/sankey.png" alt="AOS Q2 2026: where the revenue went" loading="lazy" style="max-width:100%;height:auto"></a> <figcaption>Source: <a href="https://whoreportstoday.com/t/aos/q2-2026">Who Reports Today</a>, licensed under <a href="https://creativecommons.org/licenses/by/4.0/">CC BY 4.0</a></figcaption> </figure>
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<a href="https://whoreportstoday.com/t/aos/q2-2026">AOS Q2 2026 earnings chart (Who Reports Today)</a>
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- Gross margin was 38.6% vs 39.3% a year earlier.
- Operating income was $168M, a 16.7% margin vs 20.4% a year earlier.
- The effective tax rate was 20.9% vs 24.5% a year earlier.
- Diluted EPS was $0.91 vs $1.07 a year earlier.
What distorts the picture in this report and what to watch beyond the headlines.
AOS — a maker of residential and commercial water heaters (gas, electric and heat pump), boilers, tanks and water treatment products.
It makes money in two geographic segments, North America and Rest of World (mainly China, India and Europe), each making and selling products largely within its own region. · Source: annual report (Form 10-K, SEC)
Heads-up
- net income fell 18% y/y in Q2 2026
Net income for Q2 2026: $125M, −18% y/y. In the report's figures: revenue −1% y/y; costs grew faster than revenue: interest expense +76% y/y. Based on the Q2 2026 report.
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