Mergers & Acquisitions ·
A.O. Smith reports Q3 EPS of $0.93 and agrees to sell 81% stake in China unit for over $500M
AOSSmith A O Corp
A.O. Smith reported third-quarter net earnings of $126 million, or diluted EPS of $0.93, on sales of $941 million. The company also announced definitive agreements to sell an 81% interest in its China business to CPE for a total value exceeding $500 million, including the net present value of long-term brand licensing royalties. A.O. Smith will retain a 19% stake and expects the transaction to close in the first half of 2027. Consequently, full-year 2026 guidance excludes China operations, projecting adjusted EPS between $3.42 and $3.52. The global water technology manufacturer produces residential and commercial water heating equipment, boilers, and water treatment products.