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Pembina Pipeline NYSE: PBA reported a strong start to 2026, with management raising its full-year adjusted EBITDA outlook after first-quarter results benefited from solid volumes across key systems and an improved marketing outlook.

This news release refers to certain financial measures and ratios that are not specified, defined or determined in accordance with Generally Accepted Accounting Principles ("GAAP"), including earnings before interest, taxes, depreciation and amortization ("EBITDA") build multiple. For more information see "Non-GAAP and Other Financial Measures" herein.

CALGARY, Alberta--(BUSINESS WIRE)--Pembina Pipeline Corporation ("Pembina" or "the Company") (TSX: PPL; NYSE: PBA) announced today that it is proceeding with the Heartland Extraction Plant ("HEP") and provided an update on its ethane supply agreement with Dow.

The sanctioning of HEP represents a capital efficient, low-risk monetization of Pembina's liquids extraction rights on the Yellowhead Pipeline, with future growth potential. Through new and amended agreements, Pembina and Dow reached a mutually beneficial solution that has increased the overall ethane supply commitment, better aligned the volume profile with Dow's revised Path2Zero project schedule, and supported the economics of the HEP project. As previously disclosed, Pembina pursued an optimized ethane portfolio solution in support of its Dow supply commitments and is excited to sanction this project, which also provides Pembina the economic benefits of propane-plus natural gas liquids ("NGL") production. Additionally, sanctioning HEP is another important step towards realizing Pembina's recently announced 5-7 percent fee-based adjusted EBITDA per share growth target to 2030.

Heartland Extraction Plant Project Highlights

A new 750 million cubic feet per day straddle plant to extract NGL under Pembina's extraction rights on the Yellowhead Pipeline. This upsized project is an evolution of the previously disclosed Yellowhead Extraction Plant project. HEP now includes incremental capacity to accommodate future additional opportunities on a capital efficient basis, enhancing Pembina's Alberta Industrial Heartland footprint. Pembina has signed a long-term agreement at HEP to supply Dow with ethane beginning in late 2029, scaling to 22,500 barrels per day ("bpd") by the end of 2030. Following extraction at HEP, ethane-plus mix will be processed at a combination of Dow's Fort Saskatchewan facility and Pembina's Redwater Complex. Pembina will retain the associated propane-plus production related to the project and will benefit from downstream fractionation and marketing of up to 9,500 bpd of propane-plus NGL. HEP has an estimated cost of approximately $570 million, and an anticipated in-service date in late 2029. EBITDA generated from the project will consist of both fixed-fee revenue and frac spread exposure. Using long-term average historical pricing, the EBITDA build multiple for the project is expected to range from 5-7 times. Dow Ethane Supply Agreement Update

In connection with the new firm volume commitment at HEP, Pembina and Dow have amended the terms of their previously announced ethane supply agreement. Under the amended long-term agreement, Pembina will supply Dow with 35,000 bpd of ethane commencing with the start up of Dow's Path2Zero project, which is expected to enter service in 2029. Pembina will source the 35,000 bpd of ethane from its existing supply portfolio, leveraging its integrated value chain, including deep cut gas processing plants, ethane-plus transportation franchise, and fractionation capabilities.

Including the new agreement at HEP (22,500 bpd) and the amended supply agreement (35,000 bpd), Pembina will supply Dow with a total of 57,500 bpd of ethane, representing a 15 percent increase compared to the original agreement of 50,000 bpd.

"This outcome further demonstrates Pembina's ability to find win-win solutions with our customers. We have strengthened our relationship with Dow while advancing Pembina's strategy and ability to deliver capital-efficient growth," said Scott Burrows, President and Chief Executive Officer of Pembina. "By aligning volumes with Dow's needs and leveraging our existing asset base, we are enhancing the value of our NGL franchise and catalyzing hydrocarbon demand in Western Canada."

About Pembina

Pembina Pipeline Corporation is a leading energy transportation and midstream service provider that has served North America's energy industry for more than 70 years. Pembina owns an extensive network of strategically located assets, including hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and an export terminals business. Through our integrated value chain, we seek to provide safe and reliable energy solutions that connect producers and consumers across the world, support a more sustainable future and benefit our customers, investors, employees and communities. For more information, please visit www.pembina.com.

Purpose of Pembina: We deliver extraordinary energy solutions so the world can thrive.

Pembina is structured into three Divisions: Pipelines Division, Facilities Division and Marketing & New Ventures Division.

Pembina's common shares trade on the Toronto and New York stock exchanges under PPL and PBA, respectively. For more information, visit www.pembina.com.

Forward-Looking Information and Statements

This news release contains certain forward-looking statements and forward-looking information (collectively, "forward-looking statements"), including forward-looking statements within the meaning of the "safe harbor" provisions of applicable securities legislation, that are based on Pembina's current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In some cases, forward-looking statements can be identified by terminology such as "continue", "anticipate", "schedule", "will", "expects", "estimate", "potential", "planned", "future", "outlook", "strategy", "project", "plan", "commit", "maintain", "focus", "ongoing", "believe" and similar expressions suggesting future events or future performance.

In particular, this news release contains forward-looking statements and financial outlooks pertaining to, without limitation, the following: Pembina's strategy and the development and expected timing of new business initiatives and growth opportunities, including the HEP, and the expected costs, impacts, and benefits thereof; expectations regarding existing and future commercial agreements, including those with Dow, and the anticipated timing, product volumes, and benefits thereof; the successful completion of related third-party projects; statements regarding Pembina's financial and operational performance, including expected project build multiples, revenue generation, and commodity price exposure; expectations regarding the future performance of the Company's assets, including future pipeline, processing, and fractionation operations; and targets regarding fee-based adjusted EBITDA per share growth.

These forward-looking statements are based on certain factors and assumptions that Pembina has made in respect thereof as at the date of this news release, including, among other things: oil and gas industry exploration and development activity levels and the geographic region of such activity; the success of Pembina's operations; prevailing commodity prices (including long-term average historical pricing and frac spreads), interest rates, carbon prices, tax rates, exchange rates and inflation rates; the ability of Pembina to maintain current credit ratings; the availability and cost of capital to fund future capital requirements relating to existing assets, projects and the repayment or refinancing of existing debt as it becomes due; future operating costs; geotechnical and integrity costs; that any third-party projects relating to Pembina's growth projects, including Dow's Path2Zero project, will be sanctioned and completed as expected; that any required commercial agreements can be reached in the manner and on the terms expected by Pembina; that all required regulatory and environmental approvals can be obtained on acceptable terms and in a timely manner; that counterparties will comply with contracts in a timely manner; that there are no unforeseen events preventing the performance of contracts or the completion of the relevant projects; prevailing regulatory, tax and environmental laws and regulations; maintenance of operating margins; the amount of future liabilities relating to lawsuits and environmental incidents; and the availability of coverage under Pembina's insurance policies (including in respect of Pembina's business interruption insurance policy).

Although Pembina believes the expectations and material factors and assumptions reflected in these forward-looking statements are reasonable as of the date hereof, there can be no assurance that these expectations, factors and assumptions will prove to be correct. These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties including, but not limited to: the regulatory environment and decisions, including the outcome of regulatory hearings, and Indigenous and landowner consultation requirements; the impact of competitive entities and pricing; reliance on third parties to successfully operate and maintain certain assets; reliance on key relationships, joint venture partners and agreements; labour and material shortages; the strength and operations of the oil and natural gas production industry and related commodity prices; non-performance or default by contractual counterparties; actions by governmental or regulatory authorities, including changes in laws and treatment, changes in royalty rates, regulatory decisions, changes in regulatory processes or increased environmental regulation; the ability of Pembina to acquire or develop the necessary infrastructure in respect of future development projects; fluctuations in operating results; adverse general economic and market conditions, including potential recessions in Canada, North America and worldwide resulting in changes, or prolonged weaknesses, as applicable, in interest rates, foreign currency exchange rates, inflation, commodity prices, supply/demand trends and overall industry activity levels; new Canadian and/or U.S. trade policies or barriers, including the imposition of new tariffs, duties or other trade restrictions; geopolitical risks; constraints on the, or the unavailability of, adequate supplies, infrastructure or labour; the political environment in North America and elsewhere, including changes in trade relations between Canada and the U.S., and public opinion thereon; the ability to access various sources of debt and equity capital; adverse changes in credit ratings; counterparty credit risk; technology and cyber security risks; natural catastrophes; and certain other risks detailed in Pembina's Annual Information Form and Management's Discussion and Analysis, each dated February 26, 2026 for the year ended December 31, 2025 and from time to time in Pembina's public disclosure documents available at www.sedarplus.ca, www.sec.gov and through Pembina's website at www.pembina.com.

This list of risk factors should not be construed as exhaustive. Readers are cautioned that events or circumstances could cause results to differ materially from those predicted, forecasted or projected by forward-looking statements contained herein. The forward-looking statements contained in this news release speak only as of the date of this news release. Pembina does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws. The forward-looking information and financial outlooks contained in this news release have been approved by management as of the date of this news release. The purpose of these financial outlooks is to assist readers in understanding Pembina's expected and targeted financial results, and this information may not be appropriate for other purposes. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Non-GAAP and Other Financial Measures

Throughout this news release, Pembina has disclosed certain financial measures and ratios that are not specified, defined or determined in accordance with GAAP and which are not disclosed in Pembina's financial statements. Non-GAAP financial measures either exclude an amount that is included in, or include an amount that is excluded from, the composition of the most directly comparable financial measure specified, defined and determined in accordance with GAAP. Non-GAAP ratios are financial measures that are in the form of a ratio, fraction, percentage or similar representation that has a non-GAAP financial measure as one or more of its components. These non-GAAP financial measures and non-GAAP ratios, together with financial measures and ratios specified, defined and determined in accordance with GAAP, are used by management to evaluate the performance and cash flows of Pembina and its businesses and to provide additional useful information respecting Pembina's financial performance and cash flows to investors and analysts.

In this news release, Pembina has disclosed the following non-GAAP ratio: EBITDA build multiple. The non-GAAP financial measure that is used as a component of this non-GAAP ratio is estimated incremental EBITDA, which is an estimate of the incremental EBITDA expected to be generated by the Heartland Extraction Plant. The EBITDA build multiple is calculated as the estimated capital cost of the project divided by the estimated expected incremental EBITDA. Management uses the EBITDA build multiple to evaluate the capital efficiency and expected return of the project. The equivalent historical non-GAAP financial measure to estimated incremental EBITDA is historical EBITDA, which has earnings as its most directly comparable financial measure specified, defined, and determined in accordance with IFRS. There are no significant differences between the composition of the forward-looking non-GAAP financial measure and the equivalent historical non-GAAP financial measure.

The non-GAAP financial measures and non-GAAP ratios disclosed in this news release do not have any standardized meaning under International Financial Reporting Standards ("IFRS") and may not be comparable to similar financial measures or ratios disclosed by other issuers. Such financial measures and ratios should not, therefore, be considered in isolation or as a substitute for, or superior to, measures and ratios of Pembina's financial performance, or cash flows specified, defined or determined in accordance with IFRS, including earnings.

[url="]Lucky Strike Entertainment[/url], one of the world's premier owner-operations of location-based entertainment destinations, today announces that Thunder

NYSE issues a pre-market daily advisory direct from the trading floor. NEW YORK, April 15, 2026 /PRNewswire/ -- The New York Stock Exchange (NYSE) provides a daily pre-market update directly from the NYSE Trading Floor.

Boston Trust Walden Corp trimmed its position in Stag Industrial, Inc. (NYSE: STAG) by 4.5% in the undefined quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 2,813,180 shares of the real estate investment trust's stock after selling 132,279 shares during the quarter.

STAG outperformed peers by leveraging a conservative model, focusing on non-infill markets and longer lease terms, amid volatile macro conditions. STAG's disciplined capital allocation, reduced leverage, and payout ratio enabled a 4% dividend increase—the largest in a decade—while maintaining balance sheet strength. Despite resilient leasing spreads and strong tenant engagement, STAG now trades at a premium, with its dividend yield below the 10-year Treasury, tempering forward return expectations.

The 10-year Treasury yield sits at 4.26% and the Fed funds rate has been held at 3.75% for more than four months.

Stag Industrial (STAG) came out with quarterly funds from operations (FFO) of $0.65 per share, in line with the Zacks Consensus Estimate . This compares to FFO of $0.61 per share a year ago.

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Most portfolios do not fail because the math is impossible. They fail because real life bills arrive every 30 days while the portfolio pays whenever it feels like it. Rent, insurance, utilities, groceries, and car payments do not wait for a quarterly distribution schedule to become convenient. That is what makes monthly dividend investments interesting: they turn a portfolio into something that looks less like a pile of assets and more like a paycheck machine.

Two thousand five hundred dollars a month is $30,000 a year. At a blended 6% yield, that requires roughly $500,000 in capital. The five investments below all pay monthly, which matters more than yield-chasers admit. Quarterly dividends force retirees to become their own treasurer. Monthly distributions match the cadence of a real household budget, minus the boss, the commute, and the sad desk salad.

The Five-Fund Monthly Income Stack The portfolio is built around one anchor (a covered-call equity income fund), two real estate sleeves, one corporate bond sleeve, and one business development company. Every position pays every month.

JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI): $175,000 allocation (35%), roughly 8.4% yield, about $1,225 per month. This fund sells covered calls on a low-volatility S&P 500 sleeve. You get most of the equity participation with bond-like volatility, and a fat monthly check. The tradeoff is capped upside in roaring bull markets. Realty Income (NYSE:O | O Price Prediction): $100,000 allocation (20%), about 5.6% yield, roughly $467 per month. The self-described Monthly Dividend Company has paid 665 consecutive monthly dividends and just nudged its monthly rate to $0.2705 per share with the April 2026 declaration. Portfolio occupancy sits at 98.9%. Vanguard Intermediate-Term Corporate Bond ETF (NASDAQ:VCIT): $100,000 allocation (20%), about 4.7% yield, roughly $392 per month. Investment-grade corporate bonds give the portfolio its ballast. With the 10-year Treasury near 4.4%, intermediate corporates pay a respectable spread without long-duration heartburn. Main Street Capital (NYSE:MAIN): $75,000 allocation (15%), about 5.8% yield on the regular dividend, roughly $363 per month. The Houston BDC pays $0.26 monthly plus an eighteenth consecutive $0.30 quarterly supplemental. Q4 distributable net investment income hit $1.09 per share against a $1.02 estimate, with full-year ROE of 17.1%. STAG Industrial (NYSE:STAG): $50,000 allocation (10%), about 4.0% yield, roughly $167 per month. STAG owns industrial warehouses leased to single tenants, the picks-and-shovels of e-commerce logistics. It rounds out the real estate exposure with a different driver than retail net lease. Add it up and the portfolio generates about $31,350 a year, or $2,613 a month, on a blended yield of 6.3%. The $113 monthly cushion above target is intentional: dividend cuts happen, and you want headroom.

What You Trade for the 6% Blend A pure Realty Income portfolio would yield less but compound. Realty Income just delivered its 113th consecutive quarterly dividend increase, and over the past decade the stock returned about 65% on price alone, with a steadily rising payout. A 3.5% starting yield that grows 4% to 5% a year doubles its income inside 15 years.

Compare that to the agency mortgage REIT AGNC Investment (NASDAQ:AGNC), yielding north of 13%. AGNC’s tangible book value fell to about $8.38 a share in Q1 2026, posting an economic return of negative 1.6% as Middle East volatility widened mortgage spreads. The yield is real, but so is the principal erosion. CEO Peter Federico framed the quarter as “negative shift in investor sentiment caused Agency MBS spreads to benchmark rates to widen.” A double-digit yield that grinds the share price lower is not the same dollar as a 5% yield that grows.

Three Things to Do Before You Buy Calculate actual monthly spending instead of anchoring to pre-retirement salary. Most retirees overestimate what they need by 20% to 30% because payroll taxes and 401(k) contributions disappear. Run the numbers inside a tax-advantaged account first. Option premiums and mREIT-style payouts are taxed as ordinary income, while some REIT dividends qualify for the Section 199A deduction. Placing higher-yield positions in an IRA can lift effective yield by a full percentage point. Stress-test the portfolio with a 20% dividend cut across the BDC and covered-call segments. If the income still holds, the plan has staying power. If it breaks, increase the capital base or shift more weight toward dividend-growth positions.

, /PRNewswire/ -- STAG Industrial, Inc. (the "Company") (NYSE: STAG) announced today that it has published its 2025 Sustainability Report.

"STAG's focus on sustainability contributes to a resilient portfolio that creates enduring value for our shareholders and the communities we serve," said Bill Crooker, President and Chief Executive Officer of the Company. "STAG is committed to advancing meaningful environmental initiatives that support our broader mission of long-term growth."

The Sustainability Report can be found on the Company's website (www.stagindustrial.com) under the "Featured Documents" section in the Investor Relations tab.

About STAG Industrial, Inc.

STAG Industrial, Inc. is a real estate investment trust focused on the acquisition, development, ownership and operation of industrial properties throughout the United States. As of March 31, 2026, the Company's portfolio consists of 601 buildings in 41 states with approximately 120.3 million rentable square feet.

For additional information, please visit the Company's website at www.stagindustrial.com.

Forward-Looking Statements

This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, are generally identifiable by use of the words "believe," "will," "expect," "intend," "anticipate," "estimate," "should," "project" or similar expressions. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, the risk factors discussed in the Company's annual report on Form 10-K for the year ended December 31, 2025 as updated by the Company's quarterly reports on Form 10-Q. Accordingly, there is no assurance that the Company's expectations will be realized. Except as otherwise required by the federal securities laws, the Company disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

SOURCE STAG Industrial, Inc.

Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Stag (STAG) have what it takes?

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

© Elena_Alex_Ferns / Shutterstock.com

Generating $3,500 per month in retirement income works out to roughly $42,000 annually, enough to cover the payment on a typical middle-to-upper-range U.S. home in today’s market. At current interest rates, a $3,500 monthly housing payment could support roughly a $475,000 to $550,000 home purchase using a 30-year fixed mortgage with 20% down, depending on local property taxes and insurance costs.

For retirees, though, the challenge is not simply producing the income. It is producing it on a schedule that matches real life. Mortgage payments, utility bills, insurance premiums, and grocery expenses arrive every month, not every quarter. Traditional dividend portfolios often distribute income unevenly throughout the year, forcing retirees to manage their own cash-flow timing. Monthly dividend investments simplify that process by aligning portfolio income more closely with how bills actually arrive.

Three Ways to Get There The capital required to produce $42,000 depends entirely on the blended yield. The math is unforgiving and worth seeing at three tiers:

Conservative tier near 3.5%: $42,000 divided by 0.035 equals $1,200,000 in capital. This is broad-market dividend-growth territory, where principal usually appreciates and the income stream tends to rise with inflation. Moderate tier near 6%: $42,000 divided by 0.06 equals $700,000. High-yield equity, preferred shares, and traditional REITs live here. Dividend growth slows and upside is capped relative to the index. Aggressive tier near 10%: $42,000 divided by 0.10 equals $420,000. Covered-call ETFs, BDCs, and mortgage REITs occupy this band. Distributions are high today, but principal erosion is a real risk and many strategies cap participation in bull markets. A Five-Fund Monthly Portfolio Around $600,000 Blending the moderate and aggressive tiers to a roughly 7% average yield puts the capital requirement near $600,000. One way to assemble it from five monthly payers, each running a distinct strategy:

JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI): A $150,000 position targets about $12,000 a year from a covered-call overlay on S&P 500 names. The expense ratio is 0.35%. JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ): A $100,000 sleeve generates roughly $9,500 a year. JEPQ writes calls on Nasdaq-100 constituents, with top holdings including NVIDIA at 7.9% and Apple at 6.4% of net assets. NEOS S&P 500 High Income ETF (NYSEARCA:SPYI): A $100,000 position targets about $11,000 through an options-overlay structure designed for tax-efficient monthly distributions on the S&P 500. Realty Income (NYSE:O | O Price Prediction): A $75,000 stake in this net-lease REIT pays roughly $4,200 a year at a 5.6% yield. The latest monthly declaration came in at about $0.27 per share, continuing a 16-year record of uninterrupted monthly payments. STAG Industrial (NYSE:STAG): A $125,000 allocation in this industrial REIT yields about 4.5%, contributing roughly $5,600 a year and adding warehouse and logistics exposure that the equity ETFs do not provide. That mix lands close to the $42,000 target while diversifying across S&P covered calls, Nasdaq covered calls, an enhanced S&P income strategy, a net-lease REIT, and an industrial REIT.

The Tax Reality Behind These Distributions Covered-call ETF distributions are mostly taxed as ordinary income rather than qualified dividends. REIT distributions are likewise ordinary income, though the Section 199A pass-through deduction historically allowed retirees to deduct 20% of qualified REIT dividends. Verify the current treatment with a CPA, because legislative changes under the One Big Beautiful Bill reshaped several deduction rules effective 2026. For a single retiree in the 22% bracket (taxable income above $50,400), holding these funds in an IRA rather than a taxable account is the single largest after-tax lever available.

Where CBOE Fits the Picture Cboe Global Markets (CBOE) pays quarterly rather than monthly, placing it outside the portfolio’s direct income sleeve. Its connection to the strategy is more structural than distributive: many covered-call ETFs generate income by selling options on indices such as the S&P 500 and Nasdaq-100, markets that Cboe operates and monetizes through trading activity and derivatives infrastructure.

The stock itself functions more as a growth-and-quality counterweight within a broader income portfolio. While its dividend yield remains relatively modest at around 0.8%, the company has recently delivered strong operational momentum, including sharply higher earnings growth and substantial share-price appreciation over the past year. In effect, Cboe represents the “toll road” underlying part of the options-income ecosystem, benefiting from the growing popularity of covered-call and derivatives-based income strategies without relying on ultra-high distributions itself.

Investor’s To Do List: Calculate your actual monthly expenses rather than anchoring to your former salary. Many retirees discover their replacement target is well under $3,500 once payroll taxes, retirement contributions, and commuting are gone. Compare the 10-year total return of a 3.5% dividend-growth fund against a 10% covered-call ETF. Lower current yield with growing distributions frequently outperforms a high static yield over a 20-year retirement. Rebalance the five sleeves once a year. Covered-call funds and REITs drift at different speeds, and letting one strategy dominate the portfolio defeats the diversification the five-fund structure is built to provide.

Cwm LLC boosted its stake in A. O. Smith Corporation (NYSE: AOS) by 116.3% during the undefined quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 34,146 shares of the industrial products company's stock after acquiring an additional 18,362 shares during the period. Cwm LLC's

First Quarter 2026 Highlights
(Comparisons are year-over-year ("YoY"), unless otherwise noted)

Sales of $946 million; net earnings of $118 million and diluted earnings per share (EPS) of $0.85 North America segment sales of $753.4 million increased 1% with the addition of Leonard Valve and pricing benefits offsetting softer water heater industry volumes and weather-related production and shipping constraints Rest of World segment sales of $200.7 million decreased 11% due to continued challenges in the consumer appliance market in China Net earnings decreased primarily as a result of lower volumes and transaction-related expenses recognized in the quarter for the Leonard Valve acquisition Strong growth in operating cash flow and free cash flow to $129 million and $119 million, respectively Primarily due to continued challenging conditions in China, 2026 full year EPS guidance lowered to: Diluted EPS of between $3.60 and $3.90 Adjusted EPS of between $3.70 and $4.00 , /PRNewswire/ -- Global water technology company A. O. Smith Corporation ("the Company") (NYSE: AOS) today announced its first quarter 2026 results.

Key Financial Metrics 

First Quarter
(in millions, except per share amounts)

Q1 2026

Q1 2025

% Change YoY

Net sales

$ 945.6

$ 963.9

-2 %

Net earnings

$ 118.0

$ 136.6

-14 %

Diluted earnings per share

$   0.85

$   0.95

-11 %

Chief Executive Officer Steve Shafer commented, "Our team executed with focus and agility in the first quarter, continuing to support our customers well in the face of a continued soft macro environment. As we anticipated, softer demand in China impacted results. In North America, results were impacted by residential water heater industry demand that was modestly below our expectations, compounded by temporary weather-related disruptions at our Ashland City, Tennessee facility. Separately, in April, we took another step in our business simplification and margin enhancement efforts within our North America water treatment business by announcing a targeted restructuring plan that will be recognized in the second quarter. We believe these actions are an important step in advancing a stronger business model to achieve a higher level of profitable growth."

Segment-level Performance

North America

First quarter sales of $753.4 million increased 1% relative to a difficult 2025 comparison as the benefits of carryover pricing actions and the $16 million sales contribution from the newly acquired Leonard Valve business were largely offset by lower residential water heater volumes. The first quarter of 2026 was negatively impacted by weather-related production and shipping constraints, particularly as a direct result of storm damage at the Company's Ashland City, Tennessee plant. The first quarter of 2025 benefited from incremental volume from the pull forward of water heater and boiler sales ahead of tariff and other cost-related price increases.

Segment earnings were $175.4 million and segment margin was 23.3% in first quarter of 2026 compared to first quarter of 2025 segment earnings of $185.2 million and segment margin of 24.7%. The year-over-year decrease in segment earnings and segment margin was primarily due to lower residential water heater volumes which more than offset the earnings contribution from Leonard Valve. The first quarter of 2025 benefited from a stronger mix toward higher efficiency products as certain customers bought ahead of an announced price increase.

Rest of World

Rest of World sales of $200.7 million decreased 11% compared to the prior year period and included a favorable currency translation impact of $8 million primarily related to sales in China. China sales decreased 17% in local currency due to continued weak consumer demand.

Segment earnings were $12.4 million and segment margin was 6.2% in the first quarter of 2026, compared to segment earnings of $19.7 million and segment margin of 8.7% in the same period of 2025. The lower segment earnings and segment margin compared to the prior year were primarily due to lower sales volumes that were partially offset by continued cost management in China.

Balance Sheet, Liquidity and Capital Allocation

As of March 31, 2026, cash and marketable securities balances totaled $203.9 million and debt totaled $615.8 million, resulting in a leverage ratio of 24.7% as measured by total debt-to-total capitalization. The increased leverage ratio compared to 2025 was due to cash borrowed under a new term loan used to acquire Leonard Valve in January 2026.

Cash provided by operations was $129.4 million and free cash flow was $118.9 million in the first three months of 2026, both higher than the same period in 2025, primarily driven by diligent working capital management and the timing of customer payments that more than offset lower earnings.

As part of its commitment to return capital to shareholders, the Company repurchased 0.7 million shares at a cost of $51.3 million in the first three months of 2026. As of March 31, 2026, authority remained to repurchase approximately 5.1 million additional shares. The Company projects that it will spend $200 million to repurchase shares in 2026.

On April 13, 2026, the Company's board of directors approved a $0.36 per share dividend for shareholders of record on April 30, payable on May 15. For the full release, click here.

Outlook

2026 Outlook
(in millions, except per share amounts)

2025

2026 Outlook

Actual

Low End

High End

Net sales

$  3,830

$    3,900

$    4,000

Diluted earnings per share

$    3.85

$      3.60

$      3.90

Adjusted earnings per share

$    3.85

    $    3.701

   $    4.001

1 

Excludes announced North America water treatment pre-tax restructuring and impairment expenses of approximately $20 million to be recognized in the second quarter. See accompanying GAAP to Non-GAAP reconciliations

The Company revised its full-year 2026 sales growth outlook to a range of 2% to 4%, lowering the high end compared to the previous range of 2% to 5%. The Company also lowered its full-year 2026 adjusted EPS outlook to be between $3.70 and $4.00, down from $3.85 to $4.15.

Shafer concluded, "Primarily based on our latest view of our China business and partially due to increased uncertainty around regulatory changes scheduled to take effect later this year in North America, we have updated our full-year expectations. In China, we expect market conditions to remain challenging through the year and have identified several actions to improve performance. These actions are pending the conclusion of our assessment of the business. In North America, we remain confident in our competitive positioning and the underlying strength of the business despite a slower-than-expected start to the year driven by softer macro conditions." 

"We believe our strong balance sheet and free cash flow give us the flexibility to support organic growth, dividends and share repurchases while continuing to pursue strategic acquisitions to support our focus on portfolio management."

The Company's guidance excludes the potential impacts from future acquisitions, any potential outcomes of the assessment of its China business and changes to tariffs after the date of this release.

A. O. Smith will host a webcasted conference call at 10:00 a.m. (Eastern Daylight Time) today. The call can be heard live on the Company's website click here. An audio replay of the call will be available on the Company's website after the live event. To access the archived audio replay, go to the "Investors" page and select the First Quarter 2026 Earnings Call link.

To provide improved transparency into the operating results of its business, the Company is providing non-GAAP measures. Free cash flow is defined as cash provided by operations less capital expenditures. Adjusted EPS excludes the impact of restructuring and impairment charges. Reconciliations from GAAP measures to non-GAAP measures are provided in the financial information included in this news release.

Forward-looking Statements

This release contains statements that the Company believes 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," "intend," "estimate," "anticipate," "believe," "forecast," "continue," "guidance," "outlook", "confident" or words of similar meaning. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this release. Important factors that could cause actual results to differ materially from these expectations include, among other things, the following: further weakening in North American residential or commercial construction or instability in the Company's replacement markets; failure to realize the expected benefits of acquisitions or expected synergies; difficulties in predicting results of operations of an acquired business; negative impact to the Company's businesses from international tariffs, including any new or increased tariffs that could also trigger retaliatory responses from other countries, as well as trade disputes and geopolitical differences, including the conflicts in Ukraine and the Middle East; further softening in U.S. residential and commercial water heater demand; negative impacts to the Company, particularly the demand for its products, resulting from global inflationary pressures or a potential recession in one or more of the markets in which the Company participates; the Company's ability to continue to obtain commodities, components, parts and accessories on a timely basis through its supply chain and at expected costs, including the recent volatility in fuel and other material prices; inability of the Company to implement or maintain pricing actions; inconsistent recovery of the Chinese economy or a further decline in the growth rate of consumer spending or housing sales in China; the availability, timing or effects of China stimulus programs; uncertain outcomes and costs and other potential impacts of the Company's assessment relating to the Company's China business; the failure to realize the expected benefits of restructuring actions; further weakening in the high-efficiency gas boiler segment in the U.S.; substantial defaults in payment by, material reduction in purchases by or the loss, bankruptcy or insolvency of a major customer; foreign currency fluctuations; failure to realize the expected benefits, timing and extent of regulatory changes; competitive pressures on the Company's businesses, including new technologies and new competitors; the impact of potential information technology or data security breaches; negative impact of changes in government regulations or regulatory requirements; the inability to respond to secular trends toward decarbonization and energy efficiency; and adverse developments in general economic, political and business conditions in key regions of the world. Additional factors are discussed in the Company's filings with Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2025, quarterly reports on Form 10-Q and current reports on Form 8-K. Forward-looking statements included in this news release are made only as of the date of this release, and the Company is under no obligation to update these statements to reflect subsequent events or circumstances. All subsequent written and oral forward-looking statements attributed to the Company, or persons acting on its behalf, are qualified entirely by these cautionary statements.

About A. O. Smith
A. O. Smith Corporation, with headquarters in Milwaukee, Wisconsin, is a global leader applying innovative technology and energy-efficient solutions to products manufactured and marketed worldwide. Listed on the New York Stock Exchange (NYSE: AOS), the Company is one of the world's leading manufacturers of residential and commercial water heating equipment and boilers, as well as a manufacturer of water treatment products. For more information, visit www.aosmith.com.

A. O. SMITH CORPORATION

Condensed Consolidated Statement of Earnings

(dollars in millions, except share data)

(unaudited)

Three Months Ended
March 31,

2026

2025

Net sales

$

945.6

$

963.9

Cost of products sold

579.9

588.5

Gross profit

365.7

375.4

Selling, general and administrative expenses

203.9

192.6

Interest expense

7.1

2.9

Other income, net

—

(1.2)

Earnings before provision for income taxes

154.7

181.1

Provision for income taxes

36.7

44.5

Net earnings

$

118.0

$

136.6

Diluted earnings per share of common stock

$

0.85

$

0.95

Average common shares outstanding (000's omitted)

139,167

144,408

A. O. SMITH CORPORATION

Condensed Consolidated Balance Sheet

(dollars in millions)

(Unaudited)
March 31,
2026

December 31,
2025

ASSETS:

Cash and cash equivalents

$

185.2

$

174.5

Marketable securities

18.7

18.7

Receivables

634.1

582.3

Inventories

488.5

479.3

Other current assets

41.9

36.7

Total Current Assets

1,368.4

1,291.5

Net property, plant and equipment

632.2

635.1

Goodwill and other intangibles

1,518.6

1,072.9

Operating lease assets

51.8

46.3

Other assets

79.3

97.0

Total Assets

$

3,650.3

$

3,142.8

LIABILITIES AND STOCKHOLDERS' EQUITY:

Trade payables

$

543.0

$

504.1

Accrued payroll and benefits

60.7

93.6

Accrued liabilities

159.4

147.5

Product warranties

73.4

75.0

Debt due within one year

41.6

42.3

Total Current Liabilities

878.1

862.5

Long-term debt

574.2

112.7

Pension liabilities

7.4

7.4

Operating lease liabilities

40.7

37.1

Other liabilities

272.0

265.1

Stockholders' equity

1,877.9

1,858.0

Total Liabilities and Stockholders' Equity

$

3,650.3

$

3,142.8

A. O. SMITH CORPORATION

Condensed Consolidated Statement of Cash Flows

(dollars in millions)

(unaudited)

Three Months Ended
March 31,

2026

2025

Operating Activities

Net earnings

$

118.0

$

136.6

Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:

Depreciation & amortization

23.9

20.7

Share based compensation expense

6.6

6.1

Deferred income taxes

18.3

(5.0)

Net changes in operating assets and liabilities:

Current assets and liabilities

(43.2)

(125.3)

Noncurrent assets and liabilities

5.8

5.6

Cash Provided by Operating Activities

129.4

38.7

Investing Activities

Capital expenditures

(10.5)

(21.3)

Acquisitions

(470.0)

—

Investment in marketable securities

—

(22.6)

Net proceeds from sale of marketable securities

—

33.1

Cash Used in Investing Activities

(480.5)

(10.8)

Financing Activities

Proceeds from debt

564.4

240.5

Repayments of debt

(101.1)

(164.0)

Common stock repurchases

(51.3)

(120.6)

Net payments from stock option activity

(0.5)

(1.8)

Dividends paid

(50.2)

(49.2)

Cash Provided by (Used in) Financing Activities

361.3

(95.1)

Effect of exchange rate changes on cash and cash equivalents

0.5

0.6

Net increase (decrease) in cash and cash equivalents

10.7

(66.6)

Cash and cash equivalents - beginning of period

174.5

239.6

Cash and Cash Equivalents - End of Period

$

185.2

$

173.0

A. O. SMITH CORPORATION

Business Segments

(dollars in millions)

(unaudited)

Three Months Ended

March 31,

2026

2025

Net sales

North America

$

753.4

$

748.7

Rest of World

200.7

226.7

Inter-segment sales

(8.5)

(11.5)

$

945.6

$

963.9

Earnings

North America

$

175.4

$

185.2

Rest of World

12.4

19.7

Inter-segment earnings elimination

—

—

187.8

204.9

Corporate expense

(26.0)

(20.9)

Interest expense

(7.1)

(2.9)

Earnings before income taxes

154.7

181.1

Provision for incomes taxes

36.7

44.5

Net earnings

$

118.0

$

136.6

A. O. SMITH CORPORATION

Free Cash Flow

(dollars in millions)

(unaudited)

The following is a reconciliation of reported cash flow from operating activities to free cash flow (non-GAAP):

Three Months Ended

March 31,

2026

2025

Cash provided by operating activities (GAAP)

$

129.4

$

38.7

Less: Capital expenditures

(10.5)

(21.3)

Free cash flow (non-GAAP)

$

118.9

$

17.4

A. O. SMITH CORPORATION

2026 Adjusted EPS Guidance and 2025 EPS

(unaudited)

The following is a reconciliation of diluted EPS to adjusted EPS (non-GAAP) (all items are net of tax):

2026

Guidance

2025

Diluted EPS (GAAP)

$

3.60-3.90

$

3.85

Restructuring and impairment expenses

0.10

(1)

—

Adjusted EPS (non-GAAP)

$

3.70-4.00

$

3.85

(1)

Includes announced North America water treatment pre-tax restructuring and impairment expenses of approximately $20 million to be recognized in the second quarter

SOURCE A. O. Smith Corporation

A.O. Smith (AOS) came out with quarterly earnings of $0.85 per share, missing the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $0.95 per share a year ago.

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

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At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.00% per year. These returns cover a period from January 1, 1988 through May 4, 2026. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer.

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MILWAUKEE, May 19, 2026 /PRNewswire/ -- A. O. Smith Corporation (NYSE: AOS), a leader in water heating and water treatment, announced today that Carrie L.

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Copyright 2026 Zacks Investment Research 101 N Wacker Drive, Floor 15, Chicago, IL 60606

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.00% per year. These returns cover a period from January 1, 1988 through May 4, 2026. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer.

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On June 09, 2026, A.O. Smith Corp AOS shares rose 3.3% today, currently trading at $59.23. This move comes amidst a 52-week range of $54.16 to $81.87, showcasing both volatility and potential for recovery in the stock price.

GF Value™ verdict: Current price is $59.23, which is 22.7% below the GF Value™ estimate of $76.66.GF Score™: AOS has a GF Score™ of 84/100, indicating a strong investment quality.Most notable signal: A.O. Smith Corp has seen no insider transactions in the last 3 months. Is AOS Overvalued or Undervalued? With a current price of $59.23 and a GF Value™ of $76.66, A.O. Smith Corp appears to be undervalued by 22.7%. This discrepancy indicates a potential margin of safety for investors, as the market price is significantly lower than the intrinsic value suggested by GF Value™. The GF Valuation label of "Modestly Undervalued" further supports this view, suggesting that there may be an opportunity for price appreciation if the market corrects itself.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Investors should consider this valuation alongside other financial metrics to make a well-informed decision.

How Does AOS's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 15.8x 20.9x Forward P/E 15.7x N/A The current P/E (TTM) of 15.8x is notably below the 5-year median P/E of 20.9x, indicating that A.O. Smith Corp is trading at a discount relative to its historical valuation levels. This analysis aligns with the GF Value™ verdict, reinforcing the perception that AOS is undervalued at this time.

What Does AOS's GF Score™ Tell Us? Metric Rating GF Score™ 84 Financial Strength 8/10 Profitability 9/10 Growth 6/10 Valuation 8/10 Momentum 4/10 A.O. Smith Corp's GF Score™ of 84/100 reflects a strong overall financial standing, particularly in profitability (9/10) and financial strength (8/10). The growth rank of 6/10 indicates moderate growth potential, while the valuation rank of 8/10 suggests that the stock is relatively undervalued. However, the momentum rank of 4/10 points to some weakness in recent price performance, suggesting that investors should remain cautious.

What Are Insiders Doing with AOS Stock? Currently, there have been no insider transactions in the last 3 months for A.O. Smith Corp. This absence of insider activity may suggest a neutral stance from company executives regarding the stock's near-term prospects, which can be interpreted as a lack of urgency to either buy or sell shares.

What This Means for Investors Based on the GF Value™ assessment, A.O. Smith Corp is currently undervalued, presenting a potential opportunity for investors looking for stocks trading below their intrinsic value. However, it is essential to consider the various financial metrics and market conditions before making any investment decisions.

For the complete analysis, visit the A.O. Smith Corp AOS stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is AOS's GF Score™?

A.O. Smith Corp has a GF Score™ of 84/100, indicating a strong investment quality based on key financial metrics.

Is AOS overvalued or undervalued?

A.O. Smith Corp is considered undervalued, with a current price that is 22.7% below its GF Value™ of $76.66.

What is AOS's P/E ratio?

The P/E (TTM) ratio for A.O. Smith Corp is 15.8x, which is significantly lower than its 5-year median of 20.9x, suggesting it is trading at a discount to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

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To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Archer Daniels Midland (ADM - Free Report) Incorporated in Delaware in 1923, Archer Daniels Midland Company is successor to the Daniels Linseed Co. Founded in 1902, this Illinois-based company is one of the leading producers of food and beverage ingredients as well as goods made from various agricultural products. The company processes oilseeds, corn, wheat, cocoa and other feedstuffs. Moreover, it engages in the manufacturing, sale, and distribution of products like natural flavor ingredients, flavor systems, natural colors, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, natural health and nutrition products as well as other specialty food and feed ingredients.

ADM is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Consumer Staples stock. ADM has a Momentum Style Score of B, and shares are up 11.7% over the past four weeks.

One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.28 to $4.54 per share. ADM also boasts an average earnings surprise of +5.4%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, ADM should be on investors' short list.

After reaching an important support level, Archer Daniels Midland (ADM - Free Report) could be a good stock pick from a technical perspective. ADM surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.

The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.

The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

ADM could be on the verge of another rally after moving 7.1% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.

The bullish case only gets stronger once investors take into account ADM's positive earnings estimate revisions. There have been 1 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

Investors may want to watch ADM for more gains in the near future given the company's key technical level and positive earnings estimate revisions.

Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. Has Archer Daniels Midland (ADM - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Archer Daniels Midland is one of 171 companies in the Consumer Staples group. The Consumer Staples group currently sits at #13 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Archer Daniels Midland is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ADM's full-year earnings has moved 12% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that ADM has returned about 39.2% since the start of the calendar year. In comparison, Consumer Staples companies have returned an average of 7.4%. This shows that Archer Daniels Midland is outperforming its peers so far this year.

Another stock in the Consumer Staples sector, ARKO Corp. (ARKO - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 72.5%.

Over the past three months, ARKO Corp.'s consensus EPS estimate for the current year has increased 31.8%. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Archer Daniels Midland is a member of the Agriculture - Operations industry, which includes 11 individual companies and currently sits at #156 in the Zacks Industry Rank. On average, this group has gained an average of 21.3% so far this year, meaning that ADM is performing better in terms of year-to-date returns.

In contrast, ARKO Corp. falls under the Consumer Products - Staples industry. Currently, this industry has 34 stocks and is ranked #167. Since the beginning of the year, the industry has moved -0.5%.

Investors interested in the Consumer Staples sector may want to keep a close eye on Archer Daniels Midland and ARKO Corp. as they attempt to continue their solid performance.

On June 01, 2026, Archer-Daniels-Midland Co ADM shares rose 3.6% to a current price of $82.62. This movement comes amidst a robust price performance, with the stock ranging from a low of $46.81 to a high of $83.10 over the past year.

GF Value™ verdict: Current price of $82.62 is 38.7% above the GF Value™ estimate of $59.58, indicating the stock is overvalued.GF Score™: ADM has a score of 76/100, categorizing it as Above Average in terms of its overall quality.Insider activity: In the last three months, insiders sold $8.4 million worth of ADM shares, indicating a lack of confidence in the current price level. Is ADM Overvalued or Undervalued? With a current price of $82.62, Archer-Daniels-Midland Co ADM appears significantly overvalued compared to its GF Value™ estimate of $59.58. This 38.7% premium suggests that the stock is trading well above what might be considered its intrinsic value. The GF Valuation label classifies ADM as "Significantly Overvalued," which underscores the risk that current investors might face should market sentiments shift or if the company fails to deliver on growth expectations.

The margin of safety appears to be quite narrow, as the stock is trading at a substantial premium to its GF Value™. This raises concerns about the sustainability of the current price levels, especially in the context of broader market volatility. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

How Does ADM's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)37.0x13.9x Forward P/E17.6xN/A Currently, ADM's P/E (TTM) of 37.0x is significantly above its 5-year median P/E of 13.9x, indicating that the stock is trading at a valuation considerably higher than its historical levels. The forward P/E of 17.6x also suggests elevated expectations for future earnings growth. This P/E analysis aligns with the GF Value™ verdict that the stock is overvalued, further supporting the notion that current price levels may not be sustainable in the long run.

What Does ADM's GF Score™ Tell Us? MetricRating GF Score™76 Financial Strength6/10 Profitability7/10 Growth5/10 Valuation5/10 Momentum6/10 ADM's GF Score™ of 76/100 indicates that the stock is above average in terms of quality. The strongest aspect is profitability, rated 7/10, reflecting solid operational performance. However, the growth ranking of 5/10 suggests moderate expectations for future expansion. The valuation and momentum ranks, both at 5/10 and 6/10 respectively, signal a mixed picture with potential risks associated with current price levels.

What Are Insiders Doing with ADM Stock? Recent insider activity shows that insiders sold $8.4 million in ADM shares over the last three months, with no buying reported. This trend may suggest a lack of confidence among insiders regarding the stock’s current valuation, which could be a negative signal for potential investors.

The absence of insider buying further reinforces the notion that current price conditions may not be favorable, as insiders typically have the best insights into their company's future prospects.

What This Means for Investors Based on the analysis, Archer-Daniels-Midland Co ADM is currently considered overvalued according to the GF Value™ metric. With a significant premium over its estimated intrinsic value and concerning insider activity, potential investors may want to exercise caution moving forward.

For the complete analysis, visit the Archer-Daniels-Midland Co ADM stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is ADM's GF Score™?

ADM's GF Score™ is 76/100, indicating that it is categorized as Above Average in terms of overall quality and potential for better long-term returns.

Is ADM overvalued or undervalued?

ADM is considered overvalued, as its current price of $82.62 is significantly above the GF Value™ estimate of $59.58.

What is ADM's P/E ratio?

ADM's P/E (TTM) is 37.0x, which is 167% above its 5-year median P/E of 13.9x, indicating that the stock is trading at a much higher valuation than historical norms.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Archer Daniels Midland (ADM - Free Report) is a stock many investors are watching right now. ADM is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.41. This compares to its industry's average Forward P/E of 15.45. Over the past 52 weeks, ADM's Forward P/E has been as high as 14.13 and as low as 9.50, with a median of 11.12.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ADM has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.65.

Finally, our model also underscores that ADM has a P/CF ratio of 13.25. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.70. Over the past year, ADM's P/CF has been as high as 13.80 and as low as 7.44, with a median of 9.16.

Value investors will likely look at more than just these metrics, but the above data helps show that Archer Daniels Midland is likely undervalued currently. And when considering the strength of its earnings outlook, ADM sticks out as one of the market's strongest value stocks.