CW CWT California Water Service Group Loading... : Bullish and Bearish Analyst Opinions

DOE will not enforce the new commercial water heater efficiency rule until October 2027, as announced last week. This removes a major pull-forward demand catalyst for the industry in 2026, which A.O. Smith is now modeling for. — The industry will face a year of weaker-than-expected commercial water heater demand, likely resulting in price competition and a slower ramp for new capacity investments.