Haier Smart Home Navigates Trade Headwinds and Weather Challenges in Q1 2026, Posts RMB 4.65 Billion Net Profit
Haier Smart Home reported a sequential net profit increase to RMB 4.65 billion in Q1 2026, with China and most international markets growing, but North America faced headwinds from trade policy and severe winter weather.
Haier Smart Home Co., Ltd. (A-share: 600690.SH; H-share: 06690.HK; D-share: 690D.DE) reported first-quarter 2026 results on April 27, showing resilience in its core markets despite challenges in North America. The global smart home solutions leader posted revenue of RMB 73.69 billion and net profit attributable to shareholders of RMB 4.65 billion, up sequentially compared to Q4 2025. Basic earnings per share reached RMB 0.50.
The company's performance reflected a quarter of contrasts, according to Chairman and CEO Li Huagang. While China and core international markets maintained healthy momentum, North America faced meaningful headwinds from the evolving trade policy landscape and severe winter weather. Li stated that Haier is running a clear playbook in North America, focusing on reshaping the local supply chain, advancing sourcing actions, moving the product mix upmarket, and driving cost productivity. He noted that the company has transitioned from the initial response phase into the next chapter, aimed at operational efficiency and capability rebuilding, expecting this work to return the North America business to a more resilient, higher-quality operating model.
In China, operating profit grew year-on-year, with margin expansion offsetting short-term revenue pressure in a home appliance market that contracted 6.2% by retail value, according to All View Cloud (AVC). Profit growth reflected a continued mix shift toward premium categories, which lifted domestic gross margin. Residential air conditioning grew revenue against a sharp industry decline and extended its high-end leadership, now ranking No. 1 in the RMB 11,000+ price band, up from its prior top position in the RMB 15,000+ segment, according to GfK. In water solutions, top-rated energy-efficient gas water heaters accounted for a materially higher share of the company's portfolio than the industry average. AI and digital capabilities also lifted operating efficiency, with gains in inventory turnover, fulfilment and resource allocation, and a year-on-year decline in the selling expense ratio.
Internationally, overseas revenue declined 3.2% year-on-year, but outside North America, both revenue and operating profit grew, with Europe, South Asia, and Southeast Asia all delivering steady growth. In Europe, revenue continued to grow, with HVAC up more than 20% year-on-year, and profitability improved as the benefits of 2025's restructuring flowed through. Emerging markets performed strongly, with South Asia growing by 17% year-on-year in revenue and profitability improving, while Southeast Asia grew by 12%.
Haier advanced its initiative to bring residential air conditioning, smart building, and water solutions onto a unified platform, delivering its first integrated solution in Q1 2026. Smart Building Solutions completed more than 100 commercial AI deployments across data centers and building energy management. Recent acquisitions, including CCR (Carrier Commercial Refrigeration) and Kwikot, each delivered double-digit revenue growth in the quarter.
The company is stepping up shareholder returns through a sustained program of buybacks and cancellations. 74.54 million A-shares repurchased during 2023–2026 are designated for cancellation, accretive to EPS upon completion. In March 2026, Haier launched a new A-share buyback of RMB 3-6 billion over 12 months, of which RMB 600 million has been deployed. The company has also proposed a separate voluntary D-share buy-back-for-cancellation offer of up to approximately 81 million shares, subject to shareholder approval.