Haier Smart Home Co., Ltd. (A-share: 600690.SH; H-share: 06690.HK; D-share: 690D.DE) reported its first-quarter 2026 financial results, revealing a mixed performance characterized by strong momentum in China and most international markets but significant pressure in North America due to trade policy shifts and severe winter weather. The global leader in smart home solutions posted revenue of RMB 73.69 billion and net profit attributable to shareholders of RMB 4.65 billion, up sequentially from Q4 2025, with basic EPS of RMB 0.50.
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, lifting domestic gross margin. Residential air conditioning revenue grew against a sharp industry decline, and Haier 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, per 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. Outside North America, both revenue and operating profit grew, with Europe, South Asia and Southeast Asia all delivering steady growth. North America faced meaningful headwinds: GE Appliances was pressured by severe winter weather and the evolving trade policy landscape. The business has been advancing supply chain and sourcing actions, mix and price initiatives, and cost productivity to rebuild competitiveness for the new trade environment. Chairman and CEO Li Huagang stated, "We are running a clear playbook in North America: reshaping our local supply chain, advancing sourcing actions, moving the product mix upmarket, and driving cost productivity. We have transitioned from the initial response phase into the next chapter, focused on operational efficiency and capability rebuilding."
Europe revenue continued to grow, with HVAC up more than 20% year-on-year. Profitability improved as the benefits of 2025's restructuring flowed through, and the premium Horizon refrigerator line accelerated its rollout. Emerging markets also performed well: South Asia grew by 17% year-on-year in revenue with improved profitability, while Southeast Asia grew by 12%.
Haier advanced its initiative to bring residential air conditioning, smart building and water solutions onto a unified platform, announced at the end of 2025. In Q1 2026, the platform delivered its first integrated solution, with a public debut at a domestic HVAC industry expo in Shijiazhuang. The company also launched a new residential central air conditioning unit featuring ultra-wide frequency operation from 4Hz, built on the platform's shared technology architecture. Smart Building Solutions completed more than 100 commercial AI deployments across data centers and building energy management. Recent acquisitions, 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 to date. 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 and other pre-conditions.
For business leaders, Haier's results highlight the resilience of its globally-enabled, local-for-local model, which allows it to navigate complex environments. The company's focus on premiumization, AI-driven efficiency, and strategic acquisitions positions it for long-term growth, though North American headwinds underscore the impact of trade policy on multinational operations.
For more details, see the original press release at NewMediaWire.
