AO Smith Water Heaters has announced a 7% price increase effective June 22, 2026, adding to a second wave of mid-June price hikes that contractors and distributors are now absorbing on top of the June 1 increases that opened the month.
The second-wave list in full: Quietflex Manufacturing raised flexible duct prices 6% to 8% effective June 12. Taco Pumps announced an increase effective June 13, with specific percentages by product line. Filtration Manufacturing moved 3% to 5% on select lines and 7% on polyester products effective June 15. Mueller Streamline H&C Flex raised flexible duct 8% effective June 15. Owens Corning announced 6% effective June 15. Parker Hannifin's Parker Filtration Group set an increase effective June 15 with percentages still to be determined. Shurtape followed with 2.5% to 7% varying by product category effective June 22, the same day as AO Smith.
What this means for multi-trade contractors: The AO Smith increase is particularly relevant for HVAC contractors who have expanded into water heating — a growing segment as more shops follow the Rheem multi-trade program model and look to increase average ticket value per customer visit. A 7% increase on water heaters arriving in the same month as HVAC component increases compounds the margin pressure on multi-trade service calls.
The buyout window: With the AO Smith increase dated June 22, distributors and contractors have a short window to purchase at current pricing. This is not a large quantity that needs to be stockpiled, but contractors who have planned installations through July should consider whether moving orders up makes sense against their storage capacity and cash flow position.
The cumulative June picture: Adding the June 1 wave — Airex 2% to 8%, Armacell 7%, Design Polymerics 3.5% to 5%, Diversitech 1%, Jones Stephens 10%, Pro-Flex up to 20%, and the Emerson Nidec June 27 increase — to the second wave, June 2026 is one of the heaviest multi-manufacturer pricing months the HVAC supply chain has seen. The June 8 Section 232 tariff reduction to 15% provides some structural relief going forward but does not offset increases that have already been announced.
Quoting guidance: Contractors quoting jobs with installation dates in late June or July should be using updated pricing from distributors, not last month's invoices. The compounding of increases across insulation, flexible duct, filtration, pumps, tape, motors, and water heaters means that the material cost component of a full system installation or mechanical room fit-out is materially different today than it was 30 days ago.
