A. O. Smith Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 sales declined 2% year-over-year, with North America up 1% and Rest of World down 11%. Adjusted EPS guidance was lowered due to China weakness and regulatory delays, but strong free cash flow and margin improvement initiatives continue.
Fiscal Year 2025
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Record 2025 EPS of $3.85 was driven by margin gains in both segments, with North America growth offsetting China declines. 2026 guidance calls for 2–5% sales growth and EPS of $3.85–$4.15, with continued investment in water management and disciplined capital returns.
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Q3 saw 4% sales and 15% EPS growth, led by North America, while China sales fell 12% amid economic headwinds. 2025 guidance was narrowed, with full-year sales now expected flat to up 1% and China sales down 10%. Margin expansion and strong cash flow continue.
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Q2 2025 sales declined 1% year-over-year to $1B, but EPS rose 1% to $1.07. North America boiler sales grew 6%, while China sales fell 11% amid economic headwinds. 2025 EPS guidance was raised, and a strategic review of the China business was initiated.
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Q1 2025 saw a 2% sales decline and 5% lower EPS year-over-year, but sequential improvement and strong cost controls. 2025 guidance is maintained despite tariff uncertainty, with pricing and supply chain actions underway to offset cost pressures.
Fiscal Year 2024
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2024 saw a slight sales and earnings decline, with North America stable but China weak and India strong. 2025 guidance calls for flat to modest growth, margin improvement in water treatment, and continued shareholder returns, while restructuring and portfolio shifts position the company for long-term growth.
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Sales and earnings declined year-over-year due to weak demand in China and North America water heaters, but strong growth in North America boilers, water treatment, and India offset some weakness. 2024 guidance was reaffirmed, with flat sales and EPS of $3.70–$3.85 expected.
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Record Q2 sales and EPS were driven by strong North America water heater and boiler growth, while China and India delivered modest to strong gains. 2024 guidance was reaffirmed, with margin pressures expected in Q3 but recovery anticipated in Q4.