Mar 31, 2024

A O Smith Q1 2024 Earnings Report

A. O. Smith reported a strong first quarter performance driven by higher sales of commercial high efficiency water heaters and lower steel costs in North America.

Key Takeaways

A. O. Smith's first quarter 2024 showed a 1% increase in sales to $979 million and a 19% increase in EPS to $1.00. The company reaffirmed its 2024 outlook, projecting a sales increase of 3% to 5% and an EPS range of $3.90 to $4.15.

Sales increased by 1% to $979 million.

Earnings per share increased 19% year-over-year to $1.00.

Operating cash flow was strong at $107 million, with free cash flow at $85 million.

The company reaffirmed its 2024 outlook with sales expected to increase by 3% to 5% and EPS between $3.90 and $4.15.

Total Revenue
$979M
Previous year: $966M
+1.3%
EPS
$1
Previous year: $0.94
+6.4%
Gross Profit
$385M
Previous year: $374M
+2.8%
Cash and Equivalents
$252M
Previous year: $406M
-38.1%
Free Cash Flow
$84.6M
Previous year: $109M
-22.5%
Total Assets
$3.18B
Previous year: $3.34B
-4.6%

A O Smith

A O Smith

A O Smith Revenue by Segment

Forward Guidance

A. O. Smith reaffirmed its 2024 sales projection of an increase between 3% and 5% year-over-year and its full-year EPS guidance of a range of between $3.90 and $4.15, a 6% year-over-year increase at the mid-point.

Positive Outlook

  • The water heater industry shipment levels in early 2024 were as expected and included some pull forward of demand ahead of the March 1 price increases.
  • Company expects to continue to benefit from resilient replacement demand.
  • An improved outlook for residential new home construction.
  • Pleased with the growth achieved in the Rest of World segment in the quarter, particularly in China, where economic challenges persist.
  • Expects the mid-teens growth in India to continue.

Revenue & Expenses

Visualization of income flow from segment revenue to net income