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Mar 31, 2025
A O Smith Q1 2025 Earnings Report
A. O. Smith reported lower sales and earnings compared to the prior year period.
Key Takeaways
A. O. Smith's Q1 2025 results reflected a slight decline in both revenue and earnings, driven by weaker water heater volumes in North America and sales declines in China. However, improved margins and ongoing share repurchases highlighted operational resilience.
Revenue decreased 2% year-over-year due to lower water heater volumes in North America and sales declines in China.
Net income came in at $136.6 million with an EPS of $0.95, both down from Q1 2024.
China segment achieved a 200 basis point margin expansion despite a 4% sales drop in local currency.
The company repurchased $121 million in shares and reaffirmed its full-year guidance.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company reaffirmed its full-year 2025 guidance, anticipating flat to modest sales growth and consistent EPS despite macroeconomic uncertainty.
Positive Outlook
- Full-year sales expected to be flat to up 2%
- EPS guidance reaffirmed at $3.60 to $3.90
- Operational efficiency and strategic sourcing planned to mitigate tariff impacts
- Water heater demand expected to be stable with reduced volatility
- Strong balance sheet supports ongoing capital allocation priorities
Challenges Ahead
- Tariff environment adds uncertainty to pricing and cost management
- Sales in China expected to decline due to soft consumer demand
- Cash flow declined due to lower earnings and slower collections
- Q1 net sales and net income declined year-over-year
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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