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Jun 30, 2022
A O Smith Q2 2022 Earnings Report
A. O. Smith reported strong second-quarter performance, driven by price increases and strong demand in certain segments, offset by lower residential water heater volumes and COVID-19 impacts in China.
Key Takeaways
A. O. Smith's second-quarter sales increased by 12% to $966 million, driven by pricing actions. EPS increased by 11% to $0.81, and adjusted EPS increased by 14% to $0.82. The company reaffirms its 2022 EPS guidance of $1.56 to $1.76 and adjusted EPS guidance of $3.35 to $3.55.
Sales increased by 12% to $966 million, driven by pricing actions.
Net earnings increased by 7% to $126.2 million.
EPS increased by 11% to $0.81, and adjusted EPS increased by 14% to $0.82.
Reaffirms 2022 EPS guidance of $1.56 to $1.76 and adjusted EPS guidance of $3.35 to $3.55.
A O Smith
A O Smith
A O Smith Revenue by Segment
A O Smith Revenue by Geographic Location
Revenue by Segment
North America Revenue
CapyFin.comRest of World Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.com Forward Guidance
Due to volume headwinds in the water heating business, the company has lowered its sales outlook for 2022 to an increase between 12 percent and 14 percent year-over-year, including $100 million from Giant. The decrease in sales outlook is offset by an expected improved price cost relationship across our North America segment through the remainder of 2022 and we reaffirm our full year 2022 EPS outlook of between $1.56 and $1.76 and adjusted EPS outlook of between $3.35 and $3.55, an increase of 17% at the mid-point.
Positive Outlook
- Improved price cost relationship across our North America segment through the remainder of 2022
- Reaffirm full year 2022 EPS outlook of between $1.56 and $1.76
- Reaffirm adjusted EPS outlook of between $3.35 and $3.55, an increase of 17% at the mid-point
- Strong balance sheet
- Expected free cash flow provide us the liquidity that gives us flexibility in times of economic uncertainty and allows us to focus on our capital allocation priorities
Challenges Ahead
- Volume headwinds in the water heating business
- Lowered sales outlook for 2022 to an increase between 12 percent and 14 percent year-over-year, including $100 million from Giant
- Potential impacts from future acquisitions
- COVID-19-related shutdowns in China remain at current levels throughout the rest of the year
- Do not significantly impact our operations or our employees, customers or suppliers
Revenue & Expenses
Visualization of income flow from segment revenue to net income