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Jun 30, 2023
A O Smith Q2 2023 Earnings Report
A. O. Smith's Q2 2023 earnings were driven by lower steel costs and continued strength in demand for North America commercial and residential water heater products.
Key Takeaways
A. O. Smith reported Q2 2023 sales of $961 million, a 1% decrease YoY. Net earnings of $157.0 million resulted in a record EPS of $1.04, a 28% increase YoY. The company raised its 2023 outlook to sales flat to up 2% and EPS between $3.38 and $3.53.
Sales decreased 1% to $961 million.
Record EPS of $1.04, a 28% increase YoY.
Adjusted EPS of $1.01, excluding non-cash after-tax income of $4.5 million related to the pension settlement.
Strong operating cash flow and free cash flow of $260.2 million and $236.0 million, respectively.
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
The company expects sales to be flat to up 2% compared to 2022. Adjusted EPS is expected to be between $3.45 and $3.60.
Positive Outlook
- Strong results in the second quarter
- Resilience in North America water heater demand
- Current view of our price cost relationship
- Margin performance in the first half of the year.
Challenges Ahead
- Higher steel costs in North America in the back half of 2023
- Some margin pressure due to higher steel costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income