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Jun 30
A O Smith Q2 2025 Earnings Report
A. O. Smith posted steady Q2 2025 results with strong margins despite slight revenue decline.
Key Takeaways
A. O. Smith delivered solid earnings in Q2 2025, with strong North America operating margins and improved Rest of World profitability despite weaker sales in China.
Net sales were $1.01 billion, down 1% YoY.
Net earnings reached $152.2 million, with EPS at $1.07.
North America operating margin rose to 25.4%, aided by high efficiency water heaters.
China sales declined 11% in local currency, but India showed strong growth.
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.comChina Revenue
CapyFin.com Forward Guidance
A. O. Smith raised its full-year 2025 outlook, citing improved operational efficiency, stronger North American market share, and benefits from restructuring actions, while uncertainties remain in China.
Positive Outlook
- Raised full-year sales growth outlook to 1-3%
- Full-year EPS guidance increased to $3.70–$3.90
- Improved North America water heater volumes
- Operational efficiency gains from level loading initiatives
- Restructuring actions driving sequential margin improvement
Challenges Ahead
- Persistent economic challenges in China
- Potential slowdown in U.S. residential and commercial water heater demand
- Tariff and trade dispute uncertainties
- Global inflationary pressures impacting costs
- Potential regulatory and geopolitical risks affecting international markets
Revenue & Expenses
Visualization of income flow from segment revenue to net income