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Sep 30
A O Smith Q3 2025 Earnings Report
A. O. Smith posted higher Q3 2025 earnings driven by strong North America sales and improved margins across segments.
Key Takeaways
A. O. Smith reported Q3 2025 sales of $943 million, with 6% growth in North America. Net income rose to $132 million, and EPS increased 15% to $0.94. Operating margins expanded in both North America and Rest of World, despite weakness in China. The company updated full-year guidance, citing continued headwinds in China and residential construction.
Q3 2025 net sales rose to $942.5 million, a 4% increase year-over-year.
North America operating margin expanded to 24.2%, driven by pricing and volume.
Rest of World margin improved to 7.4% despite China weakness.
EPS reached $0.94, up 15% from the prior year quarter.
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 narrowed full-year guidance and now expects flat to 1% sales growth and EPS between $3.70 and $3.85, reflecting caution due to China market headwinds and softening residential construction.
Positive Outlook
- Updated full-year EPS guidance to $3.70–$3.85.
- Free cash flow of $381 million through nine months.
- Improved operating margins in both business segments.
- 13% organic growth in India helped offset China decline.
- 6% increase in dividend rate approved in October.
Challenges Ahead
- 12% sales decline in China (local currency).
- Rest of World segment revenue decreased 1% YoY.
- Sales outlook for 2025 lowered to flat to 1% growth.
- Continued weakness in residential new construction in North America.
- Ongoing strategic assessment of China business with uncertain outcome.
Revenue & Expenses
Visualization of income flow from segment revenue to net income