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Dec 31, 2024
A O Smith Q4 2024 Earnings Report
A. O. Smith's Q4 2024 earnings declined due to lower sales in both North America and Rest of World segments.
Key Takeaways
A. O. Smith's Q4 2024 sales decreased by 8% due to lower sales in China and North America. Net earnings decreased by 20% and adjusted earnings decreased by 14%. The company's 2025 outlook projects flat to up 2% consolidated sales compared to 2024.
Sales decreased by 8% primarily driven by lower sales in China and North America.
Net earnings decreased by 20% due to lower sales.
Adjusted earnings decreased by 14%.
Pureit acquisition had a minimal impact on 2024 results.
A O Smith
A O Smith
A O Smith Revenue by Segment
Forward Guidance
Our outlook for 2025 projects our consolidated sales to be flat to up 2% compared to 2024. We expect our full-year EPS to be between $3.60 and $3.90, slightly higher than 2024 at the mid-point.
Positive Outlook
- Consolidated sales to be flat to up 2% compared to 2024.
- Full-year EPS to be between $3.60 and $3.90, slightly higher than 2024 at the mid-point.
- Water heater industry unit volumes to be flat year-over-year with less first half versus second half volatility compared to 2024.
- Expect continued double-digits sales growth in India.
- Strong balance sheet and free cash flow continue to provide us the liquidity to focus on our capital allocation priorities of organic growth, acquisitions, dividends and share repurchases
Challenges Ahead
- Expect a single-digit sales decline in China as consumer demand remains low.
- Guidance excludes the potential impacts from future acquisitions.
- Further softening in U.S. residential and commercial water heater demand.
- Negative impacts to the Company, particularly the demand for its products, resulting from global inflationary pressures or a potential recession in one or more of the markets in which the Company participates.
- The Company’s ability to continue to obtain commodities, components, parts and accessories on a timely basis through its supply chain and at expected costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income