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Dec 31, 2025
A O Smith Q4 2025 Earnings Report
A. O. Smith reported its Q4 2025 results with flat revenue and a solid increase in earnings per share.
Key Takeaways
Despite flat sales, A. O. Smith delivered higher earnings and margins in Q4, driven by pricing and improved profitability in North America and India.
Q4 net earnings rose to $125.4 million, up from $109.7 million in Q4 2024
Adjusted EPS reached $0.90, a 6% increase from the prior year quarter
North America segment revenue grew 3% with improved margins
Rest of World segment earnings more than doubled despite lower sales in China
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
A. O. Smith expects FY 2026 revenue growth between 2% and 5%, with full-year EPS projected in the range of $3.85 to $4.15.
Positive Outlook
- 2026 EPS guided to increase to $4.15 at the high end
- Leonard Valve expected to contribute $70 million to 2026 sales
- Double-digit sales growth projected in India
- Flat to slightly down residential volumes expected in North America
- Strong balance sheet supports strategic acquisitions and repurchases
Challenges Ahead
- Mid-single digit sales decline expected in China
- Ongoing market challenges in the Rest of World segment
- Residential water heater volumes may decline
- Tariff and input cost pressures may continue
- China business assessment still ongoing, adding uncertainty
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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