A. O. Smith Corporation ( (AOS) ) has released its Q1 earnings. Here is a breakdown of the information A. O. Smith Corporation presented to its investors.
A. O. Smith Corporation is a global leader in water technology, specializing in the manufacture of residential and commercial water heating equipment, boilers, and water treatment products. The company is headquartered in Milwaukee, Wisconsin, and is listed on the New York Stock Exchange under the ticker AOS.
In its first quarter of 2025, A. O. Smith reported sales of $964 million, marking a 2% decline compared to the previous year. The company’s earnings per share (EPS) also saw a decrease, dropping 5% to $0.95. Despite these declines, the company maintained a positive outlook for the year, reaffirming its full-year sales and EPS guidance.
Key financial metrics highlighted in the report include a 2% decrease in North America sales, primarily due to lower water heater volumes, although boiler sales increased by 10%. In China, sales decreased by 4% in local currency due to economic challenges, but the company achieved a 200-basis point improvement in operating margins thanks to cost-saving measures. A. O. Smith also repurchased $121 million worth of shares in the quarter and plans to continue with share repurchases throughout the year.
The company’s balance sheet remains strong, with a leverage ratio of 12.7% and a focus on maintaining liquidity to support capital allocation priorities. Looking ahead, A. O. Smith expects consolidated sales to remain flat or grow by up to 2%, with EPS projected to be between $3.60 and $3.90 for the year.
Overall, A. O. Smith’s management remains optimistic about the company’s future, focusing on operational efficiency and strategic investments to drive growth. The company continues to navigate challenges in the global market while leveraging its strong financial position to support shareholder returns.