A. O. Smith said net sales for Q1 2025 were $963.9 million, lower than Q1 2024 sales of $978.8 million. The company cited lower residential and commercial water heater volumes in North America, lower sales in China, and unfavorable currency translation of approximately $7 million as factors.

10-QQuarterly reportFiled Apr 29, 2025Period of report Mar 31, 2025Summary published (UTC) Oct 10, 2026

Key points

AI summary

A. O. Smith said net sales for Q1 2025 were $963.9 million, lower than Q1 2024 sales of $978.8 million. The company cited lower residential and commercial water heater volumes in North America, lower sales in China, and unfavorable currency translation of approximately $7 million as factors.
The company said gross profit margin for Q1 2025 was 38.9%, down from 39.3% in Q1 2024. North America segment margin was 24.7% compared with 25.9% in the prior year, and Rest of World segment margin was 8.7% compared with 7.6% in the prior year.
A. O. Smith said cash provided by operating activities for the first 3 months of 2025 was $38.7 million, lower than $106.6 million in the same period of 2024, and free cash flow was $17.4 million compared with $84.6 million in the prior year. The company said it expects operating cash flow of $600 million to $650 million and free cash flow of $500 million to $550 million in 2025.
The company said it repurchased 1,794,694 shares at an average price of $67.19 per share for a total cost of $120.6 million in Q1 2025, and expects to spend approximately $400 million on stock repurchases in 2025. Its leverage, as measured by the ratio of total debt to total capitalization, was 12.7% as of March 31, 2025, compared with 9.3% as of December 31, 2024.

Key figures

Quarter ended March 31, 2025

Revenue: $964M
Operating income: $184M
Net income: $137M
EPS: $0.95
Gross profit: $375M
Operating cash flow: $39M

From the XBRL financial data filed with the SEC · not processed by AI.

Summary

AI-written

Analysis scope · Management's discussion (MD&A)We analyzed the Management's Discussion and Analysis (MD&A) section. Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

Q1 2025 net sales $963.9 million, prior-year quarter $978.8 million

A. O. Smith said net sales for Q1 2025 were $963.9 million, lower than Q1 2024 sales of $978.8 million. The company cited lower residential and commercial water heater volumes in North America, lower sales in China, and unfavorable currency translation of approximately $7 million as factors.

Source · Based on the MD&A text of the filing

Q1 gross profit margin 38.9%, segment margins 24.7% and 8.7%

The company said gross profit margin for Q1 2025 was 38.9%, down from 39.3% in Q1 2024. North America segment margin was 24.7% compared with 25.9% in the prior year, and Rest of World segment margin was 8.7% compared with 7.6% in the prior year.

Source · Based on the MD&A text of the filing

Q1 operating cash flow $38.7 million, free cash flow $17.4 million

A. O. Smith said cash provided by operating activities for the first 3 months of 2025 was $38.7 million, lower than $106.6 million in the same period of 2024, and free cash flow was $17.4 million compared with $84.6 million in the prior year. The company said it expects operating cash flow of $600 million to $650 million and free cash flow of $500 million to $550 million in 2025.

Source · Based on the MD&A text of the filing

Q1 share repurchases of 1,794,694 shares, leverage ratio 12.7%

The company said it repurchased 1,794,694 shares at an average price of $67.19 per share for a total cost of $120.6 million in Q1 2025, and expects to spend approximately $400 million on stock repurchases in 2025. Its leverage, as measured by the ratio of total debt to total capitalization, was 12.7% as of March 31, 2025, compared with 9.3% as of December 31, 2024.

Source · Based on the MD&A text of the filing

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.

View the original filing on SEC EDGAR ↗

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