A. O. Smith said sales for Q3 2025 were $942.5 million, higher than Q3 2024 sales of $902.6 million, and gross profit margin was 38.7%, up from 37.4% in the prior-year quarter. The company cited pricing actions implemented earlier in the year in North America as a driver of the margin increase.

10-QQuarterly reportFiled Oct 28, 2025Period of report Sep 30, 2025Summary published (UTC) Oct 10, 2026

Key points

AI summary

A. O. Smith said sales for Q3 2025 were $942.5 million, higher than Q3 2024 sales of $902.6 million, and gross profit margin was 38.7%, up from 37.4% in the prior-year quarter. The company cited pricing actions implemented earlier in the year in North America as a driver of the margin increase.
A. O. Smith said North America segment sales for Q3 2025 were $742.8 million with segment earnings of $179.7 million and a segment margin of 24.2%. The Rest of World segment had sales of $207.9 million, segment earnings of $15.4 million and a segment margin of 7.4%.
The company said cash provided by operating activities in the first 9 months of 2025 was $433.7 million and free cash flow was $380.5 million. During the same period, it repurchased 4,976,377 shares at an average price of $67.39 per share for a total cost of $335.4 million.
A. O. Smith said it initiated an assessment of strategic opportunities for its China business in Q3 and projects consolidated sales for 2025 to be flat to up 1% compared to the prior year, with earnings per share of $3.70 to $3.85. The company said this guidance excludes the impacts from potential future acquisitions and any potential outcomes of the assessment of the China business.

Key figures

Quarter ended September 30, 2025

Revenue: $942M
Operating income: $175M
Net income: $132M
EPS: $0.94
Gross profit: $364M

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.

Q3 2025 Sales $942.5 million, Gross Profit Margin 38.7%

A. O. Smith said sales for Q3 2025 were $942.5 million, higher than Q3 2024 sales of $902.6 million, and gross profit margin was 38.7%, up from 37.4% in the prior-year quarter. The company cited pricing actions implemented earlier in the year in North America as a driver of the margin increase.

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

Q3 2025 Segment Results by Region

A. O. Smith said North America segment sales for Q3 2025 were $742.8 million with segment earnings of $179.7 million and a segment margin of 24.2%. The Rest of World segment had sales of $207.9 million, segment earnings of $15.4 million and a segment margin of 7.4%.

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

9-Month Operating Cash Flow, Free Cash Flow and Share Repurchases

The company said cash provided by operating activities in the first 9 months of 2025 was $433.7 million and free cash flow was $380.5 million. During the same period, it repurchased 4,976,377 shares at an average price of $67.39 per share for a total cost of $335.4 million.

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

China Business Strategic Review and 2025 Outlook

A. O. Smith said it initiated an assessment of strategic opportunities for its China business in Q3 and projects consolidated sales for 2025 to be flat to up 1% compared to the prior year, with earnings per share of $3.70 to $3.85. The company said this guidance excludes the impacts from potential future acquisitions and any potential outcomes of the assessment of the China business.

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

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