A O Smith : AOS Q1'25 Earnings Presentation FINAL
AOS
First Quarter 2025 Results
First Quarter 2025 Earnings Presentation | 1
April 29, 2025
rst Quarter 2025 Earnings Presentation | 2
Fi
Forward Looking Statements
This presentation contains statements that we believe are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "continue," " forecast," "guidance" or words of similar meaning. Important factors that could cause actual results to differ materially from these expectations include, among other things, the following: negative impact to the Company's businesses from international tariffs, including any new or increased tariffs that could also trigger retaliatory responses from other countries, as well as, trade disputes and geopolitical differences, including the conflicts in Ukraine and the Middle East; 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; negative impacts to demand for the Company's products, particularly commercial products, as a result of changes in commercial property usage that followed the COVID-19 pandemic; further weakening in North American residential or commercial construction or instability in the Company's replacement markets; inability of the Company to implement or maintain pricing actions; inconsistent recovery of the Chinese economy or a further decline in the growth rate of consumer spending or housing sales in China; the availability, timing or effects of China stimulus programs; potential weakening in the high-efficiency gas boiler segment in the U.S.; substantial defaults in payment by, material reduction in purchases by or the loss, bankruptcy or insolvency of a major customer; foreign currency fluctuations; the Company's inability to successfully integrate or achieve its strategic objectives resulting from acquisitions; failure to realize the expected benefits of acquisitions or expected synergies; failure to realize the expected benefits, timing and extent of regulatory changes; competitive pressures on the Company's businesses, including new technologies and new competitors; the impact of potential information technology or data security breaches; negative impact of changes in government regulations or regulatory requirements; the inability to respond to secular trends toward decarbonization and energy efficiency; and adverse developments in general economic, political and business conditions in key regions of the world. . Forward-looking statements included in this presentation are made only as of the date of this presentation, and the Company is under no obligation to update these statements to reflect subsequent events or circumstances. All subsequent written and oral forward-looking statements attributed to the Company, or persons acting on its behalf, are qualified entirely by these cautionary statements. This presentation contains certain non-GAAP financial measures as that term is defined by the SEC. Non-GAAP financial measures are generally identified by "Adjusted" (Adj.) or "Non-GAAP."
First Quarter Messages
1 2 3 4 5
Sales of $964M and EPS of $0.95
North America sales declined 2% compared to a tough prior year comp; up 9% sequentially from Q4 2024
China sales decreased 4% in local currency driven by continued weak consumer demand
200+ bps operating margin improvement in China and North American Water Treatment enabled by restructuring and cost controls
Pureit added $12 million to Rest of World sales
First Quarter Performance and Highlights
Sales
$979M $964M
-2% YOY
Q1 2024 Q1 2025
EPS
$1.00 $0.95
-5% YOY
Q1 2024 Q1 2025
Segment Sales
$749M
$227M
North America Rest of World
Segment Earnings
$185M
$20M
North America Rest of World
Net sales decreased 2 percent to $964M
EPS down 5 percent to $0.95
Sales down 2 percent relative to a tough prior year comp
Segment margin decreased to 24.7 percent
Flat sales as lower sales in China were offset by Pureit acquisition sales
Segment margin increased 110 basis points
Disclaimer
A.O. Smith Corporation published this content on April 29, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 29, 2025 at 13:41 UTC.