A. O. Smith Corporation has reported its full year and fourth quarter 2025 results, showcasing notable achievements and developments. The company's sales for 2025 amounted to $3.8 billion, with net earnings increasing by 2% to $546.2 million. Diluted earnings per share (EPS) also saw a 6% rise, reaching a record $3.85.
In terms of segment performance, the North America segment experienced a slight increase in sales to $3.0 billion, attributed to water heater pricing benefits and higher boiler and commercial water heater volumes. Meanwhile, the Rest of World segment saw a 4% decrease in sales, primarily due to lower sales in China, partially offset by sales from the acquisition of Pureit and sales growth in the India legacy business.
The company's free cash flow (FCF) for 2025 amounted to $546 million, representing 100% of FCF to net earnings. Additionally, A. O. Smith returned $597 million of capital to shareholders through dividends and share repurchases. The company's balance sheet and liquidity also showed strength, with cash and marketable securities totaling $193.2 million and debt amounting to $155.0 million, resulting in a leverage ratio of 7.7%.
Looking ahead to 2026, the company expects consolidated sales to increase by 2% to 5% compared to 2025, with an anticipated EPS range of $3.85 to $4.15, representing a 4% increase over 2025 at the mid-point.
Today the company's shares have moved 0.68% to a price of $72.48. Check out the company's full 8-K submission here.
