AOS
A. O. Smith Corporation67.94
-0.88-1.28%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Q&A details channel pressures, China cadence
Q&A fleshed out wholesale residential headwinds, blaming new construction slowdowns and retailer encroachments on pros for heightened competition—yet management calls dynamics familiar and fixable via targeted customer tweaks. China cadence clarified: H1 double-digit sales drops comping subsidies, H2 rebound from remodels and internal drives. Leonard Valve's double-digit growth traces mostly to digital mixing valves (30% of sales). Water treatment margins hit 13% in 2025, targeting 15% next year amid dealer expansion. China assessment progresses with quality partner talks, no timeline. Investors eye wholesale traction. Steady, no walk-backs.
Key Stats
Market Cap
9.52BP/E (TTM)
18.31Basic EPS (TTM)
3.71Dividend Yield
0.02%Recent Filings
10-K
FY2025 results
A. O. Smith posted FY2025 net sales of $3.83B, edging up 0.3% y/y, with North America at $2.98B (+1%) fueled by pricing and commercial water heater/boiler gains that offset residential softness—yet China sales plunged 12% in local currency on weak demand. Gross margins expanded to 38.8% from pricing actions, lifting net earnings to $546M ($3.85 diluted EPS). North America segment margin hit 24.4%, while Rest of World climbed to 8.7% post-restructuring. Free cash flow roared to $546M. Buybacks devoured $401M; dividends rose 6%. Leonard Valve bolsters 2026 outlook with 2-5% sales growth. China demand stays shaky.
8-K
Record EPS, 2026 guidance
8-K
Closes $470M Leonard Valve buy
A. O. Smith closed its $470 million all-cash acquisition of Leonard Valve on January 6, 2026, funded by a $470 million unsecured term loan maturing January 5, 2029. The deal bolsters water management offerings with thermostatic mixing valves for commercial clients. Acquisition expands digital expertise. Integration risks loom if synergies falter.
8-K
AOS acquires Leonard Valve
A. O. Smith signed a definitive agreement on November 12, 2025, to acquire Leonard Valve for $470 million in cash, expecting closure in Q1 2026 pending approvals. Adjusted to $412 million for tax benefits, it trades at ~12x 2026 EBITDA and turns accretive to EPS in 2026. This bolsters water management with mixing valves and controls for commercial sites. Regulatory hurdles loom.
8-K
Q3 sales up 4%, EPS rises 15%
A. O. Smith posted third-quarter sales of $943 million, up 4% year-over-year, fueled by 6% North America growth from pricing and robust commercial water heater demand, while China sales fell 12% on economic woes. Net earnings climbed 10% to $132 million, with EPS at $0.94, up 15%; North America margins expanded 110 basis points to 24.2%. Cash from operations surged 21% to $434 million year-to-date. The company narrowed full-year EPS guidance to $3.70-$3.85 but tempered sales outlook to flat to 1% growth amid China headwinds and softening U.S. housing.
IPO
Website
Employees
Sector
Industry
AUSI
Aura Systems, Inc.
0.09-0.01
FCHRF
GEORG FISCHER AG
75.00+0.00
GRC
Gorman-Rupp Company (The)
49.33-1.10
ITW
Illinois Tool Works Inc.
250.66-8.00
MWA
MUELLER WATER PRODUCTS
24.78-0.29
OSK
Oshkosh Corporation (Holding Co
128.52-1.51
OTIS
Otis Worldwide Corporation
87.96-0.61
SMR
NuScale Power Corporation
17.12-0.29
WTS
Watts Water Technologies, Inc.
279.25-2.01
XYL
Xylem Inc.
137.60-0.65