Sector: Industrials|Industry: Specialty Industrial Machinery|Market Cap: $9.99B|Employees: 12K
A. O. Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and India. The company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses; boilers for hospitals, schools, hotels, and other large commercial buildings, as well as homes, apartments, and condominiums; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and point-of-use carbon and reverse osmosis products for residences, restaurants, hotels, and offices. It also provides commercial water treatment and filtration product; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and electric wall-hung, gas tankless, combi-boiler, and heat pump and solar water heaters. The company offers its products under the A. O. Smith, State, Lochinvar, Hague, Water-Right, Master Water, Atlantic Filter, and Water Tec brands. It distributes its products through independent wholesale plumbing distributors, as well as to retail channels consisting of hardware and home center chains, and manufacturer representative firms; and offers Aquasana branded products directly to consumers through e-commerce channels. A. O. Smith Corporation was founded in 1874 and is headquartered in Milwaukee, Wisconsin.
Net sales decreased to $963.9 million in Q1 2025 from $978.8 million in Q1 2024, a 1.5% decline. Net earnings also fell to $136.6 million from $147.6 million, a 7.5% reduction, primarily due to lower North America water heater volumes, lower China sales, and unfavorable currency translation.
Cash provided by operating activities decreased sharply to $38.7 million in Q1 2025 from $106.6 million in Q1 2024. Consequently, free cash flow (non-GAAP) plummeted to $17.4 million from $84.6 million, primarily due to lower accounts receivable collections and reduced current quarter earnings.
Gross profit margin declined to 38.9% in Q1 2025 from 39.3% in Q1 2024, a 0.4 percentage point decrease. This compression was primarily attributed to lower sales volumes, despite relatively flat selling, general, and administrative expenses.