A. O. Smith Corporation reported its financial results for the second quarter and first half of 2025, revealing a decline in net sales and earnings compared to the same periods in 2024. For the three months ended June 30, 2025, the company recorded net sales of $1,011.3 million, a decrease of 1.3% from $1,024.3 million in the prior year. Net earnings for the quarter were $152.2 million, down from $156.2 million a year earlier. For the first half of 2025, net sales totaled $1,975.2 million, compared to $2,003.1 million in the same period of 2024, while net earnings fell to $288.8 million from $303.8 million.
The decline in revenue was primarily attributed to lower residential water heater volumes in North America and decreased sales in China, which offset gains from higher boiler sales and contributions from the acquisition of Pureit, a water purification business acquired in late 2024. The acquisition added approximately $28 million in sales during the first half of 2025. The company also noted that unfavorable currency translation impacted sales by approximately $8 million due to the depreciation of foreign currencies against the U.S. dollar.
In terms of operational metrics, A. O. Smith's North America segment reported net sales of $779.0 million for the second quarter, down from $790.7 million in the same quarter of 2024. The Rest of World segment, which includes China, saw sales of $240.1 million, a slight decrease from $244.8 million. The company’s gross profit margin improved to 39.3% in the second quarter of 2025, up from 38.7% in the prior year, driven by a favorable product mix in water treatment.
Looking ahead, A. O. Smith anticipates consolidated sales growth of 1% to 3% for the full year 2025, supported by expected growth in boiler sales and stable residential and commercial volumes. However, the company expects continued challenges in the Chinese market, projecting a decline in third-party sales due to ongoing economic difficulties. The company plans to mitigate the impact of tariffs and rising input costs through pricing strategies and operational efficiencies. A. O. Smith also expects full-year earnings per share to range between $3.70 and $3.90, excluding potential impacts from future acquisitions and assessments of its China business.
About SMITH A O CORP
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