A.o. Smith Corporation · NYSE:AOS
A.o. Smith — Q4 2024 Earnings Presentation
18 slides from A.o. Smith's earnings presentation, Jan 30, 2025
Slide 1: Full Year & Fourth Quarter 2024 Results
Full Year & Fourth Quarter 2024 Results January 30, 2025 Full Year & Fourth Quarter 2024 Earnings Presentation | 1
Slide 2: Presenters
Kevin J. Wheeler Stephen M. Shafer Charles T. Lauber Helen E. Gurholt Chairman and President and Executive Vice President Vice President - Investor Relations, Chief Executive Officer Chief Operating Officer and Chief Financial Officer Financial Planning & Analysis Full Year & Fourth Quarter 2024 Ear
Slide 3: Forward Looking Statements
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,” “
Slide 4: Full Year Messages
Full Year Messages 1 2 3 4 5 Sales of $3.8B North America China sales India sales grew Returned $496 and adjusted EPS sales growth decreased 6% in 13% in local million of capital of $3.73 muted by lower local currency currency and to shareholders water heater driven by weak Pureit acquisition throug
Slide 5: Full Year Performance and Highlights
Full Year Performance and Highlights Sales Adjusted EPS Segment Sales Adjusted Segment Earnings $3.9B $3.8B $3.81 $3.73 $2,950M $714M -1% -2% YOY YOY $917M $76M TY 2023 TY 2024 TY 2023 TY 2024 North America Rest of World North America Rest of World Highlights North America Rest of World • Net sales
Slide 6: Full Year North America Segment
Full Year North America Segment Segment Sales ($M) Adjusted Segment Operating Earnings ($M) $2,923 $13 $17 $2,950 $726 $12 $714 $(3) $(8) $(16) 1% 24.8% 24.2% YOY TY 2023 Sales Organic Growth Acquisitions FX and Other TY 2024 Sales TY 2023 Organic Growth Input Costs SG&A and Other TY 2024 Adj Earnin
Slide 7: Full Year Rest of World Segment
Full Year Rest of World Segment Segment Sales ($M) Adjusted Segment Operating Earnings ($M) $957 $16 $919 $99 $(41) $(13) $8 $76 $(31) -4% YOY 10.4% 8.3% TY 2023 Sales Organic Growth Inter-segment FX TY 2024 Sales TY 2023 Earnings Organic Growth SG&A TY 2024 Earnings Other • China sales declined 6%
Slide 8: Fourth Quarter Performance and Highlights
Fourth Quarter Performance and Highlights Sales Adjusted EPS Segment Sales Adjusted Segment Earnings $0.97 $988M $690M $912M $0.85 $154M -8% -12% YOY YOY $237M $19M Q4 2023 Q4 2024 Q4 2023 Q4 2024 North America Rest of World North America Rest of World Highlights North America Rest of World • Net sa
Slide 9: Fourth Quarter North America Segment
Fourth Quarter North America Segment Segment Sales ($M) Adjusted Segment Operating Earnings ($M) $738 $4 $690 $173 $(50) ($2) $5 $154 $(22) $(2) -7% 23.5% 22.4% YOY Q4 2023 Sales Organic Growth Acquisitions FX Q4 2024 Sales Q4 2023 Organic Growth Input Costs SG&A and Other Q4 2024 Adj Earnings Adj E
Slide 10: Fourth Quarter Rest of World Segment
Fourth Quarter Rest of World Segment Segment Sales ($M) Adjusted Segment Operating Earnings ($M) $260 $237 $(23) $30 -9% $5 $19 YOY 11.5% $(16) 8.1% Q4 2023 Sales Organic Growth Q4 2024 Sales Q4 2023 Adj. Earnings Organic Growth SG&A and Other Q4 2024 Adj. Earnings • Lower sales in China due to weak
Slide 11: Cash Flow and Liquidity
Cash Flow and Liquidity1 $276M Free Cash Flow ($M) Cash Flow From Operations ($M) Cash balance2 $598 $670 $582 $474 9.3% Debt to capital ratio $83M Net cash position ~3.8M 2023 2024 2023 2024 Shares repurchased in 2024 totaling ~$306M 1As of December 31, 2024 2Includes cash, cash equivalents and mar
Slide 12: Capital Allocation Priorities
Capital Allocation Priorities • Opportunities for organic growth in all our businesses and geographies Organic Growth • Invested $108 million in capital expenditures in 2024 versus $73 million in 2023 • R&D totaled $102 million versus $98 million 2023 • Disciplined focus on transactions that expand/
Slide 13: 2025 Outlook and Assumptions
2025 Outlook and Assumptions1 Revenue Increase ~Flat to 2% U.S. Residential Water Heater Industry ~Flat 2025 Guidance 2024 Commercial Water Heater Industry ~Flat China Sales Decrease (Local Currency) ~-5% to -8% Diluted EPS (GAAP) $3.60 - $3.90 $3.63 North American Boiler Sales Growth ~3% to 5% Nort
Slide 14: Powerful Investment Thesis
Powerful Investment Thesis 1 2 3 4 5 Leading with Capitalizing Leading Compelling Leveraging strong innovative on global North American brand awareness balance sheet products that megatrends in a water heater and in emerging for organic drive technology large and growing boiler producer markets with
Slide 15: Innovation has a name.
(X6 Smith. Innovation has a name.
Slide 16: Adjusted Earnings and Adjusted EPS
Adjusted Earnings and Adjusted EPS ($ in Millions, except per share data) (1) Earnings (loss) per share amounts are calculated discretely and, therefore, may not add up to the total due to rounding. Full Year & Fourth Quarter 2024 Earnings Presentation | 16
Slide 17: Adjusted Segment Earnings
Adjusted Segment Earnings ($ in Millions) Full Year & Fourth Quarter 2024 Earnings Presentation | 17
Slide 18: Free Cash Flow
Free Cash Flow ($ in Millions) Full Year & Fourth Quarter 2024 Earnings Presentation | 18