A.o. Smith Corporation · NYSE:AOS
A.o. Smith — Q3 2025 Earnings Presentation
15 slides from A.o. Smith's earnings presentation, Oct 28, 2025
Slide 1: Third Quarter 2025 Results
Third Quarter 2025 Results October 28, 2025 Third Quarter 2025 Earnings Presentation | 1
Slide 2: Presenters
Stephen M. Shafer Charles T. Lauber Helen E. Gurholt President and Executive Vice President Vice President - Investor Relations, Chief Executive Officer and Chief Financial Officer Financial Planning & Analysis Third Quarter 2025 Earnings Presentation | 2
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: Third Quarter Performance and Highlights
Third Quarter Performance and Highlights Sales EPS Segment Sales Segment Earnings $0.94 $743M $180M $903M $943M $0.82 4% 15% YOY YOY $208M $15M Q3 2024 Q3 2025 Q3 2024 Q3 2025 North America Rest of World North America Rest of World Highlights North America Rest of World • Net sales increased 4 perce
Slide 5: Commitment to Sustainability
Commitment to Sustainability Greenhouse Gas Water Waste GOAL: 10% intensity reduction by 20251 GOAL: Annual savings of 40M gallons by 20302 GOAL: 525,000 pounds of waste diverted from the landfill by 20273 STATUS: Achieved 30% intensity reduction in STATUS: 36M gallons saved 2024, exceeding 2025 goa
Slide 6: Third Quarter North America Segment
Third Quarter North America Segment Segment Sales ($M) Segment Operating Earnings ($M) $38 $180 $41 $743 $163 $(12) $(9) ($1) $703 6% 23.1% 24.2% YOY Q3 2024 Sales Organic Growth FX Q3 2025 Sales Q3 2024 Earnings Organic Growth Input Costs SG&A and FX Q3 2025 Earnings • Sales increased primarily due
Slide 7: Third Quarter Rest of World Segment
Third Quarter Rest of World Segment Segment Sales ($M) Segment Operating Earnings ($M) $210 $17 $208 $9 $15 $(19) $13 -1% YOY 7.4% 6.4% ($7) Q3 2024 Sales Organic Growth Acquisition Q3 2025 Sales Q3 2024 Earnings Organic Growth SG&A and Other Q3 2025 Earnings • Sales decrease 1 percent primarily due
Slide 8: Cash Flow and Liquidity
Cash Flow and Liquidity1 $173M Free Cash Flow ($M) Cash Flow From Operations ($M) Cash balance2 $434 $381 $360 9.2% $283 Debt to capital ratio $13M Net debt position ~5M YTD September 2024 YTD September 2025 YTD September 2024 YTD September 2025 Shares repurchased YTD1 totaling ~$335M 1As of Septemb
Slide 9: Capital Allocation Priorities
Capital Allocation Priorities • Driving organic growth: developing products aligned to upcoming regulatory changes, Organic Growth investing in productivity and continuing to build the strength of the core • Disciplined focus on transactions that expand/grow the core, enable geographic growth, expan
Slide 10: 2025 Outlook and Assumptions
2025 Outlook and Assumptions1 Revenue Increase ~Flat to 1% U.S. Residential Water Heater Industry ~Flat 2025 Guidance 2024 Commercial Water Heater Industry ~LSD China Sales Decrease (Local Currency) ~-10% Diluted EPS (GAAP) $3.70 - $3.85 $3.63 North American Boiler Sales Growth ~4% to 6% North Ameri
Slide 11: Third Quarter Messages
Third Quarter Messages 1 2 3 4 5 Total Company Continued focus North America Strong Assessment of sales grew 4% to on Operational segment sales performance China business in $943M and EPS Excellence, grew 6% and from growth process to ensure grew 15% to Innovation and water heaters priorities in Ind
Slide 12: Appendix
Appendix Third Quarter 2025 Earnings Presentation | 12 12
Slide 13: Powerful Investment Thesis
Powerful Investment Thesis 1 2 3 4 5 Leading with Capitalizing Leading Compelling Leveraging strong innovative on global North American brand awareness balance sheet products that megatrends in a water heater and in emerging for organic drive technology large and growing boiler producer markets with
Slide 14: Free Cash Flow
Free Cash Flow ($ in Millions) Third Quarter 2025 Earnings Presentation | 14
Slide 15: (X6 Smith.
(X6 Smith. Innovation has a name.