16 slides from A.o. Smith's earnings presentation, Jul 24, 2025
Slide 1: Second Quarter 2025 Results
Second Quarter 2025 Results July 24, 2025 Second 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 Second 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: Second Quarter Performance and Highlights
Second Quarter Performance and Highlights Sales EPS Segment Sales Segment Earnings $1.06 $1.07 $779M $198M $1B $1B -1% 1% YOY YOY $240M $25M Q2 2024 Q2 2025 Q2 2024 Q2 2025 North America Rest of World North America Rest of World Highlights North America Rest of World • Net sales decreased slightly t
Slide 5: Innovative New Product Introductions
Innovative New Product Introductions Adapt SC Standard HomeShield Cyclone® FLEX: Smarter, Condensing Tankless Whole House Water Filter More Efficient and Flexible • Industry-First • Certified to reduce PFAS1 • Smarter: AiQ Adaptive Integrated X3® Scale to less than 4 ng/L for Gas Technology, Prevent
Slide 6: Second Quarter North America Segment
Second Quarter North America Segment Segment Sales ($M) Segment Operating Earnings ($M) $791 $779 $1 $198 $2 $198 $(11) ($1) $(3) -1% 25.1% 25.4% YOY Q2 2024 Sales Organic Growth FX Q2 2025 Sales Q2 2024 Earnings Organic Growth Input Costs SG&A and FX Q2 2025 Earnings • Sales decreased primarily due
Slide 7: Second Quarter Rest of World Segment
Second Quarter Rest of World Segment Segment Sales ($M) Segment Operating Earnings ($M) $245 $16 $240 $(21) $26 $7 $25 -2% ($8) 10.6% 10.5% Q2 2024 Sales Organic Growth Acquisition Q2 2025 Sales Q2 2024 Earnings Organic Growth SG&A and Other Q2 2025 Earnings • Sales decrease 2 percent primarily due
Slide 8: Cash Flow and Liquidity
Cash Flow and Liquidity1 $178M Free Cash Flow ($M) Cash Flow From Operations ($M) Cash balance2 $140 $178 $164 $119 14.1% Debt to capital ratio $126M Net debt position ~3.8M YTD June 2024 YTD June 2025 YTD June 2024 YTD June 2025 Shares repurchased YTD June 2025 totaling ~$251M 1As of June 30, 2025
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 ~1% to 3% 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) $3.70 - $3.90 $3.63 North American Boiler Sales Growth ~4% to 6% North
Slide 11: Commitment to doing business the right way
WHY I JOINED… MY FOCUS AREAS… Commitment to doing business the right way 1 Operational Excellence Strong culture of innovation 2 Innovation Excellent, market leading businesses 3 Portfolio Management Exciting strategic opportunities ahead Second Quarter 2025 Earnings Presentation | 11
Slide 12: Second Quarter Messages
Second Quarter Messages 1 2 3 4 5 Total Company Continued Disciplined Initiating an Focusing on sales of $1B and sequential operations and assessment of Operational EPS grew 1% to margin expansion proactive tariff China business to Excellence, $1.07 against a enabled by 2024 mitigation actions ensur
Slide 13: Appendix
Appendix Second Quarter 2025 Earnings Presentation | 13 13
Slide 14: Powerful Investment Thesis
Powerful Investment Thesis 1 2 3 4 5 Leading with Capitalizing Leading Compelling Leveraging strong innovative on global North American brand awareness balance sheet products that megatrends in a water heater and in emerging for organic drive technology large and growing boiler producer markets with
Slide 15: Free Cash Flow
Free Cash Flow ($ in Millions) Second Quarter 2025 Earnings Presentation | 15
Slide 16: A. O. Smith. Innovation has a name.
(<eSmith. Innovation has a name.