A. O. Smith Announces Record 2025 EPS of $3.85, Unveils 2026 Forecast
A. O. Smith Corporation, a leader in water technology, recently reported its financial results for 2025, highlighting impressive growth and future projections.
A. O. Smith’s 2025 Financial Performance
In 2025, A. O. Smith achieved net sales of $3.8 billion, representing a slight increase compared to the previous year. The company reported net earnings of $546.2 million, an increase of 2% from 2024. This translates to a diluted earnings per share (EPS) of $3.85, marking a 6% increase year-over-year.
Key Financial Highlights
- Sales: $3.8 billion
- Net Earnings: $546.2 million (up 2% YoY)
- Diluted EPS: $3.85 (up 6% YoY)
- Free Cash Flow: $546 million
- Capital Returned to Shareholders: $597 million
Fourth Quarter Results
The fourth quarter of 2025 was also strong for A. O. Smith. The company’s net sales hit $912.5 million, showing marginal growth from Q4 2024. Net earnings for this quarter reached $125.4 million, a 14% increase from the previous year, coupled with a diluted EPS of $0.90, representing a 20% increase.
Fourth Quarter Financials
- Net Sales: $912.5 million
- Net Earnings: $125.4 million (up 14% YoY)
- Diluted EPS: $0.90 (up 20% YoY)
Strategic Developments
A significant acquisition occurred in January 2026 when A. O. Smith acquired Leonard Valve, which bolsters its water management offerings. CEO Steve Shafer expressed optimism regarding this acquisition, suggesting it aligns with the company’s growth strategy.
2026 Forecast
Looking ahead, A. O. Smith aims for continued growth in 2026, projecting sales between $3.9 billion and $4.02 billion. The EPS forecast is set between $3.85 and $4.15. Shafer noted expectations for modest volume performance in the residential water heater market in North America, while anticipating growth in emerging markets such as India.
2026 Projections
- Net Sales Forecast: $3.9 billion to $4.02 billion
- EPS Forecast: $3.85 to $4.15
Conclusion
A. O. Smith’s record EPS of $3.85 for 2025 highlights the company’s robust financial health and effective management strategies. With an optimistic outlook for 2026, supported by strategic acquisitions, the company appears well-positioned for future growth.
