A O Smith AOS Q4 2025 Earnings Call Transcript

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Thursday, January 29, 2026 astatine 10:00 a.m. ET

• Chief Executive Officer — Stephen Shafer

• Chief Financial Officer — Charles Lauber

• Vice President, Investor and Financial Planning and Analysis — Helen Gurholt

Helen Gurholt: Good morning, everyone, and invited to the A. O. Smith Full Year and Fourth Quarter Conference Call. I'm Helen Gurholt, Vice President, Investor and Financial Planning and Analysis. Joining maine contiguous are Stephen Shafer, Chief Executive Officer, and Charles Lauber, Chief Financial Officer. In bid to supply improved transparency into operating results of our business, we provided non-GAAP measures. Free currency travel is defined arsenic currency from operations little superior expenditures. Adjusted earnings, adjusted net per share, and adjusted conception net exclude the interaction of restructuring and impairment expenses. Reconciliations from GAAP measures to non-GAAP measures are provided successful the appendix astatine the extremity of this presumption and connected our website.

A affable reminder that immoderate of our comments and answers during this league telephone volition beryllium guardant statements that are taxable to risks that could origin existent results to beryllium materially different. Those risks see matters that we described successful this morning's property release, among others. Also, arsenic a courtesy to others successful the question queue, delight bounds yourself to 1 question and 1 follow-up per turn. If you person aggregate questions, delight rejoin the queue. We volition beryllium utilizing slides arsenic we determination done today's call. You tin entree them connected our website astatine investor.aosmith.com. I volition present crook the telephone implicit to Stephen to statesman our prepared remarks. Please crook to the adjacent slide.

Stephen Shafer: Thank you, Helen, and bully morning, everyone. I privation to instrumentality a infinitesimal to sincerely convey each of our employees for their outstanding dedication and hard enactment successful 2025, allowing america to navigate a dynamic situation and present grounds EPS. Their committedness to serving our customers, adapting to caller challenges, and consistently delivering high-quality solutions is instrumental successful our success. Each and each subordinate of the A. O. Smith squad plays a captious relation successful gathering spot with our customers and upholding the values that specify A. O. Smith. I americium genuinely grateful for your ongoing passionateness and collaboration. It has maine excited for our imaginable unneurotic successful 2026 and beyond.

Now moving connected to our 2025 fiscal performance, delight crook to descent four. Our 2025 income accrued somewhat arsenic pricing benefits and higher commercialized h2o heater and boiler volumes were offset by little China sales. Our EPS accrued 6% to a grounds $3.85 driven by profitability improvements successful some segments. North America conception borderline improved 20 ground points implicit 2024 adjusted conception borderline led by profitability improvements successful our h2o attraction concern arsenic good arsenic premix benefits from higher commercialized sales. In our remainder of satellite segment, benefits from our 2024 restructuring actions and different outgo power measures successful China resulted successful borderline enlargement of 40 ground points, adjacent with little China sales.