Financial Data and Key Metrics - Q3 sales and earnings decreased compared to last year due to weaker consumer demand in China and North America water heater demand [5] - China third-party sales declined 17% in local currency [5] - North America water heater sales decreased 4% [5] - North America boiler sales grew 15% and water treatment sales increased 16% [7] - North America segment sales were $703 million, a 1% decline compared to 2023 [10] - North America segment earnings decreased 4% to $163 million, with a segment margin of 23.1% [10] - Rest of the world segment sales decreased 10% to $210 million [11] - Rest of the world segment earnings were $14 million with a segment margin of 6.5% [12] - Free cash flow for the first nine months of 2024 was $283 million, a decrease from the same period last year [12] - Cash balance totaled $256 million at the end of September, with a net cash position of $136 billion [12] Business Line Data and Key Metrics - North America water heater business saw softer orders in both residential and commercial segments [6] - North America boiler sales grew 15% due to strong performance in commercial condensing boilers [7] - North America water treatment sales increased 16% due to acquisition-related dealer sales and organic growth [7] - India sales increased 12% in local currency [11] - The company launched a tankless water heater product in Q2, with two additional models planned for early 2025 [7] Market Data and Key Metrics - China market experienced weaker consumer demand, with increased pricing and promotional pressure in the mid-price sector [6] - North America residential water heater orders were weaker than expected, with reduced inventories [16] - U.S. residential industry unit volumes are projected to be flat in 2024 [17] - U.S. commercial water heater industry volumes are expected to be flat, with a shift from gas to electric units [17] Company Strategy and Industry Competition - The company is focused on long-term growth through capacity expansion projects, including a new facility in Juárez for gas tankless water heaters [8] - The company is on track to acquire Pureit from Unilever for $120 million, enhancing its water treatment portfolio in South Asia [13] - The company increased its dividend by 6%, marking 32 consecutive years of dividend increases [5] - The company is investing in innovation and new product development across all product lines and geographies [13] Management Commentary on Operating Environment and Future Outlook - Management expects consumer demand softness in China to persist through the remainder of 2024, with potential positive impact from government stimulus programs in 2025 [6] - The company reaffirmed its 2024 EPS outlook to a range of $3.70 to $3.85 per share [14] - Management expects North America segment margin to be approximately 24.5% and rest of the world segment margin to be 8% [18] - The company is cautious about end-market demand but expects quarter-over-quarter improvement in North America water heater volumes [19] Other Important Information - The company repurchased approximately 2.9 million shares of common stock in the first nine months of 2024 for a total of $237 million [13] - Capital expenditures are expected to be between $105 million and $115 million in 2024 [14] - The company expects to generate operating cash flow of $525 million and free cash flow of approximately $415 million in 2024 [14] Q&A Session Summary Question: North America Residential Water Heater Segment Performance - The company attributed the weaker performance to inventory imbalances and timing issues related to a price increase in Q2 [22][23] - Management expects the market to stabilize, with flat to slightly down industry volumes for the rest of 2024 [24] Question: Stickiness of March Price Increase in North America - The price increase was executed as planned, and the company remains competitive in the market [28] Question: Long-term Strategy for China Business - The company remains committed to the China market, citing long-term upside from urbanization and middle-class growth [30] Question: Impact of Tankless Water Heater Factory Switch - The transition of tankless water heater production from China to Juárez will create a headwind in 2025, but the company remains positive about the long-term outlook [39] Question: Sellout Dynamics in North America Water Heater Market - Sellout dynamics vary by market, with some distributors reporting low single-digit growth or decline [46] - Proactive replacement demand remains stable [48] Question: Steel Costs and Price-Cost Trends - Steel costs are favorable in Q4, but overall material costs are expected to be flat [50] Question: North America Commercial Water Heater Outlook - The company expects the commercial water heater market to remain flat, with a shift from gas to electric units [82] Question: Free Cash Flow Reduction - The reduction in free cash flow is primarily due to higher inventory balances and lower customer deposits in China [87]

3rd Quarter 2024 Earnings Presentation 1 Third Quarter 2024 Results October 22, 2024 Kevin J. Wheeler Chairman and Chief Executive Officer Charles T. Lauber Executive Vice President and Chief Financial Officer Helen E. Gurholt Vice President - Investor Relations, Financial Planning & Analysis °C 0 C @ 3rd Quarter 2024 Earnings Presentation 2 0 ACSmith. Forward Looking Statements This presentation contains statements that we believe are "forward-looking statements" within the meaning of the Private Securitie ...

A. O. Smith Corporation’s (AOS) third-quarter 2024 adjusted earnings of 82 cents per share matched the Zacks Consensus Estimate. The bottom line decreased 8.9% on a year-over-year basis.Net sales of $902.6 million missed the consensus estimate of $913 million. The top line decreased 4% year over year due to lower sales in China and decreased volumes of water heaters in North America.Segmental DetailsA. O. Smith’s quarterly sales in North America (comprising the United States and Canada operations) increased ...

For the quarter ended September 2024, A.O. Smith (AOS) reported revenue of $902.6 million, down 3.7% over the same period last year. EPS came in at $0.82, compared to $0.90 in the year-ago quarter.The reported revenue represents a surprise of +0.12% over the Zacks Consensus Estimate of $901.55 million. With the consensus EPS estimate being $0.82, the company has not delivered EPS surprise.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectation ...

A.O. Smith (AOS) came out with quarterly earnings of $0.82 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.90 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this maker of water heaters and boilers would post earnings of $1.07 per share when it actually produced earnings of $1.06, delivering a surprise of -0.93%.Over the last four quarters, the company has surpassed consensus EPS estimates two times.A.O. Smith ...

News Release Media Relations: Curt Selby 414-359-4100 curt.selby@aosmith.com | --- | |------------------------------| | | | | | Investor Relations: | | Helen Gurholt 414-359-4157 | FOR IMMEDIATE RELEASE October 11, 2024 A. O. Smith Announces Preliminary Third Quarter Results and Provides Revised 2024 Full Year Guidance Summary (Comparisons are year-over-year ("YoY"), unless otherwise noted) • Preliminary third quarter sales of $903 million, a decrease of 4%, due to lower sales in China and North America wat ...

Third Quarter 2024 Highlights(Comparisons are year-over-year ("YoY"), unless otherwise noted)Sales of $903 million, a decrease of 4%, driven by lower sales in China and lower volumes of water heaters in North AmericaNet earnings of $120 million, a decrease of 11%Diluted earnings per share (EPS) of $0.82, a decrease of 9% Reaffirm revised 2024 EPS outlook of $3.70 to $3.856% increase to our dividend; we have increased our dividend for 32 consecutive yearsRecently announced Pureit acquisition on track to clos ...

A. O. Smith Corporation (AOS) is set to release third-quarter 2024 results on Oct. 22, before the opening bell. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The Zacks Consensus Estimate for revenues is pegged at $901.1 million, which indicates a decline of 4% from the year-ago quarter’s figure. The consensus mark for earnings is pinned at 86 cents per share, which has declined 8.5% in the past 60 days. The estimate indicates a decrease of 4.4% from the figure reported in the year ...

The upcoming report from A.O. Smith (AOS) is expected to reveal quarterly earnings of $0.82 per share, indicating a decline of 8.9% compared to the year-ago period. Analysts forecast revenues of $901.55 million, representing a decrease of 3.8% year over year.The consensus EPS estimate for the quarter has undergone a downward revision of 12.7% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timef ...

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