A.O. Smith signed a definitive agreement to acquire Leonard Valve Company for $470 million, approximately $412 million net of expected tax benefits; transaction expected to close in Q1 2026.
The all-cash deal will be funded with cash on hand and committed debt financing, representing an adjusted multiple of ~12× forecasted 2026 EBITDA.
The acquisition expands A.O. Smith’s water management platform by integrating Leonard Valve’s digital and thermostatic mixing valves and Heat-Timer heating controls with A.O. Smith’s core water heating and boiler offerings.
After purchase accounting charges and fees, the transaction is expected to be accretive to A.O. Smith’s EPS in 2026, with anticipated strong growth, margins and free cash flow.

8 days ago

8-K

A. O. Smith to acquire Leonard Valve Company

AOS

M&A

A. O. Smith will acquire Leonard Valve for $470 million (approximately $412 million net of tax benefits), with the all-cash transaction expected to close in Q1 2026, funded by cash on hand and debt financing.
The acquisition broadens A. O. Smith’s water management platform by adding Leonard’s digital mixing valves and Heat-Timer boiler controls to its core water heating and boiler offerings.
The deal is valued at an adjusted multiple of 12× forecasted 2026 EBITDA and is expected to be accretive to 2026 earnings per share after one-time charges.

8 days ago

Press Release

AO Smith reports Q3 2025 results

AOS

Earnings

Guidance Update

Q3 net sales increased 4% to $943 M, and EPS rose 15% to $0.94.
North America segment sales rose 6% to $743 M with segment margin up 110 bps to 24.2%.
Rest of World segment sales dipped 1% to $208 M, but margin expanded 90 bps to 7.4%.
Year-to-date free cash flow improved to $381 M through September 2025, up from $283 M a year earlier.
2025 guidance includes diluted EPS of $3.70–$3.85, flat to 1% revenue growth, and $500 M in free cash flow.

Oct 28, 2025, 2:00 PM

Presentation

A. O. Smith reports Q3 2025 results

AOS

Earnings

Guidance Update

Share Buyback

A. O. Smith delivered third-quarter sales of $943 million (up 4% YoY) and EPS of $0.94 (up 15%).
North America segment sales rose 6% to $743 million, with a 110 bp margin expansion; Rest-of-World sales were $208 million, including $17 million from Pureit, with China down 12% and India up 13%.
Operating cash flow for the first nine months grew 21% to $434 million, free cash flow increased 35% to $381 million, net debt was $13 million, and leverage stood at 9.2%.
The board approved a 6% dividend increase to $0.36 per share and repurchased ~5 million shares for $335 million YTD, raising full-year buyback plans to $400 million.
2025 guidance was narrowed: EPS outlook trimmed to $3.70–3.85 (from $3.70–3.90) and sales growth cut to flat–1% (from 2–3%), driven by a ~10% China sales decline and softer U.S. residential volumes.

Oct 28, 2025, 2:00 PM

Transcript

A. O. Smith reports Q3 2025 results

AOS

Earnings

Guidance Update

Share Buyback

A. O. Smith delivered Q3 sales of $943 million (+4% YoY) and EPS of $0.94 (+15% YoY); North America sales grew 6% with segment margin up 110 bps, and Rest of World margin improved 90 bps.
Operating cash flow for the first nine months rose 21% to $434 million and free cash flow grew 35% to $381 million; the company ended September with $173 million in cash and $13 million net debt, leveraging at 9.2%.
The board approved a 6% dividend increase to $0.36/share (32nd consecutive annual raise) and repurchased ~5 million shares for $335 million, raising full-year buyback plans to ~$400 million.
2025 EPS guidance was narrowed to $3.70–$3.85, assuming a 5% tariff-driven increase in COGS, flat material costs, $75 million CapEx, and ~$500 million free cash flow.
Full-year sales growth outlook was cut to flat to +1% (from +2–3%), trimming China sales to a ~10% local-currency decline and forecasting U.S. residential volumes flat to slightly down.

Oct 28, 2025, 2:00 PM

Transcript

A. O. Smith reports Q3 2025 results

AOS

Earnings

Guidance Update

Share Buyback

Global sales of $943 million (+4% YoY) and EPS $0.94 (+15% YoY) in Q3 2025.
North America sales of $743 million (+6% YoY) with a 24.2% segment margin (+110 bps) and Rest of World sales of $208 million (includes $17 million from PURIT; China down 12% in local currency) with a 7.4% margin (+90 bps).
9M operating cash flow of $434 million (+21%) and free cash flow of $381 million (+35%); cash of $173 million, net debt of $13 million, leverage at 9.2%; raised quarterly dividend 6% to $0.36 and repurchased $335 million of shares YTD, increasing the full-year program to $400 million.
2025 guidance narrowed: EPS range cut to $3.70–$3.85 (from $3.70–$3.90); sales outlook lowered to flat to +1%; maintaining North America margin of 24–24.5% and Rest of World margin near 8%.

Oct 28, 2025, 2:00 PM

Transcript

A. O. Smith reports Q3 2025 earnings and updates full-year guidance

AOS

Earnings

Guidance Update

Share Buyback

Company delivered $942.5 million in net sales (+4% YoY), $132 million in net earnings (+10%), and $0.94 diluted EPS (+15%) in Q3 2025.
North America segment sales rose 6% to $742.8 million, with operating margin expanding 110 bps to 24.2%.
Rest of World sales were $207.9 million (–1% YoY, driven by a 12% China decline), while segment margin improved 90 bps to 7.4%.
In the first nine months, cash from operations grew 21% to $433.7 million, free cash flow rose 35% to $380.5 million, with 5 million shares repurchased for $335.4 million and a 6% dividend increase approved.
Updated 2025 outlook: consolidated sales projected to be flat to +1% and diluted EPS narrowed to $3.70–$3.85.

Oct 28, 2025, 10:57 AM

8-K

A. O. Smith announces Q3 2025 results and updates full-year guidance

AOS

Earnings

Guidance Update

Q3 2025 net sales of $942.5 million (+4% YoY), net earnings of $132 million (+10% YoY) and diluted EPS of $0.94 (+15% YoY)
Cash provided by operations in the first nine months rose 21% to $433.7 million, and free cash flow increased 35% to $380.5 million (YTD Sept. 30)
Full-year 2025 outlook: net sales projected flat to +1% (~$3.80 billion–$3.85 billion) and diluted EPS narrowed to $3.70–$3.85

Oct 28, 2025, 10:55 AM

Press Release

A.O. Smith reports Q2 2025 results, raises EPS outlook

AOS

Earnings

Guidance Update

Share Buyback

Sales declined 1% to $1.0 billion, while EPS rose 1% to $1.07 in Q2 2025.
North America operating margin improved to 25.4%, driven by a favorable mix and 6% growth in boiler sales.
Raised full-year adjusted EPS guidance to $3.70–$3.90, reflecting confidence amid modest sales headwinds.
Repurchased $251.3 million of shares in H1 2025 and announced a strategic review of its China business.

Jul 24, 2025, 4:35 PM

Morningstar

A. O. Smith Corp Q1 2025 Results, CEO Transition & Strategic Updates

AOS

Earnings

CEO Change

Share Buyback

Guidance Update

Q1 2025 Financial Results: Reported sales of $964M and EPS of $0.95, with a 2% decline in sales and a 5% drop in EPS YoY .
CEO Transition: Steve named new CEO effective July 1, while Kevin Wheeler remains as Executive Chairman to ensure a smooth transition .
North America Performance: North America delivered $749M in sales and $185M in earnings amid lower water heater volumes .
Regional Results: In China, sales declined by 4% with improved margins from cost-saving actions; the Rest of World segment remained flat, supported by a $12M contribution from the Pureit acquisition .
Share Repurchase & Dividend: Executed a $121M share repurchase in Q1 (with projected full‐year repurchases of $400M) and announced a quarterly dividend of $0.34 per share .
Guidance & Cash Flow: Maintained full-year guidance with an EPS range of $3.60–$3.90 and consolidated sales expected to be flat to up 2%, alongside generating $17M in free cash flow for Q1 .
Strategic Initiatives: Implemented pricing measures to mitigate tariff impacts and accelerated production at the Juarez facility .

Apr 29, 2025, 2:01 PM

Transcript Presentation Press Release 8-K

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