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Summary of QQ3 2025 results for A O Smith Corporation shows a financially solid quarter with earnings resilience and strong cash generation, set against a mixed top-line trajectory. Revenue of USD 942.5 million rose 4.4% year-over-year but declined 6.8% quarter-over-quarter, reflecting seasonality and ongoing macro volatility. Gross profit reached USD 364.5 million, yielding a gross margin of 38.7%, while operating income of USD 175.6 million produced an operating margin of 18.6%. Net income of USD 132.0 million and earnings per share (EPS) of USD 0.94 translate to net and diluted margins of ~14.0% and a solid 0.94 EPS, with YoY improvements of 9–13% across key profitability metrics. EBITDA stood at USD 197.0 million, with an EBITDA margin around 21.0%, underscoring robust cash generation capacity.
Key Performance Indicators
942.50M
QoQ: -6.80% | YoY: 4.42%
364.50M
38.67% margin
QoQ: -8.21% | YoY: 8.06%
175.60M
QoQ: -14.67% | YoY: 9.27%
132.00M
QoQ: -13.27% | YoY: 9.91%
0.94
QoQ: -12.15% | YoY: 13.25%
Revenue and profitability (Q3 2025 vs prior year and prior quarter):
Metric
Value
YoY Change
QoQ Change
Revenue
942.50M
4.42%
-6.80%
Gross Profit
364.50M
8.06%
-8.21%
Operating Income
175.60M
9.27%
-14.67%
Net Income
132.00M
9.91%
-13.27%
EPS
0.94
13.25%
-12.15%
Key Financial Ratios
38.70%
Gross profit margin is moderate, room for improvement in cost management
18.60%
Operating margin is healthy and competitive within industry standards
14.00%
Net profit margin is healthy and competitive within industry standards
4.16%
Return on assets is acceptable but below top-tier companies
6.24%
Return on equity is acceptable but below top-tier companies
1.54
Current ratio shows adequate liquidity to meet short-term obligations
0.11
Debt-to-equity shows conservative leverage and low financial risk
19.59x
P/E ratio in line with market averages
4.89x
Trading at premium to book value, reflects strong intangibles or growth
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