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A.O. Smith Corporation (AOS-1.17%) has filed its annual report on Form 10-K for the fiscal year ended December 31, 2024 filing.
The report details the company's financial performance, including net sales of $3.818 billion, a slight decrease from $3.853 billion in 2023. This decrease was primarily driven by lower water heater volumes in North America and reduced sales in China, partially offset by higher boiler sales and pricing actions.
Operating income for the year was reported at $701 million, compared to $733.5 million in 2023. The decline in operating income was attributed to higher production costs and operational inefficiencies.
The North America segment reported net sales of $2.950 billion, a slight increase from $2.923 billion in 2023, driven by pricing actions and higher boiler sales. However, segment earnings decreased to $707.5 million from $726.7 million in the previous year.
The Rest of World segment, primarily comprising China, Europe, and India, reported net sales of $918.6 million, down from $956.9 million in 2023. This decline was mainly due to lower sales in China.
A.O. Smith's cash provided by operating activities was $581.8 million, down from $670.3 million in 2023. The company reported capital expenditures of $108 million in 2024, up from $72.6 million in 2023.
The company repurchased 3.755 million shares of its stock at a total cost of $305.8 million and announced plans to spend approximately $400 million on share repurchases in 2025.
A.O. Smith reported a restructuring and impairment expense of $17.6 million for 2024, related to its water treatment business in North America and severance costs in China.
The company continues to focus on expanding its product offerings and geographic footprint, as evidenced by its acquisition of Pureit from Unilever for $125 million in 2024.
A.O. Smith anticipates its 2025 consolidated sales to be flat to up two percent compared to 2024, with earnings per share expected to be between $3.60 and $3.90.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the A.O. Smith Corporation annual 10-K report dated February 11, 2025. To report an error, please email earnings@qz.com.