A.O. Smith (NYSE: AOS) reported fourth-quarter earnings that exceeded Wall Street expectations, prompting shares to rise more than 5% intraday.
The water technology company posted earnings per share of $0.90 for the quarter, topping the consensus estimate of $0.84 by six cents. Revenue totaled $912.5 million, coming in slightly below analyst expectations of $928.11 million.
While total sales were essentially flat year over year, diluted EPS increased 20% from the prior-year period, reflecting pricing benefits and improved profitability across both the North America and Rest of World segments.
For full-year 2025, A.O. Smith reported record diluted EPS of $3.85, representing a 6% increase from 2024, while total sales remained stable at approximately $3.8 billion. Sales in North America edged higher, while the Rest of World segment declined 4%, largely due to weaker demand in China.
Looking ahead, the company issued 2026 guidance calling for revenue between $3.9 billion and $4.02 billion and earnings per share of $3.85 to $4.15. The midpoint of the EPS outlook implied roughly 4% growth versus 2025.
