A.O. Smith Defies the Odds: The Surprising Comeback in Commercial Water Heaters!

A.O. Smith Corporation reported a mixed bag of results for the third quarter of 2025, with some segments performing well while others faced challenges. The company achieved a 4% year-over-year sales increase to $943 million, with a notable 15% rise in earnings per share (EPS) to $0.94, driven by solid performance in North America. North America sales grew by 6%, supported by effective pricing actions and strong volumes of commercial water heaters and boilers, which expanded segment margins by 110 basis points. However, overall performance was dampened by a 12% decline in China sales, attributed to economic challenges and reduced government subsidies, illustrating the geographic disparities in market conditions. Positively, A.O. Smith’s operations in India continued on a high-growth trajectory with a 13% increase in sales in local currency. The newly integrated Pureit water purification business contributed $17 million in sales.