What is the market's earnings forecast for A. O. Smith next quarter?

What is A. O. Smith's latest dividend and current dividend yield?

What is A. O. Smith's gross profit margin?

What does A. O. Smith do and what are its main business segments?

What were the key takeaways from A. O. Smith's earnings call?

Did A. O. Smith beat or miss consensus estimates last quarter?

What factors drove the changes in A. O. Smith's revenue and profit?

What is the revenue and EPS growth rate for A. O. Smith year over year?

- **Revenue resilience**: Q3 2025 revenue up 4% YoY, driven by North America (+6%) despite China challenges.
- **Margin expansion**: North America segment margin +110bps to 24.2%, offsetting 5% input cost increases.
- **China strategy**: 2025 sales outlook revised to -10% local currency, with restructuring initiatives mitigating margin impact.
- **Tariff mitigation**: 5% COGS impact from tariffs, with pricing actions covering margin and cost, but Q4 margin pressure expected.
- **Sustainability success**: Water recycling and glass reuse initiatives reduce waste by 100,000 gallons/year and 100 tons/year.

**【CEO Summary】**
- Q3 2025 revenue: $943 million (+4% YoY), driven by North America (+6%) and India (+13% local currency). China sales declined 12% due to economic challenges and reduced subsidies.
- North America: Commercial water heater and boiler volumes up, with pricing actions offsetting 5% YoY input cost increases. Segment margin expanded 110bps to 24.2%.
- China: Restructuring initiatives offset 12% sales decline, with margin improving 90bps. Strategic assessment underway to address market challenges.
- Sustainability: Water recycling and glass reuse initiatives reduce waste by 100,000 gallons/year and 100 tons/year respectively.
- New leadership: Chris Howe appointed Chief Digital Information Officer to drive AI and generative tech adoption.

**【CFO Financial Commentary】**
- Free cash flow: $381 million (9M 2025, +35% YoY). Net debt: $13 million. Dividend increased 6% to $0.36/share.
- Guidance update: 2025 EPS narrowed to $3.70-$3.85 (prev $3.70-$3.90) due to tariffs (+5% COGS impact) and steel costs (+15-20% H2 2025). Free cash flow target: $500 million.
- Tariff impact: Q4 North America margin expected to decline 20bps. Mitigation strategies include footprint optimization and pricing actions.
- Pureit integration: 2025 sales $55 million, no bottom-line contribution as integration continues.

**【Q&A Highlights】**
- **China Market**: Competitive promotional activity offset by strong brand equity. 2025 sales outlook revised to -10% local currency.
- **Commercial Water Heaters**: FLEX product launch and production efficiency program drove Q3 share gains. 2025 industry volume growth revised to low single digits.
- **Boiler Sales**: Q3 up 10%, with potential prebuy ahead of Q2 price increases. 2025 guidance unchanged at +4-6%.
- **Tariffs & Costs**: 2025 steel costs expected to rise 15-20% YoY. Pricing actions cover margin and cost, but 20bps margin pressure expected in Q4.
- **Capital Allocation**: $400 million buyback target (9M 2025: $335M). Focus on M&A for core business adjacencies and new growth platforms.

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