A. O. Smith

Water heater demand is predominately replacement‑driven, which supports steady through‑cycle volumes. Trailing twelve‑month sales through June 30, 2025 were approximately 3.79 billion (2024 full‑year 3.818 billion minus 1H24 plus 1H25).

Free cash flow TTM was about 495 million, derived from 2024 FCF of 474 million adjusted for 1H24 and 1H25 free cash flow. These figures indicate stable top line with resilient cash generation despite China softness.

DOE standards create a medium‑term tailwind via mandated efficiency upgrades, though timing will phase in over several years and new construction exposure adds some cyclicality. China remains the key unpredictable factor, but the strategic review and expanding India footprint (including Pureit) may reduce volatility over time.