A. O. Smith Gears Up to Report Q3 Earnings: What to Expect?

By Zacks Equity Research | October 23, 2025, 11:20 AM

A. O. Smith Corporation AOS is scheduled to release third-quarter 2025 results on Oct. 28, before market open.

The Zacks Consensus Estimate for A. O. Smith’s third-quarter earnings has remained steady in the past 60 days. The company beat estimates twice, missed once and matched once in the trailing four quarters. The average surprise was 2.9%.

The Zacks Consensus Estimate for the company’s revenues is pegged at $936 million, indicating an increase of 3.7% from the prior-year quarter’s figure. The consensus estimate for adjusted earnings is pinned at 89 cents per share, indicating an 8.5% increase from the year-ago quarter’s number. 

Let’s see how things have shaped up for A. O. Smith this earnings season.

Factors to Note Ahead of AOS’ Results

A decline in orders for residential water heater products is expected to mar the North-America segment’s results in the third quarter. However, strong demand for boilers is expected to have supported the segment’s performance. We expect revenues from the company’s North-America segment to increase 2.7% year over year to $722.2 million in the third quarter.

The ongoing challenges in the Chinese real estate market have remained a concern for A. O. Smith. Lower volumes of residential water treatment and water heater products in the region are likely to have been a spoilsport for the Rest of the World segment’s top line. However, incremental sales related to the Pureit business are expected to have provided some relief. We expect the segment’s revenues to increase 3.4% year over year to $217.4 million in the third quarter.

Over time, A. O. Smith’s performance has been negatively impacted by supply-chain constraints. The persistence of supply-chain constraints for specifically engineered components is expected to have inflated costs and delayed the delivery of products to its customers, which is likely to have played spoilsport.

AOS has considerable exposure to overseas markets. Given the company’s substantial international operations, foreign currency headwinds are likely to have marred its profitability.

However, acquisitions made by the company are likely to have impacted its top line positively. For instance, in November 2024, the company acquired the Pureit business from Unilever. The inclusion of Pureit’s expertise in water treatment solutions, coupled with its strong brand recognition, enabled AOS to expand its customer offerings and boost its position in the water treatment industry in India. 

Also, in March 2024, it acquired privately held water treatment company Impact Water Products, which expanded its water treatment footprint in North America. The acquired company is also likely to have boosted the performance of the North America segment.

A. O. Smith Corporation Price and EPS Surprise

A. O. Smith Corporation Price and EPS Surprise

A. O. Smith Corporation price-eps-surprise | A. O. Smith Corporation Quote

Earnings Whispers for AOS

Our proven model does not conclusively predict an earnings beat for AOS this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: AOS has an Earnings ESP of -1.31%, as the Most Accurate Estimate is pegged at 88 cents per share, which is lower than the Zacks Consensus Estimate of 89 cents. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: AOS presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.

Illinois Tool Works, Inc. ITW has an Earnings ESP of +0.35% and a Zacks Rank of 3 at present. ITW is slated to release third-quarter 2025 results on Oct. 24.

Illinois Tool’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.3%.

Crane Company CR has an Earnings ESP of +4.93% and a Zacks Rank of 3 at present. CR is slated to release third-quarter 2025 results on Oct. 27.

Crane’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 7.5%.

Sealed Air Corporation SEE has an Earnings ESP of +1.28% and a Zacks Rank of 3 at present. SEE is slated to release third-quarter 2025 results on Nov. 4.

Sealed Air’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.0%.

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Illinois Tool Works Inc. (ITW): Free Stock Analysis Report
 
Sealed Air Corporation (SEE): Free Stock Analysis Report
 
A. O. Smith Corporation (AOS): Free Stock Analysis Report
 
Crane Company (CR): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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