A. O. Smith reported fourth-quarter diluted earnings per share of $0.90, six cents above the consensus estimate of $0.84, driving the shares up more than 5% intraday. Revenue for the quarter reached $912.5 million versus the analysts’ expectation of $928.1 million. Though sales were essentially flat year-over-year, the company achieved a 20% increase in earnings per share from the prior-year period, reflecting pricing benefits and improved margins in both North America and Rest of World segments.

For the year ended December 31, 2025, A. O. Smith delivered record diluted EPS of $3.85, a 6% gain over 2024’s $3.63. Total sales held steady at approximately $3.8 billion. North America revenues edged higher, supported by strong residential water-heater demand, while the Rest of World segment declined 4%, primarily due to softer orders in China. The company also repurchased $150 million of common stock during the year, bolstering return of capital to shareholders.

Management issued guidance for fiscal 2026 targeting revenues between $3.90 billion and $4.02 billion and diluted EPS of $3.85 to $4.15. The midpoint of the EPS range implies roughly 4% growth over 2025. Continued margin expansion, ongoing share repurchases and selective price increases are expected to support earnings growth. Investors should weigh steady top-line prospects in North America against potential volatility in overseas markets when evaluating the growth outlook.