Milwaukee-based water heater manufacturer A.O. Smith Corp. today reported 2024 sales of $3.82 billion, down 1% from 2023, and net earnings of $533.6 million for 2024, down 4.1% from 2023.
In a news release, the company said its sales decline in 2024 was “primarily driven by lower sales in China.”
“After three years of record sales, A.O. Smith’s 2024 sales declined due to a weak economy in China continuing to negatively impact consumer demand and soft North America water heater demand in the second half of the year. Boiler sales increased 8% in North America led by our high-efficiency commercial products,” said Kevin J. Wheeler, chairman and chief executive officer of A.O. Smith. “Despite facing further weakening of the Chinese economy and inventory fluctuations in the North America water heater channel, I am proud of the actions our teams took to optimize our businesses while also continuing to make investments for the future.”
For the fourth quarter, A.O. Smith reported net sales of $912.4 million, down 8% from the fourth quarter of 2023, and net earnings of $109.7 million, down 20% from the fourth quarter of 2023.
Looking ahead to 2025, Wheeler said the company expects sales growth between 0% and 2%.
“In North America, we anticipate water heater industry unit volumes to be flat year-over-year with less first half versus second half volatility compared to 2024. In our Rest of World segment, we expect a single-digit sales decline in China as consumer demand remains low. We project continued double-digits sales growth in India,” Wheeler said.
