Company: AOS
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000091142-25-000075
Chunk: 41

Company: SMITH A O CORP
Filing Date: 2025-04-29
Form: 10-Q
Item: Part I, Item 2
Chunk 41
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 in third-party sales. We expect full-year earnings of between $3.60 and $3.90 per share. Given the uncertainty of the tariff environment, our guidance does not include our announced pricing which we project will offset, along with other actions, the current announced tariffs through the date of this filing. In addition to pricing, our other actions include footprint optimization, strategic sourcing actions and other cost containment initiatives. Our guidance also excludes the impacts from potential future acquisitions.

20

Liquidity & Capital Resources

Our working capital was $540.0 million at March 31, 2025, compared with $495.7 million at December 31, 2024. The increase in working capital was primarily related to higher receivable balances, lower accounts payable and lower payroll-related accruals and was partially offset by lower cash balances. As of March 31, 2025, cash balances were positively impacted by $0.6 million due to changes in foreign currency during the quarter. Cash and cash equivalents used to fund our operations are primarily generated through operating activities and our existing credit facilities. We believe our available cash and existing credit facilities are sufficient to cover our cash needs for the foreseeable future. We use a global cash pooling arrangement, intercompany borrowing, and some local credit lines to meet funding needs and allocate capital resources among various entities. We have historically made and anticipate future cash repatriations from certain foreign subsidiaries. 

(dollars in millions)Three Months EndedMarch 31,20252024Cash provided by operating activities$38.7 $106.6 Cash used in investing activities(10.8)(71.2)Cash used in financing activities(95.1)(120.6)

Cash provided by operations in the first three months of 2025 was $38.7 million and lower than $106.6 million in the first three months of 2024, primarily due to lower accounts receivable collections which resulted from lower prior quarter sales as well as lower current quarter earnings. Our free cash flow in the first quarter of 2025 and 2024 was $17.4 million and $84.6 million, respectively. We expect cash provided by operating activities to be between $600 million and $650 million in 2025. We expect free cash flow to be between $500 million and $550 million in 2025. Free cash flow is a non-GAAP measure described in more detail in the Non-GAAP Measures section below.  

Capital expenditures totaled $21.3