A. O. Smith Corporation stock research
FY2025 Q2
A. O. Smith (AOS) Gross Margin — Quarter Ended Jun 30, 2025
Revenue was stable compared to the same quarter last year and higher than the prior quarter. Gross profit and gross margin both improved relative to the prior quarter and the year-ago quarter, while cost of revenue was lower year over year but higher sequentially.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue was stable compared to the same quarter last year and higher than the prior quarter. Gross profit and gross margin both improved relative to the prior quarter and the year-ago quarter, while cost of revenue was lower year over year but higher sequentially.
- Gross margin strengthened sequentially and year over year, driven by a combination of higher revenue and lower cost of revenue relative to the year-ago period. The margin improvement was supported by a favorable relationship between revenue growth and cost control.
- Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved slightly. Versus the same quarter last year, revenue was essentially unchanged, gross profit was slightly higher, and gross margin improved as cost of revenue was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.3%
Gross profit
$397.1M
Revenue
$1.0B
Cost of revenue
$614.2M
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+0.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 30, 2024 | $902.6M | $337.3M | $565.3M | 37.4% |
| Dec 31, 2024 | $912.4M | $338.1M | $574.3M | 37.1% |
| Mar 31, 2025 | $963.9M | $375.4M | $588.5M | 38.9% |
| Jun 30, 2025 | $1.0B | $397.1M | $614.2M | 39.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.3 pts
Year-over-year change
Jun 30, 2024
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin strengthened sequentially and year over year, driven by a combination of higher revenue and lower cost of revenue relative to the year-ago period. The margin improvement was supported by a favorable relationship between revenue growth and cost control.
Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved slightly. Versus the same quarter last year, revenue was essentially unchanged, gross profit was slightly higher, and gross margin improved as cost of revenue was lower.
Monitor the allowance for credit losses, which increased from the end of the prior fiscal year to the current period, as noted in the filing.