Segment Results

9 Months Ended

Sep. 30, 2025

The Company is comprised of two reporting segments: North America and Rest of World. The Rest of World segment is primarily comprised of China, Europe and India. Both segments manufacture and market comprehensive lines of residential and commercial gas and electric water heaters, boilers, tanks and water treatment products. Both segments primarily manufacture and market in their respective regions of the world.


	Three Months Ended September 30, 2025
(dollars in millions)	North America		Rest of World		Inter-segment Elimination		Total Segments		Corporate Expenses		Total
Sales from external customers	$	737.7	$	204.8	$	—	$	942.5	$	—	$	942.5
Inter-segment sales	5.1		3.1		—		8.2		—		8.2
	742.8		207.9		—		950.7		—		950.7
Elimination of Inter-segment sales	(5.1)		(3.1)		—		(8.2)		—		(8.2)
Net Sales	737.7		204.8		—		942.5		—		942.5
Cost of products sold	447.9		130.1		—		578.0		—		578.0
Gross Profit	289.8		74.7		—		364.5		—		364.5
Inter-segment Profit	—		—		—		—		—		—
Selling, general and administrative expenses	109.6		58.6		—		168.2		20.7		188.9
Other (income) expense, net	0.5		0.7		—		1.2		(1.0)		0.2
Earnings	$	179.7	$	15.4	$	—	$	195.1	$	(19.7)	$	175.4
Interest expense											(3.6)
Earnings before provision for income taxes											$	171.8


	Three Months Ended September 30, 2024
(dollars in millions)	North America		Rest of World		Inter-segment Elimination		Total Segments		Corporate Expenses		Total
Sales from external customers	$	697.6	$	205.0	$	—	$	902.6	$	—	$	902.6
Inter-segment sales	5.7		5.3		—		11.0		—		11.0
	703.3		210.3		—		913.6		—		913.6
Elimination of Inter-segment sales	(5.7)		(5.3)		—		(11.0)		—		(11.0)
Net Sales	697.6		205.0		—		902.6		—		902.6
Cost of products sold	432.8		132.5		—		565.3		—		565.3
Gross Profit	264.8		72.5		—		337.3		—		337.3
Inter-segment Profit	—		—		—		—		—		—
Selling, general and administrative expenses	102.7		58.6		—		161.3		15.3		176.6
Other expense (income), net	(0.4)		0.3		—		(0.1)		2.7		2.6
Earnings	$	162.5	$	13.6	$	—	$	176.1	$	(18.0)	$	158.1
Interest expense											(1.5)
Earnings before provision for income taxes											$	156.6


	Nine Months Ended September 30, 2025
(dollars in millions)	North America		Rest of World		Inter-segment Elimination		Total Segments		Corporate Expenses		Total
Sales from external customers	$	2,255.1	$	662.6	$	—	$	2,917.7	$	—	$	2,917.7
Inter-segment sales	15.4		12.1		—		27.5		—		27.5
	2,270.5		674.7		—		2,945.2		—		2,945.2
Elimination of Inter-segment sales	(15.4)		(12.1)		—		(27.5)		—		(27.5)
Net Sales	2,255.1		662.6		—		2,917.7		—		2,917.7
Cost of products sold	1,356.9		423.8		—		1,780.7		—		1,780.7
Gross Profit	898.2		238.8		—		1,137.0		—		1,137.0
Inter-segment Profit	—		0.2		(0.2)		—		—		—
Selling, general and administrative expenses	335.8		176.6		—		512.4		60.4		572.8
Other (income) expense, net	(0.6)		2.0		—		1.4		(2.8)		(1.4)
Earnings	$	563.0	$	60.4	$	(0.2)	$	623.2	$	(57.6)	$	565.6
Interest expense											(11.1)
Earnings before provision for income taxes											$	554.5


	Nine Months Ended September 30, 2024
(dollars in millions)	North America		Rest of World		Inter-segment Elimination		Total Segments		Corporate Expenses		Total
Sales from external customers	$	2,243.6	$	662.1	$	—	$	2,905.7	$	—	$	2,905.7
Inter-segment sales	16.7		19.9		—		36.6		—		36.6
	2,260.3		682.0		—		2,942.3		—		2,942.3
Elimination of Inter-segment sales	(16.7)		(19.9)		—		(36.6)		—		(36.6)
Net Sales	2,243.6		662.1		—		2,905.7		—		2,905.7
Cost of products sold	1,356.3		431.4		—		1,787.7		—		1,787.7
Gross Profit	887.3		230.7		—		1,118.0		—		1,118.0
Inter-segment Profit	—		0.4		(0.4)		—		—		—
Selling, general and administrative expenses	327.0		175.7		—		502.7		54.6		557.3
Other expense (income), net	0.7		(1.3)		—		(0.6)		1.1		0.5
Earnings	$	559.6	$	56.7	$	(0.4)	$	615.9	$	(55.7)	$	560.2
Interest expense											(4.3)
Earnings before provision for income taxes											$	555.9

Assets, depreciation and capital expenditures by segment


Assets
(dollars in millions)	September 30, 2025		December 31, 2024
North America	$	2,365.2	$	2,315.2
Rest of World	556.1		592.1
Total Segments	2,921.3		2,907.3
Corporate(1)	249.4		332.7
Total	$	3,170.7	$	3,240.0

(1) The majority of corporate assets consist of cash, cash equivalents, marketable securities, and deferred income taxes.


Depreciation and amortization	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in millions)	2025		2024		2025		2024
North America	$	16.5	$	15.3	$	47.5	$	45.1
Rest of World	4.8		4.6		14.2		13.3
Total Segments	21.3		19.9		61.7		58.4
Corporate	0.3		0.4		1.1		1.1
Total	$	21.6	$	20.3	$	62.8	$	59.5


Capital expenditures	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in millions)	2025		2024		2025		2024
North America	$	12.4	$	30.9	$	45.1	$	71.4
Rest of World	2.4		1.6		8.1		5.9
Total Segments	14.8		32.5		53.2		77.3
Corporate	—		—		—		0.1
Total	$	14.8	$	32.5	$	53.2	$	77.4

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

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