v3.26.1
Segment Results
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Results Segment Results
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.
The Company’s Chief Executive Officer (CEO) is the Chief Operating Decision Maker (CODM). The CODM allocates resources and makes operating decisions based on the financial information presented by the two reporting segments. The measures regularly reviewed by the CODM include segment sales, earnings, and segment margin. Segment earnings, defined by the Company as earnings before interest expense, taxes, corporate expense, and corporate research and development expenses, were used to measure the performance of the segments. The CODM uses these financial measures to evaluate and allocate capital and company resources as critical determinants of segment performance.
Three Months Ended June 30, 2026
(dollars in millions)North AmericaRest of WorldTotal SegmentsCorporate ExpensesTotal
Sales from external customers$816.3 $188.0 $1,004.3 $— $1,004.3 
Inter-segment sales4.2 6.9 11.1 — 11.1 
820.5 194.9 1,015.4 — 1,015.4 
Elimination of Inter-segment sales(4.2)(6.9)(11.1)— (11.1)
Net Sales816.3 188.0 1,004.3 — 1,004.3 
Cost of products sold496.0 120.5 616.5 — 616.5 
Gross profit320.3 67.5 387.8 — 387.8 
Selling, general and administrative expenses120.4 55.5 175.9 21.8 197.7 
Restructuring and impairment expense22.6 — 22.6 — 22.6 
Other expense (income), net0.1 1.8 1.9 (0.5)1.4 
Earnings$177.2 $10.2 $187.4 $(21.3)$166.1 
Interest expense(8.1)
Earnings before provision for income taxes$158.0 
Three Months Ended June 30, 2025
(dollars in millions)North AmericaRest of WorldInter-segment EliminationTotal SegmentsCorporate ExpensesTotal
Sales from external customers$774.0 $237.3 $— $1,011.3 $— $1,011.3 
Inter-segment sales5.0 2.8 — 7.8 — 7.8 
779.0 240.1 — 1,019.1 — 1,019.1 
Elimination of Inter-segment sales(5.0)(2.8)— (7.8)— (7.8)
Net Sales774.0 237.3 — 1,011.3 — 1,011.3 
Cost of products sold463.3 150.9 — 614.2 — 614.2 
Gross profit310.7 86.4 — 397.1 — 397.1 
Inter-segment profit— 0.2 (0.2)— — — 
Selling, general and administrative expenses112.8 60.6 — 173.4 17.9 191.3 
Other (income) expense, net(0.2)0.7 — 0.5 (0.9)(0.4)
Earnings$198.1 $25.3 $(0.2)$223.2 $(17.0)$206.2 
Interest expense(4.6)
Earnings before provision for income taxes$201.6 
Six Months Ended June 30, 2026
(dollars in millions)North AmericaRest of WorldTotal SegmentsCorporate ExpensesTotal
Sales from external customers$1,565.2 $384.7 $1,949.9 $— $1,949.9 
Inter-segment sales8.7 10.9 19.6 — 19.6 
1,573.9 395.6 1,969.5 — 1,969.5 
Elimination of Inter-segment sales(8.7)(10.9)(19.6)— (19.6)
Net Sales1,565.2 384.7 1,949.9 — 1,949.9 
Cost of products sold947.7 248.7 1,196.4 — 1,196.4 
Gross profit617.5 136.0 753.5 — 753.5 
Selling, general and administrative expenses242.6 110.4 353.0 48.6 401.6 
Restructuring and impairment expense22.6 — 22.6 — 22.6 
Other (income) expense, net(0.3)3.0 2.7 (1.3)1.4 
Earnings$352.6 $22.6 $375.2 $(47.3)$327.9 
Interest expense(15.2)
Earnings before provision for income taxes$312.7 
Six Months Ended June 30, 2025
(dollars in millions)North AmericaRest of WorldInter-segment EliminationTotal SegmentsCorporate ExpensesTotal
Sales from external customers$1,517.4 $457.8 $— $1,975.2 $— $1,975.2 
Inter-segment sales10.3 9.0 — 19.3 — 19.3 
1,527.7 466.8 — 1,994.5 — 1,994.5 
Elimination of Inter-segment sales(10.3)(9.0)— (19.3)— (19.3)
Net Sales1,517.4 457.8 — 1,975.2 — 1,975.2 
Cost of products sold909.0 293.7 — 1,202.7 — 1,202.7 
Gross profit608.4 164.1 — 772.5 — 772.5 
Inter-segment profit— 0.2 (0.2)— — — 
Selling, general and administrative expenses226.2 118.0 — 344.2 39.7 383.9 
Other (income) expense, net(1.1)1.3 — 0.2 (1.8)(1.6)
Earnings$383.3 $45.0 $(0.2)$428.1 $(37.9)$390.2 
Interest expense(7.5)
Earnings before provision for income taxes$382.7 
Assets, depreciation and capital expenditures by segment
Assets
(dollars in millions)June 30, 2026December 31, 2025
North America$2,844.8 $2,325.7 
Rest of World530.2 547.3 
Total Segments3,375.0 2,873.0 
Corporate(1)
269.5 269.8 
Total$3,644.5 $3,142.8 
(1) The majority of corporate assets consist of cash, cash equivalents, marketable securities, and deferred income taxes.
Depreciation and amortizationThree Months Ended
June 30,		Six Months Ended
June 30,
(dollars in millions)2026202520262025
North America$19.8 $15.6 $38.9 $31.0 
Rest of World4.4 4.4 8.9 9.4 
Total Segments24.2 20.0 47.8 40.4 
Corporate0.4 0.5 0.7 0.8 
Total$24.6 $20.5 $48.5 $41.2 
Capital expendituresThree Months Ended
June 30,		Six Months Ended
June 30,
(dollars in millions)2026202520262025
North America$8.4 $13.7 $17.9 $32.7 
Rest of World1.5 3.4 2.5 5.7 
Total Segments9.9 17.1 20.4 38.4 
Corporate0.1 — 0.1 — 
Total$10.0 $17.1 $20.5 $38.4