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ACSmith A. O. Smith Reports Record Second Quarter Sales and Earnings July 29 , 2021 - Raises Outlook Second Quarter 2021 Highlights Total sales of $ 859.8 million , an increase of 30 percent compared with Q2 2020 - Net earnings of $ 118.2 million , an increase of 74 percent compared with Q2 2020 - Record second quarter EPS of $ 0.73 , an increase of 74 percent compared with Q2 2020 2021 Guidance Sales growth between 17 and 18 percent , upgraded from midpoint of 14.5 percent announced in April - EPS between $ 2.70 to $ 2.76 , upgraded five percent from the midpoint announced in April MILWAUKEE , July 29 , 2021 / PRNewswire / -- Global water technology company A. O. Smith Corporation ( the " Company " ) ( NYSE : AOS ) today announced its second quarter 2021 results . AOSmith Innovation has a name . " Our global A. O. Smith team delivered record second quarter earnings per share on a 30 percent increase in sales compared with the second quarter of 2020 , which was negatively impacted by the pandemic . Our teams demonstrated solid execution and operational agility despite supply chain and logistics challenges along with rapidly - rising material costs , " noted Kevin J. Wheeler , chairman and chief executive officer . " Our employees excelled in finding creative and collaborative solutions to keep our customers supplied with the water heating and water treatment products they needed to meet demand . " North America Sales in the North America segment of $ 603.6 million increased 26 percent compared with the second quarter of 2020 driven by higher volumes of water heaters , boilers and water treatment products and price increases implemented in response to rapidly rising material costs as well as increased transportation costs . A. O. Smith Reports Record Sales and Earnings in Second Quarter North America segment earnings of $ 141.7 million increased 34 percent compared with the second quarter of 2020. The impact to earnings from higher volumes and inflation - related price increases was partially offset by higher material and freight costs . As a result of these factors , segment operating margin of 23.5 percent improved compared with 21.9 percent in the second quarter of 2020 . Rest of World Rest of World segment sales of $ 263.2 million increased 39 percent from the second quarter of 2020 , driven by local currency sales growth of 26 percent in China . Sales growth in each of the Company's major product categories in China contributed to higher sales . Currency translation of China sales favorably impacted sales by approximately $ 20 million . Rest of World segment earnings of $ 22.3 million increased significantly compared with the loss of $ 5.8 million in the second quarter of 2020 , which was negatively impacted by shutdowns and reduced consumer spending resulting from the pandemic . In China , higher volumes and lower selling and administrative costs were partially offset by the absence of social insurance waivers in 2021 , which had been granted in 2020. As a result , segment operating margin of 8.5 percent improved from a negative 3.1 percent in the second quarter of 2020 . Balance Sheet , Liquidity and Share Repurchases As of June 30 , 2021 , the Company had cash and marketable securities balances totaling $ 581.9 million . The Company's total debt was $ 106.4 million at the end of June , and its leverage ratio was 5.5 percent as measured by total debt - to - total capitalization . Cash provided by operations of $ 196.0 million during the first half of 2021 increased from $ 179.3 million during the same period in 2020. Higher earnings in 2021 compared with the prior year were partially offset by a larger investment in working capital during the first half of 2021 compared with the same period in 2020 . During the first half of 2021 , the Company repurchased 2,978,657 shares at a cost of approximately $ 198.1 million . There was available authority to repurchase approximately 5.6 million shares at the end of June . Operations and Supply Chain