A. O. Smith Corporation
- Open
- 60.00
- Day high
- 60.56
- Day low
- 59.88
- Prev close
- 59.26
- Volume
- 53K
- Mkt cap
- $8.2B
- P/E (TTM)
- 16.8
- EPS (TTM)
- $3.59
- P/B
- 4.4
- P/S
- 2.1
- Yield
- 2.39%
- Per share
- $1.44
A. O. Smith Corporation (AOS) is a Industrials company listed on NYSE. The stock is down 16% over the past year. Drillr has 1 published research article covering AOS.
A. O. Smith Corporation (AOS) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
AOS earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 30, 2026 | $0.96 | $1.03 | +7.3% | $1.0B | +0.9% |
| Apr 30, 2026 | $0.94 | $0.85 | -9.7% | $946M | -2.9% |
| Jan 29, 2026 | $0.84 | $0.90 | +7.1% | $913M | -6.7% |
| Oct 28, 2025 | $0.90 | $0.94 | +4.0% | $943M | -0.2% |
| Jul 24, 2025 | $0.97 | $1.07 | +10.2% | $1.0B | +7.5% |
| Apr 29, 2025 | $0.91 | $0.95 | +4.3% | $964M | +1.2% |
| Jan 30, 2025 | $0.90 | $0.85 | -5.6% | $912M | -7.6% |
| Oct 22, 2024 | $0.83 | $0.82 | -1.2% | $903M | -5.8% |
| Jul 23, 2024 | $1.06 | $1.06 | +0.0% | $1.0B | +2.4% |
| Apr 25, 2024 | $0.98 | $1.00 | +2.0% | $979M | -1.7% |
| Jan 30, 2024 | $0.96 | $0.97 | +1.0% | $988M | +0.5% |
| Oct 26, 2023 | $0.80 | $0.90 | +12.5% | $938M | +3.0% |
AOS insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 2, 2026 | Anderson Carrie Lofficer: EVP & CFO | Grant | 32,060 | — |
| May 1, 2026 | Saak Aaron Wdirector | Grant | 2,296 | — |
| Apr 15, 2026 | MAPES CHRISTOPHER Ldirector | Grant | 2,262 | $66.32 |
| Apr 15, 2026 | Fister Todd Wdirector | Grant | 2,262 | $66.32 |
| Apr 15, 2026 | Saak Aaron Wdirector | Grant | 2,262 | — |
| Apr 15, 2026 | MARTIN LOIS Mdirector | Grant | 2,262 | $66.32 |
| Apr 15, 2026 | Kadri Ilhamdirector | Grant | 2,262 | $66.32 |
| Apr 15, 2026 | SMITH MARK Ddirector | Grant | 2,262 | $66.32 |
| Apr 15, 2026 | Larsen Michael Mdirector | Grant | 2,262 | — |
| Apr 15, 2026 | HOLT VICTORIA Mdirector | Grant | 2,262 | — |
| Mar 4, 2026 | Schuh Darrell W.officer: SVP; President & GM Lochinvar | Tax | 356 | $79.89 |
| Mar 4, 2026 | Schuh Darrell W.officer: SVP; President & GM Lochinvar | Sell | 1,104 | $74.39 |
| Feb 17, 2026 | O'Brien Stephen D.officer: SVP; Pres & General Mngr NAWH | Tax | 1,144 | — |
| Feb 17, 2026 | O'Brien Stephen D.officer: SVP; Pres & General Mngr NAWH | Option | 2,905 | — |
| Feb 17, 2026 | Carver Samuel M.officer: SVP - Global Operations | Tax | 1,026 | $79.89 |
Source: AOS SEC Form 4 filings, latest Jul 2, 2026. For informational purposes only — not investment advice.
See the full AOS insider & 13F page →A. O. Smith Corporation company profile
Overview
A. O. Smith Corporation (NYSE:AOS) is a 150-year-old American industrial manufacturer founded in 1874 and headquartered in Milwaukee, Wisconsin. The company has evolved from its origins as a baby carriage manufacturer into a leading global producer of water heating, boiling, and treatment equipment. Today, A. O. Smith operates across North America, China, Europe, and India, serving both residential and commercial markets with a comprehensive portfolio of water-related products and solutions.
Business
A. O. Smith operates in the water heating and treatment industry, manufacturing essential infrastructure products that provide hot water and clean water solutions for homes, businesses, and industrial facilities. The company's core business revolves around water heaters, which are appliances that heat and store water for domestic and commercial use, including traditional tank-style units, tankless systems, and modern heat pump technology. The company operates through two primary business segments: 1. **North America Segment** (approximately 78% of total revenue): This segment manufactures and distributes residential and commercial water heaters, boilers, and water treatment products across the United States and Canada. Products include gas, electric, and heat pump water heaters for homes and businesses, commercial boilers for large buildings like hospitals and schools, and comprehensive water treatment solutions including water softeners and filtration systems. 2. **Rest of World Segment** (approximately 22% of total revenue): This segment focuses primarily on international markets, with significant operations in China and India. In China, the company produces premium water heaters and air purification products, while in India it manufactures water heaters and has recently expanded into water purification through the Pureit acquisition. The company also offers complementary products including expansion tanks, swimming pool heaters, solar water heating systems, and a growing portfolio of water treatment products sold under brands like Aquasana. A. O. Smith's products are distributed through independent wholesale plumbing distributors, retail chains like Home Depot and Lowe's, and increasingly through direct-to-consumer e-commerce channels.
Revenue model
A. O. Smith generates revenue primarily through product sales to distributors, retailers, and end customers. The company operates on a traditional manufacturing business model where it produces physical goods and sells them at a markup above production costs. Revenue streams include sales of water heaters (the largest segment), boilers, water treatment equipment, and related parts and accessories. The company's customers include wholesale plumbing distributors who serve contractors and plumbers, large retail chains like Home Depot, commercial building contractors, and increasingly, direct consumers through e-commerce platforms. In the residential market, most purchases are driven by emergency replacement needs when existing water heaters fail, creating relatively inelastic demand. Several factors influence A. O. Smith's margins and profitability. Steel prices represent a significant input cost, as water heaters require substantial steel for tank construction. The company has implemented pricing formulas that adjust with steel cost fluctuations, but there can be timing delays between cost increases and price adjustments. Energy efficiency regulations drive demand for higher-margin premium products like heat pump water heaters, which can command price premiums of 2-3x over standard units. Tariff policies significantly impact costs, particularly for products manufactured in China and imported to North America. The company has been proactively moving production of certain products to Mexico to mitigate tariff exposure. Housing market conditions affect new construction demand, while the age of the existing housing stock drives replacement demand. Commercial construction activity influences demand for larger commercial water heating systems. In international markets, particularly China, consumer confidence and economic conditions directly impact discretionary purchases of premium water heating products.
Competitive moat
A. O. Smith possesses a moderate competitive moat built primarily on brand recognition, distribution relationships, and manufacturing scale, though this moat faces ongoing challenges from commoditization pressures and new technologies. The company's strongest competitive advantage lies in its established distribution network and relationships with wholesale plumbing distributors who have carried A. O. Smith products for decades. These distributors prefer working with reliable suppliers who can provide consistent product availability, technical support, and training. The company's 150-year history and reputation for quality creates trust among contractors and plumbers who recommend products to end customers. Manufacturing scale and operational efficiency provide cost advantages, particularly in the North American market where A. O. Smith holds significant market share. The company's ability to produce high volumes allows for better supplier negotiations and fixed cost absorption. Additionally, regulatory compliance expertise gives A. O. Smith advantages in navigating complex energy efficiency standards that smaller competitors may struggle to meet. However, the moat faces several challenges. Water heaters are fundamentally commodity products with limited differentiation potential, making the business susceptible to price competition. New entrants, particularly from low-cost manufacturing regions, can disrupt pricing. The emergence of new technologies like heat pump water heaters and smart home integration creates opportunities for tech-focused competitors to gain market share. In international markets, particularly China, local competitors with lower cost structures and better understanding of local preferences pose ongoing threats to A. O. Smith's premium positioning. The company's moat is strongest in North America where brand recognition and distribution relationships are most established, but weaker in international markets where it competes more directly on product features and pricing.
Risks & safety
A. O. Smith demonstrates a strong financial position with low debt levels and consistent cash generation, providing substantial margin of safety for investors. • **Liquidity and Solvency**: Strong balance sheet with $173M in cash, current ratio of 1.61, and debt-to-equity ratio of only 0.16. No significant solvency concerns. • **Cash Generation**: Robust free cash flow of $474M in 2024, with management guiding to $500-550M for 2025. Operating cash flow consistently exceeds $500M annually. • **Debt Management**: Very low debt burden with total debt representing less than 16% of equity. Interest coverage is strong given consistent profitability. • **Valuation Metrics**: Trading at 17.3x forward P/E based on 2025 guidance midpoint, reasonable for a mature industrial company. EV/EBITDA of 11.7x appears fair given cash generation capabilities. • **Dividend Sustainability**: Well-covered dividend with strong free cash flow generation supporting consistent shareholder returns through both dividends and share repurchases. • **Cyclical Considerations**: Replacement-driven demand (80-85% of residential business) provides stability, though commercial segment more sensitive to construction cycles.
Recent development
Over the past few years, A. O. Smith has pursued several key strategic initiatives to position itself for long-term growth and adapt to changing market conditions. The company has made significant investments in tankless water heater technology, launching internally developed gas tankless products and constructing a new manufacturing facility in Juárez, Mexico. This move serves dual purposes: capturing growth in the premium tankless segment while reducing tariff exposure by moving production from China to Mexico. Management expects tankless products to contribute approximately $100 million in sales by 2026. Heat pump water heater expansion represents another major growth initiative, with the company increasing production capacity to meet growing demand driven by energy efficiency regulations and rebate programs. These high-efficiency units command significant price premiums and are expected to grow 20-25% annually as 2029 regulatory changes approach. In water treatment, A. O. Smith has been repositioning its portfolio to focus on higher-margin channels including dealer networks, direct-to-consumer sales, and e-commerce platforms. The company acquired Atlantic Filter Corporation and recently completed the acquisition of Pureit's water purification business in South Asia, doubling its presence in the Indian market. Geographic diversification efforts include restructuring operations in China to reduce costs amid challenging market conditions, while simultaneously expanding in India where the company sees stronger growth potential. The China restructuring is expected to generate approximately $15 million in annual savings. The company has also invested in manufacturing infrastructure, completing a new commercial R&D testing facility in Tennessee and expanding production capacity for high-efficiency products to meet evolving regulatory requirements and consumer preferences.
AOS company profile · for informational purposes only — not investment advice.
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