Tearsheet

A.O. Smith (AOS)

Market Price (12/14/2025): $68.635 | Market Cap: $9.6 Bil
Sector: Industrials | Industry: Building Products

A.O. Smith (AOS)

Market Price (12/14/2025): $68.635
Market Cap: $9.6 Bil
Sector: Industrials
Industry: Building Products

Investment Highlights Why It Matters Which of these 2 stories sounds closer for this stock?

1. Generates cash flow

The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.

2. Riding a trend

Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow

0	Attractive yield Total YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 7.1%, FCF Yield is 5.6%	Weak multi-year price returns 2Y Excs Rtn is -57%, 3Y Excs Rtn is -51%	Weak revenue growth Rev Chg LTMRevenue Change % Last Twelve Months (LTM) is -1.6%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is 0.2%
1	Attractive cash flow generation CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 17%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 15%
2	Low stock price volatility Vol 12M is 24%
3	Megatrend and thematic drivers Megatrends include Electrification of Everything, Water Infrastructure, and Sustainable Resource Management. Themes include Heat Pump Technology, Show more.

0	Attractive yield Total YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 7.1%, FCF Yield is 5.6%
1	Attractive cash flow generation CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 17%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 15%
2	Low stock price volatility Vol 12M is 24%
3	Megatrend and thematic drivers Megatrends include Electrification of Everything, Water Infrastructure, and Sustainable Resource Management. Themes include Heat Pump Technology, Show more.
4	Weak multi-year price returns 2Y Excs Rtn is -57%, 3Y Excs Rtn is -51%
5	Weak revenue growth Rev Chg LTMRevenue Change % Last Twelve Months (LTM) is -1.6%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is 0.2%

Valuation, Metrics & Events

	12/14/25	2024	2023	2022	2021
Share Price CYE	$68.64	$66.83	$79.49	$54.20	$79.79
Market Cap CYE ($ Bil)	9.6	9.7	11.8	8.3	12.7
Total Debt ($ Bil)	0.2	0.2	0.2	0.4	0.2
Total Cash ($ Bil)	0.2	0.3	0.4	0.5	0.6
Enterprise Value ($ Bil)	9.7	9.9	12.0	8.7	12.9
Valuation Ratios
P/S TTM	2.7	2.6	3.2	2.4	3.9
P/EBIT TTM	14.4	14.1	16.6	38.0	21.8
P/E TTM	19.3	18.7	22.2	37.6	28.2
Sector Ratios
P/S TTM (Sector)	11.4	10.5	8.0	5.0	10.4
P/EBIT TTM (Sector)	29.1	31.2	26.5	17.6	29.4
P/E TTM (Sector)	37.5	39.9	36.4	22.9	42.6

	12/14/25	2024	2023
Share Price CYE	$68.64	$66.83	$79.49
Market Cap CYE ($ Bil)	9.6	9.7	11.8
Total Debt ($ Bil)	0.2	0.2	0.2
Total Cash ($ Bil)	0.2	0.3	0.4
Enterprise Value ($ Bil)	9.7	9.9	12.0
Valuation Ratios
P/S TTM	2.7	2.6	3.2
P/EBIT TTM	14.4	14.1	16.6
P/E TTM	19.3	18.7	22.2
Sector Ratios
P/S TTM (Sector)	11.4	10.5	8.0
P/EBIT TTM (Sector)	29.1	31.2	26.5
P/E TTM (Sector)	37.5	39.9	36.4

	AOS	S&P 500
REVENUE GROWTH
Rev LTM ($ Bil)	3.8
Rev Chg Q	4.4%	15.9%
Rev Chg LTM	-1.6%	13.2%
Rev Chg 3Y Avg	0.2%	12.2%
PROFITABILITY	FAIR
Op Inc LTM ($ Bil)	0.7
CFO LTM ($ Bil)	0.7
Net Inc LTM ($ Bil)	0.5
Op Mgn LTM	18.8%	37.5%
CFO/Rev LTM	17.1%	35.5%
Net Inc Mgn	13.9%	27.6%
VALUATION	MODERATE
P/S	2.7	11.4
P/CFO	15.7	30.6
P/FCF	17.9	54.0
P/E	19.3	37.5
STABILITY	GOOD
Debt/Equity	0.02	0.03
Cash/Assets	0.05	0.16

AI Generated Analysis | Feedback

Metric	Value	Date	Source
Number of Employees	Approximately 12,700	12312024	Link
Research and Development Expenditures	$101.7 million	12312024	Link
Market Leadership in China	One of the market leaders of water heaters and reverse osmosis water treatment products to the residential market in China in dollar terms.	2112025	Link
Number of Countries Served	Approximately 80	12312024	Link
5-Year Compound Annual Revenue Growth Rate	7.2%	12312024	Link
5-Year Compound Annual Adjusted EPS Growth Rate	14.6%	12312024	Link
Percentage of Revenue from Green Products	32.2%	12312023	Link
Annual Water Savings Goal	40 million gallons by 2030	11062024	Link

Upcoming
1/29/2026	Earnings Release	Rev: - EPS: -

AOS Stock

Return (1M):

Why The Stock Moved

Qualitative Assessment

AI Generated Analysis | Feedback

Here are the key points for the movement of A.O. Smith (AOS) stock for the approximate time period from August 31, 2025, to December 15, 2025:

1. Mixed Q3 2025 Financial Results: A.O. Smith reported its third-quarter 2025 financial results on October 28, 2025, which showed a 15% increase in earnings per share (EPS) to $0.94, exceeding analyst expectations. However, sales of $943 million were slightly below the forecasted $947.1 million. This mixed performance led to a negative reaction in the stock, which traded down 2.35% in pre-market.

2. Lowered and Narrowed Full-Year Guidance: Following the third-quarter results, the company updated its full-year 2025 EPS guidance, narrowing the range to $3.70 to $3.85 per share, a slight reduction from the previous $3.70 to $3.90 range. This revised outlook reflected cautious expectations for key markets, including projections for flat U.S. residential water heater industry volumes and a continued decline in China sales.

3. Continued Weakness in the Chinese Market: A significant factor contributing to investor concern was the ongoing weakness in the Chinese market, where sales in local currency decreased by 12% during Q3 2025. This decline was attributed to economic challenges and reduced government stimulus programs. The company had also initiated a strategic review of its China business in November 2025, indicating persistent market difficulties.

4. Impact of Tariffs and Rising Input Costs: A.O. Smith noted that pricing actions were implemented in North America to offset higher tariffs and other input costs. Management projected that these tariff-related costs would continue to increase into the fourth quarter of 2025, adding further pressure on profitability.

5. Softening U.S. Residential Water Heater Market: The company's outlook included a projection for flat to slightly down U.S. residential industry unit volumes for 2025 compared to the prior year. This adjustment was due to revised expectations for residential new construction, and analysts highlighted low residential water heater demand stemming from reduced housing completions and weakened consumer confidence.

Show less

Stock Movement Drivers

Fundamental Drivers

The -4.9% change in AOS stock from 9/14/2025 to 12/14/2025 was primarily driven by a -8.1% change in the company's P/E Multiple.

	9142025	12142025	Change
Stock Price ($)	72.18	68.64	-4.91%
Change Contribution By	LTM	LTM
Total Revenues ($ Mil)	3790.20	3830.10	1.05%
Net Income Margin (%)	13.68%	13.85%	1.23%
P/E Multiple	19.71	18.11	-8.14%
Shares Outstanding (Mil)	141.63	139.95	1.18%
Cumulative Contribution			-4.92%

LTM = Last Twelve Months as of date shown

Market Drivers

9/14/2025 to 12/14/2025

	Return	Correlation
AOS	-4.8%
Market (SPY)	3.7%	33.2%
Sector (XLI)	3.4%	62.2%

Fundamental Drivers

The 8.7% change in AOS stock from 6/15/2025 to 12/14/2025 was primarily driven by a 4.3% change in the company's P/E Multiple.

	6152025	12142025	Change
Stock Price ($)	63.16	68.64	8.67%
Change Contribution By	LTM	LTM
Total Revenues ($ Mil)	3803.20	3830.10	0.71%
Net Income Margin (%)	13.74%	13.85%	0.80%
P/E Multiple	17.35	18.11	4.35%
Shares Outstanding (Mil)	143.58	139.95	2.53%
Cumulative Contribution			8.60%

LTM = Last Twelve Months as of date shown

Market Drivers

6/15/2025 to 12/14/2025

	Return	Correlation
AOS	8.8%
Market (SPY)	14.5%	35.1%
Sector (XLI)	10.2%	55.2%

Fundamental Drivers

The -3.4% change in AOS stock from 12/14/2024 to 12/14/2025 was primarily driven by a -3.9% change in the company's Net Income Margin (%).

	12142024	12142025	Change
Stock Price ($)	71.03	68.64	-3.37%
Change Contribution By	LTM	LTM
Total Revenues ($ Mil)	3893.80	3830.10	-1.64%
Net Income Margin (%)	14.41%	13.85%	-3.90%
P/E Multiple	18.42	18.11	-1.73%
Shares Outstanding (Mil)	145.58	139.95	3.86%
Cumulative Contribution			-3.51%

LTM = Last Twelve Months as of date shown

Market Drivers

12/14/2024 to 12/14/2025

	Return	Correlation
AOS	-3.2%
Market (SPY)	13.9%	46.3%
Sector (XLI)	15.3%	59.3%

Fundamental Drivers

The 27.6% change in AOS stock from 12/15/2022 to 12/14/2025 was primarily driven by a 9.2% change in the company's Shares Outstanding (Mil).

	12152022	12142025	Change
Stock Price ($)	53.78	68.64	27.62%
Change Contribution By	LTM	LTM
Total Revenues ($ Mil)	3813.30	3830.10	0.44%
Net Income Margin (%)	12.99%	13.85%	6.62%
P/E Multiple	16.74	18.11	8.17%
Shares Outstanding (Mil)	154.20	139.95	9.24%
Cumulative Contribution			26.53%

LTM = Last Twelve Months as of date shown

Market Drivers

12/15/2023 to 12/14/2025

	Return	Correlation
AOS	-10.0%
Market (SPY)	48.0%	42.9%
Sector (XLI)	42.4%	56.6%

Return vs. Risk

Price Returns Compared

	2020	2021	2022	2023	2024	2025	Total [1]
Returns
AOS Return	17%	59%	-32%	47%	-16%	3%	61%
Peers Return	22%	35%	-22%	50%	19%	9%	150%
S&P 500 Return	16%	27%	-19%	24%	23%	16%	111%
Monthly Win Rates [3]
AOS Win Rate	50%	75%	33%	58%	42%	50%
Peers Win Rate	58%	72%	33%	60%	58%	62%
S&P 500 Win Rate	58%	75%	42%	67%	75%	73%
Max Drawdowns [4]
AOS Max Drawdown	-27%	-3%	-43%	0%	-16%	-12%
Peers Max Drawdown	-37%	-6%	-40%	-5%	-7%	-20%
S&P 500 Max Drawdown	-31%	-1%	-25%	-1%	-2%	-15%

[1] Cumulative total returns since the beginning of 2020
[2] Peers: WTS, XYL, PNR, IR, LII. See AOS Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 12/12/2025 (YTD)

How Low Can It Go

Unique Key	Event	AOS	S&P 500
2022 Inflation Shock	2022 Inflation Shock
2022 Inflation Shock% Loss	% Loss	-43.4%	-25.4%
2022 Inflation Shock% Gain to Breakeven	% Gain to Breakeven	76.7%	34.1%
2022 Inflation ShockTime to Breakeven	Time to Breakeven	524 days	464 days
2020 Covid Pandemic	2020 Covid Pandemic
2020 Covid Pandemic% Loss	% Loss	-28.4%	-33.9%
2020 Covid Pandemic% Gain to Breakeven	% Gain to Breakeven	39.7%	51.3%
2020 Covid PandemicTime to Breakeven	Time to Breakeven	75 days	148 days
2018 Correction	2018 Correction
2018 Correction% Loss	% Loss	-40.3%	-19.8%
2018 Correction% Gain to Breakeven	% Gain to Breakeven	67.5%	24.7%
2018 CorrectionTime to Breakeven	Time to Breakeven	665 days	120 days
2008 Global Financial Crisis	2008 Global Financial Crisis
2008 Global Financial Crisis% Loss	% Loss	-58.4%	-56.8%
2008 Global Financial Crisis% Gain to Breakeven	% Gain to Breakeven	140.3%	131.3%
2008 Global Financial CrisisTime to Breakeven	Time to Breakeven	379 days	1480 days

Compare to CARR, FIX, WSO, WTS, WHR

In The Past

A.O. Smith's stock fell -43.4% during the 2022 Inflation Shock from a high on 12/31/2021. A -43.4% loss requires a 76.7% gain to breakeven.

Preserve Wealth

Limiting losses and compounding gains is essential to preserving wealth over time.

Asset Allocation

Actively managed asset allocation strategies protect wealth. Learn more.

About A.O. Smith (AOS)

A. O. Smith Corporation manufactures and markets residential and commercial gas, heat pump and electric water heaters, boilers, tanks, and water treatment products in North America, China, Europe, and India. It operates through two segments, North America and Rest of World. The company offers water heaters for residences, restaurants, hotels and motels, office buildings, laundries, car washes, and small businesses; commercial boilers for hospitals, schools, hotels, and other large commercial buildings, as well as residential boilers for homes, apartments, and condominiums; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, on-the-go filtration bottles, point-of-use carbon, and reverse osmosis products for residences, restaurants, hotels, and offices. It also provides food and beverage filtration products; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and heat pumps, electric wall-hung, gas tankless, combi-boiler, heat pump and solar water heaters. The company offers its products primarily under the A. O. Smith, State, Lochinvar, and water softener brands. It distributes its products through independent wholesale plumbing distributors, as well as through retail channels consisting of hardware and home center chains, and manufacturer representative firms; and offers Aquasana branded products directly to consumers through e-commerce, as well as other online retailers. A. O. Smith Corporation was founded in 1874 and is headquartered in Milwaukee, Wisconsin.

AI Generated Analysis | Feedback

A.O. Smith is like the **Carrier or Trane of hot water and water treatment systems.**
Think of it as the **Whirlpool or GE Appliances, but specifically dedicated to ensuring you have hot water and clean water** throughout your home or business.

AI Generated Analysis | Feedback

Water Heaters: A.O. Smith manufactures a wide range of residential and commercial water heating equipment, including tank-style, tankless, and heat pump models.
Water Treatment Products: The company provides various water purification and softening solutions, such as water filters, water softeners, and reverse osmosis systems for home and light commercial applications.

AI Generated Analysis | Feedback

A.O. Smith (AOS) primarily sells its water heaters and boilers to other companies through wholesale distribution channels and major retail chains. While no single customer accounts for 10% or more of its total consolidated net sales, the major categories of its direct business-to-business (B2B) customers include:

Wholesale Distributors: These companies purchase A.O. Smith products in bulk and distribute them to plumbing contractors, builders, and other professional installers. Examples of prominent companies in this sector that are highly likely to be A.O. Smith customers include:
- Ferguson plc (NYSE: FERG)
- Winsupply Inc. (private)
- Hajoca Corporation (private)
National Retail Hardware and Home Center Chains: These large retailers sell A.O. Smith water heaters directly to consumers and professional contractors. Prominent examples that are highly likely to be A.O. Smith customers include:
- The Home Depot, Inc. (NYSE: HD)
- Lowe's Companies, Inc. (NYSE: LOW)

AI Generated Analysis | Feedback

null

AI Generated Analysis | Feedback

Stephen M. Shafer President and Chief Executive Officer Mr. Shafer will assume the role of President and Chief Executive Officer of A. O. Smith effective July 1, 2025. He joined A. O. Smith as President and Chief Operating Officer in March 2024 to lead the company's global business units, operations, supply chain, corporate technology, and information technology. Prior to joining A. O. Smith, Mr. Shafer served as President of the Automotive and Aerospace Solutions division at 3M Company. Kevin J. Wheeler Executive Chairman Mr. Wheeler will transition from Chairman and Chief Executive Officer to Executive Chairman of A. O. Smith effective July 1, 2025, continuing to lead the Board of Directors and remaining involved in strategic development, mergers and acquisitions, investor relations, and executive talent development. He joined A. O. Smith in 1994 and has held various leadership positions, including Managing Director of A. O. Smith Water Products Company B.V. in Europe and the Middle East, Vice President-International, and President of the North America, India and Europe water heating business. Mr. Wheeler began his career in 1984 at Hoyt Water Heater Company and also held sales management positions at Bradford White Corporation and American Water Heater Company. He is a director of Graco Inc. Charles T. Lauber Executive Vice President and Chief Financial Officer Mr. Lauber was named Executive Vice President and Chief Financial Officer in May 2019, overseeing all financial functions of the company, including treasury, controllership, cash management, and investor relations. He joined A. O. Smith in December 1999 as corporate director of tax and audit and has since held significant leadership roles in corporate and business unit finance and accounting, and as Senior Vice President of Corporate Development and Strategy. Before joining A. O. Smith, Mr. Lauber held auditing and management positions with Ernst & Young from 1984 to 1999. He serves on the board of directors of the National Association of Manufacturers (NAM) and H.B. Fuller. James F. Stern Executive Vice President, Corporate Development, Strategy and Secretary Mr. Stern was named Executive Vice President, Corporate Development, Strategy and Secretary in October 2025, focusing on corporate development and strategy, while also maintaining responsibility for government, industry, and regulatory affairs, and his role as secretary. He joined A. O. Smith in 2007 as Executive Vice President, General Counsel and Secretary, after 15 years as a partner at Foley & Lardner LLP, specializing in mergers and acquisitions and corporate practice. He also served as an associate at Latham & Watkins LLP. Mr. Stern currently serves on the board of directors of Badger Meter, Inc., and previously served on the boards of Jason Industries, Inc. and Polar Ware Company. D. Samuel Karge Senior Vice President and President - North America Water Treatment Mr. Karge is Senior Vice President and President - North America Water Treatment. He has an extensive background in the water treatment industry, with experience in marketing, sales, and management roles at companies including Zurn Industries, LLC, Pentair Water Quality Systems, GE Water & Process Technologies, and Osmonics, Inc., prior to his roles at A. O. Smith Corporation.

AI Generated Analysis | Feedback

The rapid acceleration of electrification and decarbonization policies and incentives, particularly favoring high-efficiency electric heat pump water heaters (HPWHs) over traditional natural gas models. This trend, driven by governmental mandates, rebates (e.g., from the Inflation Reduction Act in the US), and environmental concerns, poses a clear emerging threat to A.O. Smith's substantial legacy market share and installed base of gas-fired water heaters. While A.O. Smith offers HPWHs, the swift transition requires significant investment in retooling manufacturing, adapting supply chains, and shifting market focus, potentially creating opportunities for more agile or specialized competitors to gain ground in this evolving segment or placing pressure on margins for their established gas product lines.

AI Generated Analysis | Feedback

A.O. Smith (NYSE: AOS) operates in the markets for water heaters, boilers, and water treatment and purification products. The addressable market sizes for their main products or services are as follows:

Water Heaters

The global water heater market was valued at approximately USD 33.7 billion in 2024 and is projected to reach USD 57.5 billion by 2034, with a compound annual growth rate (CAGR) of 5.6%. Other estimates for the global water heater market size include USD 30.48 billion in 2024, expected to grow to USD 46.33 billion by 2033 with a CAGR of 4.8%, and USD 36.1 billion in 2024, forecasted to reach USD 92 billion by 2034 at a CAGR of 9.8%. Additionally, another report valued the global market at $23.7 billion in 2023, expecting it to reach $32.1 billion by 2029 with a CAGR of 5.2%.
The U.S. water heater market is anticipated to exceed USD 5 billion by 2034.

Boilers

The global boiler market was valued at USD 100.3 billion in 2024 and is projected to grow at a 7% CAGR from 2025 to 2034.
The global industrial boiler market size was estimated at USD 16.55 billion in 2024 and is projected to reach USD 22.71 billion by 2033, growing at a CAGR of 3.6%.
The global commercial boiler market size was valued at USD 4.34 billion in 2023 and is projected to grow to USD 6.93 billion by 2032, exhibiting a CAGR of 5.41%.
The U.S. boiler market is anticipated to exceed USD 10 billion by 2034.
One report indicated the global boiler market size was valued at USD 14.32 million in 2025 and is expected to reach USD 19.84 million by 2033.

Water Treatment and Purification Products

The global water and wastewater treatment market size was valued at USD 323.32 billion in 2023 and is projected to grow to USD 617.81 billion by 2032, exhibiting a CAGR of 7.5%.
The global water treatment market size was valued at USD 221.56 billion in 2023 and is predicted to reach USD 387.36 billion by 2030 with a CAGR of 8.2%.
The global water and wastewater treatment equipment market size was estimated at USD 68.12 billion in 2024 and is projected to reach USD 90.02 billion by 2030, growing at a CAGR of 4.9%.
The global water treatment system market size was valued at USD 4.65 billion in 2024 and is projected to reach USD 8.68 billion by 2032, with a CAGR of 8.10%.
The North America water treatment addressable market is estimated to be approximately $2.6 billion.
The U.S. water and wastewater treatment market is projected to grow significantly, reaching an estimated value of USD 314.96 billion by 2032.

AI Generated Analysis | Feedback

A.O. Smith (NYSE: AOS) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

Growth in High-Efficiency Commercial Boilers and Water Heaters: A significant driver of revenue is anticipated to come from the continued increase in sales of high-efficiency commercial boilers and water heaters, particularly within the North America segment. The company's Q2 2025 earnings reported a 6% increase in North America boiler sales, driven by high-efficiency commercial volume growth, and highlighted growth in high-efficiency water heaters as a factor in improved operating margin. This focus aligns with the broader market trend towards energy-efficient solutions and is considered a short-term catalyst for the company.
Expansion in Water Treatment and Emerging Markets (especially India): A.O. Smith is strategically expanding its water treatment business, with a focus on priority channels. The acquisition of PUREIT is a notable example, which contributed $16 million to sales in Q2 2025 and is expected to propel global water purification leadership. The legacy India business has demonstrated strong growth, with sales increasing 19% in local currency in Q2 2025, indicating significant potential in this emerging market. The company aims to capitalize on brand awareness and attractive growth opportunities in such markets.
Strategic Acquisitions and Partnerships: A.O. Smith has clearly articulated a strategy that includes strategic acquisitions and partnerships to accelerate growth and expand its global footprint. Management has reaffirmed its active search for acquisitions that align with its strategic goals and can expand its core business or develop new growth platforms. The PUREIT acquisition serves as a recent example of this inorganic growth strategy.
Product Innovation and Energy-Efficient Solutions: The company emphasizes innovation and the development of energy-efficient solutions to drive technology and meet sustainability needs. A.O. Smith's ongoing commitment to a shift toward high-efficiency, smart products is seen as a key catalyst for future performance. This focus is evident in its North American segment, where pricing actions and higher commercial water heater volumes have contributed to growth.

AI Generated Analysis | Feedback

Share Repurchases

A.O. Smith repurchased approximately 3.8 million shares for $251.3 million in the first six months of 2025. The company expects to spend approximately $400 million on share repurchases in total for 2025.
In January 2025, the board of directors increased the number of shares authorized for repurchase by an additional 5 million shares. As of September 30, 2025, approximately 1.8 million shares remained under the existing repurchase authority.
In 2024, the company repurchased 3.8 million shares at a total cost of $305.8 million.

Share Issuance

Total stock-based compensation expense was $11.1 million in 2022, $11.9 million in 2021, and $12.7 million in 2020.
The A.O. Smith Combined Incentive Compensation Plan was reapproved by stockholders on April 15, 2020, which authorized an additional 2.4 million shares for granting of options or share units.
Shares issued upon stock option exercise or share unit vesting are sourced from treasury stock.

Outbound Investments

In March 2024, A.O. Smith acquired Impact Water Products, a company specializing in water quality improvement systems, components, and services.
In November 2024, the company finalized the acquisition of Pureit, the water purification business of Hindustan Unilever, for approximately ₹600 crore. This acquisition is expected to contribute around $50 million in sales in 2025.
A.O. Smith acquired Giant Factories, Inc., a Canada-based manufacturer of residential and commercial water heaters, in late 2021.

Capital Expenditures

Capital expenditures are projected to be between $90 million and $100 million for 2025.
The primary focus of these expenditures includes investments in engineering capabilities, preparation for regulatory changes, and expanding manufacturing capacity, such as a new gas tankless water heater facility in Juárez, Mexico.
Capital expenditures were $108 million in 2024 and $72.6 million in 2023.

Better Bets than A.O. Smith (AOS)

	AOS	Better Performance than AOS
Metric	Value	INDUSTRY: Building Products
Rev Chg LTM	-1.6%	TT (8.6%), ALLE (6.9%), LII (3.8%), JCI (2.8%), CARR (1.9%)
Rev Chg 3Y Avg	0.2%	TT (10.8%), ALLE (8.6%), LII (5.2%), JCI (4.6%), CARR (3.3%)
Op Mgn LTM	18.8%	WMS (22.3%), ALLE (21.0%), LII (19.9%), AWI (19.4%), WTS (19.0%)
CFO/Rev LTM	17.1%	WMS (24.8%), TREX (24.1%), AWI (20.8%), ALLE (19.2%), SSD (18.1%)
FCF/Rev LTM	14.9%	UUU (37.7%), WMS (17.7%), ALLE (17.1%), JBI (15.8%), AWI (15.1%)
Total Yield	7.1%	CARR (9.3%), BCC (7.9%), UFPI (7.7%), MAS (7.4%), APOG (7.1%)
P/S	2.7	BLDR (0.8), OC (1.0), FBIN (1.4), MAS (1.9), CARR (2.3)
P/Op Inc	14.3	OC (6.5), FBIN (9.7), BLDR (11.0), MAS (11.4), UFPI (13.3)

	AOS	Better Performance than AOS
Metric	Value	SECTOR: Industrials
Rev Chg LTM	-1.6%	UBER (18.2%), GE (17.7%), GEV (9.4%), RTX (8.8%), CAT (-1.5%)
Rev Chg 3Y Avg	0.2%	UBER (19.6%), GE (15.7%), BA (10.1%), RTX (9.4%), CAT (4.9%)
Op Mgn LTM	18.8%	UNP (40.6%), GE (20.5%), DE (20.0%), ETN (19.0%), HON (18.9%)
CFO/Rev LTM	17.1%	UNP (39.6%), DE (19.7%), UBER (18.1%), CAT (17.8%), GE (17.2%)
FCF/Rev LTM	14.9%	UNP (24.5%), ADP (20.1%), UBER (17.5%), PH (16.9%), HON (15.2%)
Total Yield	7.1%	UPS (15.4%), TDG (15.3%), UBER (8.1%), CP (7.4%), UNP (7.3%)
P/S	2.7	UPS (0.8), LMT (1.6), GD (1.8), BA (2.0), RTX (2.6)
P/Op Inc	14.3	UPS (8.6), FDX (8.8), CP (12.2), CSX (13.7), UNP (14.0)

	AOS	Better Performance than AOS
Metric	Value	ALL OTHER SECTORS
Rev Chg LTM	-1.6%	NVDA (65.2%), MSFT (15.6%), GOOGL (13.4%), AMZN (10.9%), AAPL (6.0%)
Rev Chg 3Y Avg	0.2%	NVDA (91.6%), MSFT (13.2%), AMZN (11.3%), GOOGL (11.0%), AAPL (1.8%)
Op Mgn LTM	18.8%	NVDA (58.8%), MSFT (46.3%), AVGO (39.0%), GOOGL (32.2%), AAPL (31.9%)
CFO/Rev LTM	17.1%	MSFT (50.0%), NVDA (44.4%), GOOGL (39.3%), AAPL (26.6%), AMZN (18.1%)
FCF/Rev LTM	14.9%	AVGO (41.6%), NVDA (41.3%), MSFT (26.6%), AAPL (23.5%), GOOGL (19.1%)
Total Yield	7.1%	XOM (9.8%), JNJ (8.4%), UNH (8.1%), BAC (7.7%), KO (7.5%)
P/S	2.7	UNH (0.7), WMT (1.2), XOM (1.5), COST (1.5), HD (2.1)
P/Op Inc	14.3	VZ (5.9), T (8.3), MRK (9.4), UNH (11.9), TMUS (13.9)

		Best Bets In Industrials Sector
	AOS	GATX	VRSK	PAYX	ADT	AME	NDSN	PCTY	FTV	VRRM	CSW
What You Pay
P/E	19.4	20.1	38.1	27.6	11.1	29.5	26.6	39.3	26.9	77.1	28.4
P/EBIT	14.4	9.6	26.0	20.0	5.6	23.5	18.0	28.2	13.1	22.8	21.9
What You Get
Rev Chg Q	4.4%	8.4%	5.9%	10.2%	4.4%	10.8%	12.1%	12.5%	2.3%	16.1%	21.5%
Rev Chg LTM	-1.6%	10.7%	7.3%	5.6%	6.3%	3.7%	4.5%	13.3%	27.9%	8.5%	14.9%
Rev Chg 3Y Avg	0.2%	10.3%	13.4%	6.5%	3.4%	5.9%	3.6%	21.4%	9.4%	9.1%	11.3%
FCF/Rev 3Y Avg	14.0%	39.2%	33.2%	31.6%	24.7%	23.2%	21.5%	21.5%	20.1%	19.0%	18.9%

[1] Choosing top 10 best bets from each sector quarterly is an alpha producing strategy vs sector benchmark
[2] Historical annualized return of 16%, alpha of 4.2%, and sharpe of 0.76

Latest Trefis Analyses

	Title	Topic	Date
0	DASHBOARDS
1	A.O. Smith Earnings Notes
2	How Low Can A.O. Smith Stock Really Go?	Return
3	Day 7 of Loss Streak for A.O. Smith Stock with -8% Return (vs. 0.7% YTD) [10/13/2025]	Notification
4	A.O. Smith vs Merck: Which Is A Better Investment?	Counter-Intuitive Comparisons
5	A.O. Smith vs Norfolk Southern: Which Is A Better Investment?	Counter-Intuitive Comparisons
6	How Does A.O. Smith Stock Stack Up Against Its Peers?	Peer Comparison
7	Better Bet Than AOS Stock: Pay Less Than A.O. Smith To Get More From UNH, MRK
8	Better Bet Than AOS Stock: Pay Less Than A.O. Smith To Get More From NSC, UAL
9	Better Bet Than AOS Stock: Pay Less Than A.O. Smith To Get More From OC
10	AOS YTD Stock Return Of -3.8% Outperforms WHR by 9.8% and Underperforms WTS by -25%	Return
11	ARTICLES
12	Why Has A.O. Smith Stock Rallied And What To Expect From The Company?		November 19th, 2019

	Title
0	DASHBOARDS
1	A.O. Smith Earnings Notes
2	How Low Can A.O. Smith Stock Really Go?
3	Day 7 of Loss Streak for A.O. Smith Stock with -8% Return (vs. 0.7% YTD) [10/13/2025]
4	A.O. Smith vs Merck: Which Is A Better Investment?
5	A.O. Smith vs Norfolk Southern: Which Is A Better Investment?
6	How Does A.O. Smith Stock Stack Up Against Its Peers?
7	Better Bet Than AOS Stock: Pay Less Than A.O. Smith To Get More From UNH, MRK
8	Better Bet Than AOS Stock: Pay Less Than A.O. Smith To Get More From NSC, UAL
9	Better Bet Than AOS Stock: Pay Less Than A.O. Smith To Get More From OC
10	AOS YTD Stock Return Of -3.8% Outperforms WHR by 9.8% and Underperforms WTS by -25%
11	ARTICLES
12	Why Has A.O. Smith Stock Rallied And What To Expect From The Company?

Trade Ideas

Select past ideas related to AOS. For more, see Trefis Trade Ideas.

Unique Key	Date	Ticker	Company	Category	Trade Strategy	6M Fwd Rtn	12M Fwd Rtn	12M Max DD
CNM_11212025_Dip_Buyer_FCFYield	11212025	CNM	Core & Main	Dip Buy	DB \| FCFY OPMDip Buy with High FCF Yield and High Margin Buying dips for companies with high FCF yield and meaningfully high operating margin	22.9%	22.9%	-1.6%
VRRM_11212025_Dip_Buyer_FCFYield	11212025	VRRM	Verra Mobility	Dip Buy	DB \| FCFY OPMDip Buy with High FCF Yield and High Margin Buying dips for companies with high FCF yield and meaningfully high operating margin	2.2%	2.2%	-1.2%
LII_11212025_Dip_Buyer_ValueBuy	11212025	LII	Lennox International	Dip Buy	DB \| P/E OPMDip Buy with Low PE and High Margin Buying dips for companies with tame PE and meaningfully high operating margin	8.7%	8.7%	0.0%
ADP_11212025_Monopoly_xInd_xCD_Getting_Cheaper	11212025	ADP	Automatic Data Processing	Monopoly	MY \| Getting CheaperMonopoly-Like with P/S Decline Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple	5.8%	5.8%	-1.2%
CW_11212025_Quality_Momentum_RoomToRun_10%	11212025	CW	Curtiss-Wright	Quality	Q \| Momentum \| UpsideQuality Stocks with Momentum and Upside Buying quality stocks with strong momentum but still having room to run	1.8%	1.8%	0.0%
AOS_10312022_Dip_Buyer_ValueBuy	10312022	AOS	A.O. Smith	Dip Buy	DB \| P/E OPMDip Buy with Low PE and High Margin Buying dips for companies with tame PE and meaningfully high operating margin	29.3%	29.7%	-2.0%
AOS_4302022_Dip_Buyer_FCFYield	04302022	AOS	A.O. Smith	Dip Buy	DB \| FCFY OPMDip Buy with High FCF Yield and High Margin Buying dips for companies with high FCF yield and meaningfully high operating margin	-6.0%	19.2%	-16.5%
AOS_3312020_Dip_Buyer_FCFYield	03312020	AOS	A.O. Smith	Dip Buy	DB \| FCFY OPMDip Buy with High FCF Yield and High Margin Buying dips for companies with high FCF yield and meaningfully high operating margin	43.5%	82.4%	-5.8%
AOS_12312018_Dip_Buyer_FCFYield	12312018	AOS	A.O. Smith	Dip Buy	DB \| FCFY OPMDip Buy with High FCF Yield and High Margin Buying dips for companies with high FCF yield and meaningfully high operating margin	10.9%	13.6%	-4.3%

Unique Key	Date	Ticker	Company	Category	Trade Strategy	6M Fwd Rtn	12M Fwd Rtn	12M Max DD
CNM_11212025_Dip_Buyer_FCFYield	11212025	CNM	Core & Main	Dip Buy	DB \| FCFY OPMDip Buy with High FCF Yield and High Margin Buying dips for companies with high FCF yield and meaningfully high operating margin	22.9%	22.9%	-1.6%
VRRM_11212025_Dip_Buyer_FCFYield	11212025	VRRM	Verra Mobility	Dip Buy	DB \| FCFY OPMDip Buy with High FCF Yield and High Margin Buying dips for companies with high FCF yield and meaningfully high operating margin	2.2%	2.2%	-1.2%
LII_11212025_Dip_Buyer_ValueBuy	11212025	LII	Lennox International	Dip Buy	DB \| P/E OPMDip Buy with Low PE and High Margin Buying dips for companies with tame PE and meaningfully high operating margin	8.7%	8.7%	0.0%
ADP_11212025_Monopoly_xInd_xCD_Getting_Cheaper	11212025	ADP	Automatic Data Processing	Monopoly	MY \| Getting CheaperMonopoly-Like with P/S Decline Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple	5.8%	5.8%	-1.2%
CW_11212025_Quality_Momentum_RoomToRun_10%	11212025	CW	Curtiss-Wright	Quality	Q \| Momentum \| UpsideQuality Stocks with Momentum and Upside Buying quality stocks with strong momentum but still having room to run	1.8%	1.8%	0.0%
AOS_10312022_Dip_Buyer_ValueBuy	10312022	AOS	A.O. Smith	Dip Buy	DB \| P/E OPMDip Buy with Low PE and High Margin Buying dips for companies with tame PE and meaningfully high operating margin	29.3%	29.7%	-2.0%
AOS_4302022_Dip_Buyer_FCFYield	04302022	AOS	A.O. Smith	Dip Buy	DB \| FCFY OPMDip Buy with High FCF Yield and High Margin Buying dips for companies with high FCF yield and meaningfully high operating margin	-6.0%	19.2%	-16.5%
AOS_3312020_Dip_Buyer_FCFYield	03312020	AOS	A.O. Smith	Dip Buy	DB \| FCFY OPMDip Buy with High FCF Yield and High Margin Buying dips for companies with high FCF yield and meaningfully high operating margin	43.5%	82.4%	-5.8%
AOS_12312018_Dip_Buyer_FCFYield	12312018	AOS	A.O. Smith	Dip Buy	DB \| FCFY OPMDip Buy with High FCF Yield and High Margin Buying dips for companies with high FCF yield and meaningfully high operating margin	10.9%	13.6%	-4.3%

Recent Active Movers

1 Day Top Gainers

Ticker	Company	Mkt Cap (B)	1D Rtn	YTD Rtn
TLRY	Tilray Brands	12.9	44.1%	-8.6%
RZLT	Rezolute	0.2	28.6%	-63.3%
CRON	Cronos	1.3	14.7%	61.9%
YOU	Clear Secure	4.0	13.3%	58.5%
RIVN	Rivian Automotive	22.5	12.1%	38.5%
EVCM	EverCommerce	2.2	10.9%	9.7%
LULU	Lululemon Athletica	24.5	9.6%	-46.4%
NX	Quanex Building Products	0.8	9.5%	-30.9%
OXM	Oxford Industries	0.5	9.4%	-53.1%
IIPR	Innovative Industrial Properties	1.6	8.9%	-5.9%

1 Day Top Losers

Ticker	Company	Mkt Cap (B)	1D Rtn	YTD Rtn
FRMI	Fermi	7.1	-33.8%
LENZ	LENZ Therapeutics	0.5	-26.0%	-37.2%
AIP	Arteris	0.7	-17.2%	59.9%
MOD	Modine Manufacturing	7.4	-15.3%	20.7%
FBYD	Falcons Beyond Global	0.4	-15.2%	40.7%
OKLO	Oklo	12.2	-15.1%	311.8%
SEI	Solaris Energy Infrastructure	2.0	-14.8%	62.6%
SNDK	SanDisk	30.1	-14.7%
NXDR	Nextdoor	0.9	-14.4%
RCUS	Arcus Biosciences	2.3	-14.4%	44.6%

1 Week Top Gainers

Ticker	Company	Mkt Cap (B)	1W Rtn	YTD Rtn
WVE	WAVE Life Sciences	2.7	121.1%	33.9%
TLRY	Tilray Brands	12.9	65.3%	-8.6%
TERN	Terns Pharmaceuticals	4.1	53.3%	712.3%
PLAB	Photronics	2.1	50.4%	54.1%
FULC	Fulcrum Therapeutics	0.8	46.1%	176.6%
WRBY	Warby Parker	3.4	46.0%	13.2%
PL	Planet Labs PBC	5.5	42.8%	351.5%
ALEX	Alexander & Baldwin	1.5	37.5%	22.5%
KYMR	Kymera Therapeutics	7.8	34.6%	122.9%
CRON	Cronos	1.3	31.3%	61.9%

1 Week Top Losers

Ticker	Company	Mkt Cap (B)	1W Rtn	YTD Rtn
RZLT	Rezolute	0.2	-82.7%	-63.3%
FBYD	Falcons Beyond Global	0.4	-44.0%	40.7%
FRMI	Fermi	7.1	-33.4%
LENZ	LENZ Therapeutics	0.5	-32.1%	-37.2%
GOGO	Gogo	0.7	-27.9%	-37.1%
ELVN	Enliven Therapeutics	0.9	-22.7%	-25.1%
CRK	Comstock Resources	6.3	-20.8%	18.9%
BE	Bloom Energy	22.3	-20.3%	327.6%
PHR	Phreesia	1.0	-19.9%	-35.4%
MVST	Microvast	1.0	-19.7%	45.4%

1 Month Top Gainers

Ticker	Company	Mkt Cap (B)	1M Rtn	YTD Rtn
OLMA	Olema Pharmaceuticals	2.8	310.0%	466.9%
WVE	WAVE Life Sciences	2.7	138.1%	33.9%
TERN	Terns Pharmaceuticals	4.1	121.7%	712.3%
ALMS	Alumis	0.9	119.3%	46.2%
CDTX	Cidara Therapeutics	5.9	106.0%	720.9%
SGML	Sigma Lithium	1.2	87.2%	-2.6%
ANNX	Annexon	0.7	75.0%	-3.1%
NUVB	Nuvation Bio	2.9	71.0%	216.9%
ARWR	Arrowhead Pharmaceuticals	9.7	69.2%	272.8%
SVRA	Savara	1.5	68.0%	125.4%

1 Month Top Losers

Ticker	Company	Mkt Cap (B)	1M Rtn	YTD Rtn
RZLT	Rezolute	0.2	-82.0%	-63.3%
FRMI	Fermi	7.1	-53.6%
JANX	Janux Therapeutics	0.9	-46.4%	-71.4%
UP	Wheels Up Experience	0.5	-41.9%	-57.4%
AGIO	Agios Pharmaceuticals	1.6	-37.5%	-17.0%
ARDT	Ardent Health	1.2	-37.4%	-48.5%
CTEV	Claritev	0.6	-36.1%
METC	Ramaco Resources	1.0	-35.9%	54.3%
QURE	uniQure	1.1	-35.2%	10.5%
IBTA	Ibotta	0.6	-34.6%	-67.1%

Recent Active Movers

1 Day Top Gainers

Ticker	Company	Mkt Cap (B)	1D Rtn	YTD Rtn
TLRY	Tilray Brands	12.9	44.1%	-8.6%
RZLT	Rezolute	0.2	28.6%	-63.3%
CRON	Cronos	1.3	14.7%	61.9%
YOU	Clear Secure	4.0	13.3%	58.5%
RIVN	Rivian Automotive	22.5	12.1%	38.5%
EVCM	EverCommerce	2.2	10.9%	9.7%
LULU	Lululemon Athletica	24.5	9.6%	-46.4%
NX	Quanex Building Products	0.8	9.5%	-30.9%
OXM	Oxford Industries	0.5	9.4%	-53.1%
IIPR	Innovative Industrial Properties	1.6	8.9%	-5.9%

1 Day Top Losers

Ticker	Company	Mkt Cap (B)	1D Rtn	YTD Rtn
FRMI	Fermi	7.1	-33.8%
LENZ	LENZ Therapeutics	0.5	-26.0%	-37.2%
AIP	Arteris	0.7	-17.2%	59.9%
MOD	Modine Manufacturing	7.4	-15.3%	20.7%
FBYD	Falcons Beyond Global	0.4	-15.2%	40.7%
OKLO	Oklo	12.2	-15.1%	311.8%
SEI	Solaris Energy Infrastructure	2.0	-14.8%	62.6%
SNDK	SanDisk	30.1	-14.7%
NXDR	Nextdoor	0.9	-14.4%
RCUS	Arcus Biosciences	2.3	-14.4%	44.6%

1 Week Top Gainers

Ticker	Company	Mkt Cap (B)	1W Rtn	YTD Rtn
WVE	WAVE Life Sciences	2.7	121.1%	33.9%
TLRY	Tilray Brands	12.9	65.3%	-8.6%
TERN	Terns Pharmaceuticals	4.1	53.3%	712.3%
PLAB	Photronics	2.1	50.4%	54.1%
FULC	Fulcrum Therapeutics	0.8	46.1%	176.6%
WRBY	Warby Parker	3.4	46.0%	13.2%
PL	Planet Labs PBC	5.5	42.8%	351.5%
ALEX	Alexander & Baldwin	1.5	37.5%	22.5%
KYMR	Kymera Therapeutics	7.8	34.6%	122.9%
CRON	Cronos	1.3	31.3%	61.9%

1 Week Top Losers

Ticker	Company	Mkt Cap (B)	1W Rtn	YTD Rtn
RZLT	Rezolute	0.2	-82.7%	-63.3%
FBYD	Falcons Beyond Global	0.4	-44.0%	40.7%
FRMI	Fermi	7.1	-33.4%
LENZ	LENZ Therapeutics	0.5	-32.1%	-37.2%
GOGO	Gogo	0.7	-27.9%	-37.1%
ELVN	Enliven Therapeutics	0.9	-22.7%	-25.1%
CRK	Comstock Resources	6.3	-20.8%	18.9%
BE	Bloom Energy	22.3	-20.3%	327.6%
PHR	Phreesia	1.0	-19.9%	-35.4%
MVST	Microvast	1.0	-19.7%	45.4%

Peer Comparisons for A.O. Smith

Peers to compare with:

Financials

	AOS	WTS	XYL	PNR	IR	LII	Median
Name	A.O. Smi.	Watts Wa.	Xylem	Pentair	Ingersol.	Lennox I.
Mkt Price	68.64	279.13	137.17	105.92	81.60	505.09	121.54
Mkt Cap	9.6	9.4	33.4	17.3	32.3	17.7	17.5
Rev LTM	3,830	2,354	8,894	4,128	7,458	5,345	4,737
Op Inc LTM	720	447	1,232	864	1,477	1,062	963
FCF LTM	572	344	925	783	1,250	534	677
FCF 3Y Avg	536	318	753	675	1,200	543	609
CFO LTM	656	387	1,273	850	1,383	684	767
CFO 3Y Avg	621	352	1,053	748	1,328	722	735

Growth & Margins

	AOS	WTS	XYL	PNR	IR	LII	Median
Name	A.O. Smi.	Watts Wa.	Xylem	Pentair	Ingersol.	Lennox I.
Rev Chg LTM	-1.6%	4.2%	5.6%	0.8%	4.2%	3.8%	4.0%
Rev Chg 3Y Avg	0.2%	6.5%	18.9%	0.2%	9.4%	5.2%	5.9%
Rev Chg Q	4.4%	12.5%	7.8%	2.9%	5.1%	-4.8%	4.7%
QoQ Delta Rev Chg LTM	1.1%	3.0%	1.9%	0.7%	1.3%	-1.3%	1.2%
Op Mgn LTM	18.8%	19.0%	13.9%	20.9%	19.8%	19.9%	19.4%
Op Mgn 3Y Avg	19.2%	17.8%	12.1%	18.8%	19.1%	18.3%	18.5%
QoQ Delta Op Mgn LTM	0.2%	0.1%	0.6%	0.5%	-0.1%	0.3%	0.3%
CFO/Rev LTM	17.1%	16.4%	14.3%	20.6%	18.5%	12.8%	16.8%
CFO/Rev 3Y Avg	16.2%	16.0%	13.0%	18.2%	18.7%	14.0%	16.1%
FCF/Rev LTM	14.9%	14.6%	10.4%	19.0%	16.8%	10.0%	14.8%
FCF/Rev 3Y Avg	14.0%	14.4%	9.2%	16.4%	16.9%	10.5%	14.2%

Valuation

	AOS	WTS	XYL	PNR	IR	LII	Median
Name	A.O. Smi.	Watts Wa.	Xylem	Pentair	Ingersol.	Lennox I.
Mkt Cap	9.6	9.4	33.4	17.3	32.3	17.7	17.5
P/S	2.7	4.0	4.0	4.4	4.4	3.5	4.0
P/EBIT	14.4	21.6	29.4	22.0	27.8	17.4	21.8
P/E	19.3	28.8	37.9	27.7	59.9	22.1	28.3
P/CFO	15.7	24.2	28.2	21.3	23.6	27.1	23.9
Total Yield	7.1%	4.2%	3.7%	4.5%	1.8%	5.0%	4.3%
Dividend Yield	1.9%	0.7%	1.1%	0.9%	0.1%	0.4%	0.8%
FCF Yield 3Y Avg	4.9%	4.5%	2.5%	4.5%	3.7%	3.0%	4.1%
D/E	0.0	0.0	0.1	0.1	0.1	0.1	0.1
Net D/E	0.0	-0.0	0.0	0.1	0.1	0.1	0.0

Returns

	AOS	WTS	XYL	PNR	IR	LII	Median
Name	A.O. Smi.	Watts Wa.	Xylem	Pentair	Ingersol.	Lennox I.
1M Rtn	6.0%	3.6%	-3.6%	1.5%	8.1%	7.1%	4.8%
3M Rtn	-4.9%	-0.6%	-2.8%	-4.3%	3.6%	-7.0%	-3.6%
6M Rtn	8.7%	17.3%	9.9%	10.1%	1.4%	-5.7%	9.3%
12M Rtn	-3.4%	29.1%	15.1%	-0.2%	-19.2%	-23.3%	-1.8%
3Y Rtn	27.6%	97.6%	28.5%	146.9%	55.6%	109.9%	76.6%
1M Excs Rtn	3.8%	1.5%	-7.9%	-2.2%	5.3%	6.2%	2.6%
3M Excs Rtn	-9.0%	-4.0%	-6.2%	-7.3%	0.1%	-11.4%	-6.7%
6M Excs Rtn	-5.5%	3.1%	-4.3%	-4.1%	-12.8%	-19.9%	-4.9%
12M Excs Rtn	-17.1%	14.8%	-5.2%	-13.9%	-32.9%	-34.3%	-15.5%
3Y Excs Rtn	-51.2%	16.0%	-45.5%	71.2%	-18.4%	28.6%	-1.2%

Comparison Analyses

	Title
0	How Does A.O. Smith Stock Stack Up Against Its Peers?
1	A.O. Smith vs. Carrier Global: With Return Forecast Of 7.5%, A.O. Smith Is A Better Bet
2	With 16% Gains On The Table, WTS May Outshine AOS
3	AOS Could Deliver 7.5% Returns And Outperform WSO
4	Why FIX With 43% Upside May Beat AOS?
5	A.O. Smith vs. Autodesk: Both Seem Similar Bets
6	A.O. Smith vs. Fortinet: With Return Forecast Of 26%, Fortinet Is A Better Bet
7	A.O. Smith vs. Aptiv: With Return Forecast Of 13%, A.O. Smith Is A Better Bet
8	A.O. Smith vs. Mohawk Industries: Neither Seems Like A Good Bet
9	A.O. Smith vs. Exelon: With Return Forecast Of 10%, Exelon Is A Better Bet

Financials

Annual
Quarterly

$ Mil \| FY: 12/31	LTM	2024	2023	2022	2021	2020	2019
Period End	9/30/2025	12/31/2024	12/31/2023	12/31/2022	12/31/2021	12/31/2020	12/31/2019
Filing Date	10/28/2025	2/11/2025	2/13/2024	2/14/2023	2/11/2022	2/12/2021	2/24/2020
Key Financials
Total Revenue	3,830	3,818	3,853	3,754	3,539	2,895	2,993
EBITDA	795	786	824	310	708	531	561
Operating Income	720	717	757	659	610	448	465
Net Income	530	534	557	236	487	345	370
EPS	3.71	3.65	3.71	1.52	3.05	2.13	2.24
Growth Rates
Total Revenue Growth	-1.6%	-0.9%	2.6%	6.1%	22.2%	-3.3%	-6.1%
EBITDA Growth	-2.8%	-4.5%	165.7%	-56.2%	33.2%	-5.4%	-12.0%
Operating Income Growth	-3.4%	-5.4%	15.0%	8.1%	36.1%	-3.7%	-15.7%
Net Income Growth	-5.5%	-4.1%	136.1%	-51.6%	41.2%	-6.8%	-16.7%
Margins
EBITDA Margin	20.8%	20.6%	21.4%	8.3%	20.0%	18.3%	18.8%
Operating Income Margin	18.8%	18.8%	19.7%	17.5%	17.2%	15.5%	15.5%
Net Income Margin	13.9%	14.0%	14.4%	6.3%	13.8%	11.9%	12.4%
Cash & Debt
Total Cash	173	276	363	482	631	690	551
Total Debt	221	217	155	367	219	148	323
Net Debt / (Cash)	49	-59	-208	-115	-412	-542	-229
Cash Flows
Net Cash from Operations	656	582	670	391	641	562	456
Free Cash from Operations	572	474	598	321	566	505	392
Returns to Shareholders
Dividends	195	190	184	177	170	159	149
Share Repurchases	404	306	306	404	366	57	288

$ Mil \| FY: 12/31	2025Q3	2025Q2	2025Q1	2024Q4	2024Q3	2024Q2	2024Q1	2023Q4	2023Q3	2023Q2	2023Q1	2022Q4
Period End	9/30/2025	6/30/2025	3/31/2025	12/31/2024	9/30/2024	6/30/2024	3/31/2024	12/31/2023	9/30/2023	6/30/2023	3/31/2023	12/31/2022
Filing Date	10/28/2025	7/24/2025	4/29/2025	2/11/2025	10/23/2024	7/24/2024	4/26/2024	2/13/2024	10/27/2023	7/28/2023	4/28/2023	2/14/2023
Key Financials Quarterly
Total Revenue	942	1,011	964	912	903	1,024	979	988	938	961	966	936
Ebitda	197	227	205	167	178	228	213	199	198	232	194	-219
Operating Income	176	206	183	156	161	208	192	185	181	204	187	180
Net Income	132	152	137	110	120	156	148	137	135	157	127	-120
EPS	0.94	1.07	0.95	0.75	0.82	1.07	1.00	0.92	0.90	1.04	0.84	-0.79
Key Financials TTM
Total Revenue TTM	3,830	3,790	3,803	3,818	3,894	3,929	3,865	3,853	3,801	3,738	3,743	3,754
Ebitda TTM	795	777	778	786	818	838	843	824	406	373	326	310
Operating Income TTM	720	705	707	717	746	766	763	757	752	720	684	659
Net Income TTM	530	519	523	534	561	576	577	557	299	274	243	236
Growth Rates Quarterly
Total Revenue Growth	4.4%	-1.3%	-1.5%	-7.7%	-3.7%	6.6%	1.3%	5.6%	7.2%	-0.5%	-1.2%	-6.0%
EBITDA Growth	10.4%	-0.6%	-4.0%	-16.1%	-10.0%	-1.9%	9.7%	190.7%	19.9%	25.3%	9.0%	-207.9%
Operating Income Growth	9.3%	-0.8%	-5.0%	-15.5%	-11.4%	1.5%	3.0%	2.8%	21.3%	21.9%	15.5%	1.9%
Net Income Growth	9.9%	-2.6%	-7.5%	-20.1%	-11.3%	-0.5%	16.3%	214.3%	23.3%	24.4%	5.9%	-186.0%
Margins Quarterly
EBITDA Margin	20.9%	22.4%	21.2%	18.3%	19.8%	22.3%	21.8%	20.1%	21.1%	24.2%	20.1%	-23.4%
Operating Income Margin	18.6%	20.4%	19.0%	17.1%	17.8%	20.3%	19.7%	18.7%	19.3%	21.3%	19.3%	19.2%
Net Income Margin	14.0%	15.0%	14.2%	12.0%	13.3%	15.2%	15.1%	13.9%	14.4%	16.3%	13.1%	-12.8%
Cash & Debt
Total Cash	173	178	200	276	256	233	303	363	342	410	496	482
Total Debt	221	332	295	217	143	165	146	155	156	232	366	367
Net Debt / (Cash)	49	154	95	-59	-112	-68	-157	-208	-186	-178	-130	-115
Cash Flows Quarterly
FCF from Operations	255	140	39	222	196	57	107	231	179	140	120	177
Cash Flows TTM
FCF from Operations TTM	656	596	514	582	591	574	657	670	616	597	495	391
Returns to Shareholders Quarterly
Dividends	48	48	49	50	47	47	47	48	45	45	45	46
Share Repurchases	84	131	121	69	84	79	74	145	92	16	53	122
Return on Invested Capital (ROIC) Quarterly
ROIC	1110.4%	404.3%	581.8%	-	-	-	-	-	-	-	-	-
Return on Invested Capital (ROIC) TTM
ROIC TTM	1123.9%	347.8%	565.4%	-	-	-	-	-	-	-	-	-

Segment Financials

Revenue by Segment

$ Mil	2024	2023	2022	2021	2020
Water heaters and related parts	2,457
China	835
Boilers and related parts	240
Water treatment products and related parts	226
All other Rest of World	122
Inter-segment sales	-27
Single Segment		3,754	3,539	2,895	2,993
Total	3,853	3,754	3,539	2,895	2,993

Price Behavior

Price Behavior

Market Price	$68.72
Market Cap ($ Bil)	9.6
First Trading Date	09/07/1984
Distance from 52W High	-7.0%
	50 Days	200 Days
DMA Price	$67.14	$67.48
DMA Trend	indeterminate	down
Distance from DMA	2.3%	1.8%
	3M	1YR
Volatility	20.8%	24.7%
Downside Capture	92.31	83.95
Upside Capture	51.43	69.79
Correlation (SPY)	34.1%	46.3%

AOS Betas & Captures as of 11/30/2025

	1M	2M	3M	6M	1Y	3Y
Beta	0.52	0.52	0.64	0.72	0.57	0.74
Up Beta	-0.08	0.28	0.57	0.54	0.55	0.74
Down Beta	-0.91	0.53	0.52	0.58	0.35	0.43
Up Capture	83%	14%	39%	69%	52%	59%
Bmk +ve Days	12	25	38	73	141	426
Stock +ve Days	8	18	30	61	115	377
Down Capture	92%	91%	98%	98%	89%	99%
Bmk -ve Days	7	16	24	52	107	323
Stock -ve Days	11	23	32	64	132	369

[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively

1Y 5Y 10Y

Based On 1-Year Data

		Comparison of AOS With Other Asset Classes (Last 1Y)
	AOS	Sector ETF	Equity	Gold	Commodities	Real Estate	Bitcoin
Annualized Return	-5.1%	13.7%	13.8%	61.2%	3.6%	-3.9%	-7.4%
Annualized Volatility	24.5%	18.9%	19.7%	19.4%	15.9%	17.7%	35.6%
Sharpe Ratio	-0.26	0.55	0.54	2.34	0.04	-0.38	-0.05
Correlation With Other Assets		59.3%	46.2%	-4.0%	4.9%	55.2%	24.5%

ETFs used for asset classes: Sector ETF = XLI, Equity = SPY, Gold = GLD, Commodities = DBC, Real Estate = VNQ, and Bitcoin = BTCUSD
Smart multi-asset allocation framework can stack odds in your favor. Learn How

Based On 5-Year Data

		Comparison of AOS With Other Asset Classes (Last 5Y)
	AOS	Sector ETF	Equity	Gold	Commodities	Real Estate	Bitcoin
Annualized Return	6.4%	13.6%	14.5%	18.1%	11.5%	4.4%	36.1%
Annualized Volatility	27.3%	17.2%	17.1%	15.5%	18.9%	18.9%	48.9%
Sharpe Ratio	0.24	0.63	0.69	0.94	0.50	0.15	0.63
Correlation With Other Assets		65.0%	53.4%	5.3%	9.6%	51.9%	21.3%

Based On 10-Year Data

		Comparison of AOS With Other Asset Classes (Last 10Y)
	AOS	Sector ETF	Equity	Gold	Commodities	Real Estate	Bitcoin
Annualized Return	7.5%	13.1%	14.4%	14.3%	5.8%	5.3%	73.6%
Annualized Volatility	27.1%	19.9%	18.0%	14.7%	17.7%	20.8%	55.9%
Sharpe Ratio	0.30	0.58	0.69	0.80	0.26	0.22	0.93
Correlation With Other Assets		64.9%	57.7%	0.1%	18.2%	47.5%	13.5%

Short Interest

Short Interest: As Of Date	11282025
Short Interest: Shares Quantity	4,266,753
Short Interest: % Change Since 11152025	13.9%
Average Daily Volume	1,453,593
Days-to-Cover Short Interest	2.94
Basic Shares Quantity	139,953,331
Short % of Basic Shares	3.0%

Returns Analyses

	Title
0	How Low Can A.O. Smith Stock Really Go?
1	AOS YTD Stock Return Of -3.8% Outperforms WHR by 9.8% and Underperforms WTS by -25%
2	AOS YTD Stock Return Of -31% Outperforms MHK by 17% and Underperforms FIX by -54%
3	A.O. Smith Stock Return Comparison
4	A.O. Smith Total Shareholder Return (TSR): -32.0% in 2022 and 8.1% 3-yr returns (below peer average)

Earnings Returns History

Expand for More

	Forward Returns
Earnings Date	1D Returns	5D Returns	21D Returns
10/28/2025	-2.6%	-4.3%	-4.7%
7/24/2025	3.6%	-0.8%	1.0%
4/29/2025	3.5%	6.0%	-0.3%
1/30/2025	-2.8%	-4.7%	-3.5%
10/11/2024	-6.2%	-8.7%	-12.8%
7/23/2024	-9.4%	-4.9%	-8.7%
4/25/2024	-4.8%	-4.5%	-3.0%
1/30/2024	-2.0%	-5.2%	1.9%
...
SUMMARY STATS
# Positive	14	13	12
# Negative	10	11	12
Median Positive	3.5%	4.7%	11.8%
Median Negative	-3.6%	-4.5%	-5.8%
Max Positive	13.7%	22.5%	26.6%
Max Negative	-9.4%	-9.5%	-12.8%

SEC Filings

Expand for More

Report Date	Filing Date	Filing
9302025	10282025	10-Q 9/30/2025
6302025	7242025	10-Q 6/30/2025
3312025	4292025	10-Q 3/31/2025
12312024	2112025	10-K 12/31/2024
9302024	10232024	10-Q 9/30/2024
6302024	7242024	10-Q 6/30/2024
3312024	4262024	10-Q 3/31/2024
12312023	2132024	10-K 12/31/2023
9302023	10272023	10-Q 9/30/2023
6302023	7282023	10-Q 6/30/2023
3312023	4282023	10-Q 3/31/2023
12312022	2142023	10-K 12/31/2022
9302022	10282022	10-Q 9/30/2022
6302022	7292022	10-Q 6/30/2022
3312022	5022022	10-Q 3/31/2022
12312021	2112022	10-K 12/31/2021

External Quote Links

0	Y Finance	Barrons
1	TradingView	Morningstar
2	SeekingAlpha	ValueLine
3	Motley Fool	Robinhood
4	CNBC	Etrade
5	MarketWatch	Unusual Whales
6	YCharts	Perplexity Finance
7	FinViz

Prefer one of these to Trefis? Tell us why.

A.O. Smith (AOS)

Market Price (12/14/2025): $68.635 | Market Cap: $9.6 BilSector: Industrials | Industry: Building Products

A.O. Smith (AOS)

Market Price (12/14/2025): $68.635Market Cap: $9.6 BilSector: IndustrialsIndustry: Building Products

Valuation, Metrics & Events

AOS Stock

Why The Stock Moved

Qualitative Assessment

Stock Movement Drivers

Fundamental Drivers

Market Drivers

Fundamental Drivers

Market Drivers

Fundamental Drivers

Market Drivers

Fundamental Drivers

Market Drivers

Return vs. Risk

Price Returns Compared

How Low Can It Go

In The Past

Preserve Wealth

Asset Allocation

About A.O. Smith (AOS)

Water Heaters

Boilers

Water Treatment and Purification Products

Interactive Breakdown

Better Bets than A.O. Smith (AOS)

Latest Trefis Analyses

Trade Ideas

Recent Active Movers

1 Day Top Gainers

1 Day Top Losers

1 Week Top Gainers

1 Week Top Losers

1 Month Top Gainers

1 Month Top Losers

Recent Active Movers

1 Day Top Gainers

1 Day Top Losers

1 Week Top Gainers

1 Week Top Losers

More From Trefis

Research & Analysis

Invest in Strategies

Wealth Management

Peer Comparisons for A.O. Smith

Financials

Growth & Margins

Valuation

Returns

Comparison Analyses

FDIC Bank Data

Bank Capital

Bank Deposits

Bank Assets

Bank Loans

Financials

Segment Financials

Price Behavior

Based On 1-Year Data

Based On 5-Year Data

Based On 10-Year Data

Short Interest

Returns Analyses

Earnings Returns History

SEC Filings

Insider Activity

Industry Resources

External Quote Links

Market Price (12/14/2025): $68.635 | Market Cap: $9.6 Bil
Sector: Industrials | Industry: Building Products

Market Price (12/14/2025): $68.635
Market Cap: $9.6 Bil
Sector: Industrials
Industry: Building Products