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AOS

A. O. Smith Corporation

AOS

A. O. Smith Corporation • NYSE
$65.98 ▼ -0.53% (-0.35)
Market Cap $9.40 B
52w High $77.31
52w Low $58.83
Dividend Yield 1.38%
P/E 17.78
Volume 772.88K
Outstanding Shares 142.47M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $942.5M ▼ $188.9M ▼ $132M ▼ 14.005% ▼ $0.94 ▼ $197M ▼
Q2-2025 $1.011B ▲ $191.3M ▼ $152.2M ▲ 15.05% ▲ $1.07 ▲ $226.7M ▲
Q1-2025 $963.9M ▲ $192.6M ▲ $136.6M ▲ 14.172% ▲ $0.95 ▲ $204.7M ▲
Q4-2024 $912.4M ▲ $182M ▲ $109.7M ▼ 12.023% ▼ $0.75 ▼ $157.7M ▼
Q3-2024 $902.6M $176.6M $120.1M 13.306% $0.83 $178.4M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $172.8M ▼ $3.171B ▼ $1.326B ▼ $1.845B ▼
Q2-2025 $177.9M ▼ $3.247B ▼ $1.401B ▼ $1.846B ▼
Q1-2025 $200.2M ▼ $3.268B ▲ $1.413B ▲ $1.855B ▼
Q4-2024 $276.1M ▲ $3.24B ▲ $1.357B ▲ $1.883B ▼
Q3-2024 $255.6M $3.154B $1.238B $1.917B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $132M ▼ $255.4M ▲ $-34.9M ▼ $-245.5M ▼ $-25.2M ▼ $240.6M ▲
Q2-2025 $152.2M ▲ $139.6M ▲ $9M ▲ $-146M ▼ $4.9M ▲ $122.5M ▲
Q1-2025 $136.6M ▲ $38.7M ▼ $-10.8M ▲ $-95.1M ▼ $-66.6M ▼ $17.4M ▼
Q4-2024 $109.7M ▼ $221.9M ▲ $-156M ▼ $-40.7M ▲ $20.3M ▲ $191.3M ▲
Q3-2024 $120.1M $195.9M $-51M $-144M $3.2M $163.4M

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown steadily over the last five years from a lower base during 2020, but has flattened out over the most recent two years. Profitability is generally strong, with healthy gross and operating margins, which suggests the company has decent pricing power and cost control. There is a noticeable dip in profit and earnings per share in 2022, likely tied to one‑off factors or unusual costs, followed by a solid recovery in 2023 and a slight softening in 2024. Overall, the income statement shows a mature industrial business with stable demand, good margins, and some earnings volatility around 2022 rather than a sustained deterioration.

Balance Sheet

Balance Sheet The balance sheet looks conservative and steady. Total assets have been fairly stable over time, and shareholders’ equity remains strong, indicating a solid capital base. Debt levels are modest relative to the size of the company, suggesting low financial leverage and reduced refinancing risk. Cash on hand has trended down from earlier years, but not in a way that suggests immediate stress, especially given the low debt load and dependable cash generation. In short, the company appears to be run with a cautious, balance‑sheet‑friendly approach.

Cash Flow

Cash Flow Cash generation is a key strength. Operating cash flow has been consistently positive and generally in line with reported earnings over time, which supports the quality of the profits shown on the income statement. Free cash flow remains healthy even after capital spending, and investment needs (capex) are relatively modest and predictable for an industrial business. The weaker cash flow in 2022 mirrors the earnings dip but then rebounds, reinforcing the idea that 2022 was more of an exception than a trend. Overall, the business throws off reliable cash that can support dividends, buybacks, or reinvestment, depending on management’s choices.

Competitive Edge

Competitive Edge A. O. Smith holds a strong position in water heating and water treatment, especially in North America. Its brand is well known and trusted by both professional installers and end customers, which is hard for new entrants to replicate. Deep relationships with wholesalers and contractors give it a powerful distribution advantage and help keep its products top‑of‑mind when systems are installed or replaced. The company’s broad product range—from standard heaters to advanced commercial systems and water treatment—lets it serve many customer segments as a one‑stop provider. Combined with its global footprint and local manufacturing strategies, this creates a durable competitive moat rather than a commodity position.

Innovation and R&D

Innovation and R&D Innovation is a clear strategic focus. A. O. Smith is pushing hard into high‑efficiency and heat pump water heaters, aligning with global trends toward decarbonization and electrification. Its smart, connected products—both residential and commercial—use sensors, remote monitoring, and predictive alerts to improve reliability, efficiency, and user convenience. The new product development center dedicated to next‑generation heat pump and commercial technologies underscores a long‑term R&D commitment, not just incremental tweaks. In water treatment, the company is broadening its portfolio and using acquisitions to expand its reach, particularly in faster‑growing regions. Overall, R&D is positioned as a core growth engine, not a side activity.

Summary

A. O. Smith presents as a financially sound, mature industrial company with a strong niche in water heating and treatment. The income statement shows stable revenues and solid margins, with a temporary earnings setback in 2022 that appears to have been largely absorbed. The balance sheet is conservatively structured with low debt and steady equity, and cash flows are consistently positive, supporting financial flexibility. Competitively, the firm benefits from a strong brand, entrenched channel relationships, and a comprehensive product lineup. Its innovation efforts in heat pumps, smart connectivity, and water treatment position it to benefit from long‑term trends in energy efficiency, sustainability, and water quality, while still operating from a base of financial and operational stability.

NEWS

November 12, 2025 · 8:30 AM UTC

A. O. Smith to Acquire Leonard Valve Company, a Leader in Water Temperature and Flow Solutions

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October 28, 2025 · 6:55 AM UTC

A. O. Smith Reports Third Quarter Earnings Per Share (EPS) of $0.94, a 15% Year-Over-Year Increase, and Updates Full Year Guidance

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October 13, 2025 · 5:54 PM UTC

A. O. Smith Increases Quarterly Dividend to $0.36 per Share

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October 3, 2025 · 10:00 AM UTC

A. O. Smith Hires Chris Howe as New Chief Digital Information Officer

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October 2, 2025 · 9:00 AM UTC

A. O. Smith to Hold Third Quarter Conference Call on October 28, 2025

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