A. O. Smith Corporation

A. O. Smith Corporation

AOS

$56.38

Updated: 12/10/2026, 04:31:51

Market Cap
$7.81B
Sector
Industrials
Industry
Industrial - Machinery
Country
US
Stock valuation chart
One-year closing share-price history for AOS
Company Profile

A. O. Smith Corporation (AOS) is a global manufacturer and marketer specializing in a comprehensive array of water heating and treatment solutions. Its operations span North America, China, Europe, and India, organized into two primary geographic segments: North America and Rest of World. The company's product portfolio is extensive, featuring residential and commercial water heaters (gas, heat pump, and electric models), boilers, storage tanks, and various water treatment systems. These products cater to a wide range of applications, including homes, apartments, and condominiums, as well as commercial entities such as restaurants, hotels, office buildings, laundries, car washes, small businesses, hospitals, and schools. Specific offerings include diverse water treatment products like point-of-entry water softeners, well water purification systems, whole-home filtration units, portable filtration bottles, point-of-use carbon filters, and reverse osmosis systems, designed for residential, restaurant, hotel, and office use. A. O. Smith also supplies food and beverage filtration products, expansion tanks, commercial solar water heating installations, and heaters for swimming pools and spas, along with associated components. Advanced heating solutions further encompass heat pumps, electric wall-hung units, gas tankless heaters, combi-boilers, and integrated heat pump and solar water heaters. Products are primarily sold under established brands such as A. O. Smith, State, and Lochinvar, in addition to specialized water softener brands. The company leverages various distribution channels, including independent wholesale plumbing distributors, retail outlets like hardware and home center chains, and manufacturer representative firms. Its Aquasana-branded products are sold directly to consumers through e-commerce platforms and other online retailers. Founded in 1874, A. O. Smith Corporation maintains its corporate headquarters in Milwaukee, Wisconsin.

USD
NYSE
CEO: Stephen Shafer
Employees: 11,500
https://www.aosmith.com
Asset Summaries
Latest generated summaries for AOS

No summaries found.

Detailed business
Evidence-backed facts extracted from the latest official annual filing.
AOS-10-k-fy2025.html1.7 MBtext/htmlENFiled 10/02/2026Period ended 31/12/2025

Business monitoring

Reported and calculated KPIs plus operational exposure disclosed in the FY 2025 filing.

Evidence-backed · 60 KPI observations

Revenue

$3.8B

FY 2025 · Reported

Net income

$0.5B

FY 2025 · Reported

Gross margin

38.8%

FY 2025 · Calculated

Free cash flow

N/A

FY — · Reported

R&D intensity

2.5%

FY 2025 · Calculated

Share repurchases

$0.4B

FY 2025 · Reported

Earnings and cash generation
USD billions, directly sourced from inline XBRL; free cash flow is operating cash flow less capex.
Profitability and reinvestment
Margins and R&D as a percentage of revenue.
Top products and services
Products and services mentioned in the filing; a quantitative sales breakdown was not disclosed.

Other offerings mentioned without separate sales

Product lines

Area-level product sales are displayed only when the filing reports a product × geography breakdown. Regional totals are not allocated across products by estimation.

Geographic footprint
What the filing identifies, separated by location role so partner manufacturing is not presented as Apple-owned factories.
1 named headquarters
0 manufacturing countries
0 individually named factories

Map layer

Pins show disclosed operations. The heatmap colors the filing’s reported geographies; regional figures shade the region and are not estimates for each country.

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Named headquarters Manufacturing partner country

Only locations and quantities explicitly supported by the filing are displayed. A country-level manufacturing percentage or product allocation is shown only when the source discloses it; materiality scores are never presented as production shares.

How the business makes money

Two reporting segments

Two reporting segments: North America and Rest of World (primarily China, India, Europe); both manufacture residential and commercial water heaters, boilers, heat pumps, tanks and water treatment products

99%
Source evidence
“Our company is comprised of two reporting segments: North America and Rest of World. Both segments manufacture and market comprehensive lines of residential and commercial gas and electric water heaters, boilers, heat pumps, tanks and water treatment products.”

Two reporting segments

Two reporting segments: North America and Rest of World (primarily China, India, and Europe); both make residential and commercial gas and electric water heaters, boilers, tanks and water treatment products.

98%
Source evidence
“A. O. Smith Corporation (A. O. Smith or the Company) is comprised of two reporting segments: North America and Rest of World. The Rest of World segment is primarily comprised of China, India, and Europe.”

China distribution points of sale

~8,700 points of sale in China, of which ~3,800 retail outlets in tier one through tier three cities and ~1,400 exclusively sell A. O. Smith products; also e-commerce

96%
Source evidence
“We sell our products in approximately 8,700 points of sale in China, of which approximately 3,800 are retail outlets in tier one through tier three cities and approximately 1,400 exclusively sell our products.”

North America wholesale and retail channels

~800 independent wholesale plumbing distributors (A. O. Smith and State brands); retail via 4 of 6 largest national home center chains incl. exclusive Lowe's relationship

98%
Source evidence
“Our wholesale distribution channel, where we sell our products primarily under the A. O. Smith and State brands, includes approximately 800 independent wholesale plumbing distributors serving residential and commercial end markets.”

Product lines

Comprehensive lines of residential and commercial gas and electric water heaters, boilers, tanks and water treatment products.

98%
Source evidence
“Both segments manufacture and market comprehensive lines of residential and commercial gas and electric water heaters, boilers, tanks and water treatment products.”

31% of 2025 sales outside the U.S.

Approximately 31 percent of 2025 sales outside the U.S., primarily China and Canada, and to a lesser extent India and Europe.

97%
Source evidence
“Approximately 31 percent of our sales in 2025 were attributable to products sold outside of the U.S., primarily in China and Canada, and to a lesser extent in India and Europe.”

Operations and dependencies

China sales concentration ~18% of 2025 sales; sales down 12%

Approximately 18 percent of 2025 sales attributable to China; third-party sales in China decreased twelve percent in local currency in 2025 vs 2024.

98%
Source evidence
“Because approximately 18 percent of our sales in 2025 were attributable to China ... Our third-party sales in China decreased twelve percent in local currency in 2025 compared to 2024. We derive a substantial portion of our sales in China from premium-tier products.”

Cash held by foreign subsidiaries

$140.1M of $193.2M total cash and marketable securities held by foreign subsidiaries at December 31, 2025 (vs $205.7M of $276.1M in 2024)

95%
Source evidence
“of which $140.1 million and $205.7 million were held by the Company's foreign subsidiaries, at December 31, 2025 and 2024, respectively.”

Steel as primary volatile input

Market prices for certain materials and components, primarily steel, can be volatile; cost recovery lag can hurt profitability.

96%
Source evidence
“The market prices for certain materials and components we purchase, primarily steel, can be volatile. In recent years, we have also experienced inflation-related increases in our transportation and input costs.”

Cumulative foreign currency translation adjustment

Cumulative foreign currency translation loss improved to $(91.2)M at YE2025 from $(104.3)M at YE2024

90%
Source evidence
“Balance at end of period(91.2)(104.3)”

Dependence on limited suppliers

Dependent on a limited number of suppliers for some raw materials and components; disruption could delay sales or increase costs.

94%
Source evidence
“In some cases, we are dependent on a limited number of suppliers for some of the raw materials and components we require in the manufacturing of our products.”

Headcount and China workforce

Approximately 4,200 of 11,500 employees as of December 31, 2025 were located in China.

97%
Source evidence
“Approximately 4,200 of our 11,500 employees as of December 31, 2025 were located in China.”

Positioning and strategy

Leonard Valve acquisition

Definitive agreement (Nov 2025) to acquire Leonard Valve for $470 million, funded via new term loan with eight banks; completed January 2026; projected ~$70M 2026 sales in North America segment

98%
Source evidence
“In November 2025, we announced that we signed a definitive agreement to acquire LVC Holdco LLC (Leonard Valve) for $470 million, subject to customary adjustments, and was funded with cash borrowed under a new term loan with a group of eight banks.”

Leonard Valve acquisition completed January 6, 2026

All-cash acquisition of Leonard Valve for $470.0M (~$412.0M net of estimated tax benefits), funded with borrowings under a new credit agreement

98%
Source evidence
“On January 6, 2026, the Company completed the acquisition of LVC Holdco LLC ("Leonard Valve"). The transaction was completed for $470.0 million, subject to customary adjustments. The all-cash transaction is valued at approximately $412.0 million after adjusting for estimated tax benefits and was funded with cash borrowed under a new credit agreement.”

Pureit acquisition from Unilever

Acquired Pureit from Unilever on Nov 1, 2024 for ~$125 million; contributed $54 million to 2025 sales in Rest of World; doubled South Asia market penetration

97%
Source evidence
“On November 1, 2024, we acquired Pureit from Unilever for approximately $125 million, subject to customary adjustments. Pureit contributed $54 million to sales in 2025 in the Rest of World segment.”

Named competitors by market

NA water heating: Rheem, Bradford White, Rinnai, Aerco, Navien; US water treatment: Culligan, Kinetico, Pentair, Franklin Electric, Ecowater; China: Haier/Casarte, Midea/COLMO, Rinnai, Angel, Truliva; India: Racold, Bajaj, Havells, Eureka Forbes, Kent

98%
Source evidence
“Our principal water heating and boiler competitors in North America include Rheem, Bradford White, Rinnai, Aerco and Navien.”

Largest water heater manufacturer in North America

Believed largest manufacturer and marketer of water heaters in North America with leading share in residential and commercial

97%
Source evidence
“We believe we are the largest manufacturer and marketer of water heaters in North America with a leading share in both the residential and commercial portions of the market.”

R&D spending and centers

R&D expenditures: $95.0M (2025), $101.7M (2024), $97.5M (2023); conducted at Corporate Technology Center in Milwaukee and Global Engineering Center in Nanjing

97%
Source evidence
“Our total expenditures for research and development in 2025, 2024 and 2023 were $95.0 million, $101.7 million and $97.5 million, respectively.”

China business strategic assessment

Q3 2025 initiated assessment of strategic opportunities for China business, including strategic partnerships and other alternatives; assessment ongoing

98%
Source evidence
“In the third quarter of 2025, we initiated an assessment of strategic opportunities for our China business, including strategic partnerships and other alternatives.”

Strategic assessment of China business announced in 2025

In 2025, the company announced a strategic assessment of its China business, which may lead to uncertain outcomes, costs, and impacts.

95%
Source evidence
“In 2025, we announced a strategic assessment of our China business. This may lead to uncertain outcomes, costs, and impacts that could negatively affect the company.”

Risks, financing, and outlook

Steel and tariff input-cost volatility with pricing pass-through

Steel is primary raw material; some customers contractually accept steel price changes; tariffs increased input volatility; H1 2025 price increases plus footprint optimization, sourcing actions, cost containment

97%
Source evidence
“Raw materials for our manufacturing operations, primarily consisting of steel, are generally available in adequate quantities. A portion of our customers are contractually obligated to accept price changes based on fluctuations in steel prices.”

Debt instruments and revolving credit facility

Total debt $155.0M at YE2025 ($42.3M due within one year); $500M revolver expiring August 23, 2029 with $1B accordion; variable-rate $46.6M at 7.4%, fixed-rate $108.4M at 3.3%

97%
Source evidence
“In 2024, the Company renewed and amended its $500 million multi-year multi-currency revolving credit agreement with a new expiration date of August 23, 2029. The facility has an accordion provision which allows it to be increased up to $1 billion”

Foreign cash held in China; repatriation risk

~$140 million of cash and marketable securities held by foreign subsidiaries at December 31, 2025, substantially all in China.

95%
Source evidence
“At December 31, 2025, approximately $140 million of cash and marketable securities were held by our foreign subsidiaries, substantially all of which were located in China.”

2026 guidance

2026: consolidated sales +2-5%, EPS $3.85-$4.15; NA segment margin 24.0-24.5%; ROW margin 8-9%; boilers +6-8%; water treatment +10-12%; China third-party sales down mid-single digits; excludes acquisitions, China assessment outcomes, tariff changes

97%
Source evidence
“we expect our 2026 consolidated sales to grow between two and five percent compared to 2025. Our guidance excludes the impacts from potential future acquisitions, any potential outcomes of the assessment of the China business and changes to tariffs.”

Capital return - dividends and share repurchases

Dividends raised to $1.38/share (2025) from $1.30 (2024) and $1.22 (2023); repurchased 5,942,601 shares for $400.8M in 2025; 803,524 shares remaining authorized

95%
Source evidence
“Regular dividends paid on the A. O. Smith Corporation Class A Common Stock and Common Stock amounted to $1.38, $1.30 and $1.22 per share in 2025, 2024 and 2023, respectively.”

Ashland City, TN facility roof structural compromise (January 29, 2026)

Roof structure compromise halted production temporarily at Ashland City, TN; production shifted to other facilities; company does not expect material financial impact

95%
Source evidence
“On January 29, 2026, the Company identified a compromise to a portion of the Ashland City, Tennessee facility roof structure due to a severe ice and snow weather event... the Company does not expect the event to result in a material impact on its financial results.”

Financial statements included in Item 8

Annual Report on Form 10-K includes consolidated financial statements for the three years ended December 31, 2025.

95%
Source evidence
“The following consolidated financial statements of A. O. Smith Corporation are included in Item 8”

Financial statement schedules and exhibits

Schedule II—Valuation and Qualifying Accounts included; management/compensatory plans filed as Exhibits 10(a) through 10(p).

95%
Source evidence
“Each management contract or compensatory plan or arrangement required to be filed as an exhibit to this report on Form 10-K are listed as Exhibits 10(a) through 10(p) in the Index to Exhibits.”

DOE commercial water heater efficiency rule October 2026

October 2026 DOE rule will require all commercial water heaters to be condensing; company expanding commercial capacity and launched Cyclone Flex ahead of it; expects 2026 buy-ahead of soon-to-be-eliminated products

97%
Source evidence
“the Department of Energy (DOE) has adopted that will take effect in October 2026.”

Tariff exposure on critical raw materials

Import tariffs and retaliation could significantly increase raw material prices; new or increased tariffs could raise costs, reduce demand, and hurt margins.

96%
Source evidence
“Import tariffs, taxes, customs duties and other trading regulations imposed by the U.S. government on foreign countries, or by foreign countries on the U.S., could significantly increase the prices we pay for raw materials that are critical to our ability to manufacture our products.”

Competition and new technologies (gas tankless, heat pump)

Highly competitive markets; new technologies and competitors such as gas tankless and heat pump technologies in North America; increasing use of AI by competitors.

95%
Source evidence
“New technologies and new competitors have developed and continue to develop in certain markets in which we participate, such as gas tankless and heat pump technologies in North America.”

Demand shift from decarbonization/electrification trends

Decarbonization and electrification trends may reduce demand for gas-powered products and increase demand for higher-efficiency/electric products.

93%
Source evidence
“Consumer preferences and broader trends, such as decarbonization and electrification efforts in response to climate change, may result in reduced demand for gas or fossil fuel-powered products and increased demand for higher efficiency products and/or more electric powered products.”

Material exposure graph

China
Revenue Exposure

China accounts for ~18% of 2025 sales with premium-tier product reliance, weakening consumer confidence and a 12% local-currency sales decline; a strategic assessment of the China business is underway.

Relevance 92·Dependency 80·Confidence 97
Source evidence
“Because approximately 18 percent of our sales in 2025 were attributable to China, adverse economic conditions or changes in consumer behavior in China could impact our business”
China
Revenue Exposure

Rest of World segment is majority China; 2025 China third-party sales fell 12% on weak consumer demand and ended subsidy programs; company assessing strategic options for China business.

Relevance 90·Dependency 70·Confidence 95
Source evidence
“Sales in our Rest of World segment accounted for approximately 22 percent of our total sales in 2025, a majority of which were in China.”
Steel
Raw Material Dependency

Steel is the primary volatile input; tariffs could increase volatility, and there is a historical lag in recovering material cost increases via pricing.

Relevance 85·Dependency 75·Confidence 95
Source evidence
“The market prices for certain materials and components we purchase, primarily steel, can be volatile.”
U.S. import tariffs
Cost Driver

Tariffs on raw materials could raise costs, force price increases, foreclose sales into impacted markets, and trigger retaliation reducing competitiveness abroad.

Relevance 85·Dependency 65·Confidence 94
Source evidence
“Any widespread imposition of additional new or increased tariffs could increase the cost of and reduce the demand for our products and any cost increases will require us to increase prices, foreclose our sales into impacted markets or negatively impact our profit margins.”
DOE commercial water heater efficiency rule
Regulatory Exposure

October 2026 DOE condensing requirement drives capacity expansion, Cyclone Flex launch, and expected 2026 commercial buy-ahead demand.

Relevance 80·Dependency 60·Confidence 95
Source evidence
“We anticipate that commercial water heater industry volumes will increase mid-single digits in 2026 after growing approximately five percent in 2025. We believe that the 2026 growth will come from the buy ahead of products that will be eliminated as a part of the DOE regulatory change”
Trade war / retaliatory tariffs
Geopolitical Exposure

Retaliatory responses from other countries may decrease the competitiveness of products in foreign markets; trade climate changes in Canada, China, India and Mexico could materially affect results.

Relevance 75·Dependency 55·Confidence 90
Source evidence
“Any new or increased tariffs could also trigger retaliatory responses from other countries which may decrease the competitiveness of our products in foreign markets.”
Decarbonization and electrification
Demand Driver

Decarbonization/electrification trends may shift demand away from gas/fossil-fuel products toward higher-efficiency and electric products, requiring product portfolio transition.

Relevance 75·Dependency 50·Confidence 90
Source evidence
“decarbonization and electrification efforts in response to climate change, may result in reduced demand for gas or fossil fuel-powered products and increased demand for higher efficiency products and/or more electric powered products”
US Dollar
Currency Exposure

Multi-currency operations create translation exposure: cumulative foreign currency translation loss of $(91.2)M at YE2025, improved $13.1M in 2025; $140.1M of $193.2M cash held by foreign subsidiaries.

Relevance 70·Dependency 60·Confidence 90
Source evidence
“Cumulative foreign currency translation Balance at beginning of period$(104.3)$(80.3) Other comprehensive gain (loss) before reclassifications13.1 (24.0) Balance at end of period(91.2)(104.3)”
Heat pump and gas tankless technologies
Competitive Exposure

New technologies and competitors, such as gas tankless and heat pump technologies in North America, could erode the customer base and margins.

Relevance 70·Dependency 45·Confidence 90
Source evidence
“New technologies and new competitors have developed and continue to develop in certain markets in which we participate, such as gas tankless and heat pump technologies in North America.”
Lowe's
Customer Exposure

Long-standing exclusive retail relationship with Lowe's for A. O. Smith branded residential water heaters.

Relevance 65·Dependency 50·Confidence 93
Source evidence
“including a long-standing exclusive relationship with Lowe’s where we sell A. O. Smith branded products”
Rheem
Competitive Exposure

Rheem is named a principal North America water heating/boiler competitor.

Relevance 65·Dependency 40·Confidence 95
Source evidence
“Our principal water heating and boiler competitors in North America include Rheem, Bradford White, Rinnai, Aerco and Navien.”
Chinese yuan
Currency Exposure

Substantially all ~$140 million of foreign-subsidiary cash and marketable securities is located in China; repatriation restrictions or withholding taxes on remittances are disclosed risks.

Relevance 60·Dependency 45·Confidence 85
Source evidence
“At December 31, 2025, approximately $140 million of cash and marketable securities were held by our foreign subsidiaries, substantially all of which were located in China.”
Chinese yuan
Currency Exposure

Unfavorable currency translation of ~$7M in 2025 from foreign currency depreciation vs USD, largely tied to Rest of World (China majority).

Relevance 55·Dependency 40·Confidence 85
Source evidence
“an unfavorable currency translation of approximately $7 million due to the depreciation of foreign currencies compared to the U.S. dollar.”
India
Revenue Exposure

India is a key Rest of World market with local manufacturing (water heaters since 2010, water treatment since 2015) expanded by the Pureit acquisition across India and South Asian markets.

Relevance 55·Dependency 30·Confidence 90
Source evidence
“Pureit offers a broad range of residential water purification solutions in India and other South Asian markets.”
Full company information
Latest profile, trading, valuation, and identifier data stored for AOS.
Share price
$56.38
Market cap
$7.81B
Exchange
NYSE
Currency
USD
CEO
Stephen Shafer
Employees
11,500
IPO date
30/09/1983
Beta
1.111
Last dividend
$0.00
Day range
$56.17 – $57.27
52-week range
$54.16 – $81.87
1-day performance
-0.32%
1-year performance
4.10%
Current drawdown (1Y)
-31.13%
CIK
0000091142
CUSIP
831865209
ISIN
US8318652091
Created
07/12/2025, 02:06:08
Last update
12/10/2026, 04:31:51

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