A. O. Smith Corporation AOS

IndustrialsMachinery, Tools, Heavy Vehicles, Trains & ShipsUnited States of America

Last close 63.07 USD on Nov 1, 2026, −3.5% year to date

Quant rating

Quant rating B Rank 185 of 486 in Industrials

Growth D 359 of 486
Valuation B 111 of 486
Quality A 28 of 486
Revisions D 390 of 486
Momentum C 200 of 486

Wall Street consensus Hold (2.79)Average target 67.16 USD +6.5%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 8.5B
Enterprise value: 8.9B
52-week range: 54.26 – 81.69
3-year range: 54.26 – 91.98
Dividend yield: 2.41%
Beta (5 years): 1.04
Shares outstanding: 134M
Next earnings: Jan 29, 2027

About the company

A. O. Smith Corporation applies technologies and solutions to products manufactured and marketed worldwide. The Company operates through two segments: North America and Rest of World. Both the segments manufacture and market a comprehensive line of residential and commercial gas and electric water heaters, boilers, tanks, and water treatment products. Its Rest of World segment is primarily comprised of China, Europe, and India. The North America segment serves residential and commercial end markets with a range of products, including water heaters, boilers, water treatment products, and others. The Company also manufactures expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, related products and parts. Its Lochinvar brand is a residential and commercial boiler brand in the United States. Its water softener branded products and problem well water solutions include the Hague, Water-Right, Master Water, Atlantic Filter, Impact, and Water Tec brands.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	3,830	3,818	3,853	3,754	3,539	–
Revenue growth	0.3%	−0.9%	2.6%	6.1%	22.2%	5.8%
EPS (basic, normalized)	3.85	3.73	3.81	3.14	3.02	–
EPS growth	3.2%	−2.1%	21.3%	4.0%	–	–
Gross margin	38.8%	38.1%	38.5%	35.4%	37.0%	37.6%
Net margin	14.3%	14.0%	14.4%	6.3%	13.8%	12.5%
ROE	29.2%	28.6%	31.0%	13.2%	26.5%	25.7%

Balance sheet, last quarter
Cash & short-term investments (mil)	234
Current ratio	1.64x
Long-term debt (mil)	632
Net debt (mil)	439
Total equity (mil)	1,823
Net debt / equity	0.24x
Net debt / EBITDA	0.54x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	3,830	+0.3%	2.3x	813	−0.4%	11.0x	3.85	+3.2%	16.4x
2026	3,792	−1.0%	2.3x	786	−3.3%	11.3x	3.64	−5.3%	17.3x
2027	3,727	−1.7%	2.4x	817	+3.9%	10.9x	3.88	+6.5%	16.3x
2028	3,802	+2.0%	2.3x	859	+5.2%	10.4x	4.20	+8.3%	15.0x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	3,792	−2.6%	−2.7%	−3.6%	3.64	−2.5%	−2.9%	−5.2%
2027	3,727	−7.9%	−8.1%	−8.9%	3.88	−5.2%	−5.6%	−8.6%
2028	3,802	−9.8%	−10.1%	−10.5%	4.20	−5.7%	−5.9%	−7.6%

Earnings surprises EPS beat in 3 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	979	1,024	903	912	964	1,011	942	912	946	1,004
Sales mean (mil)	996	998	905	954	954	996	947	928	978	995
Surprise	−1.7%	+2.7%	−0.2%	−4.4%	+1.0%	+1.5%	−0.4%	−1.7%	−3.3%	+0.9%
EPS reported	1.00	1.06	0.82	0.85	0.95	1.07	0.94	0.90	0.85	1.03
EPS mean	0.98	1.06	0.83	0.89	0.91	0.98	0.91	0.84	0.94	0.92
Surprise	+2.0%	0.0%	−1.3%	−4.9%	+4.3%	+8.7%	+3.6%	+6.8%	−9.9%	+11.5%

Peer comparison Machinery, Tools, Heavy Vehicles, Trains & Ships

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
AOS A. O. Smith Corporation	8.5B	0.54x	14.3%	4.79x	17.3x	16.3x	11.3x	10.9x
ETN Eaton Corporation PLC	143.7B	2.91x	14.9%	7.09x	27.2x	22.9x	20.9x	17.8x
PH Parker-Hannifin Corporation	113.5B	1.43x	17.0%	7.36x	25.3x	22.8x	17.9x	16.4x
TT Trane Technologies PLC	89.7B	0.70x	13.9%	9.86x	26.8x	23.2x	19.2x	16.7x
JCI Johnson Controls International PLC	90.3B	1.83x	7.3%	6.63x	23.8x	20.0x	17.7x	15.6x
EMR Emerson Electric Co	92.0B	2.13x	12.7%	4.51x	25.1x	22.7x	18.7x	17.4x
Mean		1.59x	13.3%	6.71x	24.3x	21.3x	17.6x	15.8x
Median		1.63x	14.1%	6.86x	25.2x	22.7x	18.3x	16.6x

Technical analysis

1M+8.7%
3M−0.3%
1Y−3.0%
3Y−0.9%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, A. O. Smith Corporation, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	3,830	3,818	3,853	3,754	3,539	2,895
Cost of revenue	2,343	2,362	2,368	2,424	2,228	1,787
Gross profit	1,487	1,456	1,485	1,330	1,311	1,108
Selling, general & administrative expenses	759	739	727	671	701	660
Research & development	–	–	–	–	–	–
Interest expense (income), operating	13.5	6.7	12.0	9.4	4.3	7.3
Unusual expense (income)	0	17.6	18.8	0	0	7.7
Other operating expenses	−0.6	−8.5	−6.9	426	−20.4	−11.0
Operating income	715	701	734	224	626	444
Net interest income (expense)	–	–	–	–	–	–
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	0	0	0	0	0	0
Net income before taxes	715	701	734	224	626	444
Provision for taxes	169	167	177	−12.0	138	99.0
Minority interest	–	–	–	–	–	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	546	534	557	236	487	345
Extraordinary items	–	–	–	–	–	–
Net income	546	534	557	236	487	345
EBIT, normalized	729	725	764	226	630	459
EBITDA, normalized	814	804	843	303	708	539
Basic EPS, normalized	3.85	3.73	3.81	3.14	3.02	–

Balance sheet in millions of USD, fiscal years

Balance sheet, A. O. Smith Corporation, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	193	276	363	482	631	690
Receivables	582	541	596	581	634	585
Total inventory	479	532	497	516	448	300
Prepaid expenses	–	–	–	–	–	–
Other current assets	36.7	43.3	43.5	54.3	39.1	43.3
Total current assets	1,292	1,393	1,500	1,634	1,753	1,618
Property, plant & equipment	681	662	635	620	639	583
Goodwill	711	762	633	620	628	547
Intangibles	362	321	337	348	365	324
Long-term investments	–	–	–	–	–	–
Note receivable	–	–	–	–	–	–
Other long-term assets	97.0	103	109	110	90.0	89.1
Total assets	3,143	3,240	3,214	3,332	3,474	3,161
Liabilities
Accounts payable	504	589	600	626	746	595
Payable/accrued	–	–	–	–	–	–
Accrued expenses	241	232	270	235	295	236
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	42.3	10.0	10.0	10.0	6.8	6.8
Other current liabilities	75.0	67.0	65.3	63.6	70.9	47.8
Total current liabilities	862	897	945	934	1,119	886
Long-term debt	113	183	117	334	190	106
Minority interest	–	–	–	–	–	–
Other liabilities	310	276	307	316	334	320
Total liabilities	1,285	1,356	1,370	1,585	1,642	1,312
Shareholders' equity
Preferred stock	0	0	0	0	0	0
Common stock	295	295	295	295	295	295
Additional paid-in capital	614	601	578	556	545	520
Retained earnings (accumulated deficit)	3,952	3,601	3,258	2,885	2,827	2,510
Treasury stock	−2,904	−2,502	−2,202	−1,906	−1,503	−1,156
Other equity	−98.6	−112	−84.2	−82.4	−331	−321
Total equity	1,858	1,884	1,844	1,748	1,832	1,848
Total liabilities & shareholders' equity	3,143	3,240	3,214	3,332	3,474	3,161

Cash flow statement in millions of USD, fiscal years

Cash flow statement, A. O. Smith Corporation, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	546	534	557	236	487	345
Depreciation, depletion & amortization	85.1	78.8	78.3	76.9	77.9	80.0
Deferred taxes	8.9	−4.6	−3.8	–	–	–
Non-cash items	13.8	19.6	26.4	261	11.9	12.7
Changes in working capital	−37.2	−45.6	12.8	−182	64.2	124
Cash from operations	617	582	670	391	641	562
Investing activities
Capital expenditures	−70.8	−108	−72.6	−70.3	−75.1	−56.8
Other investing cash flows	17.8	−159	48.5	78.4	−275	68.6
Cash from investing	−53.0	−267	−24.1	8.1	−350	11.8
Financing activities
Financing cash flow items	–	–	–	–	0	0
Cash dividends paid	−196	−190	−184	−177	−170	−159
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−437	−218	−501	−254	−251	−216
Cash from financing	−633	−408	−685	−431	−421	−375
Foreign exchange effects	4.2	−6.6	−12.8	−20.8	–	–
Net change in cash	−65.1	−100	−51.3	−52.1	−130	199
Free cash flow	546	474	598	321	566	505

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.