A. O. Smith (AOS)
Industrials · Water heating and climate control equipment manufacturing
Leading North American manufacturer of residential and commercial water heaters, boilers, and water treatment products serving replacement and new construction markets.
What A. O. Smith does
A. O. Smith manufactures and markets comprehensive lines of residential and commercial water heaters, boilers, heat pumps, expansion tanks, and water treatment products through two operating segments: North America (78% of sales) and Rest of World (China, India, Europe). The company operates through approximately 800 independent wholesale plumbing distributors, retail partnerships including an exclusive Lochinvar brand relationship for commercial boilers, direct-to-consumer e-commerce, and water quality dealer networks. North America is the largest market, with significant revenue from both replacement of existing products and new construction applications across residential, commercial, and industrial end markets.
Themes: ["Water heating","Energy-efficient heating","Commercial HVAC","Heat pump technology","Water treatment and filtration","Greenhouse gas emission reduction","Residential construction","Commercial real estate","DOE regulatory compliance"]
Fundamentals
- Price$59.02 as of 2026-07-09 close
- Market cap$8.1B as of 2026-07-10
- 1-year return-13.1% as of 2026-07-09 close
- P/E15.38 as of 2026-07-10
- Net margin+13.8% as of 2026-07-10
- Gross margin+38.8% as of 2026-07-10
- ROE+28.4% as of 2026-07-10
- Debt / equity0.33 as of 2026-07-10
- Revenue growth (YoY)+0.2% as of 2026-07-10
- Revenue CAGR (3y)+0.7% SEC XBRL
- Beta1.16 as of 2026-07-10
Dividend: yield +2.4%; 5-year non-decreasing per-share dividend streak (SEC XBRL).
Key risks (from latest filing)
["Regulatory changes: Upcoming October 2026 Department of Energy commercial water heater condensing requirement necessitates product transition and capital investment.","Market competition: Operates in highly competitive markets with pricing pressure across residential and commercial water heating segments.","Geographic concentration: North America accounts for 78% of sales, creating exposure to regional economic cycles and housing market fluctuations."]
Competitors & peers
- Rheem Manufacturing (private)
- Bradford White Corporation (private)
- Viessmann Group (private)
- Lennox International (LII)
- Johnson Controls International (JCI)
- Pentair (PNR)
Fundamentals: Finnhub, as of 2026-07-10. Filings: SEC EDGAR. Prices are delayed daily-close data.
Last updated 2026-07-09.
Informational only — NOT financial advice. All figures are delayed daily-close data from SEC EDGAR & Finnhub, shown with their as-of date.