A. O. Smith Corporation (AOS)

In the past six months, A. O. Smith's stock price has experienced fluctuations. As of July 18, 2025, the share price was $70.30, an increase of 1.77% from the prior week, but over the last year, the share price has declined by 20.52%. In May 2025, shares plunged by 6.3% after Lennox International announced a water heater joint venture with Ariston. In July 2025, the stock soared 4% following the announcement of a major leadership transition. In Q1 2025, A. O. Smith reported revenues of $963.9 million, a 1.5% decrease year-over-year, but this exceeded analysts' expectations by 1.1%. In Q2 2025, China's domestic water heater shipments trended above expectations, rising 10% year-over-year in May and 7% in April. A. O. Smith maintains a "Buy" consensus from analysts, with an average price target of $75.29. The company continues to reward shareholders with steady dividends and robust free cash flow coverage, with a commitment to a $0.34 quarterly dividend.

The demand for A. O. Smith Corp.'s products is influenced by new construction activity and the replacement market. The company's domestic operations benefit significantly from a large replacement market, which provides a steadier cash flow. In North America, water heater industry unit volumes are anticipated to be flat year-over-year. In the Rest of World segment, a single-digit sales decline is expected in China, but continued double-digit sales growth is projected in India. The Chinese water heater market has shown an upside surprise in Q2 2025, potentially benefiting A. O. Smith.

A. O. Smith Corporation is a global leader in the water technology sector, specializing in water heating and treatment solutions. The company designs, manufactures, and markets a comprehensive range of residential and commercial boilers, water heaters, and water purification products, focusing on sustainable technologies and smart water solutions. Its major products include residential and commercial gas, electric, and heat pump water heaters, boilers, and tanks. The company also offers water treatment products, food and beverage filtration products, expansion tanks, commercial solar water heating systems, and swimming pool and spa heaters. Key brands include A. O. Smith, State, Lochinvar, and Aquasana. The company operates through two segments: North America and Rest of World.

A. O. Smith Corporation has a significant global presence with operations in the United States, Canada, Mexico, China, India, the United Kingdom, and the Netherlands. The company also has sales and distribution in over 60 countries worldwide. Its North America segment accounts for the majority of its sales, while the Rest of World segment primarily includes China, Europe, and India.

A. O. Smith focuses on innovative technology and energy-efficient solutions for its water technology products, aiming for sustainability and customer satisfaction. The company's commitment to sustainability is highlighted by its progress toward greenhouse gas emissions reduction goals. A. O. Smith's products have received positive reviews for their energy savings, and the company has strong brand recognition, especially in China, India, and the U.S. The company's focus on new product development, global expansion, strategic acquisitions, and partnerships contribute to its reputation as an evolving and innovative leader in water technology.

Approximately 57.74% of A. O. Smith's stock is owned by institutional investors, 0.40% by insiders, and 41.86% by public companies and individual investors. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., and State Street Corp.