A. O. Smith Corporation (AOS)

In the past six months, A. O. Smith's stock has trended up by 3.05%. In November 2025, A. O. Smith entered an agreement to acquire LVC Holdco LLC (Leonard Valve) for $470 million, expected to close in the first quarter of 2026, aiming to strengthen its water heating and boiler offerings. In November 2024, the company acquired the Pureit business from Unilever, expanding its water treatment offerings in the Indian market. In October 2025, the company increased its quarterly dividend rate by 6% to $0.36 per share. In January 2025, the board of directors increased the share repurchase authorization by an additional 5 million shares, with plans to repurchase approximately $400 million in shares in 2025. In Q3 2025, the company reported sales of $943 million and diluted EPS of $0.94. In Q2 2025, the company reported sales of $1 billion and EPS of $1.07. In Full Year 2024, sales declined 1% to $3.8 billion, and diluted EPS was $3.63. The company is undergoing a formal assessment of its China business and is accelerating the transition of gas tankless product production from China to Juarez, Mexico.

Demand for A. O. Smith's products and services is characterized by a resilient business model built on a steady, high-margin replacement cycle. Approximately 80% to 85% of its North American water heater and boiler sales are non-discretionary replacements, providing a stable and recession-resistant revenue base. The company's outlook for 2025 anticipates North America water heater industry unit volumes to be flat year-over-year with less first-half versus second-half volatility compared to 2024, indicating some historical seasonality that is expected to moderate.

A. O. Smith Corp. (AOS) operates within the Industrials sector, focusing on water technology, specifically in Specialty Industrial Machinery or the essential utilities sector. The company manufactures and markets residential and commercial water heating and water treatment products, including water heaters, boilers, water treatment and purification products, and other related items. A. O. Smith markets its products under various brands globally, including A. O. Smith, State Water Heaters, Lochinvar, Aquasana, and others.

A. O. Smith has a significant global presence with 27 locations worldwide, including manufacturing facilities in North America, Bengaluru (India), Nanjing (China), and Veldhoven (The Netherlands). The company serves residential and commercial customers across numerous countries, with the United States accounting for 67.4% of net sales, China for 19.9%, Canada for 8.7%, and other regions for 4% as of the end of 2024. The North America segment accounts for approximately 78% of total sales.

A. O. Smith maintains a strong brand reputation as a trusted brand among consumers, contractors, and specifiers for its dedication to quality, performance, and energy efficiency. The company is considered a global leader in the water technology industry. No specific negative events directly impacting A. O. Smith's brand reputation were identified in the provided information.

A. O. Smith Corporation's ownership structure is predominantly held by institutional investors, who hold between 77.40% and 78.27% of the company's stock. Major institutional shareholders include Vanguard Group Inc., BlackRock, Inc., and State Street Corp. Individual investors, including insiders, hold a smaller portion, approximately 0.40% to 0.73% of the stock.