A. O. Smith Corporation (AOS)

Over the past six months (from December 2024 to June 2025), A. O. Smith's stock has experienced a decline. As of June 18, 2025, the share price was $63.08, representing a 24.83% decline from $83.92 on June 20, 2024. The stock was down 16.4% over the past six months, lagging behind the Industrial Select Sector SPDR Fund's (XLI) gains. Key events impacting the stock price include the Q3 2024 earnings release, lowered full-year 2024 outlook, a weak Chinese economy and soft North America water heater demand, Q1 2025 financial results, and analyst ratings.

The demand for A. O. Smith's products is influenced by replacement cycles and new construction, with water heaters typically needing replacement every 8 to 12 years. The company's performance can be affected by broader economic factors and regional conditions. A. O. Smith's demand is driven by steady replacement needs in mature markets and growth opportunities in emerging markets and water treatment solutions.

A. O. Smith Corporation is a global water technology company headquartered in Milwaukee, Wisconsin, since 1874. The company operates predominantly in the global water technology sector, with a significant presence in North America, China, Europe, and India. A. O. Smith is a leading manufacturer of residential and commercial water heating equipment and boilers, and also produces water treatment products. Its major products include water heaters, boilers, tanks, water treatment products, and other products. A. O. Smith markets its products under various brands, including A. O. Smith, Lochinvar, Aquasana, and State. The company focuses on sustainable technologies and smart water solutions, aiming to conserve energy and optimize water quality.

A. O. Smith has a significant global presence with manufacturing facilities in the U.S., Canada, Mexico, China, India, the United Kingdom, and the Netherlands. The company also has sales and distribution in more than 80 countries worldwide. Its two primary reporting segments are North America and Rest of World, with North America accounting for approximately 77% of total sales in 2024 and Rest of World accounting for approximately 23%, with the majority of those sales in China.

A. O. Smith has maintained a positive brand reputation in the past year, particularly in areas of ethics and sustainability. For the second consecutive year, A. O. Smith was named one of the 2025 World's Most Ethical Companies by Ethisphere. A. O. Smith was also recognized by USA Today and Statista as one of America's Climate Leaders for the second time, achieving a 12% reduction in Scope 1 and Scope 2 greenhouse gas emissions intensity from 2021 to 2023.

A. O. Smith Corporation has a significant institutional ownership. As of March 31, 2025, 96.34% of the total shares outstanding are held by institutional owners. There are 1,284 institutional owners and shareholders who have filed 13D/G or 13F forms with the SEC, holding a total of 124,573,859 shares. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., and State Street Corp. Insider ownership stands at 1.21% or 1.72 million shares.