A. O. Smith Corporation (AOS)

Over the past six months, A. O. Smith's stock has experienced some fluctuations. Key events include the announcement of third-quarter 2025 results with sales growing 4% to $943 million and net earnings increasing 10% to $132 million, a 6% increase in the quarterly cash dividend, leadership changes with the hiring of Chris Howe and appointment of Paul Jones, a 1% sales decline in the second quarter of 2025 due to lower sales in China and reduced water heater volumes in North America, and a 2% sales decrease in the first quarter of 2025 mainly due to lower water heater volumes in North America and decreased sales in China.

Demand for A. O. Smith's products exhibits some seasonality, though its North American water heater business is largely driven by replacements, providing a stable revenue stream. Demand in the U.S. is often supported by a strong economy and housing market. International markets, particularly China, have experienced headwinds, while India has shown strong demand. Demand for air purifiers in China remains robust due to pollution concerns.

A. O. Smith Corp. is a global leader in water technology, operating within the Industrials sector, specifically in the Industrial - Machinery and Building Products industries. The company produces and distributes residential and commercial water heaters, boilers, and water treatment products, marketed under brands like A. O. Smith, State, Lochinvar, Aquasana, and Hague.

Headquartered in Milwaukee, Wisconsin, A. O. Smith has a significant global presence with manufacturing facilities in seven countries and operations in over 80 countries. Its key markets include North America, China, Europe, and India, serving customers across Canada, the US, Mexico, the Netherlands, the UK, France, the UAE, Hong Kong, and Vietnam. The company's operations are segmented into "North America" and "Rest of World."

In the past year, A. O. Smith has maintained a positive brand reputation, marked by ethical recognition and environmental efforts. A. O. Smith was named one of the 2025 World's Most Ethical Companies by Ethisphere for the second consecutive year. The company was recognized by USA Today and Statista for its efforts in carbon footprint reduction, making America's Climate Leaders list for the second time. A. O. Smith is generally regarded as a reliable dividend stock, having increased its dividend for 33 consecutive years.

A. O. Smith Corp. has significant institutional ownership, with major holders including Vanguard Group Inc., BlackRock Inc., Janus Henderson Investors US LLC, and State Street Corp. Institutions collectively own 82.91% of the company, while mutual funds hold 16.99%, and insider ownership by individuals stands at 0.10%.