A. O. Smith Corporation (AOS) AI Stock Analysis

A. O. Smith Corporation manufactures and markets residential and commercial water heating systems, boilers, tanks, and water treatment solutions. Founded in 1874 and based in Milwaukee, Wisconsin, the business operates through two segments: North America and Rest of World. Its product catalog features gas, heat pump, and electric water heaters, commercial boilers, pool heaters, solar water heating systems, and water softeners. The company distributes products under brands including A. O. Smith, State, Lochinvar, and Aquasana. Sales are conducted via independent wholesale plumbing distributors, retail hardware and home center chains, and direct-to-consumer e-commerce platforms.

A. O. Smith posted a 5-year revenue compound annual growth rate of 5.8% from FY2020 to FY2025. Annual revenue grew from $3.54B in FY2021 to $3.85B in FY2023, before settling at $3.82B in FY2024 and $3.83B in FY2025. Net income was $546.2M in FY2025, with a net margin of 14.3% and diluted EPS of $3.86. Operating margin reached 19.0% in FY2025, up from 17.2% in FY2021. For the latest quarter ended June 30, 2026, quarterly revenue growth fell 0.7% year-over-year while quarterly earnings declined 15.0% year-over-year. Over the trailing twelve months, revenue totaled $3.80B with a profit margin of 13.2%.

As of June 30, 2026, A. O. Smith held $181.3M in cash and short-term investments against total debt of $676.7M, resulting in net debt of $495.4M. Shareholders' equity was $1.84B alongside total assets of $3.64B, yielding a debt-to-equity ratio of 0.37 and a current ratio of 1.59. In FY2025, operating cash flow stood at $616.8M, supporting capital expenditures of $70.8M and free cash flow of $546.0M. The company directed $400.8M toward share buybacks and paid $195.7M in dividends in FY2025, reducing its share count by 13.5% over 5 years.

At a share price of $59.22 and a market capitalization of $8.05B, A. O. Smith trades at a trailing P/E of 16.5x and a forward P/E of 13.8x. These multiples sit below the median of its S&P 500 Industrials peers, which post a trailing P/E of 28.5x and forward P/E of 20.7x. The company's enterprise value of $8.34B represents an EV/EBITDA multiple of 11.0x, compared to 17.7x for peer medians. Over the past year, AOS returned -12.7% compared to a 16.8% return for the S&P 500 (SPY), while its 5-year return of -1.0% lagged the index's 83.0% gain.

A. O. Smith pays a quarterly dividend with an annualized forward rate of $1.52 per share, offering a dividend yield of 2.57%. The payout ratio stands at 39.2%, and dividends have been paid for 42 consecutive years. The company achieved a 5-year annualized dividend growth rate of 7.1%, with its last ex-dividend date on October 30, 2026.

Wall Street coverage includes 4 Strong Buy, 1 Buy, 6 Hold, 1 Sell, and 1 Strong Sell recommendations. The mean price target is $69.09, representing an implied upside of 16.7% from the last close of $59.22. Consensus estimates project FY2026 EPS of $3.73 on revenue of $3.89B, followed by FY2027 EPS of $4.06 on revenue of $4.04B. A. O. Smith beat EPS estimates in 3 of the last 4 quarters and is scheduled to report earnings on October 29, 2026.

This page is an AI-written research summary of A. O. Smith Corporation (AOS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: AOS income statement, AOS balance sheet, AOS key metrics, AOS analyst forecast, AOS chart. See the AOS stock overview for the latest quote and news.