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AO

A. O. Smith Corporation

AOSIndustrialsNASDAQ

Specialty Industrial Machinery

PriceMA150MA200
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Financials · Annual
Revenue
$3.83B
+0.3% YoY
Net Income
$546.2M
+2.4% YoY
EBITDA
$813.7M
+3.5% YoY
Free Cash Flow
$495.6M

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About A. O. Smith Corporation

Smith Corporation manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products in North America, China, Europe, and. The $7.82B market capitalization puts AOS squarely in mid-cap range for its industry. The company offers water heaters for residences, restaurants, hotels, office buildings, laundries, car washes, and small businesses; boilers for hospitals, schools, hotels, homes, apartments, and condominiums, and other large commercial buildings; and water treatment products comprising point-of-entry water softeners, well water solutions, and whole-home water filtration products, and point-of-use carbon and reverse osmosis products for residences, restaurants, hotels, and offices.

Key stats
Market Cap$7.82B
P/E (TTM)15.13
Fwd P/E13.57
EPS$3.75
Beta1.22
52W Change-10.0%
Dividend Yield2.50%
ROE28.3%
Analysis

The company holds $203.9M in cash, though total debt stands at $656.9M. This level of leverage is common in the industry but worth monitoring as interest rate conditions evolve. Annual free cash flow of $495.6M supports ongoing capital allocation decisions and provides a cushion against unexpected expenses or downturns. Return on equity stands at 28.3%, which is strong for the sector. ROE measures how effectively a company uses shareholder capital to generate profits. Return on assets of 12.8% further supports the picture of efficient asset utilization. Revenue has been relatively flat, moving from $3.75B (2022) to $3.83B (2025).

As with any equity investment, AOS carries market risk, sector-specific risk, and company-specific risk that investors should evaluate in the context of their own portfolios. Understanding these risk dimensions helps frame what to watch going forward as conditions evolve for A. O. Smith Corporation and its sector.

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