Business Description

A. O. Smith Corporation is a leading global manufacturer of residential and commercial water heaters, boilers, and water treatment products. Headquartered in Milwaukee, Wisconsin, the company operates primarily in North America, China, India, and Europe. It is known for its prominent market share in North American water heating and its strategic expansion into water purification solutions.

Financial Statements

In thousands, USD
FY 2025FY 2024FY 2023FY 2022
Total Revenues3,830,2003,818,1003,852,8003,753,900
Cost of Sales2,342,8002,362,0002,368,0002,424,300
Gross Profit1,487,4001,456,1001,484,8001,329,600
Selling, General & Administrative Expenses759,400739,300727,400670,900
Other Operating Expenses17,60018,800
Operating Profit728,000699,200738,600658,700
Interest Expense(13,500)(6,700)(12,000)(9,400)
Non-Operating Income6008,5006,900(425,600)
Total Non-Operating Income(12,900)1,800(5,100)(435,000)
Income Before Provision for Income Taxes715,100701,000733,500223,700
Provision for Income Taxes168,900167,400176,900(12,000)
Consolidated Net Income546,200533,600556,600235,700
Net Income Attributable to Common Shareholders546,200533,600556,600235,700
Basic EPS3.873.653.711.52
Diluted EPS3.853.633.691.51
Basic Weighted Average Shares Outstanding141,030145,998149,953154,786
Diluted Weighted Average Shares Outstanding141,915147,084151,016155,779
Shares Outstanding138,543144,320147,527151,179
FY 2025FY 2024FY 2023FY 2022
Cash and Cash Equivalents174,500239,600339,900391,200
Short-Term Investments18,70036,50023,50090,600
Total Cash and Cash Equivalents193,200276,100363,400481,800
Accounts Receivable582,300541,400596,000581,200
Total Trade Receivables582,300541,400596,000581,200
Inventories479,300532,100497,400516,400
Other Current Assets36,70043,30043,50054,300
Total Current Assets1,291,5001,392,9001,500,3001,633,700
Net Property, Plant & Equipment681,400661,500634,800620,500
Net Intangible Assets362,300321,100336,700347,900
Goodwill710,600761,700633,400619,700
Other Long-Term Assets97,000102,800108,700110,500
Total Assets3,142,8003,240,0003,213,9003,332,300
Accounts Payable504,100588,700600,400625,800
Accrued Expenses241,100231,500269,600234,800
Current Portion of Long-Term Debt42,30010,00010,00010,000
Other Current Liabilities75,00067,00065,30063,600
Total Current Liabilities862,500897,200945,300934,200
Long-Term Debt112,700183,200117,300334,500
Leases37,10023,50027,90022,400
Other Long-Term Liabilities272,500252,600279,000293,500
Total Long-Term Liabilities422,300459,300424,200650,400
Total Liabilities1,284,8001,356,5001,369,5001,584,600
Common Stock294,700294,800294,800294,900
Treasury Stock(2,904,300)(2,502,000)(2,202,500)(1,905,700)
Additional Paid-in Capital614,400601,300578,200555,900
Accumulated Other Comprehensive Income(98,600)(111,900)(84,200)(82,400)
Retained Earnings3,951,8003,601,3003,258,1002,885,000
Total Common Shareholders' Equity1,858,0001,883,5001,844,4001,747,700
Total Shareholders' Equity1,858,0001,883,5001,844,4001,747,700
Total Liabilities and Shareholders' Equity3,142,8003,240,0003,213,9003,332,300
FY 2025FY 2024FY 2023FY 2022
Net Income546,200533,600556,600235,700
Depreciation & Amortization85,10078,80078,30076,900
Share-Based Compensation Expense13,80014,90011,50011,100
Other Adjustments8,90010011,100249,600
Changes in Other Operating Activities(37,200)(45,600)12,800(181,900)
Cash from Operating Activities616,800581,800670,300391,400
Capital Expenditure(70,800)(108,000)(72,600)(70,300)
Purchases of Investments(42,700)(73,700)(63,100)(91,600)
Proceeds from Sale of Investments60,50060,500128,400178,000
Payments for Business Acquisitions(145,900)(16,800)(8,000)
Cash from Investing Activities(53,000)(267,100)(24,100)8,100
Issuance of Long-Term Debt1,087,3001,100,100688,000150,600
Repayments of Long-Term Debt(1,124,900)(1,030,400)(906,100)
Net Issuance / (Repayments) of Long-Term Debt(37,600)69,700(218,100)150,600
Issuance of Common Shares1,00018,10023,400(700)
Repurchases of Common Shares(400,800)(305,800)(306,500)(403,500)
Net Issuance / (Repurchases) of Common Shares(399,800)(287,700)(283,100)(404,200)
Common Share Dividends Paid(195,700)(190,400)(183,500)(177,200)
Cash from Financing Activities(633,100)(408,400)(684,700)(430,800)
Effect of Exchange Rate Changes on Cash and Cash Equivalents4,200(6,600)(12,800)(20,800)
Increase / (Decrease) in Cash, Cash Equivalents and Restricted Cash(65,100)(100,300)(51,300)(52,100)

Key Metrics & Ratios

MetricValue
Market Cap$9.27B
P/E17.37x
P/S2.42x
EV/EBITDA11.39x
Return on Equity29.2%
Return on Invested Capital26.4%
Current Ratio1.50x
Dividend Yield2.1%
Free Cash Flow Margin14.3%

Margins

Gross margin
38.8%
Operating margin
19.0%
Net margin
14.3%

Quarterly Trend

QuarterRevenueYoY growthOperating marginOperating income
Q1 2026 $946M -1.9% 17.1% $162M
Q4 2025 $912M +0.0% 18.0% $164M
Q3 2025 $942M +4.4% 18.6% $176M
Q2 2025 $1.01B -1.3% 20.4% $206M
Q1 2025 $964M 19.0% $183M
Q4 2024 $912M 17.1% $156M
Q3 2024 $903M 17.8% $161M
Q2 2024 $1.02B 20.3% $208M

More on A. O. Smith Corporation

Figures compiled from public company filings.

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