A. O. Smith's revenue has stagnated, with 2026Q2 down 0.7% YoY to $1.0B, while operating margin compressed from 20.3% in 2025Q2 to 16.7% in 2026Q2, indicating fading operating leverage. The company is leveraging up for acquisitions, with debt-to-equity triplin...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth has stalled at -0.7% YoY in 2026Q2, while operating margin declined from 20.3% to 16.7% over the past year, with EPS falling 15.9% to $0.90.
AOS can mitigate weaker water-heater demand through effective pricing strategies.
The acquisition of Leonard Valve is expected to contribute positively to AOS's growth.
Expanding its dealer base provides AOS with additional revenue channels.
Trailing total returns as of 9/10/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Jul 30, 2026 | $1.03+7.6% vs $0.96 | $1.0B+0.9% vs $995M |
Q2 2026 Apr 30, 2026 | $0.85-9.8% vs $0.94 | $946M-2.9% vs $974M |
Q1 2026 Jan 29, 2026 | $0.90+7.1% vs $0.84 | $913M-1.7% vs $928M |
Q4 2025 Oct 28, 2025 | $0.94+3.6% vs $0.91 | $943M-0.6% vs $948M |
A. O. Smith is rated Buy due to resilient replacement demand, energy-efficiency tailwinds, and an attractive valuation. Approximately 80-85% of North American water heater demand is replacement-driven, providing downside protection and medium-term growth potential. Earnings are expected to recover from Q4 2026, driven by pricing realization, cost savings, and a favorable product mix shift.
AOS benefits from strong North America boiler demand, acquisitions and shareholder returns, though China weakness and rising costs pose challenges.
Amundi decreased its position in shares of A. O. Smith Corporation (NYSE: AOS) by 86.4% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 115,540 shares of the industrial products company's stock after selling 733,620 shares during the period. Amundi
Industrial dividend growers rarely make headlines the way REITs or telecoms do, yet they quietly compound income year after year through cycles most investors ignore.
Benchmark AOS against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for A. O. Smith Corporation (AOS)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $57.83 | $8.01B | 14.98 | 0.32% | 14.26% | 29.2% | 2.42% | |
| $375.78 | $12.99B | 16.91 | -2.73% | 14.61% | 65.3% | — | |
| $309.75 | $12.76B | 25.29 | -4.98% | 6.53% | 14.4% | — | |
| $77.02 | $6.31B | 59.71 | 20.11% | 8.24% | 17.21% | — | |
| $23.99 | $3.75B | 19.66 | 8.75% | 15.02% | 21.21% | — | |
| $356.29 | $11.9B | 35.03 | 8.27% | 14.34% | 18.56% | — |
A. O. Smith Corporation (AOS) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
A. O. Smith Corporation (AOS) SEC filings — annual & quarterly reports (10-K, 10-Q)
Jul 30, 2026·SEC
Jun 22, 2026·SEC
May 19, 2026·SEC
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A. O. Smith Corporation (AOS) stock FAQ — growth, dividends, profitability & financials explained
A. O. Smith Corporation (AOS) reported $3.80B in revenue for fiscal year 2025. This represents a 387% increase from $781.2M in 1996.
A. O. Smith Corporation (AOS) grew revenue by 0.3% over the past year. Growth has been modest.
Yes, A. O. Smith Corporation (AOS) is profitable, generating $500.3M in net income for fiscal year 2025 (14.3% net margin).
Yes, A. O. Smith Corporation (AOS) pays a dividend with a yield of 2.42%. This makes it attractive for income-focused investors.
A. O. Smith Corporation (AOS) has a return on equity (ROE) of 29.2%. This is excellent, indicating efficient use of shareholder capital.
A. O. Smith Corporation (AOS) generated $639.4M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
