Operating cash flow to net income ranged widely from 0.28 to 2.02 across recent quarters, with free cash flow of $162.9M in 2026Q3 (17.3% margin) funding roughly $98M in buybacks and $49M in dividends, suggesting shareholder returns depend on episodic working capital releases.
A. O. Smith Corporation (AOS) cash flow statement — 30-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 612.5M | 616.8M | 581.8M | 670.3M | 391.4M | 641.1M | 562.1M | 456.2M | 448.9M | 326.4M | 446.6M | 344.4M | 263.9M | 279.6M | 143.8M | 55M | 124.8M | 267.6M | 106.6M | 190.5M | 141.4M | 186.7M | 66.6M | 25.2M | 115.17M | 49.83M | 86.76M | 48.01M | 74.66M | -25.88M | 194.08M |
| Operating CF Margin % | - | 16.1% | 15.24% | 17.4% | 10.43% | 18.12% | 19.41% | 15.24% | 14.08% | 10.89% | 16.63% | 13.58% | 11.2% | 12.98% | 7.41% | 3.22% | 8.38% | 19.46% | 4.62% | 8.24% | 6.54% | 11.05% | 4.03% | 1.65% | 7.84% | 4.33% | 6.95% | 4.49% | 9.32% | -3.82% | 24.84% |
| Operating CF Growth % | 174.75% | 6.02% | -13.2% | 71.26% | -38.95% | 14.05% | 23.21% | 1.63% | 37.53% | -26.91% | 29.67% | 30.5% | -5.62% | 94.44% | 161.45% | -55.93% | -53.36% | 151.03% | -44.04% | 34.72% | -24.26% | 180.33% | 164.29% | -78.12% | 131.13% | -42.57% | 80.72% | -35.69% | 388.43% | -113.34% | 68.01% |
| Net Income | 494.6M | 546.2M | 533.6M | 556.6M | 235.7M | 487.1M | 344.9M | 370M | 444.2M | 296.5M | 326.5M | 282.9M | 207.8M | 169.7M | 162.6M | 111.2M | 57.1M | 89.6M | 81.9M | 88.2M | 76.2M | 46.5M | 35.4M | 52.2M | 51.34M | 14.5M | 41.66M | 50.27M | 44.49M | 9.74M | 65.42M |
| Depreciation & Amortization | 94.8M | 85.1M | 78.8M | 78.3M | 76.9M | 77.9M | 80M | 78.3M | 71.9M | 70.1M | 65.1M | 63M | 59.8M | 59.7M | 54.6M | 47M | 40.8M | 67.5M | 66.3M | 67.5M | 60.9M | 52.8M | 53.9M | 52.1M | 50.69M | 47.08M | 45.06M | 37.31M | 31.17M | 21.63M | 23.6M |
| Stock-Based Compensation | 15.2M | 13.8M | 14.9M | 11.5M | 11.1M | 11.9M | 12.7M | 13.3M | 10.1M | 9.9M | 9.4M | 8.8M | 10.8M | 10.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 25.2M | 8.9M | -4.6M | -3.6M | -167.7M | -159.8M | -79.7M | -136.6M | 0 | 81.8M | 6.9M | -8.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.26M | -3.35M |
| Other Non-Cash Items | 12.4M | 0 | 4.7M | 14.7M | 417.3M | 159.8M | 79.7M | 136.6M | 0 | -81.8M | -8.1M | -500K | 16.1M | 15M | -53.5M | -21.1M | 73.2M | -3.3M | 0 | 0 | 15.7M | 1.9M | 2.2M | 600K | 2.63M | -258K | 11.83M | 1.08M | 839K | -69.43M | 81.34M |
| Working Capital Changes | -29.7M | -37.2M | -45.6M | 12.8M | -181.9M | 64.2M | 124.5M | -5.4M | -77.3M | -50.1M | 46.8M | -1M | -30.6M | 24.7M | -19.9M | -82.1M | -46.3M | 113.8M | -41.6M | 34.8M | -11.4M | 85.5M | -24.9M | -79.7M | 10.5M | -11.49M | -11.78M | -40.66M | -1.84M | 14.43M | 27.06M |
| Change in Receivables | 0 | -36.4M | 49M | -16.4M | 42.5M | -25.5M | 4.5M | 29.1M | -54.6M | -75.8M | -15.1M | -25.9M | -16.8M | -32.3M | -57M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 56.9M | -40.5M | 18.1M | -82.8M | -109.5M | 2.9M | 6.3M | -7.7M | -37.5M | -23.4M | -14.7M | -14.9M | -28.5M | 5M | 0 | 0 | 0 | 0 | 32.1M | -28.6M | 12.1M | 12.9M | 0 | -619K | 0 | -6.19M | -20.16M | -8.9M | 7.54M | -5.49M |
| Change in Payables | 0 | -97.9M | -5.9M | -21.4M | -89.4M | 142.9M | 85.6M | -35.4M | 8.8M | -5.1M | 101.5M | 31M | 6.9M | 58M | 26.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -500.3M | -53M | -267.1M | -24.1M | 8.1M | -349.9M | 11.8M | 33.9M | -12.7M | -158.1M | -300.2M | -186.1M | -206M | -8.2M | -86.8M | 129.3M | -66.5M | -117M | -54.1M | -71.4M | -396.7M | -69.9M | -50.7M | -49.7M | -65.85M | -153.31M | -41.95M | -284.96M | -163.43M | 493.78M | -233.75M |
| Capital Expenditures | -50.8M | -70.8M | -108M | -72.6M | -70.3M | -75.1M | -56.8M | -64.4M | -85.2M | -94.2M | -80.7M | -72.7M | -86.1M | -97.7M | -69.9M | -53.5M | -53.5M | -57M | -66.1M | -71.4M | -68.2M | -50.6M | -48.4M | -44.9M | -42.47M | -35.32M | -40.52M | -32.81M | -27.85M | -44.89M | -37.8M |
| CapEx % of Revenue | 1.34% | 1.85% | 2.83% | 1.88% | 1.87% | 2.12% | 1.96% | 2.15% | 2.67% | 3.14% | 3% | 2.87% | 3.65% | 4.54% | 3.6% | 3.13% | 3.59% | 4.15% | 2.87% | 3.09% | 3.16% | 3% | 2.93% | 2.93% | 2.89% | 3.07% | 3.25% | 3.07% | 3.48% | 6.62% | 4.84% |
| Acquisitions | -469.5M | 0 | -145.9M | -16.8M | -8M | -207.6M | 56.8M | -107M | 85.2M | -43.1M | -90.8M | 72.7M | 86.1M | -4M | -13.5M | -417.4M | -11.8M | -78.5M | 0 | 0 | -340.7M | -14.8M | -2.3M | -4.8M | -23.38M | -117.99M | 0 | -244.59M | -126.27M | -60.92M | -1.11M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | -56.8M | 0 | -85.2M | 0 | 0 | -72.7M | -86.1M | 0 | 0 | 600.2M | 42.2M | -47.4M | 0 | 0 | 0 | -4.5M | 0 | 0 | 0 | 0 | -1.44M | -7.57M | -9.31M | 599.58M | -194.83M |
| Cash from Financing | -34.3M | -633.1M | -408.4M | -684.7M | -430.8M | -421M | -374.8M | -375.8M | -523.1M | -152.1M | -139.6M | -154.1M | -119.2M | -157.6M | -253.5M | 160.2M | -15.7M | -109.6M | -60.3M | -107.7M | 257.1M | -117.9M | -9.5M | 10.4M | -37.23M | 68.52M | -44.28M | 214.05M | -19.46M | -328.4M | 41.27M |
| Debt Issued (Net) | 490.4M | -37.6M | 69.7M | -218.1M | 150.6M | 83.5M | -170.8M | 62.6M | -189M | 86.5M | 74.1M | 28.1M | 34.2M | -51.5M | -218.8M | 200.2M | 5M | -91.1M | -40.1M | -61M | 268.9M | -111.8M | 5.7M | 24.6M | -156.18M | 79.44M | -33.38M | 225.05M | 24.44M | -143.82M | 54.51M |
| Equity Issued (Net) | -325M | -399.8M | -305.8M | -306.5M | -403.5M | -366.5M | -56.7M | -287.7M | -202.6M | -139.1M | -135.2M | -128.1M | -103.8M | -73.7M | -22M | -23.5M | 0 | 7.7M | 0 | -36.6M | 8.3M | 12.9M | 3M | 2.6M | 133.23M | 1.41M | 816K | -1.62M | -33.02M | -172.79M | 539K |
| Dividends Paid | -199.3M | -195.7M | -190.4M | -183.5M | -177.2M | -170.1M | -158.7M | -149.2M | -130.1M | -96.9M | -84.2M | -67.8M | -54.4M | -42.6M | -33.2M | -27.7M | -24.7M | -21.4M | -22.3M | -21.5M | -20.1M | -19M | -18.2M | -16.8M | -14.28M | -12.32M | -11.72M | -11.17M | -11.05M | -12.68M | -13.81M |
| Share Repurchases | -326M | -400.8M | -305.8M | -306.5M | -403.5M | -366.5M | -56.7M | -287.7M | -202.6M | -139.1M | -135.2M | -128.1M | -103.8M | -73.7M | -22M | -23.5M | 0 | 0 | 0 | -36.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.77M | -33.24M | -176.55M | 0 |
| Other Financing | -400K | 0 | 18.1M | 23.4M | -700K | 32.1M | 11.4M | -1.5M | -1.4M | -2.6M | 5.7M | 13.7M | 4.8M | 10.2M | 20.5M | 11.2M | 4M | -4.8M | 2.1M | 11.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.8M | 168K | 884K | 28K |
| Net Change in Cash | 81.8M | -65.1M | -100.3M | -51.3M | -52.1M | -129.8M | 199.1M | 114.3M | -86.9M | 16.2M | 6.8M | 4.2M | -61.3M | 113.8M | -196.5M | 344.5M | 42.6M | 41M | -7.8M | 11.4M | 1.8M | -1.1M | 6.4M | -14.1M | 12.09M | -34.95M | 526K | -22.91M | -108.23M | 139.49M | 1.6M |
| Free Cash Flow | 561.7M | 546M | 473.8M | 597.7M | 321.1M | 566M | 505.3M | 391.8M | 363.7M | 232.2M | 365.9M | 271.7M | 177.8M | 181.9M | 73.9M | 1.5M | 71.3M | 210.6M | 40.5M | 119.1M | 73.2M | 136.1M | 18.2M | -19.7M | 72.69M | 14.51M | 46.25M | 15.2M | 46.81M | -70.77M | 156.27M |
| FCF Margin % | 14.77% | 14.26% | 12.41% | 15.51% | 8.55% | 15.99% | 17.45% | 13.09% | 11.41% | 7.75% | 13.62% | 10.71% | 7.55% | 8.45% | 3.81% | 0.09% | 4.79% | 15.32% | 1.76% | 5.15% | 3.39% | 8.06% | 1.1% | -1.29% | 4.95% | 1.26% | 3.71% | 1.42% | 5.85% | -10.43% | 20% |
| FCF Growth % | -1.77% | 15.24% | -20.73% | 86.14% | -43.27% | 12.01% | 28.97% | 7.73% | 56.63% | -36.54% | 34.67% | 52.81% | -2.25% | 146.14% | 4826.67% | -97.9% | -66.14% | 420% | -66% | 62.7% | -46.22% | 647.8% | 192.39% | -127.1% | 401% | -68.63% | 204.18% | -67.52% | 166.15% | -145.29% | 537.45% |
| FCF per Share | 4.13 | 3.90 | 3.22 | 3.96 | 2.06 | 3.51 | 3.11 | 2.35 | 2.11 | 1.33 | 2.07 | 1.52 | 0.98 | 0.98 | 0.40 | 0.01 | 0.39 | 1.47 | 0.22 | 0.64 | 0.39 | 0.75 | 0.10 | -0.11 | 0.44 | 0.10 | 0.33 | 0.11 | 0.32 | -0.42 | 0.93 |
| FCF Conversion (FCF/Net Income) | 1.14x | 1.13x | 1.09x | 1.20x | 1.66x | 1.32x | 1.63x | 1.23x | 1.01x | 1.10x | 1.37x | 1.22x | 1.27x | 1.65x | 0.88x | 0.18x | 1.12x | 3.29x | 1.30x | 2.16x | 1.85x | 4.02x | 1.88x | 0.48x | 2.24x | 3.44x | 2.92x | 1.13x | 1.68x | -0.17x | 2.97x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying AOS stock.
A. O. Smith Corporation (AOS) generated $616.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
A. O. Smith Corporation (AOS) generated $546.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
A. O. Smith Corporation (AOS) spent $70.8M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, A. O. Smith Corporation (AOS) returned $195.7M to shareholders via cash dividends and spent $400.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Cash conversion volatility and margin pressure
Metrics are mathematically derived from official filings.
Cash Conversion Swings With Working Capital
Based on AOS's reported quarterly figures, operating cash flow to net income ranged from 0.28 to 2.02 over ten quarters, indicating earnings quality is highly dependent on working capital timing rather than steady cash generation.
The gap between net income and operating cash flow is the defining feature of this dataset, with the 2025Q1 quarter converting only 0.28 of net income to operating cash while 2024Q4 converted 2.02. Such extremes suggest reported profits are not consistently translating into cash, and the swings track closely with large working capital movements, particularly the $119.7M outflow in 2025Q1 and the $89.7M inflow in 2024Q4. Investors should treat any single quarter's conversion ratio as unreliable and focus on the trailing multi-quarter average.
Free Cash Flow Margins Lumpy Not Trending
As reported in AOS's quarterly statements, free cash flow margin moved between 1.8% and 25.5%, with the most recent quarter at 17.3%, suggesting cash generation is episodic rather than on a clear upward or downward path.
Free cash flow has been driven more by working capital timing than by underlying operating improvement, as the strongest quarters coincide with large working capital releases rather than sustained profit growth. The latest quarter's 17.3% margin appears strong, but it followed a weak 11.4% in 2026Q2 and may partly reflect a reversal of earlier working capital build. Investors may want to assess the trailing four-quarter average before inferring a durable improvement in cash economics.
Light Capital Intensity With Recent Uptick
Based on AOS's reported figures, capital expenditure has run between 1.0% and 3.6% of revenue, and the 2024 period carried notably higher spending than the most recent quarters.
Capital intensity is low overall, which is consistent with a manufacturing base that does not require heavy ongoing reinvestment, though the elevated 3.4% to 3.6% CapEx-to-revenue readings in late 2024 suggest a period of expansion spending. Depreciation and amortization of roughly $20M to $25M per quarter exceeds recent CapEx of $10M to $18M, which may indicate that current spending is below asset replacement needs if sustained. Monitoring whether CapEx stays below D&A would clarify whether the recent low spending reflects efficiency or deferred maintenance.
Shareholder Returns Funded by Lumpy Cash
According to reported quarterly filings, AOS paid roughly $47M to $51M in dividends each quarter and repurchased shares heavily in 2026Q3 at $98.2M, with acquisitions of $470M in 2026Q1.
Dividends appear steady and well covered on average, but the buyback and acquisition pattern is uneven and occasionally exceeds what a single quarter's free cash flow can fund, suggesting reliance on cash balances or prior accumulation. The $470M acquisition outflow in 2026Q1 is the largest deployment in the period and warrants scrutiny of its return profile given the flat revenue trend. Investors should monitor whether elevated repurchases are sustained when cash generation weakens.
Strong Quarters May Mask Underlying Softness
Based on reported figures, the bullish reading of 2025Q3 and 2024Q4 cash generation may overstate durability, since both peak quarters were heavily supported by working capital releases of $80M to $90M.
The most favorable cash quarters coincide with large working capital inflows that are typically non-recurring, so the headline free cash flow may not reflect a repeatable earnings base. Combined with the 2026 guidance reduction and flat revenue noted in prior analysis, the cash data is consistent with a softening business rather than a cyclical trough that will reverse cleanly. Investors may wish to test whether operating cash flow excluding working capital movements remains stable before relying on reported peaks.