A. O. Smith CorporationAOS
NYSE•Industrials•Specialty Industrial Machinery
A. O. 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 India. 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. It also provides commercial water treatment and filtration products; expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related products and parts; and electric wall-hung, gas tankless, combi-boiler, and heat pump and solar water heaters. The company offers its products under the A. O. Smith, State, Lochinvar, Hague, Water-Right, Master Water, Atlantic Filter, Impact, and Water Tec brands. It distributes its products through independent wholesale plumbing distributors, as well as to retail channels consisting of hardware and home center chains, and manufacturer representative firms, as well as offers Aquasana branded products directly to consumers through e-commerce channels; and A. O. Smith branded water treatment products through dealer network and Amazon. A. O. Smith Corporation was founded in 1874 and is headquartered in Milwaukee, Wisconsin.
A.O. Smith Corporation (AOS) reported trailing twelve months revenue of $3.83B as of December 2025, a 0.3% increase year-over-year. Quarterly revenue reached $912.50M, reflecting continued top-line momentum.
A.O. Smith Corporation generated $546.20M in TTM net income, with quarterly EBITDA of $185.30M. The operating margin expanded from 17.1% to 18.0%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (18.0%) and net margin (13.7%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 12.0% a year ago, signaling stronger bottom-line efficiency.
AOS trades at a P/E of 17.4x (in line with broad market averages) and a P/S of 2.5x. The price-to-book ratio of 5.1x indicates a significant premium over book value.
The company generated $165.50M in free cash flow over the trailing twelve months, a 13.5% decrease year-over-year, indicating cash generation ability. The balance sheet shows $3.14B in total assets with $112.70M in long-term debt against $1.86B in stockholders equity for a debt-to-equity ratio of 0.1, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are stable at ~18.8%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 29.1% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~19.0% — no sign of cost or pricing stress.
FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.
D/E ratio is 0.1 — conservative capital structure with low financial risk.
Revenue has softened, declining in 4 quarters. Monitor for further erosion.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 5.6% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation