A. O. Smith Corporation (AOS)
A. O. Smith is a long-standing American manufacturer that keeps the world's water hot and clean through its boilers, water heaters, and filtration systems.
Is A. O. Smith Corporation a good stock for a UK beginner?
The honest version: There's no rating here and nothing for sale. In its favour: Strong brand reputation in a necessary industry. Worth weighing: Recent decline in both revenue and earnings.
Is this normal for this company?
Each figure against the range this same company has produced recently. Neither end of a range is the good end.
Share price divided by the earnings actually reported over the four most recent quarters. The range is the same calculation at each of this company's last few results, so roughly the past year.
Profit as a share of sales, from the company's own quarterly statements. The range covers the 5 quarters we hold, and the figure shown is its most recent one.
How these ranges are built
Every number here is the company's own reported figure, not a comparison with other companies. The ranges come from this company's own results and its share price. Where it reports in a different currency from the one its shares trade in, the price-to-earnings range is left out rather than mixing the two.
What does A. O. Smith Corporation do?
Think of A. O. Smith as the quiet backbone of many homes and businesses, providing the essential equipment needed for hot water and water purification. Income flows in from selling these durable appliances to both residential and commercial customers, often relying on replacement demand when old units finally give up the ghost. A lot rides on how they steer through a cooling housing market, where fewer new builds and renovations can soften demand for their core products.
On our factor screen it looks strongest on income and quality, and weakest on growth.
- ✓Pays a dividend - about 2.3% a year
- ✓Low debt - a sturdier balance sheet
- ✓Strong return on shareholder money (ROE 27%)
- —
- Growth screens low
- Momentum screens low
Does A. O. Smith Corporation pay a dividend?
Yes - A. O. Smith Corporation currently pays a dividend of about 2.3% a year, which is £23 a year for every £1,000 invested (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it. An ISA doesn't shelter the US tax on this one →
What do the numbers say about A. O. Smith Corporation's dividend?
There's no rating here, and we don't judge whether the dividend will continue - that would be advice. Here are the figures income investors usually look at, and what each one means, so you can weigh it up yourself.
Figures are from the latest available data and can be distorted by one-off results. Past payments don't predict future ones, and a dividend can be cut at any time. This lays out the numbers to help you understand them - it is not a view on what will happen.
Most recent ex-dividend date: 31 Jul 2026. To receive a dividend you must already own the shares before the ex-dividend date; become a holder on or after it and the previous owner keeps that payment. Why the price usually falls that morning →
Does A. O. Smith Corporation have more cash or more debt?
It holds about $181.30M in cash against about $677.20M of debt - so it has net debt of about $495.90M. Debt is not automatically a problem - it funds growth - but it has to be serviced and repaid, which matters more when profits wobble.
From the latest reported balance sheet. Cash and debt levels change, and some borrowing is normal - this is context, not a judgment.
What do A. O. Smith Corporation's numbers mean?
How has it performed?
Growth of £1,000, the worst fall, and year by year
Over about 2 years to 2026-09-11. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
How much has A. O. Smith Corporation actually fallen?
Over the last 2 years of daily prices, A. O. Smith Corporation fell as much as −38% from a high to a later low. Falls like this are normal when you own a share.
Past falls are not a forecast - it can fall further, or recover.
How has it done year by year?
Calendar-year total return - the share price with dividends reinvested - from adjusted closing prices. The current year is only part-complete. Past returns are not a guide to the future.
A closer look at the numbers
Ownership, earnings history, where the money goes, and the outlook range
Does the share price tell you if it's cheap or expensive?
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
How much money does A. O. Smith Corporation make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Where does each £100 of A. O. Smith Corporation's sales go?
A rough split of the latest full-year figures: of every £100 of sales, about £61 covers making the product or service, £26 goes on running costs, tax and interest, and about £13 is left as profit. Margins vary a lot by industry, and one-off items can distort a single year.
When does A. O. Smith Corporation report earnings, and how did recent quarters go?
A. O. Smith Corporation is next scheduled to report on about 2026-10-27 - dates can move, and we don't predict results; this just tells you when to look.
‘Beat’ and ‘missed’ are against what analysts expected, not whether the business is doing well.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-07-30 | $0.92 | $1.03 | Beat +11% |
| 2026-04-30 | $0.94 | $0.85 | Missed -10% |
| 2026-01-29 | $0.84 | $0.90 | Beat +7% |
| 2025-10-28 | $0.91 | $0.94 | Beat +4% |
| 2025-07-24 | $0.99 | $1.07 | Beat +8% |
| 2025-04-29 | $0.91 | $0.95 | Beat +4% |
Across the last 6 quarters here, A. O. Smith Corporation came in ahead of what analysts expected 5 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Where these figures come from
Each quarter a company reports its results against a consensus of analyst forecasts. The figures here are reported versus expected earnings per share from published results; the expectation is that analyst consensus, not our view. Report dates are estimates and can move.
What are the scenarios for A. O. Smith Corporation?
An illustrative range for the year ahead — not a prediction or a price target.
What are the pros, cons and common questions?
The case each way, and the questions people ask
Strong demand for high-tech, energy-efficient water systems globally.
Technological disruption makes their traditional products obsolete.
What are the pros and cons of A. O. Smith Corporation?
A balance check, not a score or verdict.
- Strong brand reputation in a necessary industry
- High return on equity: How much profit the company makes for each £1 shareholders have put in. Higher usually means a more efficient business. suggests efficient management
- Reliable history of paying dividends to shareholders
- Recent decline in both revenue and earnings
- Business is heavily tied to the cyclical: A business whose sales and profits rise and fall with the wider economy - booming in good times, sinking in downturns. Miners, carmakers and banks are classic examples. housing market
- Higher-than-average volatility compared to the wider market
- Economic downturns reducing consumer spending on home improvements
- Rising costs of raw materials like steel impacting profit margins
- Increased competition from cheaper, imported alternatives
The write-up's own warning lights — if these start happening, the case above changes.
- A sustained, multi-year boom in new home construction
- A major breakthrough in water purification technology that they fail to adopt
Common questions about A. O. Smith Corporation
Does A. O. Smith Corporation pay a dividend?
Yes - A. O. Smith Corporation currently pays a dividend of about 2.3% a year. Dividends are a share of profit paid to holders; the yield moves with the price and payouts can be cut.
When does A. O. Smith Corporation report earnings next?
A. O. Smith Corporation is next scheduled to report results on about 2026-10-27. Report dates are estimates and can move; this is a diary note for when to look, not a forecast of the outcome.
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This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.