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. Below, we lay out what it does, what its numbers mean, and the honest risks, so you can decide for yourself.
Over about 2 years to 2026-07-31. 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. Drops of this size are a normal part of owning a share - worth knowing in advance, so a dip doesn't come as a shock.
Worst peak-to-trough fall in the daily closing price over the period we hold. Past falls are not a forecast - it can fall further, or recover.
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.
Strong demand for high-tech, energy-efficient water systems globally.
Technological disruption makes their traditional products obsolete.
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 value and income, and weakest on growth.
- ✓Pays a dividend - about 2.4% a year
- ✓Low debt - a sturdier balance sheet
- ✓Strong return on shareholder money (ROE 27%)
- Strong brand reputation in a necessary industry
- High return on equity suggests efficient management
- Reliable history of paying dividends to shareholders
- Growth screens low (12/100)
- Momentum screens low (27/100)
- Economic downturns reducing consumer spending on home improvements
- Rising costs of raw materials like steel impacting profit margins
- Increased competition from cheaper, imported alternatives
What do A. O. Smith Corporation's numbers mean?
How much money does A. O. Smith Corporation make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does A. O. Smith Corporation pay a dividend?
Yes - A. O. Smith Corporation currently pays a dividend of about 2.4% a year (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.
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.
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.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| 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 →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
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An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of A. O. Smith Corporation?
How many points the write-up makes each way — 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
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
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.