A. O. Smith Corporation is an American manufacturer of both residential and commercial water heaters and boilers and the largest manufacturer and marketer of water heaters in North America. It also supplies water treatment products in the Asian market.
| Revenue (TTM) | $3.80B |
| Gross Profit (TTM) | $1.47B |
| EBITDA | $783.70M |
| Operating Margin | 18.90% |
| Return on Equity | 27.10% |
| Return on Assets | 12.50% |
| Revenue/Share (TTM) | $27.45 |
| Book Value | $13.55 |
| Price-to-Book | 4.26 |
| Price-to-Sales (TTM) | 2.12 |
| EV/Revenue | 2.193 |
| EV/EBITDA | 11.00 |
| Quarterly Earnings Growth (YoY) | -15.00% |
| Quarterly Revenue Growth (YoY) | -0.70% |
| Shares Outstanding | $110.05M |
| Float | $108.25M |
| % Insiders | 0.46% |
| % Institutions | 116.96% |
Volatility is currently expanding
With inflation, rising energy prices and Fed uncertainty rattling markets, five dividend stocks offer yields of 2.5% to 3.2% and a record of dividend growth.
AOS raises its quarterly dividend 6% to 38 cents per share, backed by strong cash flows and a solid history of shareholder returns through buybacks.
In this monthly series, I rank a selection of dividend growth stocks and present the top 10 stocks for consideration. This month's screen targets dividend growth stocks with Dividend Safety scores ≥8.0, forward yields ≥2.5%, and prices at or below fair value. An equally weighted portfolio of the top 10 stocks yields 2.8% but would have underperformed SPY over the past 5 years.
AOS' North America boiler strength, acquisitions and shareholder returns support growth despite China weakness and rising debt.
MILWAUKEE, Oct. 2, 2026 /PRNewswire/ -- A. O. Smith Corporation (NYSE: AOS) will release its third quarter 2026 financial results before the market opens on Thursday, Oct. 29, and has scheduled an investor conference call to follow at 10:00 a.m.
The Zacks Manufacturing - Electronics industry gains from solid momentum in the manufacturing sector and strength across major end markets. ETN, EMR, AOS and ENS are some notable stocks in the industry.
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.
The top five contributors for the quarter were MKS, Amphenol, Arista Networks, Bio-Techne, and Waters. The bottom five detractors for the quarter were Ross Stores, Arch Capital, Copart, Gartner, and Brown & Brown. We purchased shares in Verisk Analytics, the dominant provider of data and analytics to property and casualty insurers in the U.S.
A. O. Smith Corporation (AOS) Q2 2026 Earnings Call Transcript
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