A. O. Smith (NYSE:AOS) Posts Earnings Results

Posted by Max Byerly on Jan 29th, 2026

A. O. Smith (NYSE:AOS – Get Free Report) announced its earnings results on Thursday. The industrial products company reported $0.90 earnings per share for the quarter, beating the consensus estimate of $0.84 by $0.06, FiscalAI reports. A. O. Smith had a return on equity of 29.34% and a net margin of 13.85%.The business had revenue of $912.50 million during the quarter, compared to analysts’ expectations of $928.97 million. During the same quarter last year, the business posted $0.85 earnings per share. The company’s quarterly revenue was up .0% on a year-over-year basis.

Here are the key takeaways from A. O. Smith’s conference call:

Company delivered a record adjusted EPS of $3.85 in 2025 (up 6%), drove margin expansion across segments, generated strong free cash flow of $546 million (100% conversion), and returned $597 million to shareholders.
Completed the acquisition of Leonard Valve to enter the water management market and bolster connected/digital capabilities, with management expecting ~ $70 million of Leonard sales in 2026.
The Leonard Valve deal was funded with about $470 million of new debt, increasing 2026 interest expense (guidance $30–40 million) and raising leverage, which could constrain near-term financial flexibility.
China remains a headwind—third?party sales fell ~12% in 2025 and management expects mid?single?digit declines in 2026 with first?half pressure from lapped subsidies and weak consumer demand while a strategic review of China options continues.
North America water treatment improved profitability materially (?400 bps YoY to ~13% operating margin) and management expects further margin expansion (~200 bps) and mid?to?high single?digit/top?line growth in boilers and water treatment in 2026.

A. O. Smith Price Performance

Shares of A. O. Smith stock traded up $4.71 during trading on Thursday, reaching $74.20. 1,532,793 shares of the company’s stock were exchanged, compared to its average volume of 1,305,332. The company has a market cap of $10.33 billion, a P/E ratio of 20.04, a PEG ratio of 1.43 and a beta of 1.35. A. O. Smith has a 1-year low of $58.83 and a 1-year high of $77.31. The company has a debt-to-equity ratio of 0.09, a quick ratio of 0.95 and a current ratio of 1.54. The firm’s 50-day moving average price is $68.46 and its 200 day moving average price is $69.64.

A. O. Smith Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, February 17th. Shareholders of record on Friday, January 30th will be paid a dividend of $0.36 per share. The ex-dividend date is Friday, January 30th. This represents a $1.44 annualized dividend and a yield of 1.9%. A. O. Smith’s dividend payout ratio is presently 38.81%.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on AOS. Wall Street Zen raised A. O. Smith from a “hold” rating to a “buy” rating in a research note on Saturday, October 18th. Stifel Nicolaus set a $80.00 target price on A. O. Smith and gave the company a “buy” rating in a research note on Wednesday, October 29th. Citigroup decreased their price target on A. O. Smith from $77.00 to $72.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 29th. Weiss Ratings reiterated a “hold (c)” rating on shares of A. O. Smith in a research report on Wednesday, December 24th. Finally, Robert W. Baird set a $76.00 price target on A. O. Smith in a report on Wednesday, October 29th. Two analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, A. O. Smith currently has an average rating of “Hold” and an average price target of $76.50.

Get Our Latest Analysis on A. O. Smith

Institutional Trading of A. O. Smith

Several large investors have recently modified their holdings of the stock. Banco Bilbao Vizcaya Argentaria S.A. purchased a new position in shares of A. O. Smith during the third quarter worth approximately $261,000. Fiduciary Trust Co lifted its stake in shares of A. O. Smith by 5.0% in the 3rd quarter. Fiduciary Trust Co now owns 4,072 shares of the industrial products company’s stock valued at $299,000 after purchasing an additional 193 shares during the period. Glenmede Investment Management LP increased its stake in shares of A. O. Smith by 11.3% during the third quarter. Glenmede Investment Management LP now owns 4,075 shares of the industrial products company’s stock valued at $299,000 after purchasing an additional 414 shares in the last quarter. Private Advisor Group LLC bought a new stake in A. O. Smith in the third quarter worth $208,000. Finally, Jefferies Financial Group Inc. purchased a new stake in A. O. Smith during the 3rd quarter valued at about $281,000. Institutional investors and hedge funds own 76.10% of the company’s stock.

More A. O. Smith News

Here are the key news stories impacting A. O. Smith this week:

Positive Sentiment: Q4 EPS beat — AOS reported $0.90 EPS vs. the Zacks consensus $0.84, topping estimates and showing slight year-over-year EPS growth. A.O. Smith (AOS) Q4 Earnings Beat Estimates
Positive Sentiment: Record 2025 results and capital returns — AOS reported record 2025 diluted EPS of $3.85, $546M free cash flow, and returned ~$597M to shareholders via dividends and buybacks; management provided 2026 guidance and closed the Leonard Valve acquisition to expand its water-management platform. A. O. Smith Reports Record 2025 Diluted Earnings Per Share (EPS) of $3.85 and Introduces 2026 Guidance
Neutral Sentiment: Investor materials available — The company published its press release, slide deck and a conference-call transcript for details on guidance, margin drivers and acquisition rationale (useful for earnings-model updates). Listen to Conference Call / View Press Release / Slide Deck
Negative Sentiment: Revenue slightly missed — Q4 revenue was $912.5M vs. consensus ~$929M and was essentially flat year-over-year, indicating demand softness in parts of the business despite margin gains. Compared to Estimates, A.O. Smith (AOS) Q4 Earnings: A Look at Key Metrics
Negative Sentiment: Regional headwinds and cost pressure risk — previews and analyst commentary flagged China weakness and some cost pressures that could limit near-term revenue growth despite benefits from North America and acquisitions. A. O. Smith Gears Up to Report Q4 Earnings: What to Expect?

A. O. Smith Company Profile

(Get Free Report)

A. O. Smith Corporation, based in Milwaukee, Wisconsin, is a leading manufacturer of water heating and water treatment products for residential and commercial applications. Since its founding in 1874, the company has built a reputation for producing reliable, energy-efficient water heaters, boilers and pressure vessels. Its product portfolio encompasses gas, electric, condensing and tankless water heaters, as well as specialty boilers designed to meet a variety of building and industrial needs.

The company operates through two primary segments: North America and Asia.