A. O. Smith (AOS)
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-11-05
$66.57-0.75%
Close 2026-11-05 · 1-day change
NYSEIndustrialsIndustrial - MachinerySnapshot 2026-11-05
QuarterlyIQ Insights · AOS
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within industrials on a research-validated quality screen. As of 2026-11-05.
The screen ranks AOS against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 2 of the last 3 quarter-over-quarter moves. Historically, Industrials names rated neutral grew net income 51% of the time over the next year (vs 61% for the rest of the cohort, n=9285).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Consistent with its commitment to returning capital to shareholders, the Company intends to prioritize share repurchases as a use of the after-tax proceeds and repatriated cash following the closing…
Stated in 8 of 8 supplied quarters. Management reported: “Consistent with its commitment to returning capital to shareholders, the Company intends to prioritize share repurchases as a use of the after-tax proceeds and repatriated cash following the closing of the transaction.” “The Company projects its full-year 2026 share repurchases to total approximately $300 million.”
“Consistent with its commitment to returning capital to shareholders, the Company intends to prioritize share repurchases as a use of the after-tax proceeds and repatriated cash following the closing…”
“Supported by strong cash flow performance in the first half of the year, the Company increased its full-year 2026 share repurchase target by 50% to $300 million from $200 million.”
“The Company projects that it will spend $200 million to repurchase shares in 2026.”
“The Company expects to spend approximately $200 million to repurchase shares in 2026.”
“The Company expects to spend approximately $400 million to repurchase shares in 2025.”
“The Company expects to spend approximately $400 million to repurchase shares in 2025.”
“The Company expects to spend approximately $400 million to repurchase shares in 2025.”
For A. O. Smith, this transaction completes our strategic assessment and enables us to focus our capital and resources on our highest-return opportunities and sustainable value creation.
Stated in 4 of 8 supplied quarters. Management reported: “For A. O. Smith, this transaction completes our strategic assessment and enables us to focus our capital and resources on our highest-return opportunities and sustainable value creation.” “In China, we managed through a significantly weaker market environment and continue our strategic assessment of the business.”
Second quarter 2026 adjusted segment earnings and adjusted segment margin were $199.8 million and 24.4%, respectively, and exclude $22.6 million of restructuring and impairment expenses associated wi…
Stated in 2 of 8 supplied quarters. Management reported: “Second quarter 2026 adjusted segment earnings and adjusted segment margin were $199.8 million and 24.4%, respectively, and exclude $22.6 million of restructuring and impairment expenses associated with a restructuring plan designed to improve profitability and accelerate growth through footprint optimization and brand rationalization in our North America water treatment business.” “Beginning in 2027, annual savings associated with these restructuring actions are projected to be approximately $6 million to $8 million.”
Looking ahead, we are excited about the opportunities in front of us, from our leading North American water heating and boiler franchise to our growth platforms in water treatment, water management a…
Stated in 3 of 8 supplied quarters. Management reported: “Looking ahead, we are excited about the opportunities in front of us, from our leading North American water heating and boiler franchise to our growth platforms in water treatment, water management and India.” “Outlook 2026 Outlook (in millions except per share amounts) 2025 2026 Outlook Actual Low End High End Net sales $3,830 $3,900 $4,020 Diluted earnings per share $3.85 $3.85 $4.15 “Our outlook for 2026, which includes Leonard Valve sales of approximately $70 million, projects our consolidated sales to increase 2% to 5% compared to 2025.”
Use financial resources for organic growth, acquisitions, dividends and repurchases, focusing on portfolio management and higher-return opportunities.
Over the trailing year it converted 0.75x of net income into operating cash flow. Historically, Industrials names rated neutral grew net income 59% of the time over the next year (vs 54% for the rest of the cohort, n=6652).
Most sensitive to the broad stock market and long-term interest rates.
Not enough signal to read sensitivity to the US dollar, Fed net liquidity (low R² over the window).
5 material management or governance events in the past 24 months, led by executive changes. Historically, Industrials names rated stable grew net income 60% of the time over the next year (vs 56% for the rest of the cohort, n=6637).
Not investment advice. As of 2026-11-05.
“The Company expects to increase its spending to repurchase shares in 2025 to approximately $400 million.”
“For A. O. Smith, this transaction completes our strategic assessment and enables us to focus our capital and resources on our highest-return opportunities and sustainable value creation.”
“In China, we managed through a significantly weaker market environment and continue our strategic assessment of the business.”
“"I am pleased with the performance of our North America segment on both the top and bottom lines and believe our previously announced strategic assessment of our China business is helping us clarify…”
“One action we are announcing today consistent with these priorities is a formal assessment of our China business.”
“Second quarter 2026 adjusted segment earnings and adjusted segment margin were $199.8 million and 24.4%, respectively, and exclude $22.6 million of restructuring and impairment expenses associated wi…”
“Separately, in April, we took another step in our business simplification and margin enhancement efforts within our North America water treatment business by announcing a targeted restructuring plan…”
“Looking ahead, we are excited about the opportunities in front of us, from our leading North American water heating and boiler franchise to our growth platforms in water treatment, water management a…”
“"I am pleased with the performance of our North America segment on both the top and bottom lines and believe our previously announced strategic assessment of our China business is helping us clarify…”
“In North America, we expect water heater industry unit volumes to be flat year-over-year with less first half versus second half volatility compared to 2024, as we focus on plant operating efficiency…”