A. O. Smith Corporation (AOS) reported significant growth in its water heater and boiler segments, driven by demand in North America and a 12.9% year-over-year sales increase in India for 2025. The company anticipates North America boiler sales growth of approximately 6-8% and mid-single digit growth in commercial water heater volumes this year.
In January 2026, AOS completed the acquisition of LVC Holdco LLC (Leonard Valve) for $470 million, which is expected to add approximately $70 million to sales in 2026. Despite a solid liquidity position, with cash and equivalents at $174.5 million versus current debt of $42.3 million, AOS faces challenges like a 4% revenue decline in its Rest of the World segment, attributed to lower residential product volumes in China.
In terms of shareholder returns, AOS paid $195.7 million in dividends and repurchased $400.8 million in shares in 2025, with a 6% dividend increase to 36 cents per share announced in October 2025. The company plans to repurchase approximately $200 million worth of shares in 2026 while grappling with a 2.7% rise in operating expenses year-over-year.
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