A. O. Smith Corporation (AOS) FinancialsAOSFinancialA. O. Smith Corporation

A. O. Smith Corporation (AOS) generates its revenue through a diversified portfolio of business segments. Currently, the largest contributor to its top-line growth is Water heaters and related parts, accounting for 65.4% of total sales, equivalent to $656.40M. Other significant revenue streams include Boilers and related parts and Water treatment products. Understanding this composition is critical for investors evaluating how AOS navigates market cycles within the Electrical Components & Equipment industry.

Evaluating the bottom line, A. O. Smith Corporation maintains a gross margin of 38.61%. This metric reflects the company's pricing power and manufacturing efficiency. Further down the income statement, the operating margin stands at 18.79%, while the net margin is 12.44%. These profitability ratios, combined with a Return on Equity (ROE) of 27.13%, provide a clear picture of how effectively AOS converts its operational activities into shareholder value.

In the context of the broader market, AOS competes directly with industry leaders such as MHK and SSD. With a market capitalization of $8.42B, it holds a significant position in the sector. When comparing efficiency, AOS's gross margin of 38.61% stands against MHK's 27.48% and SSD's 47.42%. Such benchmarking helps identify whether A. O. Smith Corporation is trading at a premium or discount relative to its financial performance.

The company reported a Q2 2026 non-GAAP EPS of $1.03, exceeding expectations by $0.11, and reaffirmed its FY2026 adjusted EPS guidance of $3.70 to $3.85, indicating stable future performance.