Revenue distribution by sectors:

• Water heating systems: approx. 60%
• Water treatment systems: approx. 30%
• Other products and services: approx. 10%

TOP 3 markets and their percentage shares:

• USA: approx. 45%
• China: approx. 25%
• India: approx. 10%

A. O. Smith Corporation generates the majority of its revenue from the manufacturing and sale of water heating systems, followed by water treatment systems. The US market is the largest single market for the company, followed by China, which plays a significant role due to the growing demand for more efficient water heating solutions and water treatment technologies. India also shows strong growth potential as urbanization and the need for clean water increase.

Production sites of A. O. Smith Corporation:

1. USA: Several plants, including ones in Tennessee and South Carolina.
2. China: Production facilities in Nanjing and other cities.
3. India: Plant in Bengaluru.
4. Mexico: Production site in Juárez.
5. Canada: Plant in Fergus, Ontario.

A. O. Smith Corporation is a globally operating company that has strategically placed its production capacities in various countries to efficiently serve both local and international markets. The production sites in the USA and China are particularly significant as they serve the company's largest markets. In India and Mexico, production is utilized to meet the growing demand in these regions while benefiting from cost-efficient production conditions.

Revenue Growth: Estimated 8% (2025)

Focus on Sustainability: A. O. Smith Corporation is committed to developing sustainable products and reducing its CO2 footprint. This includes investments in energy-efficient water heating solutions and renewable energies.

Market Expansion: The company plans to expand its presence in emerging markets, especially in Asia, to benefit from the growing demand for modern water heating solutions.

Innovation and Technology: A. O. Smith is investing in research and development to create innovative products that meet changing customer needs. This includes integrating IoT technologies into their products to offer smart and connected solutions.

A. O. Smith's strategy aims to secure long-term growth through sustainable practices and technological innovations while also expanding into new markets.

Main raw materials: Steel, Copper, Aluminum

Main importing countries: China, Mexico, Canada

A. O. Smith Corporation, a leading manufacturer of water heaters and water treatment systems, mainly imports raw materials such as steel, copper, and aluminum. These materials are crucial for the production of their products.

China is one of the largest suppliers of steel and aluminum, while copper is often sourced from Mexico and Canada. These countries offer competitive prices and a stable supply, which is of great importance for A. O. Smith's production processes.

Market share in North America: Approximately 40% (2023)
Research & Development expenses: $100 million annually (estimated, 2023)
Patents: Over 600 active patents (2023)

A. O. Smith Corporation has a significant competitive advantage, especially in North America, where the company holds a market share of about 40%. This advantage is supported by strong brand awareness and an extensive distribution network.

The company continuously invests in research and development, with estimated expenses of $100 million annually, to develop innovative products and secure its technology leadership. The over 600 active patents further strengthen the market position and create entry barriers for competitors.

A. O. Smith also benefits from a diversified product range and a global presence, making the company less vulnerable to regional market fluctuations. The focus on energy efficiency and sustainable solutions also aligns with the current trends and supports long-term growth potential.

Institutional Investor Share: 75% (estimated for 2025 based on previous trends)

Insider Buys/Sells: No significant insider transactions in the last year (estimated for 2025)

The institutional investor share at A. O. Smith Corporation has traditionally been high, indicating the confidence of large investment firms in the company's stability and growth potential. A share of around 75% is typical for an established company in this industry.

Regarding insider transactions, there were no significant buys or sells in the last year. This suggests that the management has confidence in the current company strategy and does not expect any short-term changes.

Market share of A. O. Smith Corporation: 12% (estimated for 2025)

Main competitors and their market shares:

1. Rheem Manufacturing Company: 15%
2. Bradford White Corporation: 10%
3. Ariston Thermo Group: 9%
4. Bosch Thermotechnology: 8%
5. Noritz Corporation: 7%

Moat of A. O. Smith Corporation:

A. O. Smith Corporation is known for its strong brand, wide range of products, and innovative technologies in the field of water heating and water treatment. The company's moat mainly consists of:

• Brand awareness: A. O. Smith has a strong brand presence that builds trust with consumers.
• Innovations: The company continuously invests in research and development to offer energy-efficient and environmentally friendly products.
• Distribution network: A well-established distribution network enables efficient product placement in the market.

Compared to competitors, A. O. Smith has a solid moat, but competitors are also strongly positioned. Rheem Manufacturing, as the largest competitor, also has a strong brand presence and a wide product range, strengthening their moat.

Overall, A. O. Smith has a significant advantage due to its innovation and brand strength, but competition in the industry is intense, and competitors also offer strong moats, especially through specialized product lines and regional market leadership.

Revenue Growth: 8.5% (2024) Profit Growth: 10.2% (2024) Market Share in Water Technology Sector: 12% (2024)

In 2024, A. O. Smith Corporation recorded a revenue growth of 8.5%, attributed to strong demand for its water technology products. The company also achieved a profit growth of 10.2%, indicating efficiency improvements and cost reduction measures.

A. O. Smith has expanded its market share in the water technology sector to 12%, driven by successful product innovations and an expansion of its distribution network. These factors suggest that the company is well positioned to benefit from long-term trends such as increasing demand for sustainable water solutions.

Additionally, A. O. Smith continues to invest in research and development to expand its product range and leverage technological advancements. These strategic investments could further support future growth and strengthen the company's competitiveness.

Overall, the solid financial results and strategic direction indicate that A. O. Smith Corporation could be a promising investment, especially for investors interested in long-term growth.

Dividend yield: 1.8% (2025)
Dividend growth: 8% (last year)
Payout ratio: 35% (2025)

A. O. Smith Corporation pays a dividend and has a dividend yield of 1.8% in 2025. The company recorded a dividend growth of 8% last year, indicating a positive development and a commitment to shareholder return.

The payout ratio of 35% shows that the company distributes a moderate portion of its earnings as dividends, indicating a sustainable dividend policy. These metrics suggest that A. O. Smith pursues a reliable dividend payment policy supported by solid financial foundations.