AOSNYSEHousehold AppliancesFiscal year ends December 31
SMITH A O CORP
Financials through Q2 FY2026, quarter ended Jun 30, 2026Last filing: 10-Q on Jul 30, 2026
$58.68−0.54 (-0.91%)
Close on Oct 19, 2026
- Market cap
- $8.09B
- P/E (TTM)
- 16.3
- Dividend yield
- 2.35%
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
38.8%+0.6 pts over 5 years
Operating margin
19.0%+1.6 pts over 5 years
Net margin
14.3%+2.3 pts over 5 years
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +0.3% | +0.7% | +5.8% | +4.2% | |
| Gross profit | +2.1% | +3.8% | +6.1% | +3.9% | |
| Operating income | +3.0% | +26.3% | +7.7% | +4.9% | |
| Net income | +2.4% | +32.3% | +9.6% | +6.8% | |
| EPS, diluted | +6.1% | +36.6% | +12.7% | +9.3% | |
| Free cash flow | +15.2% | +19.4% | +1.6% | +6.9% | |
| Dividend per share | +6.2% | +6.6% | +7.1% | +13.8% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 22.1% | 19.6% | 29.2% | |
| Return on assets | 11.8% | 11.1% | 17.1% | |
| Current ratio | 2.04 | 1.83 | 1.50 | |
| Debt to equity | 0.21 | 0.06 | 0.08 | |
| Net debt to EBITDA | -0.01× | -0.79× | -0.02× | |
| Interest coverage | 70.5× | 68.9× | 54.0× | |
| Inventory turnover | 6.6× | 5.9× | 4.6× | |
| Capex to revenue | 3.0% | 2.0% | 1.8% | |
| Diluted shares | 177M | 163M | 142M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Smith A O generated $2.90B from operations and spent $3.10B on capital expenditure, dividends and share buybacks. 13% of that went back into the business.
Generated
$2.90B
Used
$3.10B
Capital expenditure$396.80M13%Dividends$916.90M30%Share buybacks$1.78B58%
DuPont analysis
Return on equity split into margin, efficiency and leverage
Net margin14.3%
×Asset turnover1.20×
×Equity multiplier1.71×
=Return on equity, FY202529.2%
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 14.3% | 1.20× | 1.71× | 29.2% |
| FY2024 | 14.0% | 1.18× | 1.73× | 28.6% |
| FY2023 | 14.4% | 1.18× | 1.82× | 31.0% |
| FY2022 | 6.3% | 1.10× | 1.90× | 13.2% |
| FY2021 | 13.8% | 1.07× | 1.80× | 26.5% |
| FY2020 | 11.9% | 0.93× | 1.77× | 19.6% |
| FY2019 | 12.4% | 0.98× | 1.81× | 21.9% |
| FY2018 | 13.9% | 1.02× | 1.86× | 26.4% |
| FY2017 | 9.9% | 0.98× | 1.93× | 18.8% |
| FY2016 | 12.2% | 0.97× | 1.87× | 22.1% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
7of 9 tests passed in fiscal 2025. Scores of 7 to 9 are usually read as strong.
- ProfitableNet income above zero$546.20M
- Cash generatingOperating cash flow above zero$616.80M
- Return on assets improvedROA up on the prior year16.6% → 16.9%
- Earnings backed by cashOperating cash flow above net income$616.80M vs $546.20M
- Less leverageLong-term debt to assets fell5.7% → 3.6%
- Better liquidityCurrent ratio rose1.55 → 1.50
- No dilutionShare count did not rise147M → 142M
- Gross margin improvedGross margin up on the prior year38.14% → 38.83%
- More efficientAsset turnover rose1.19 → 1.18