A. O. Smith Shows Resilience and Long-Term Growth Potential Amid Challenges

A. O. Smith Shows Resilience and Long-Term Growth Potential Amid Challenges

North America: A. O. Smith Corporation reported continued momentum in its North America segment, supported by higher volumes in commercial water heaters and boilers. The company indicated that sales from its North America boiler business are expected to increase by around 4-6 percent in 2025, while sales from the commercial water heater business are projected to rise at a low single-digit rate.

The company has also expanded its portfolio through acquisitions. In November 2025, A. O. Smith entered into an agreement to acquire LVC Holdco LLC, operating as Leonard Valve, for USD 470 million, with completion expected in the first quarter of 2026. The transaction is intended to strengthen the company’s water heating and boiler offerings and increase its participation in the water management market. Earlier, in November 2024, A. O. Smith acquired the Pureit business from Unilever, adding water treatment capabilities and an established brand presence, which is expected to support its operations in the Indian water treatment market.

A. O. Smith Corporation continued its shareholder return activities through dividends and share repurchases during 2025. In the first nine months of the year, the company paid dividends amounting to USD 145.1 million, representing a year-on-year increase of three percent. In October 2025, it raised its quarterly dividend by six percent to thirty-six cents per share, taking the annual dividend to USD one point four per share. The company has recorded consecutive dividend increases for more than three decades. During the same nine-month period, A. O. Smith repurchased approximately five million shares for USD 335.4 million. For the full year 2025, the company indicated that it expects total share repurchases to be around USD 400 million.

Source: Nasdaq