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    A O Smith Corp (AOS)

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    A. O. Smith Corporation is a leading manufacturer specializing in residential and commercial water heating and treatment products. The company operates through two primary segments: North America and Rest of World, which includes China, Europe, and India. A. O. Smith's product offerings include gas, heat pump, and electric water heaters, boilers, tanks, and water treatment products, such as point-of-entry water softeners and reverse osmosis products .

    1. North America Segment - Manufactures and markets a wide range of residential and commercial water heaters, boilers, and tanks, with water heaters being a significant product line.

      • Water Heaters - Offers gas, heat pump, and electric water heaters for residential and commercial use.
      • Water Treatment Products - Provides point-of-entry water softeners and reverse osmosis products.
    2. Rest of World Segment - Includes operations in China, Europe, and India, focusing on similar product lines as the North America segment, with China being a major market.

    NamePositionExternal RolesShort Bio

    Kevin J. Wheeler

    ExecutiveBoard

    Chairman and Chief Executive Officer

    Board Member at Graco Inc.; Member of Manufacturers Alliance Board of Trustees

    Kevin J. Wheeler has been with A. O. Smith since 1994, serving in various roles before becoming CEO in 2018 and Chairman in 2020. He oversees the company's strategic direction and operations.

    View Report →

    Charles T. Lauber

    Executive

    Executive Vice President and Chief Financial Officer

    Board Member at National Association of Manufacturers; Board Member at H.B. Fuller

    Charles T. Lauber joined A. O. Smith in 1999 and has held several financial leadership roles, becoming CFO in 2019. He is responsible for all financial functions of the company.

    D. Samuel Karge

    Executive

    Senior Vice President and President of North America Water Treatment

    Vice President of the Water Quality Research Foundation

    D. Samuel Karge joined A. O. Smith in 2018 and has led the North America Water Treatment business, achieving significant growth.

    Jack Qiu

    Executive

    Senior Vice President and President of A. O. Smith China

    None

    Jack Qiu joined A. O. Smith in 2003 and has driven significant growth in the China market.

    James F. Stern

    Executive

    Executive Vice President, General Counsel, and Secretary

    None

    James F. Stern has been with A. O. Smith since 2007, serving as General Counsel and Secretary. He previously worked at Foley & Lardner LLP.

    Parag Kulkarni

    Executive

    Senior Vice President, International, and President of A. O. Smith India Water Products Private Limited

    None

    Parag Kulkarni joined A. O. Smith in 2015 and has led A. O. Smith India to market-leading positions. He became SVP, International in 2022.

    Robert J. Heideman

    Executive

    Senior Vice President – Chief Technology Officer

    None

    Robert J. Heideman has been with A. O. Smith since 2002, focusing on engineering and technology initiatives. He became CTO in 2013.

    S. Melissa Scheppele

    Executive

    Senior Vice President - Chief Information Officer

    None

    S. Melissa Scheppele joined A. O. Smith in 2020 as CIO, overseeing IT strategy and infrastructure.

    Samuel M. Carver

    Executive

    Senior Vice President – Global Operations

    None

    Samuel M. Carver joined A. O. Smith in 2006 and has held various operational roles, becoming SVP of Global Operations in 2021.

    Stephen D. O'Brien

    Executive

    Senior Vice President and President of Lochinvar, LLC

    None

    Stephen D. O'Brien joined A. O. Smith in 1997 and has held various roles, becoming President of Lochinvar in 2022.

    Stephen M. Shafer

    Executive

    President and Chief Operating Officer

    None

    Stephen M. Shafer joined A. O. Smith in 2024, bringing extensive leadership experience from 3M Company.

    Todd W. Fister

    Executive

    Chief Financial Officer

    None

    Todd W. Fister joined A. O. Smith as CFO in 2023, bringing experience from Owens Corning.

    Ajita G. Rajendra

    Board

    Director

    Director at Donaldson Company, Inc.; Director at The Timken Company

    Ajita G. Rajendra has been with A. O. Smith since 2005, serving in various leadership roles including CEO and Chairman.

    Christopher L. Mapes

    Board

    Director

    Executive Chairman of Lincoln Electric Holdings, Inc.; Director at The Timken Company

    Christopher L. Mapes rejoined the board in 2023, having previously served as EVP and President of A. O. Smith Electrical Products Company.

    Dr. Ilham Kadri

    Board

    Director

    CEO and Director of Syensqo S.A.; Board Member at L’Oréal S.A.

    Dr. Ilham Kadri has been a director since 2016, with expertise in manufacturing, sustainability, and water technology.

    Lois Martin

    Board

    Director

    CFO at M.A. Mortenson Companies, Inc.; Director at Donnelley Financial Solutions, Inc.

    Lois Martin joined the board in 2024, bringing extensive financial expertise.

    Mark D. Smith

    Board

    Director

    Trustee of the Smith Family Voting Trust

    Mark D. Smith has been a director since 2001, with a deep understanding of the company's history and strategic plans.

    Michael M. Larsen

    Board

    Director

    Senior Vice President and CFO of Illinois Tool Works, Inc.

    Michael M. Larsen has been a director since 2021, with extensive financial and operational experience.

    Ronald D. Brown

    Board

    Director

    Board Member at LSI Industries, Inc.; University of Cincinnati Board of Trustees

    Ronald D. Brown has been a director since 2001, bringing extensive financial and operational experience.

    Victoria M. Holt

    Board

    Director

    Director at Waste Management, Inc.; Director at Piper Sandler Companies; Board Member at Process Sensing Technologies

    Victoria M. Holt has been a director since 2021, with extensive leadership experience in manufacturing and technology.

    1. Given the persistent underperformance and lower returns of your China business compared to North America, does it still make strategic sense for A. O. Smith to maintain this business within your portfolio, and how do you plan to address investor concerns about its long-term viability?

    2. Can you elaborate on the specific financial impacts, including potential sales headwinds and margin benefits, from transitioning tankless water heater production from China to your Juarez facility over the course of 2025?

    3. With North America water heater sales decreasing by 4% due to softer-than-expected demand and customer inventory adjustments, what strategies are you implementing to mitigate these challenges and stimulate demand in both residential and commercial markets?

    4. Given the recent deflation in steel prices and competitive market pressures, how confident are you in the sustainability of your March price increase in North America, and what is your plan to maintain margins if customers resist further price hikes?

    5. Considering the significant 17% decline in China sales driven by lower volumes and increased pricing pressures, particularly in the mid-market segment, how do you plan to stabilize and grow your market share in China without compromising your premium brand positioning?

    Program DetailsProgram 1
    Approval DateQ1 2024
    End Date/DurationUntil terminated by the Board
    Total additional amount2,000,000 shares
    Remaining authorization amount2,650,962 shares
    DetailsConducted through a combination of a Rule 10b5-1 automatic trading plan and discretionary purchases

    Competitors mentioned in the company's latest 10K filing.

    CompanyDescription

    Rheem

    Our principal water heating and boiler competitors in North America include this company.

    Bradford White

    Our principal water heating and boiler competitors in North America include this company.

    Rinnai

    Our principal water heating and boiler competitors in North America include this company.

    Aerco

    Our principal water heating and boiler competitors in North America include this company.

    Navien

    Our principal water heating and boiler competitors in North America include this company.

    Culligan

    Our principal water treatment competitors in the U.S. are this company.

    Kinetico

    Our principal water treatment competitors in the U.S. are this company.

    Our principal water treatment competitors in the U.S. are this company.

    Our principal water treatment competitors in the U.S. are this company.

    Ecowater

    Our principal water treatment competitors in the U.S. are this company.

    Haier/Casarte

    Our primary competitors in China in the water heater market segment are this company.

    Midea/COLMO

    Our primary competitors in China in the water heater market segment are this company.

    Angel

    Our principal competitors in the water treatment market in China are this company.

    Truliva

    Our principal competitors in the water treatment market in China are this company.

    Xiaomi

    Our principal competitors in the water treatment market in China are this company.

    Racold

    Our primary competitors in India are this company in the water heater market.

    Bajaj

    Our primary competitors in India are this company in the water heater market.

    Havells

    Our primary competitors in India are this company in the water heater market.

    Eureka Forbes

    Our primary competitors in India are this company in the water treatment market.

    Kent

    Our primary competitors in India are this company in the water treatment market.

    NameStart DateEnd DateReason for Change
    Ernst & Young LLP1917 PresentCurrent auditor

    Notable M&A activity and strategic investments in the past 3 years.

    CompanyYearDetails

    Pureit

    2024

    A. O. Smith completed the acquisition of Pureit on November 1, 2024 for approximately $120 million in cash, adding a leading water purification business with annual sales of about $60 million and strengthening its premium water treatment portfolio across South Asia.

    Impact Water Products

    2024

    A. O. Smith acquired Impact Water Products in the first quarter of 2024 for $21.3 million (net of cash acquired), which will boost its West Coast presence in North America and includes contingent payments based on future sales performance.

    Water Tec

    2023

    A. O. Smith acquired Water Tec, an Arizona-based water treatment company, for $16.1 million (net of cash acquired) to further expand its U.S. water treatment platform and strategic growth in the market.

    Atlantic Filter Corporation

    2022

    The acquisition of Atlantic Filter Corporation was completed in Q2 2022 for $5.5 million (net of cash acquired), expanding the company’s water treatment capabilities, particularly in Southern Florida, and aligning with its strategic growth in North America.

    Recent developments and announcements about AOS.

    Earnings

    • New Earnings (Q4 2024)

      ·
      Jan 30, 2025, 5:46 PM

      A.O. Smith expects 250 bps margin improvement in N. America water treatment in 2025 despite a 5% sales dip. Boiler biz eyes 3%-5% growth (vs. 1%-2% market). Restructuring and China remain key watch areas for 2025 profitability and growth.

      View full earnings summary →