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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 .
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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.
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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.
| Name | Position | External Roles | Short 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. |
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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?
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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?
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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?
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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?
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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?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
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. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
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 PMView full earnings summary →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.