TacticScaleWhat A O Smith Does & How It Makes Money (AOS)
Updated October 2026 · reflects A O Smith's latest reported financials
Maker of water heaters, boilers, and water treatment products. It earns revenue by manufacturing and selling water heaters, boilers, water treatment products, and related parts, mostly through independent plumbing wholesalers, hardware and home center retailers, and manufacturer representatives.
How A O Smith makes money
It earns revenue by manufacturing and selling water heaters, boilers, water treatment products, and related parts, mostly through independent plumbing wholesalers, hardware and home center retailers, and manufacturer representatives. It also sells directly to consumers online (Aquasana) and through dealers and Amazon.
What A O Smith does
A. O. Smith, founded in 1874 and based in Milwaukee, Wisconsin, makes gas and electric water heaters, boilers, heat pumps, expansion tanks, pool and spa heaters, and solar water heating systems for homes and commercial buildings. Its brands include A. O. Smith, State, and Lochinvar. It also runs a water treatment business that covers whole-home softeners and filtration, well water solutions, and point-of-use carbon and reverse osmosis systems. Those products are sold under brands such as Aquasana, Hague, Water-Right, Master Water, Atlantic Filter, Impact, and Water Tec. Most products reach buyers through independent plumbing wholesalers, hardware and home center chains, and manufacturer representatives. The company also sells directly online through Aquasana and uses dealers and Amazon for A. O. Smith-branded water treatment products. It operates in North America, China, Europe, and India.
Products & services
- A. O. Smith and State water heaters
- Lochinvar commercial and residential boilers
- Heat pump and tankless water heaters
- Aquasana water filtration
- Hague and Water-Right water softeners
- Reverse osmosis drinking water systems
What is A O Smith worth?
On an owner-earnings DCF, A O Smith's most-likely value is about $87 versus a recent price near $56 (54% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$47) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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