A. O. Smith Corporation $AOS Position Reduced by Bank of Nova Scotia

Key Points

• Bank of Nova Scotia cut its A. O. Smith stake by 74.1% in the first quarter, while institutional investors collectively owned 76.1% of the company. Other major investors, including Vanguard and AQR Capital Management, increased their positions.
• A. O. Smith’s second-quarter adjusted EPS of $1.03 and revenue of about $1.0 billion exceeded analyst expectations, helped by North American growth, boiler sales, acquisitions and pricing. However, revenue fell 0.7% year over year, reported EPS declined, and Rest of World sales dropped 19% amid weakness in China.
• Shares opened at $59.80 after trading down 3.6%, while management maintained 2026 adjusted EPS guidance of $3.70–$3.85. The company also declared a quarterly dividend of $0.36 per share, representing a 2.4% yield.

Bank of Nova Scotia lessened its position in A. O. Smith Corporation (NYSE:AOS - Free Report) by 74.1% in the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 7,646 shares of the industrial products company's stock after selling 21,820 shares during the quarter. Bank of Nova Scotia's holdings in A. O. Smith were worth $504,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Norges Bank purchased a new stake in A. O. Smith in the 4th quarter worth about $97,101,000. Madison Asset Management LLC purchased a new position in A. O. Smith during the 4th quarter valued at about $80,885,000. Natixis Advisors LLC increased its holdings in shares of A. O. Smith by 220.4% in the 4th quarter. Natixis Advisors LLC now owns 1,022,299 shares of the industrial products company's stock valued at $68,371,000 after purchasing an additional 703,186 shares during the period. Vanguard Group Inc. increased its holdings in shares of A. O. Smith by 4.7% in the 4th quarter. Vanguard Group Inc. now owns 15,096,018 shares of the industrial products company's stock valued at $1,009,622,000 after purchasing an additional 683,176 shares during the period. Finally, AQR Capital Management LLC lifted its position in shares of A. O. Smith by 93.2% in the fourth quarter. AQR Capital Management LLC now owns 1,279,356 shares of the industrial products company's stock worth $85,563,000 after purchasing an additional 617,179 shares in the last quarter. Institutional investors and hedge funds own 76.10% of the company's stock.

A. O. Smith News Roundup

Here are the key news stories impacting A. O. Smith this week:

• Positive Sentiment: Second-quarter adjusted EPS was $1.03, above the $0.96 analyst consensus, while sales of approximately $1.0 billion also exceeded expectations. North America sales increased 5% to $820.5 million, supported by the Leonard Valve acquisition, 21% growth in boiler sales and pricing actions. A. O. Smith Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Cash generation improved substantially: year-to-date operating cash flow rose 42% to $254 million and free cash flow increased 67% to $233 million. The company also raised its 2026 share-repurchase target to $300 million. A. O. Smith Reports Second Quarter 2026 Results
• Positive Sentiment: A. O. Smith declared a quarterly dividend of $0.36 per share, supporting the stock’s income appeal. A. O. Smith Declares Dividend
• Neutral Sentiment: Management maintained 2026 adjusted EPS guidance of $3.70–$3.85 and expects sales growth of 2%–3%, broadly consistent with analyst expectations. A. O. Smith 2026 Guidance
• Negative Sentiment: Revenue declined 0.7% year over year, and reported diluted EPS fell from $1.07 to $0.91; the adjusted figure benefited from excluding restructuring and impairment charges.
• Negative Sentiment: Rest of World sales dropped 19% to $194.9 million because of persistent weakness in China’s consumer-appliance market. Higher input costs and lower residential water-heater volumes also pressured profitability, helping explain the negative market reaction despite the headline earnings beat. A. O. Smith Q2 Earnings Beat Estimates

A. O. Smith Trading Down 3.6%

Shares of A. O. Smith stock opened at $59.80 on Friday. A. O. Smith Corporation has a 1 year low of $54.16 and a 1 year high of $81.86. The company's fifty day simple moving average is $59.50 and its 200-day simple moving average is $65.43. The company has a market cap of $8.24 billion, a price-to-earnings ratio of 15.90, a PEG ratio of 1.38 and a beta of 1.16. The company has a current ratio of 1.56, a quick ratio of 1.00 and a debt-to-equity ratio of 0.31.

A. O. Smith (NYSE:AOS - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The industrial products company reported $1.03 EPS for the quarter, beating the consensus estimate of $0.96 by $0.07. The firm had revenue of $1 billion during the quarter, compared to analysts' expectations of $994.89 million. A. O. Smith had a return on equity of 28.42% and a net margin of 13.84%.The company's revenue for the quarter was down .7% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.07 EPS. A. O. Smith has set its FY 2026 guidance at 3.700-3.850 EPS. As a group, sell-side analysts expect that A. O. Smith Corporation will post 3.74 EPS for the current year.

A. O. Smith Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, August 17th. Stockholders of record on Friday, July 31st will be paid a $0.36 dividend. This represents a $1.44 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Friday, July 31st. A. O. Smith's payout ratio is currently 38.30%.

Analyst Ratings Changes

A number of equities research analysts have issued reports on AOS shares. Weiss Ratings lowered shares of A. O. Smith from a "hold (c)" rating to a "hold (c-)" rating in a research note on Wednesday, May 27th. DA Davidson set a $67.00 price objective on A. O. Smith and gave the company a "neutral" rating in a research report on Monday, May 4th. Oppenheimer set a $75.00 target price on A. O. Smith and gave the company an "outperform" rating in a research note on Wednesday, June 10th. Citigroup dropped their target price on A. O. Smith from $74.00 to $65.00 and set a "neutral" rating on the stock in a research report on Monday, May 4th. Finally, The Goldman Sachs Group cut their price target on A. O. Smith from $69.00 to $61.00 and set a "sell" rating for the company in a research note on Monday, April 13th. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Reduce" and a consensus target price of $68.62.

A. O. Smith Profile

A. O. Smith Corporation, based in Milwaukee, Wisconsin, is a leading manufacturer of water heating and water treatment products for residential and commercial applications. Since its founding in 1874, the company has built a reputation for producing reliable, energy-efficient water heaters, boilers and pressure vessels. Its product portfolio encompasses gas, electric, condensing and tankless water heaters, as well as specialty boilers designed to meet a variety of building and industrial needs.

The company operates through two primary segments: North America and Asia.

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