A. O. Smith Corporation Key Stats
- Founded1874
- HeadquartersMilwaukee, Wisconsin
- Stock ExchangeNYSE: AOS
- Revenue (2024)$3.82 billion
- Employees~13,700
A. O. Smith Corporation is a Milwaukee, Wisconsin-based manufacturer of residential and commercial water heaters and boilers. The company traces its origins to 1874 and has gone through several complete business transformations over its 150-year life — from bicycle and baby carriage parts to automobile frames, from auto frames to a wide range of steel pressure vessels and motors, and finally from an industrial conglomerate to the focused global water technology company it is today. It lists on the New York Stock Exchange under the ticker AOS.
The company operates through two reported segments. The North America segment covers water heaters, boilers, and water treatment products sold in the United States, Canada, and Mexico under a portfolio of brands including A. O. Smith, Lochinvar, State Water Heaters, American Water Heaters, Aquasana, and Reliance Water Heaters, among others. The Rest of World segment is dominated by China, where A. O. Smith has been selling water heaters and water treatment products since the 1990s and holds a leading position in the premium segment. India, the United Kingdom, France, and the Netherlands round out the international footprint.
Revenue reached $3.82 billion in 2024, roughly flat with the prior year’s record $3.85 billion. The company’s growth from the mid-2010s onward has been driven by a combination of organic volume gains in water heaters and boilers, aggressive pricing action in response to steel and logistics cost increases, steady expansion of the water treatment portfolio through acquisitions, and — until a sharp correction in 2019 — strong performance in the Chinese market. According to Forbes, A. O. Smith is considered one of the Largest Public Companies in the World.
A. O. Smith Corporation History
Charles Jeremiah Smith, a skilled metalworker, founds C. J. Smith, Machinist in Milwaukee, Wisconsin. The shop starts as a general metalworking business and grows into a significant supplier of metal components for manufacturers of baby carriages and bicycles. Charles’s sons — Charles S., George H., and Arthur O. Smith — eventually all join the business, with Arthur O. Smith proving to be the most consequential for the company’s long-term direction.
In 1899, as the earliest automobiles begin appearing on American roads, Arthur O. Smith develops a new lightweight pressed-steel car frame. It proves well-suited to the demands of early automobile manufacturing, and Arthur’s frames quickly attract orders from the industry’s emerging players — among them Packard, Cadillac, Oldsmobile, Studebaker, Buick, Chevrolet, and Ford. By 1908, more than 60 percent of new passenger cars in the United States were built on an A. O. Smith frame. Arthur O. Smith dies unexpectedly in 1912, and his eldest son, Lloyd Raymond Smith (known as Ray), takes over the family business.
Under Ray Smith’s leadership, A. O. Smith introduces what the company calls the Mechanical Marvel in 1921: the world’s first automated automobile frame production line, capable of producing 10,000 frames per day — one every eight seconds. The facility is a landmark of industrial automation for its era. Smith engineers also develop advanced welding techniques during this period, which enable the company to branch into pressure vessels for oil refining and large-diameter steel pipe — products instrumental in building the modern oil and natural gas pipeline infrastructure across the United States.
Smith engineers perfect the process of fusing glass to steel in the mid-1930s, developing a glass-lining technique that makes steel vessels highly resistant to corrosion from water and other liquids. The technology proves adaptable to multiple product categories — beer kegs, brewing tanks, and, most consequentially, residential water heaters. The glass-lined water heater becomes one of the company’s signature products and the foundation of a business that eventually encompasses the entire company.
A. O. Smith acquires Sawyer Electric, a manufacturer of electric motors, in 1940, extending the company’s industrial manufacturing reach beyond steel fabrication into electrical components. This acquisition seeds what eventually becomes a large electric motor business — one the company continues to build for decades before ultimately divesting it to refocus on water products.
In 1998, A. O. Smith acquires General Electric’s domestic compressor motor business and the electric motor division of Magnetek. These deals significantly expand the motor segment and make A. O. Smith one of the largest electric motor manufacturers in North America. The company continues operating this business for over a decade before strategic priorities shift entirely toward water.
A. O. Smith acquires GSW Inc. in 2006, a Canadian water heater manufacturer that significantly expands the company’s North American water heater distribution. GSW brings with it the John Wood and Giant Factories brands in Canada, along with established retail and wholesale relationships in the Canadian market — a gap that had previously limited A. O. Smith’s presence north of the US border.
In 2011, A. O. Smith completes the sale of its electric motor business, using the proceeds to fund a decisive pivot toward becoming a pure-play water technology company. In the same year, it acquires Lochinvar, a manufacturer of commercial and residential water heaters, boilers, and related products based in Lebanon, Tennessee. Lochinvar’s high-efficiency condensing boilers and water heaters are well-regarded in the commercial building segment, and the acquisition substantially strengthens A. O. Smith’s position in the commercial market alongside its existing residential water heater business.
A. O. Smith pursues a deliberate strategy of building a water treatment portfolio through acquisitions, recognizing that consumer and commercial demand for filtered and softened water represents a logical adjacency to its core water heating business. Aquasana (2016) brings direct-to-consumer filtration and reverse osmosis products. Hague Quality Water International (2017) adds water softener systems. Water-Right (2018) extends residential and light commercial water treatment. Master Water Conditioning (2021) continues this buildout in softening and filtration. Giant Factories (also 2021) adds commercial and residential water heaters and boilers in Canada, reinforcing the North America segment with additional manufacturing capacity and the Giant brand alongside John Wood.
Sales in China decline 23 percent in 2019 — the sharpest annual fall in the company’s modern China history — as elevated channel inventory built up in 2018 combines with genuine softening of consumer demand in the region. Total company sales drop from $3.2 billion in 2018 back to $3.0 billion in 2019. COVID-19 brings a further decline to $2.86 billion in 2020 as China sales weaken in the first half, though strong North American residential water heater demand — driven in part by COVID-era home investment — partially offsets this. Recovery is rapid: 2021 revenue reaches $3.54 billion, a record at the time, driven by pricing actions in response to sharply higher steel and logistics costs and a bounce-back in China.
A. O. Smith Corporation Founders and Leadership
Charles Jeremiah Smith — Founder (1874)
Charles Jeremiah Smith founded the original metalworking shop in Milwaukee in 1874. His practical skills in metal fabrication and his relationships with manufacturers of consumer goods set the business on a trajectory of industrial supply. Three of his sons joined the company, and his son Arthur proved to be the entrepreneur who took the business into the automobile age.
Arthur O. Smith — The Auto Frame Pioneer
Arthur O. Smith is the figure most responsible for the company bearing his initials. His development of the pressed-steel automobile frame in 1899 transformed a modest metal shop into one of the most important suppliers to the early American car industry. By 1908 his frames were fitted to the majority of new US passenger cars. Arthur’s death in 1912 left the company to his son Ray, but the A. O. Smith name remained on the door and on every car frame the company ever shipped.
Lloyd Raymond (Ray) Smith — The Automation Era
Ray Smith led the company through its greatest period of mechanical innovation, presiding over the construction of the Mechanical Marvel automated frame production facility in 1921 and guiding the company’s expansion into oil industry steel products and, eventually, glass-lined water heaters. His tenure took the company through the Great Depression and World War II, during which A. O. Smith’s manufacturing capabilities were adapted for military production.
Kevin Wheeler — Water Technology CEO (2019–present)
Kevin Wheeler has served as chairman and CEO of A. O. Smith since 2019, having previously been president and chief operating officer. He has overseen the water treatment acquisition strategy, managed the sharp China sales correction of 2019 and the COVID-19 disruptions of 2020, and guided the company through its strongest revenue period on record in 2021–2023. Wheeler joined A. O. Smith in 1992 and spent his career in the water heater business, rising through North America segment leadership before becoming CEO.
A. O. Smith Corporation Acquisitions
A. O. Smith’s acquisition history falls into two distinct chapters. The first, spanning most of the twentieth century, was about building industrial breadth — motors, frame manufacturing capacity, steel products. The second, beginning with GSW in 2006 and accelerating sharply after the 2011 motor divestiture, has been about deepening the water technology portfolio.
The Lochinvar acquisition in 2011 was the most commercially significant single deal in the company’s modern history, adding a respected brand in high-efficiency commercial boilers and water heaters and filling a meaningful gap in A. O. Smith’s product range above the residential and light-commercial segment. Lochinvar’s condensing boiler technology and its established base of commercial building relationships — serving hospitals, schools, hotels, and apartment buildings — gave A. O. Smith a credible entry into a part of the market it had previously underserved.
The water treatment acquisitions from 2016 onward represent a deliberate portfolio-diversification strategy: Aquasana ($340 million global direct-to-consumer water filter business), Hague Quality Water (dealer-distributed softener and treatment systems), Water-Right (point-of-entry systems for residential and light commercial use), Master Water Conditioning (2021, water softening), and Giant Factories (2021, Canadian water heater manufacturing). Together these deals built a North America Water Treatment business that generated roughly $300 million in annual revenue by the mid-2020s, representing a meaningful and growing portion of the North America segment.
The 1998 acquisitions of GE’s compressor motor unit and Magnetek’s motor division, while very large at the time, are notable now primarily as the prelude to the 2011 exit from motors entirely — underscoring how completely A. O. Smith repositioned itself over that 13-year span.
A. O. Smith Corporation Competitors
A. O. Smith’s closest competitors differ by geography and product line. In North American water heaters, Rheem Manufacturing is its most direct rival, with both companies supplying the residential replacement and new construction markets through wholesale distribution channels. Bradford White, a privately held Milwaukee company, is the third major residential player in the US. In commercial water heating and boilers, the company competes with Weil-McLain, Burnham Holdings, and — through Lochinvar — with premium European boiler brands increasingly sold in North American buildings. In China, the primary competitors are Haier and Midea’s water heater divisions and the local brand Ariston (now part of Haier). In water treatment, the competitive set expands further to include 3M’s water business, Pentair, and BWT.
| Company | Country | Primary Overlap | Annual Revenue (approx.) |
|---|---|---|---|
| Rheem Manufacturing | USA | Residential & commercial water heaters, HVAC | ~$6B+ (private, estimated) |
| Bradford White Corporation | USA | Residential & commercial water heaters | Private (not disclosed) |
| Pentair PLC | Ireland/USA | Water treatment, filtration, flow control | ~$4.1B (2024) |
| Watts Water Technologies | USA | Flow control, water quality, boiler accessories | ~$1.9B (2024) |
| Weil-McLain | USA | Commercial & residential boilers | Part of Marley-Wylain group (private) |
| Haier (Qingdao Haier) | China | Water heaters, appliances, China & global | ~¥282B (2024) |
| Rinnai Corporation | Japan | Tankless water heaters, boilers, global | ~¥480B (FY2024) |
| Noritz Corporation | Japan | Tankless water heaters, US and Japan | ~¥130B (FY2024) |
| BWT Group | Austria | Water treatment, filtration, Europe | ~€800M (2024) |
| Midea Group | China | Water heaters, appliances, China market | ~¥425B (2024) |
A. O. Smith Corporation Revenue
A. O. Smith’s revenue growth from 2015 through 2018 was driven by expanding sales in China — which roughly doubled between 2013 and 2018 — combined with steady growth in North American residential water heaters and the contribution of Lochinvar’s commercial boiler business. Revenue crossed $3 billion for the first time in 2017 and reached $3.2 billion in 2018 before a sharp China correction pulled it back to $3.0 billion in 2019 and $2.86 billion in 2020. The 2021 rebound to $3.54 billion, and continued growth through 2023’s record $3.85 billion, was built primarily on North America pricing increases — taken in response to sharply higher steel, transportation, and component costs — alongside recovering volumes in China and the growing water treatment portfolio.
A. O. Smith Corporation Market Cap
A. O. Smith’s market capitalisation expanded substantially through the mid-to-late 2010s, driven by investor confidence in the China growth story and the company’s track record of earnings growth following the motor business exit. The stock reached peak valuations around 2017–2018 before pulling back sharply in 2018–2019 as China sales fell and broader industrial stocks declined. Recovery through 2020 and 2021 was strong, and by 2023 the market cap was again well above $12 billion on the strength of record earnings. As of early 2026, A. O. Smith’s market capitalisation sits in the $10–11 billion range, broadly consistent with the company’s position as a large-cap industrial company with a steady dividend record and a 30-plus-year history of consecutive annual dividend increases.
FAQs
What does A. O. Smith Corporation make?
A. O. Smith makes residential and commercial water heaters, boilers, heat pump water heaters, and water treatment products including point-of-entry water softeners, filtration systems, reverse osmosis units, and UV purification. Products are sold under more than twenty brand names across North America, China, India, and several European countries.
Who was A. O. Smith?
Arthur O. Smith was the son of company founder Charles Jeremiah Smith. He joined the family metalworking business in the 1890s and developed the pressed-steel automobile frame that made the company a dominant supplier to the early US auto industry. His initials were adopted as the company’s name, and have remained on the door through every subsequent business transformation since 1899.
What brands does A. O. Smith own?
The North America portfolio includes A. O. Smith, Lochinvar, State Water Heaters, American Water Heaters, Reliance Water Heaters, US Craftmaster, Aquasana, Hague Quality Water, Water-Right, WaterCare, Master Water Conditioning, GSW, Giant Factories, John Wood, and Takagi, among others. In international markets the A. O. Smith brand is used directly alongside locally acquired brands.
When did A. O. Smith exit the electric motor business?
A. O. Smith sold its electric motor business in 2011 to focus entirely on water heating and water treatment products. The motor segment had been a major part of the company for over six decades following the 1940 acquisition of Sawyer Electric and the 1998 purchase of GE’s motor business. The proceeds from the sale were deployed largely into the Lochinvar acquisition the same year.
How significant is A. O. Smith’s China business?
China has been a major revenue contributor since the mid-2000s, at one point representing roughly a third of total company sales. A. O. Smith holds a premium position in China’s water heater and water treatment market, where consumers in urban apartments are significant buyers of both storage and instant water heaters and of filtered drinking water systems. China sales have been volatile — growing strongly through 2018, falling sharply in 2019, recovering in 2021, and softening again in 2022–2024 as consumer demand in China moderated.
*Information from Forbes.com, Wikipedia.org, and www.aosmith.com.
**Video published on YouTube by “A. O. Smith English | EMEA“.
