A. O. Smith Corporation is a global manufacturer and marketer of residential and commercial water heaters, boilers, heat pumps, tanks, and water treatment products. The company operates through two segments: North America and Rest of World. It primarily serves residential and commercial end markets, focusing on product design, reliability, and energy efficiency. A significant portion of North American sales comes from replacement products. The company has established a strong brand presence in China and is expanding its offerings in India.

• Employees: 12,000 (as of December 31, 2023)
• Geographic Footprint: Primarily North America, China, Europe and India
• Headquarters: Milwaukee, Wisconsin
• Founded: Not explicitly stated in the 10K
• Number of locations/facilities: 27 manufacturing plants (22 in North America, 5 in Rest of World)
• Revenue: $3.85 billion (FY2023)
• Key Subsidiaries/Brands: A. O. Smith, State, Lochinvar, Aquasana, Hague, Water-Right, Master Water, Atlantic Filter, and Water Tec

• CEO: Kevin J. Wheeler
• CFO: Charles T. Lauber
• Senior Vice President, Global Operations: Samuel M. Carver
• Senior Vice President, Chief Technology Officer: Robert J. Heideman
• Senior Vice President, International: Parag Kulkarni
• Senior Vice President, Human Resources and Public Affairs: Mark A. Petrarca
• Senior Vice President, Chief Information Officer: S. Melissa Scheppele
• Executive Vice President, General Counsel and Secretary: James F. Stern
• Board Chair: Kevin J. Wheeler

Key leaders have significant tenure and experience in the industry and at A.O. Smith.

• Annual Revenue: $3.85 billion (FY2023)
• Net Income: $556.6 million
• Total Assets: $3.21 billion
• Employees: 12,000 (as of December 31, 2023)
• Key Financial Highlights: Gross profit margin of 38.5%, increased revenue driven by higher volumes of residential and commercial water heaters.

A. O. Smith offers a comprehensive range of products across two main categories:

• Water Heaters: Residential and commercial gas and electric water heaters, including tank-type, tankless, heat pump, and solar models.
• Boilers: Residential and commercial boilers for space and hydronic heating.
• Water Treatment Products: Water softeners, filtration systems, and reverse osmosis products for residential and commercial use.
• Other: Expansion tanks, commercial solar water heating systems, swimming pool and spa heaters, and related parts.

The company operates through two main segments:

• North America: Accounts for approximately 75% of total sales, serving residential and commercial end markets.
• Rest of World: Primarily includes China, Europe, and India, with a focus on water heaters and water treatment products.

Revenue breakdown by segments is available in the financial statements.

A. O. Smith's strategy focuses on geographic growth, core business expansion, and establishing adjacencies. Key initiatives include:

• Seeking acquisitions to expand market presence and product offerings.
• Expanding commercial water heater capacity to meet regulatory changes.
• Developing new, innovative, and energy-efficient products.
• Investing in research and development to maintain competitiveness.
• Focusing on sustainable and socially responsible practices.

The company aims to continue growing its business in a sustainable and socially responsible manner.

A. O. Smith operates in the water heating and water treatment industry, which is highly competitive. Key market trends include:

• Market Position: Largest manufacturer and marketer of water heaters in North America.
• Key Competitors: Rheem, Bradford White, Rinnai, Aerco, Navien, Culligan, Kinetico, Pentair, Franklin Electric, and Ecowater.
• Industry Trends: Increasing demand for energy-efficient products, decarbonization, electrification, and water conservation.

• Economic and Industry Risks: Global and regional economic conditions, including recessions, can affect consumer spending and demand.
• Operational Risks: Extraordinary events like natural disasters and public health issues can disrupt production and supply chains.
• Competitive Risks: Intense competition in product design, reliability, quality, and price.
• International Risks: Political, economic, and regulatory risks in countries where the company operates, including China.
• Cybersecurity Risks: Potential breaches in information systems and data security.