AOS A O Smith margins

Relative Growth: Rel. Growth:

Relative Strength: Rel. Strength:

Relative Valuation: Rel. Valuation:

Relative Profitability: Rel. Profitability: 74

Gross margin

38.6%

Operating margin

17.6%

EBITDA margin

19.9%

Net margin

13.1%

At present, A O Smith reports a gross margin of 38.6%, an operating margin of 17.6%, an EBITDA margin of 19.9%, and a net margin of 13.1%. The strongest positive change was in gross margin, higher by 0.4 percentage points. The strongest negative change was in EBITDA margin, lower by 0.6 percentage points.

AOS margin history

Gross, operating, EBITDA and net margin trends

A O Smith's margins averaged 38.44% gross, 18.66% operating, 20.89% EBITDA, and 14.08% net during the last 3 years. Against the three-year averages, gross margin is above its three-year average and operating, EBITDA, and net margins are below their three-year averages.

AOS margin expansion

Year-over-year margin changes in percentage points

The largest positive change was in gross margin, up 0.4 percentage points. The expansion was limited to gross margin, while operating margin contracted by 0.5 percentage points, EBITDA margin by 0.6 percentage points, and net margin by 0.6 percentage points.

Gross margin expansion

0.4pp

Operating margin expansion

-0.5pp

EBITDA margin expansion

-0.6pp

Net margin expansion

-0.6pp

AOS Gross margin

Over the last 3 years, A O Smith's gross margin averaged 38.44%. The current gross margin of 38.6% is 0.2 percentage points above its three-year average. During this period, gross margin reached a high of 38.8% in Mar 2026 and a low of 38% in Mar 2025.

AOS Operating margin

Throughout the last 3 years, A O Smith had an average operating margin of 18.66%. Against its three-year average, A O Smith's operating margin is currently 17.6%, 1.1 percentage points below its three-year average. Looking back over the last 3 years, A O Smith's operating margin reached 19.7% at its highest point in Mar 2024 and 17.6% at its lowest in Jun 2026.

AOS EBITDA margin

A O Smith recorded an average EBITDA margin of 20.89% across the last 3 years. A O Smith currently reports an EBITDA margin of 19.9%, 1 percentage points below its three-year average. Over the last 3 years, A O Smith's EBITDA margin peaked at 21.8% in Mar 2024 and reached a low of 19.9% in Jun 2026.

AOS Net margin

A O Smith recorded an average net margin of 14.08% across the last 3 years. The current net margin of 13.1% is 1 percentage points below its three-year average. During this period, net margin reached a high of 14.9% in Mar 2024 and a low of 13.1% in Jun 2026.

AOS margin group comparison

Margins compared with peer-group, industry and sector averages

With a gross margin of 38.6%, AOS stands higher than the Industrials sector, the industry and its peers average. Looking at the Industrials sector average of 32.7%, A O Smith's gross margin is 18% higher.

AOS margin peer comparison

Compare margins with selected peers

Frequently asked questions

What is A O Smith's gross margin?

For the period ending Jun 30, 2026, AOS recorded a gross margin of 38.6%.

What is A O Smith's operating margin?

As of Jun 30, 2026, AOS has an operating margin of 17.6%.

What is A O Smith's EBITDA margin?

The current EBITDA margin for AOS is 19.9% as of Jun 30, 2026.

What is A O Smith's net margin?

For the period ending Jun 30, 2026, AOS recorded a net margin of 13.1%.

What are the average margins of AOS?

Over the past 3 years, AOS reported average margins of 38.4% gross, 18.7% operating, 20.9% EBITDA, and 14.1% net.

What are the highest historical margins of AOS?

Across the 5-year period, AOS posted its highest margins at 38.8% gross in Mar 2026, 19.7% operating in Mar 2024, 21.8% EBITDA in Mar 2024, and 14.9% net in Mar 2024.

What are the lowest historical margins of AOS?

Over this 5-year history, A O Smith's margins fell as low as 35.2% gross in Sep 2022, 17.2% operating in Dec 2021, 8.3% EBITDA in Dec 2022, and 6.3% net in Dec 2022.