A. O. Smith – Initiation Of Coverage – Why Are They Ditching Retail And Focusing On D2C? 

A.O. Smith Corporation’s recent earnings report reflects both positive aspects and areas of concern for investors. Starting with the positives, the company demonstrated resilience in several areas despite facing broader economic challenges. In North America, A.O. Smith managed to slightly increase sales due to higher boiler and water treatment sales, coupled with price benefits for water heaters. Moreover, the company made strategic moves to bolster its long-term growth prospects, such as acquiring Pureit to enhance its foothold in India, an emerging market with promising future potential where local currency sales grew by 13% in 2024, and by recording mid-teens expected growth moving forward.