A. O. Smith
32 named things its latest annual report says its results depend on, each in the company's own words. 18 of them are also named by other companies we've read.
Customers
Five largest customers
earns from · approximately 41 percent of our sales in 2025named as a riskSales to our five largest customers represented approximately 41 percent of our sales in 2025.Risk factors (Item 1A)
Lowe's
earns fromIn the retail channel, our customers include four of the six largest national hardware and home center chains, including a long-standing exclusive relationship with Lowe’s where we sell A. O. Smith branded products.Business (Item 1)
Suppliers
Limited number of suppliers
depends onnamed as a riskIn some cases, we are dependent on a limited number of suppliers for some of the raw materials and components we require in the manufacturing of our products.Risk factors (Item 1A)
Partners and platforms
Other companies
North American residential and commercial construction
earns fromnamed as a riskChanges in the replacement volume and in the construction market in North America could negatively affect us.Risk factors (Item 1A)
Pureit
In 2024, we expanded our product offerings and geographic footprint with the acquisition of Pureit, formerly a Unilever PLC business.Business (Item 1)
Competitors
Rheem
competes withOur principal water heating and boiler competitors in North America include Rheem, Bradford White, Rinnai, Aerco and Navien.Business (Item 1)
Bradford White
competes withOur principal water heating and boiler competitors in North America include Rheem, Bradford White, Rinnai, Aerco and Navien.Business (Item 1)
Rinnai
competes withOur primary competitors in China in the water heater market segment are Haier/Casarte, Midea/COLMO, and Rinnai.Business (Item 1)
Haier
competes withOur principal competitors in the water treatment market are Angel, Haier/Casarte, Midea/COLMO, and Truliva.Business (Item 1)
Midea
competes withOur primary competitors in China in the water heater market segment are Haier/Casarte, Midea/COLMO, and Rinnai.Business (Item 1)
Culligan
competes withOur principal water treatment competitors in the U.S. are Culligan, Kinetico, Pentair, Franklin Electric and Ecowater as well as numerous regional assemblers.Business (Item 1)
Pentair
competes withOur principal water treatment competitors in the U.S. are Culligan, Kinetico, Pentair, Franklin Electric and Ecowater as well as numerous regional assemblers.Business (Item 1)
Places
China
earns from · approximately 18 percent of our sales in 2025named as a riskBecause approximately 18 percent of our sales in 2025 were attributable to China, adverse economic conditions or changes in consumer behavior in China could impact our businessRisk factors (Item 1A)
Also named by A, AA, AAOI, AAP, AAPL, AB, ADI, AEHR and 261 more
China
operates in · Approximately 4,200 of our 11,500 employeesnamed as a riskApproximately 4,200 of our 11,500 employees as of December 31, 2025 were located in China.Risk factors (Item 1A)
Also named by A, AA, AAOI, AAP, AAPL, AB, ADI, AEHR and 261 more
China
concentrated in · approximately $140 million of cash and marketable securitiesnamed as a riskAt December 31, 2025, approximately $140 million of cash and marketable securities were held by our foreign subsidiaries, substantially all of which were located in China.Risk factors (Item 1A)
Also named by A, AA, AAOI, AAP, AAPL, AB, ADI, AEHR and 261 more
Outside the U.S.
earns from · Approximately 31 percent of our sales in 2025named as a riskApproximately 31 percent of our sales in 2025 were attributable to products sold outside of the U.S., primarily in China and Canada, and to a lesser extent in India and Europe.Risk factors (Item 1A)
North America
earns from · approximately 78 percent of our total sales in 2025Sales in our North America segment accounted for approximately 78 percent of our total sales in 2025.Business (Item 1)
Also named by ALSN, BMI, CAG, CAT, CHRW, CLS, CPB, CW and 19 more
Canada
earns fromnamed as a riskThe majority of our foreign currency transaction risk results from sales of our products in Canada, a portion of which we manufacture in the U.S., and to a lesser extent from component purchases in India and Europe and payroll in Mexico.Risk factors (Item 1A)
Also named by AAP, AJG, ALL, AMRC, ARE, BBY, BF/B, BR and 97 more
Mexico
operates innamed as a riskUnfavorable changes in the political, regulatory, or trade climate, diplomatic relations, or government policies, particularly in relation to countries where we have a presence, including Canada, China, India and Mexico, could have a material adverse effect on our financial condition, results of operations and cash flows or our ability to repatriate funds to the U.S.Risk factors (Item 1A)
Also named by AAP, AME, AMRC, ANET, ARES, AYI, AZO, BBY and 83 more
Hazards
Flooding
operates in · two of our manufacturing plantsnamed as a riskFor example, two of our manufacturing plants are located within a floodplain that has experienced past flooding events.Risk factors (Item 1A)
Hurricanes and earthquakes
operates innamed as a riskWe also have other manufacturing facilities located in hurricane and earthquake zones.Risk factors (Item 1A)
Also named by DGX
Commodities and inputs
Chinese renminbi
exposed to its price · $83 million of cash and marketable securitiesnamed as a riskWe have a significant presence outside of the U.S., primarily in China and Canada and to a lesser extent India, Europe, and Mexico, and therefore, hold assets, including $83 million of cash and marketable securities denominated in Chinese renminbi, incur liabilities, earn revenues and pay expenses in a variety of currencies other than the U.S. dollar.Risk factors (Item 1A)
Also named by AAOI, ALB, APD, BBW, BWA, CGNX, COHR, DD and 15 more
Regulators
Laws and programs
Foreign Corrupt Practices Act
subject tonamed as a riskDue to our global operations, we are subject to many laws governing international relations, including those that prohibit improper payments to government officials and restrict where we can do business, what information or products we can supply to certain countries and what information we can provide to a non-U.S. government, including but not limited to the Foreign Corrupt Practices Act and the U.S. Export Administration Act.Risk factors (Item 1A)
Also named by A, ADBE, ADP, AIR, AJG, ALB, AME, AMZN and 112 more
U.S. import tariffs
subject tonamed as a riskImport tariffs, taxes, customs duties and other trading regulations imposed by the U.S. government on foreign countries, or by foreign countries on the U.S., could significantly increase the prices we pay for raw materials that are critical to our ability to manufacture our products.Risk factors (Item 1A)
Also named by APLD, BJ, BMI, CAVA, CVLG, CVS, DKS, DTE and 18 more
U.S. Department of Energy (DOE) commercial water heater efficiency rule
subject tonamed as a riskFor example, the U.S. Department of Energy (DOE) has adopted a new efficiency rule for commercial water heaters that will take effect in October 2026.Risk factors (Item 1A)
U.S. Department of Energy (DOE) residential water heater efficiency rule
subject tonamed as a riskThe DOE has also adopted a new efficiency rule for our residential water heaters that will take effect in 2029, which seeks to rapidly increase market adoption of heat pump water heating technology.Risk factors (Item 1A)
PFAS drinking water standards
subject tonamed as a riskIn addition, evolving national drinking water standards regulating per- and poly-fluoroalkyl substances (PFAS), as well as mandatory lead pipe replacements by public water utilities, could affect the demand for our water filtration products.Risk factors (Item 1A)
Gas-fired product bans in new construction
subject tonamed as a riskIn recent years, a number of states and local authorities have proposed or implemented bans on gas-fired products in new construction in an effort to address greenhouse gas emissions.Business (Item 1)