A O Smith and the US water heater industry
June 2026
By Chad Padowitz, Talaria Co-CIO
Talaria Co-CIO Chad Padowitz’s latest stock in focus for Money Magazine looks at US water heater maker A O Smith (NYSE:AOS).
Founded in 1874 in Milwaukee, Wisconsin, AOS is a manufacturer of both residential and commercial water heaters and boilers.
It also supplies water treatment and purification products in the Asian market. The company employs approximately 11,500 people at operations in the United States, Europe and Asia.
With a dominant market share, recurring replacement demand and a long track record of returning cash to shareholders. With the stock trading near historical valuation lows, investors may have an opportunity to buy a high-quality business at a discounted price.
Chad Padowitz is the Co-Chief Investment Officer of Talaria Asset Management. He has more than 25 years’ experience in the financial services industry in the UK, South Africa and Australia.
His experience includes working as an analyst in the treasury department at HSBC Bank in London, in derivative reporting and analysis, and as an equities research analyst at First National Bank in South Africa.
Chad holds a Bachelor of Commerce from University of the Witwatersrand (South Africa), is a Fellow of the Financial Services Institute of Australasia and is a Chartered Financial Analyst charterholder. Chad co-founded Talaria Asset Management in 2018.
