A. O. Smith

As of June 30, 2025, total debt was ~303 million with cash of ~178 million, for net debt of roughly 126 million and a leverage ratio of 14.1% of total capitalization. The company maintains a 500 million revolving credit facility maturing in 2029 with an accordion to 1 billion, and was in covenant compliance.

Interest expense is modest relative to operating earnings. 2025 capex is projected at 90 to 100 million against expected operating cash flow of 600 to 650 million, leaving ample coverage for dividends and repurchases. This balance sheet can withstand cyclical swings and fund organic investments in high‑efficiency products and capacity.