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How Smith A O (AOS) makes money

Smith A O (AOS) made $940M of revenue in the third quarter 2026 (Q3 2026), -0.2% from a year earlier. Of every dollar of revenue, 39¢ was left as gross profit, 19¢ was left as operating profit, 13¢ was left as net earnings.

Drawing the Sankey…

Smith A O: revenue by line, Q1 2025 to Q2 2026Smith A O: revenue by line, Q1 2025 to Q2 2026North AmericaRest of WorldNorth America: $816M latest$816MRest of World: $188M latest$188MQ1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026
Rest of World went from 23% of revenue in Q1 2025 to 19% in Q2 2026, the largest shift in the mix.
Smith A O revenue by quarterSmith A O revenue by quarter$964MQ1 2025$1.0BQ2 2025$942MQ3 2025$912MQ4 2025$946MQ1 2026$1.0BQ2 2026$940MQ3 2026
Smith A O: where each dollar of revenue goesSmith A O: where each dollar of revenue goesCost of revenue61¢Gross profit39¢Operating expenses20¢Operating profit19¢Income tax4¢Net earnings13¢Operating cash flow19¢Free cash flow17¢

Where each dollar of revenue goes

LineQ3 2026% of revenue
Revenue$940M100.0%
Cost of revenue$576M61.2%
Gross profit$365M38.8%
Operating expenses$190M20.2%
Operating profit$174M18.5%
Income tax$40.4M4.3%
Net earnings$126M13.4%
Operating cash flow$176M18.7%
Free cash flow$163M17.3%

Revenue, quarter by quarter

QuarterRevenueY/Y
Q3 2026$940M-0.2%
Q2 2026$1.0B-0.7%
Q1 2026$946M-2%
Q4 2025$912M0%
Q3 2025$942M+4%
Q2 2025$1.0B-1%
Q1 2025$964M-2%

From Smith A O's 10-Q filed Oct 29, 2026 (on EDGAR).

Questions

How does Smith A O make money?

Smith A O (AOS) made $940M of revenue in the third quarter 2026 (Q3 2026), -0.2% from a year earlier. Of every dollar of revenue, 39¢ was left as gross profit, 19¢ was left as operating profit, 13¢ was left as net earnings.

What is Smith A O's profit margin?

Net earnings were $126M, 13.4% of revenue, in the third quarter 2026; the operating margin was 18.5%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.