A.O. Smith names Ming Cheng as new chief technology officer

MILWAUKEE - Water heating and treatment company A.O. Smith Corporation (NYSE:AOS), a $9.3 billion market cap company with an annual revenue of $3.8 billion, announced Tuesday that Ming Cheng will become its new senior vice president and chief technology officer, effective July 7. According to InvestingPro data, the company maintains strong financial health with consistent dividend payments for 17 consecutive years.

Cheng, who most recently served as senior vice president of research and development for the Transportation and Electronics Business Group at 3M Company, will replace Bob Heideman, who is retiring after 29 years with the company.

Heideman, who has been chief technology officer since 2013, will remain with A.O. Smith until September 1 to facilitate the transition.

Cheng brings 25 years of experience from 3M, where he led a global team focused on technology, product development, and engineering. His previous roles at 3M included vice president of research and development in Greater China and vice president of research and development for the electronics materials solutions division.

"Ming is an experienced global R&D leader with a diverse background," said A.O. Smith Chief Executive Officer Steve Shafer in the press release. "His ability to drive innovation through complex business challenges will serve us well as we continue to grow as an organization."

Cheng holds a Bachelor of Science in chemistry from Peking University, a Doctoral Degree in polymer chemistry from Cornell University, and an MBA from the University of Minnesota.

A.O. Smith Corporation, headquartered in Milwaukee, manufactures residential and commercial water heating equipment, boilers, and water treatment products. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which offers deep-dive analysis of this and 1,400+ other US stocks.

In other recent news, AO Smith has reported earnings that surpassed expectations for the first quarter of 2025, while also confirming it expects to meet its full-year guidance for 2025. This positive financial performance has contributed to Stifel’s decision to raise its price target for AO Smith to $78, while maintaining a Buy rating. Stifel’s confidence in AO Smith is further supported by recent data from the Air-Conditioning, Heating, and Refrigeration Institute, which showed a significant increase in U.S. heating and cooling equipment shipments for March, demonstrating robust demand for the company’s products.

In contrast, UBS maintained a Neutral rating with a $74 price target, noting mixed data from China, where AO Smith faces challenges due to a struggling housing market. Despite these challenges, Stifel analysts hosted meetings with AO Smith’s CFO and VP, expressing continued confidence in the company’s long-term value to shareholders. The company’s strategic measures to balance North American production and manage tariff-related costs have been well-received by analysts.

Additionally, recent data revealed a decrease in residential water heater shipments, but commercial shipments showed more stability. AO Smith’s management has taken steps to mitigate the impact of increased costs through repricing and strategic sourcing. These developments reflect the company’s proactive approach in navigating current market conditions and maintaining its position as a leading manufacturer in the industry.

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