A.O. Smith names Shafer as CEO; Wheeler becomes executive chairman

MILWAUKEE - A. O. Smith Corporation (NYSE: AOS), a $9.37 billion water technology company with a robust financial health score of "GOOD" according to InvestingPro analysis, has announced a leadership transition with Stephen Shafer set to become the company’s president and chief executive officer, effective July 1, 2025. The current chairman and CEO, Kevin Wheeler, will take on the role of executive chairman at the same time.

Shafer, who joined A. O. Smith in March 2024 as president and chief operating officer, will be the 11th CEO in the company’s 151-year history. His responsibilities will encompass global operations, strategy, profitability, and shareholder return. Wheeler, with a 31-year tenure at the company, will continue to lead the Board of Directors and focus on strategic development, mergers and acquisitions, investor relations, and executive talent development.

Under Wheeler’s leadership, A. O. Smith experienced growth and profitability, maintaining a 16-year streak of dividend increases and generating $3.82 billion in revenue. The company successfully navigated through the COVID-19 pandemic and expanded through acquisitions, including the purchase of Giant Factories and six water treatment companies. InvestingPro data reveals the company holds more cash than debt on its balance sheet, demonstrating strong financial management.

Shafer’s background includes a significant tenure at 3M Company, where he served as president of the Automotive and Aerospace Solutions Division. His experience also covers roles at McKinsey & Company and Ford Motor Company, with a focus on manufacturing, supply chain, and operational improvement.

The Board of Directors expressed confidence in the smooth transition and the collaborative efforts between Wheeler and Shafer, emphasizing their commitment to creating value for shareholders. Trading at a P/E ratio of 17.87x and offering a 2.08% dividend yield, InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report covering this leading water technology company.

This leadership change is part of A. O. Smith’s strategic planning and is expected to maintain the company’s position as a global leader in water technology. The information in this article is based on a press release statement from A. O. Smith Corporation.

In other recent news, AO Smith Corporation has reported several significant developments. The company announced a quarterly dividend of 34 cents per share, payable to shareholders on record as of April 30, 2025, continuing its tradition of returning value to shareholders. In analyst updates, Stifel adjusted its price target for AO Smith to $75 from $84, maintaining a Buy rating, citing potential economic challenges in China and a possible industrial recession in the U.S. DA Davidson also lowered its price target to $75, reiterating a neutral stance due to anticipated stagnant water heater demand in North America and challenging conditions in China. At its recent Annual Meeting of Stockholders, AO Smith’s shareholders approved executive compensation and re-elected directors, signaling support for the current management. Additionally, the appointment of Ernst & Young LLP as the independent registered public accounting firm was ratified. Recent shipment data from the Air-Conditioning, Heating, and Refrigeration Institute showed a mixed performance, with residential and commercial water heater shipments increasing month-over-month but declining year-over-year. These developments reflect the ongoing strategic and operational adjustments AO Smith is making in response to evolving market conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.