A.O. Smith shareholders approve executive compensation, elect directors

In a recent filing with the Securities and Exchange Commission, A.O. Smith Corporation (NYSE:AOS), a $9.3 billion market cap company with a strong financial health rating according to InvestingPro, disclosed the outcomes of several key votes taken at its Annual Meeting of Stockholders held on April 8, 2025.

The Milwaukee-based manufacturer of household appliances, which has maintained dividend payments for 17 consecutive years and currently offers a 2.11% yield, reported that its shareholders approved the compensation of its named executive officers during the meeting. The advisory vote garnered 33,247,046 votes in favor, 1,993,686 against, and 14,909 abstentions.

In addition to the executive compensation, the election of the company’s Board of Directors saw all six Class A Common Stock Directors re-elected with 25,322,445 votes each. The results for Common Stock Directors were more varied, with Todd W. Fister and Lois M. Martin receiving the majority of votes for re-election, while Michael M. Larsen had a significant number of votes withheld.

The appointment of Ernst & Young LLP as A.O. Smith’s independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified with a substantial majority, receiving 34,842,143 votes for and 1,077,076 against.

A stockholder proposal requesting the Board to report on hiring practices concerning formerly incarcerated individuals did not pass. The proposal received 1,507,913 votes in support, 33,336,216 against, and 411,513 abstentions.

These voting outcomes indicate shareholder support for the current management and strategic direction of the company. The results are based on a press release statement and reflect the decisions made by A.O. Smith’s shareholders at the Annual Meeting. With the company currently trading below its Fair Value and scheduled to report earnings on April 29, 2025, investors can access comprehensive analysis and additional insights through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.

In other recent news, A.O. Smith Corporation reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $0.85, which fell short of analysts’ expectations of $0.90. The company’s revenue also missed forecasts, coming in at $912.4 million compared to the anticipated $952.28 million. Full-year 2024 sales decreased by 1% year-over-year to $3.8 billion, with adjusted EPS for the year at $3.73, down slightly from $3.81 in 2023. Despite these challenges, A.O. Smith maintained strong shareholder returns, distributing $496 million through dividends and share repurchases.

Stifel analysts reiterated their Buy rating and $84.00 price target for A.O. Smith, based on recent shipment data showing a mixed performance in the water heater market. Meanwhile, DA Davidson adjusted its financial outlook for the company, reducing the price target to $75 from $80 while maintaining a neutral stance, citing concerns over challenging conditions in the company’s North American and Rest of World segments. Additionally, A.O. Smith announced a regular quarterly cash dividend of $0.34 per share, reinforcing its practice of returning value to shareholders. These developments reflect ongoing adjustments in response to market conditions and strategic initiatives.

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