Compliance Status

Halal

Screened on Oct 13, 2026 · AAOIFI Standard 21

A+

Excellent

90Score

Is A. O. Smith Corporation (AOS) halal? Halal. Based on AAOIFI screening, A. O. Smith Corporation passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 90/100 (Grade: A+).

Quote this verdict

HalalScreener rates A. O. Smith Corporation (AOS) Halal, 90/100, grade A+ under AAOIFI Standard 21, screened Oct 13, 2026. Source: https://halalscreener.app/en/stock/AOS

Business activity

What the company sells is permissible.

Passed

Company debt

Well clear of the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

7.9% of 30.0% limit
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Screened according to AAOIFI Standard 21

What this means for you

You can own AOS

It passes both the business activity and financial ratio screens under AAOIFI Standard 21.

Purification amount is Pro

We have screened AOS's prohibited income, but the exact share you would need to purify is part of Pro.

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A. O. Smith Corporation

AOS: Is A. O. Smith Corporation Halal?

A. O. Smith Corporation

NYSEIndustrialsUS

$59.22

Market Cap: 8.0B

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About A. O. Smith Corporation

A. O. Smith Corporation (AOS) is a global manufacturer and marketer specializing in a comprehensive array of water heating and treatment solutions. Its operations span North America, China, Europe, and India, organized into two primary geographic segments: North America and Rest of World. The company's product portfolio is extensive, featuring residential and commercial water heaters (gas, heat pump, and electric models), boilers, storage tanks, and various water treatment systems. These products cater to a wide range of applications, including homes, apartments, and condominiums, as well as commercial entities such as restaurants, hotels, office buildings, laundries, car washes, small businesses, hospitals, and schools. Specific offerings include diverse water treatment products like point-of-entry water softeners, well water purification systems, whole-home filtration units, portable filtration bottles, point-of-use carbon filters, and reverse osmosis systems, designed for residential, restaurant, hotel, and office use. A. O. Smith also supplies food and beverage filtration products, expansion tanks, commercial solar water heating installations, and heaters for swimming pools and spas, along with associated components. Advanced heating solutions further encompass heat pumps, electric wall-hung units, gas tankless heaters, combi-boilers, and integrated heat pump and solar water heaters. Products are primarily sold under established brands such as A. O. Smith, State, and Lochinvar, in addition to specialized water softener brands. The company leverages various distribution channels, including independent wholesale plumbing distributors, retail outlets like hardware and home center chains, and manufacturer representative firms. Its Aquasana-branded products are sold directly to consumers through e-commerce platforms and other online retailers. Founded in 1874, A. O. Smith Corporation maintains its corporate headquarters in Milwaukee, Wisconsin.

Sector: Industrials · Industry: Industrial - Machinery

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 13, 2026

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Screened according to AAOIFI Standard 21

Compliance History

Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q2 2026Data source: EDGAR
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Frequently Asked Questions

Is A. O. Smith Corporation (AOS) halal to invest in?
Based on AAOIFI Standard 21 screening, A. O. Smith Corporation (AOS) is rated Halal with a compliance grade of A+ (Excellent). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).
Why did A. O. Smith Corporation get a A+ compliance rating?
A. O. Smith Corporation (AOS) received a grade of A+ (Excellent) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 7.9% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change A. O. Smith Corporation's Shariah verdict?
A. O. Smith Corporation's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is A. O. Smith Corporation re-screened for Shariah compliance?
A. O. Smith Corporation (AOS) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Oct 13, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.