A. O. Smith (AOS) FY2021 results: revenue $3.5 billion, up 22.2% on the year

A. O. Smith Corp. (AOS) reported revenue of $3.5 billion for fiscal 2021, the year ended 31 December 2021, up 22.2% on the year before. Net income was $487 million, up 41.2%, and diluted earnings per share $3.02. The figures are the company's own, from the 10-K it filed with the SEC on 11 February 2022.

Revenue

$3.5 billion

+22.2% on the year

FY2014FY2021

Operating margin

19.3%

17.4% a year earlier

FY2014FY2021

Net income

$487 million

+41.2% on the year

FY2014FY2021

Diluted EPS

$3.02

+42.5% on the year

FY2014FY2021

this yearthe year beforeHover a bar for its figure.

The year in brief

The quarters: Q4 FY2021

Income statement (profit and loss)

$ million	FY2021	FY2020	FY2019	On the year
Revenue	3,539	2,895	2,993	+22.2%
Cost of revenue	2,228	1,787	1,812	+24.7%
Gross profit	1,311	1,108	1,181	+18.3%
Gross margin	37.0%	38.3%	39.5%
Research and development	94.2	80.7	87.9	+16.7%
Selling, general and administrative	701	660	716	+6.2%
Operating income	682	503	529	+35.5%
Operating margin	19.3%	17.4%	17.7%
Interest expense	4.3	7.3	11.0	-41.1%
Pre-tax income	626	444	472	+40.9%
Income tax	138	99.0	102	+39.9%
Effective tax rate	22.1%	22.3%	21.6%
Net income	487	345	370	+41.2%
Net margin	13.8%	11.9%	12.4%
Diluted EPS	$3.02	$2.12	$2.22	+42.5%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2021	FY2020	FY2019	On the year
Operating cash flow	641	562	456	+14.1%
Capital expenditure	75.1	56.8	64.4	+32.2%
Free cash flow	566	505	392	+12.0%
Free cash flow margin	16.0%	17.5%	13.1%
Cash from investing	-350	11.8	33.9
Cash from financing	-421	-375	-376
Depreciation and amortisation	77.9	80.0	78.3	-2.6%
Share-based compensation	11.9	12.7	13.3	-6.3%
Buybacks	366	56.7	288	+546.4%
Dividends paid	170	159	149	+7.2%
Dividend per share	$1.06	$0.98	$0.90	+8.2%
Diluted shares, weighted	161m	163m	167m	-0.8%

Balance sheet

$ million	FY2021	FY2020	FY2019	On the year
Shareholders' equity	1,832	1,848	1,667	-0.9%
Debt	197	113	284	+73.8%
Operating lease liabilities	22.3	34.4	38.7	-35.2%
Other liabilities	1,423	1,165	1,068	+22.2%
Total liabilities and equity	3,474	3,161	3,058	+9.9%
Fixed assets	607	541	545	+12.1%
Goodwill	628	547	546	+14.8%
Intangible assets	365	324	338	+12.6%
Investments	188	116	177	+61.5%
Cash and equivalents	443	573	374	-22.6%
Receivables	634	585	590	+8.4%
Inventory	448	300	303	+49.2%
Other assets	162	174	184	-7.1%
Total assets	3,474	3,161	3,058	+9.9%

10-K for the year ended 31 December 2021, filed 11 February 2022: the filing.