A. O. Smith (AOS) FY2023 results: revenue $3.9 billion, up 2.6% on the year

A. O. Smith Corp. (AOS) reported revenue of $3.9 billion for fiscal 2023, the year ended 31 December 2023, up 2.6% on the year before. Net income was $557 million, up 136.1%, and diluted earnings per share $3.69. The figures are the company's own, from the 10-K it filed with the SEC on 13 February 2024.

Revenue

$3.9 billion

+2.6% on the year

FY2016FY2023

Operating margin

19.3%

9.6% a year earlier

FY2016FY2023

Net income

$557 million

+136.1% on the year

FY2016FY2023

Diluted EPS

$3.69

+144.4% on the year

FY2016FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	3,853	3,754	3,539	+2.6%
Cost of revenue	2,368	2,424	2,228	-2.3%
Gross profit	1,485	1,330	1,311	+11.7%
Gross margin	38.5%	35.4%	37.0%
Research and development	97.5	89.0	94.2	+9.6%
Selling, general and administrative	727	671	701	+8.4%
Operating income	746	362	682	+105.9%
Operating margin	19.3%	9.6%	19.3%
Interest expense	12.0	9.4	4.3	+27.7%
Pre-tax income	734	224	626	+227.9%
Income tax	177	-12.0	138
Effective tax rate	24.1%	-5.4%	22.1%
Net income	557	236	487	+136.1%
Net margin	14.4%	6.3%	13.8%
Diluted EPS	$3.69	$1.51	$3.02	+144.4%

$ 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	FY2023	FY2022	FY2021	On the year
Operating cash flow	670	391	641	+71.3%
Capital expenditure	72.6	70.3	75.1	+3.3%
Free cash flow	598	321	566	+86.1%
Free cash flow margin	15.5%	8.6%	16.0%
Cash from investing	-24.1	8.1	-350
Cash from financing	-685	-431	-421
Depreciation and amortisation	78.3	76.9	77.9	+1.8%
Share-based compensation	11.5	11.1	11.9	+3.6%
Buybacks	306	404	366	-24.0%
Dividends paid	184	177	170	+3.6%
Dividend per share	$1.22	$1.14	$1.06	+7.0%
Diluted shares, weighted	151m	156m	161m	-3.1%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	1,844	1,748	1,832	+5.5%
Debt	127	344	197	-63.0%
Operating lease liabilities	27.9	22.4	22.3	+24.6%
Other liabilities	1,214	1,218	1,423	-0.3%
Total liabilities and equity	3,214	3,332	3,474	-3.6%
Fixed assets	598	591	607	+1.2%
Goodwill	633	620	628	+2.2%
Intangible assets	337	348	365	-3.2%
Investments	23.5	90.6	188	-74.1%
Cash and equivalents	340	391	443	-13.1%
Receivables	596	581	634	+2.5%
Inventory	497	516	448	-3.7%
Other assets	190	195	162	-2.6%
Total assets	3,214	3,332	3,474	-3.6%

10-K for the year ended 31 December 2023, filed 13 February 2024: the filing.