Milwaukee-based water technology company A.O. Smith on Tuesday said it had record sales and earnings in 2023, the third year in a row that it has set new high watermarks for those metrics.
The company reported $3.85 billion in net sales in 2023, an increase of 2.6%. Its net earnings for 2023 were $556.6 million, up 136% from $235.7 million in 2022. Diluted earnings per share were $3.69 in 2023, up from $1.51 in 2022.
“For a third consecutive year, A. O. Smith delivered record sales in 2023, led by resilient North America water heater demand. We achieved sales growth in China of 4% in local currency despite continued challenges in the Chinese economy,” said Kevin J. Wheeler, chairman and chief executive officer. “I am pleased with our global team’s outstanding performance across all aspects of our business, as they continue to operate our facilities at a higher level of efficiency, take care of our customers, and launch new and exciting products that deliver value.”
A.O. Smith performed better in 2023 that it expected a year ago, when the company was projecting that its 2023 sales would be flat.
Now the company is more optimistic, expecting a sales increase of 3% to 5% in 2024, and projecting earnings per share to be between $3.90 and $4.15 in 2024.
“2023 was a very successful year with record financial results and our 2024 outlook projects growth in both sales and earnings,” Wheeler said. “In North America, we enter 2024 with optimism for continued end-market demand in water heating and a rebound in boiler and water treatment volumes after 2023 corrections in end-market inventories. In our Rest of the World segment, we see overall growth with stability in China as the economy continues to work through its challenges as well as continued mid-teens growth in India. We believe our strong balance sheet and free cash flow continue to provide us the liquidity to focus on our capital allocation priorities of organic growth, acquisitions, dividends and share repurchases, which we believe will enable us to execute our strategy to invest and grow profitably.”
In 2023, A.O. Smith ranked #780 on the Fortune 1000 list, based on 2022 net sales of $3.75 billion.
