Full-Year and Fourth-Quarter Financial Highlights

Full-Year Highlights

Sales for the full year reached $33.0 billion, remaining flat year-over-year, with underlying sales seeing a 2% increase. Operating profit came in at $8.6 billion, while adjusted operating profit climbed to $9.7 billion, marking a 7% increase. The operating profit margin and adjusted operating profit margin stood at 26.2% and 29.5%, respectively, up by 190 basis points compared to the previous year. Earnings per share (EPS) rose by 8% to $13.62, with adjusted EPS reaching $15.51, up by 9% or 10% excluding the impact of foreign exchange. Additionally, the company returned $7.1 billion to shareholders through dividends and share repurchases, and boasted a total project backlog of $10.4 billion.

Fourth-Quarter Highlights

In the fourth quarter, sales remained flat year-over-year at $8.3 billion, with underlying sales showing a 2% increase. Operating profit for the quarter reached $2.3 billion, and adjusted operating profit climbed to $2.5 billion, reflecting a 9% increase. The operating profit margin and adjusted operating profit margin were 27.4% and 29.9%, respectively, up by 250 basis points year-over-year. EPS for the quarter increased by 14% to $3.60, while adjusted EPS rose by 11% to $3.97, or by 13% excluding the impact of foreign exchange.

2025 Guidance

Looking ahead to 2025, the company provided adjusted EPS guidance for the first quarter in the range of $3.85 to $3.95, representing 7%-9% growth excluding the impact of foreign exchange. For the full year, adjusted EPS guidance was set at $16.15 to $16.55, indicating 8%-11% growth excluding the impact of foreign exchange.

Impact on Me

The positive financial performance of the company may have a direct impact on me as a shareholder. The increase in sales, operating profit, and earnings per share, as well as the company’s commitment to returning capital to shareholders, could potentially lead to a rise in the company’s stock price, resulting in higher returns on my investment.

Impact on the World

From a broader perspective, the company’s strong financial results can have a ripple effect on the global economy. A company that is performing well financially can contribute to overall market confidence, potentially attracting investors and stimulating economic growth. Additionally, the company’s continued investments in projects and operations can create job opportunities and support local communities.

Conclusion

In conclusion, the company’s full-year and fourth-quarter financial highlights demonstrate steady growth and profitability. With strong performance indicators and positive guidance for the future, the company is well-positioned to deliver value to its shareholders and make a meaningful contribution to the global economy.