The 10-K indicates that the company expects consolidated sales to increase between three and five percent in 2024. This projection is based on continued end-market demand in water heating and a rebound in boiler and water treatment volumes.

The overview section of the 10K states that the company continues to seek acquisitions that enable geographic growth, expand core business, and establish adjacencies. The company will also continue to look for opportunities to add to existing operations in high growth regions.

The company is expanding commercial water heater capacity in preparation for the 2026 commercial regulatory change. This indicates a proactive approach to adapting to future market demands and regulatory requirements.

The 10-K notes that the company saw improvement in its supply chain during 2022, particularly in the second half of the year, which continued through 2023. This indicates effective management in addressing and mitigating supply chain disruptions.

Management is proactively expanding commercial water heater capacity in preparation for the 2026 commercial regulatory change. This demonstrates foresight and strategic planning to capitalize on future market opportunities.

The termination of the defined benefit pension plan resulted in a significant reduction in pension expenses and a pension settlement income. This demonstrates effective management in streamlining operations and reducing long-term liabilities.

The 10-K states that changes in foreign currencies negatively impacted sales and cash equivalents by approximately $56 million and $13 million, respectively. This highlights the company's vulnerability to currency exchange rate volatility.

The 10-K acknowledges that the company has experienced cybersecurity incidents and attacks in the past and may experience such incidents in the future, potentially with increasing frequency. This highlights the ongoing risk of data breaches and disruptions to business operations.

The 10-K states that approximately 22% of sales in 2023 were attributable to China and that adverse economic conditions or changes in consumer behavior in China could impact the business. This highlights the company's exposure to economic and political risks in China.

The 10-K acknowledges that the company sells its products in highly competitive and evolving markets and competes based on product design, reliability, quality, advanced technologies, and price. This indicates the need for continuous innovation and adaptation to maintain market share.

The 10-K states that new technologies and new competitors have developed and continue to develop in certain markets, such as gas tankless and heat pump technologies in North America. This highlights the need for ongoing investment in R&D and adaptation to changing market dynamics.

The 10-K acknowledges that there is increasing use of data analytics, machine learning, and artificial intelligence software, which competitors may be able to use more effectively. This highlights the need for the company to invest in and effectively implement these technologies.

The 10-K states that the gross profit margin increased to 38.5% in 2023 from 35.4% in 2022, primarily due to lower material costs. This indicates improved efficiency in managing input costs.

The 10-K notes restructuring and impairment expenses of $18.8 million, of which $15.6 million related to the sale of the business in Turkey. This indicates a strategic decision to exit an underperforming market, potentially improving overall operational efficiency.

SG&A expenses increased by $56.5 million due to higher employee costs, including management incentive expenses. This suggests a need for closer monitoring of SG&A expenses.

The 10-K states that total expenditures for research and development in 2023 were $97.5 million, up from $89.0 million in 2022. This indicates a commitment to innovation and developing new products and processes.

The company launched newly designed ADAPT condensing gas tankless water heater and VERITUS air source commercial heat pump water heater to align with greenhouse gas emission reduction trends across the U.S. This demonstrates a commitment to developing innovative and sustainable products.

The company is expanding commercial water heater capacity in preparation for the 2026 commercial regulatory change. This indicates a proactive approach to adapting to future market demands and regulatory requirements.

The Board of Directors approved adding 2,000,000 shares of common stock to the existing discretionary share repurchase authority. This signals confidence in the company's financial position and future cash flow generation.

The company intends to repurchase approximately $300 million of common stock in 2024 through a combination of 10b5-1 plans and open-market purchases. This demonstrates a commitment to returning capital to shareholders.

The company projects capital expenditures will be between $105 and $115 million in 2024, up from $72.6 million in 2023. This indicates a commitment to investing in future growth and operational improvements.

The 10K states that expenditures related to environmental matters were not material in 2023 and are not expected to be material in any single year. This suggests a relatively low level of environmental impact or risk.

The company is committed to growing its business in a sustainable and socially responsible manner consistent with its Guiding Principles. This demonstrates a commitment to ESG considerations.

The company periodically communicates its strategies, commitments and targets related to ESG matters, including carbon emissions, water usage, diversity and inclusion, and human rights through the issuance of its ESG report. Although the company intends to meet these strategies, commitments and targets and are committed to advancing sustainable innovations in our industry, we may be unable to achieve them due to impacts on resources, operational costs, and technological advancements.

The company projects 2024 industry residential unit volumes will be approximately flat after approximately six percent growth in 2023. This indicates a stable but not growing market environment for this key product line.

The company believes that commercial water heater industry volumes will grow low single digits in 2024 compared to 2023. This indicates modest growth in the commercial segment.

The company believes that new home construction remains in a deficit and expects it will be flat in 2024 compared to 2023. This indicates a limited contribution from new construction to overall market growth.