Xylem Reports First Quarter 2024 Results and Raises Full-Year Guidance

13.05.2024
Xylem Inc. reported first-quarter results. The Company’s total revenue of $2.0 billion surpassed prior guidance, on strong execution and demand. First-quarter earnings also exceeded Xylem’s previous guidance.
Xylem Reports First Quarter 2024 Results and Raises Full-Year Guidance

Image source: Xylem Inc.

“The team outperformed on all metrics and continued Xylem’s strong momentum, including record first-quarter margins,” said Matthew Pine, Xylem’s president and CEO. “Operational performance was robust on healthy demand across most segments and regions. We’re also on track to capture the synergies of our integration with Evoqua, and are driving simplification across our business to lock in and extend our margin improvements over time.”

“We are raising our full-year guidance on the strength of the team’s demonstrated ability to capitalize on our markets’ resilient demand. We are confident that Xylem’s platform of solutions is uniquely positioned to enable our customers and communities to become more water-secure, even as the world
becomes more water-challenged.”

Net income was $153 million, or $0.63 per share. Net income margin increased 70 basis points to 7.5 percent. These results are driven by strong operational performance, partially offset by higher purchase accounting intangible amortization. Adjusted net income was $219 million, or $0.90 per share, which excludes the impacts of restructuring and realignment costs, amortization of acquired intangible assets, loss from sale of businesses, special charges, and tax-related special items.

First-quarter adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) margin was 19.2 percent, reflecting a year-over-year increase of 290 basis points. Productivity savings, favorable mix, price and volume drove the margin expansion, exceeding the impact of inflation and strategic investments.

Outlook

Xylem now expects full-year 2024 revenue of approximately $8.5 billion, up approximately 15 to 16 percent on a reported basis and up approximately 4 to 6 percent on an organic basis. This represents an increase from the Company’s previous full-year guidance of 14 to 15 percent on a reported basis and 3 to 5 percent on an organic basis.

Full-year 2024 adjusted EBITDA margin is expected to be approximately 20.0 percent, lifted from the previous guide of 19.4 to 19.9 percent. This results in adjusted earnings per share of $4.10 to $4.25, raised from the previous range of $4.00 to $4.20. Full-year free cash flow conversion to net income is still expected to be approximately 115 percent.

Further 2024 planning assumptions are included in Xylem’s first-quarter earnings materials. Excluding revenue, Xylem provides guidance only on a non-GAAP basis due to the inherent difficulty in forecasting certain amounts that would be included in GAAP earnings, such as discrete tax items, without unreasonable effort.

More articles on this topic

TMR Report on the Slurry Pump Market: Innovation, Growth, and Global Demand

15.05.2025 -

In the gritty heart of mining sites, inside mineral processing facilities, and across sprawling wastewater treatment plants, a crucial yet often overlooked piece of equipment quietly powers productivity – the slurry pump. Though rarely the subject of flashy headlines, slurry pumps are the workhorses of many heavy-duty industries, transporting mixtures of liquid and solid particles that most other pumps simply can’t handle.

Read more

Breakthrough Technologies Are Increasing Water Security for Communities and Businesses

09.05.2025 -

Thirteen startups from nine countries have been selected to fast-track their solutions in global water technology company Xylem’s 2025 Partnerships Accelerator. Focused on addressing critical challenges facing water-stressed communities and water-intensive businesses, their technologies offer new ways to detect contamination, optimize aging systems, reduce energy use, and, critically, keep water flowing.

Read more

Manchester City Legend Joleon Lescott Visits Winning Water Champions Project

26.03.2025 -

Manchester City legend Joleon Lescott recently surprised the winning project of this year’s Water Champions campaign in Tacloban City, Philippines.  Developed by Manchester City and the club’s Official Water Technology Partner, Xylem, the Water Champions Project has successfully united communities around the world for a number of years, using the power of volunteering and football to inspire positive change.

Read more