Xylem Unveils Multi-Year Growth Strategy at 2024 Investor Day

Xylem Inc. will unveil its multi-year growth strategy and set out its long-term financial framework at its Investor Day. Xylem President and CEO Matthew Pine and other senior leaders will provide an update on the Company’s plans to drive above-market growth, accelerate margins through business simplification, and provide an update on capital allocation priorities.
Xylem Unveils Multi-Year Growth Strategy at 2024 Investor Day

Image source: Xylem Inc.

The program will also offer updates on the integration of Evoqua and the Company’s current and future growth opportunities, and provide new financial targets through 2027. The Company is reiterating its 2024 guidance as previously provided on May 2, 2024. The presentations will be followed by a Q&A session for in-person and virtual attendees.

"Water flows through every part of the global economy, and Xylem is at the forefront of creating value from water management,” Pine said. “Our industry-leading platform will deliver strong returns by empowering customers and communities to thrive in the transition to a water-secure world. We are creating lasting value by driving resilient above-market growth with significant margin expansion, while deploying capital to compound earnings, as we solve the world’s most critical water challenges.”

“We are unveiling our multi-year financial framework and enhanced sustainability goals. Together, they represent an outlook of purpose-driven, profitable growth that creates distinctive value for our shareholders and shapes a more water-secure and sustainable future.”

Long-term Financial Framework

Xylem’s long-term financial framework anticipates annual organic revenue growth in the range of 4 percent to 6 percent, with approximately 1 percent from implied revenue synergies offset by the impact of simplification initiatives. This results in average annual adjusted EBITDA margin expansion of approximately 100 basis points per year, an acceleration of margin expansion compared to Xylem’s previous long-term framework of 50 to 75 basis points. The growth and margin outlook, combined with disciplined capital allocation, enables mid-teens adjusted EPS growth per year. Additionally, Xylem is committed to a low-double-digit annual free cash flow margin.

2024 Outlook

The Company is reaffirming its 2024 outlook previously provided on May 2, 2024. Further 2024 outlook and planning assumptions are included in Xylem’s first-quarter earnings materials.

Source: Xylem Inc.

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