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Xylem(XYL) - 2025 Q1 - Quarterly Results
2025-04-29 11:03
Exhibit 99.1 Xylem Inc. 301 Water Street SE, Suite 200 Washington, DC 20003 Tel +1.202.869.9150 Contacts: Media Investors Houston Spencer +1 (914) 240-3046 Keith Buettner +1 (724) 772-1531 Houston.Spencer@xylem.com Keith.Buettner@xylem.com Xylem Reports First Quarter 2025 Results Washington, D.C., Apr. 29,2025 – Xylem (NYSE: XYL), a leading global water solutions company dedicated to solving the world's most challenging water issues, today reported first-quarter 2025 results. The Company delivered total rev ...
Xylem: An Undervalued Stock With Secular Tailwinds
Seeking Alpha· 2025-04-29 08:10
Core Insights - The article discusses the journey to financial independence through disciplined living and strategic investing, highlighting the importance of dividend growth investing and identifying undervalued high-quality stocks [2]. Group 1: Financial Independence Journey - The individual transitioned from a state of financial struggle at age 27 to achieving financial freedom by age 33 [2]. - The approach involved living well below means and making intelligent investment decisions with hard-earned capital [2]. Group 2: Investment Focus - The content emphasizes dividend growth investing as a primary strategy, focusing on living off dividends and seeking high-yield investment opportunities [2]. - There is a particular interest in identifying undervalued high-quality dividend growth stocks for long-term investment [2].
Xylem Gears Up to Report Q1 Earnings: Here's What to Expect
ZACKS· 2025-04-25 16:41
Core Viewpoint - Xylem Inc. is expected to report first-quarter 2025 results on April 29, with revenue estimates of $2.04 billion, reflecting a 0.5% growth year-over-year, and earnings per share estimated at 95 cents, indicating a 5.6% increase from the previous year [1] Revenue Estimates by Segment - The Measurement & Control Solutions (M&CS) segment is projected to generate revenues of $466 million, a 0.9% increase from the prior year [3] - The Water Infrastructure segment's revenues are estimated at $575 million, consistent with the year-ago figure [4] - The Water Solutions and Services segment is expected to report revenues of $565 million, driven by strong demand in emerging markets [5] - The Applied Water segment's revenues are forecasted at $429 million, reflecting a 1.6% decline from the previous year due to lower demand for industrial applications [6] Growth Drivers - Robust demand for advanced technology solutions, particularly smart metering, is likely to enhance the M&CS segment's performance [3] - Growth in the transport application business, supported by a strong pipeline of capital projects in the U.S., is anticipated to benefit the Water Infrastructure segment [4] - The acquisition of a majority stake in Idrica and the Evoqua acquisition are expected to provide growth opportunities and strengthen Xylem's market position [7] Cost Pressures - The company's bottom line may be impacted by raw material cost inflation, high labor, freight, and overhead costs, as well as integration expenses from recent acquisitions [8] Earnings Prediction - Xylem is predicted to beat earnings estimates, supported by a positive Earnings ESP of +0.25% and a Zacks Rank of 3 [9]
Xylem (XYL) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
ZACKS· 2025-04-22 15:06
Wall Street expects a year-over-year increase in earnings on higher revenues when Xylem (XYL) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 29. On the oth ...
Here is Why Growth Investors Should Buy Xylem (XYL) Now
ZACKS· 2025-04-17 17:45
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, it's pretty easy to find cutting-edge growth stocks with the he ...
Xylem Stock Exhibits Strong Prospects Despite Persisting Headwinds
ZACKS· 2025-03-12 16:35
Xylem Inc. (XYL) is poised to benefit from growth across most of its businesses. The Measurement & Control Solutions (M&CS) segment is benefiting from robust demand for advanced technology solutions like smart metering and other applications, primarily in the United States. Growth in the transport application business, driven by the increased infrastructure projects in the United States, is boosting the Water Infrastructure segment’s performance. Strong momentum in the treatment applications business, suppo ...
Xylem(XYL) - 2024 Q4 - Annual Report
2025-03-03 17:01
Financial Performance - Xylem reported 2024 revenues of $8.6 billion, with approximately 23,000 employees globally[15]. - Total revenue for 2024 was $8,562 million, a 16.2% increase from $7,364 million in 2023[45]. - Net income for 2024 was $890 million, or $3.65 per diluted share, up 30.8% from 2023, with adjusted net income of $1,041 million, or $4.27 per diluted share, up 13.0%[203]. - Operating income increased by $357 million, or 54.8%, to $1,009 million in 2024, with an operating margin of 11.8%, up 290 basis points from 2023[201]. - Free cash flow for 2024 was $942 million, up 66% from 2023, with net cash provided by operating activities of $1,263 million, up 51%[203]. - Orders for 2024 totaled $8,730 million, an increase of 16.4% from $7,501 million in 2023, with organic orders up 4.7%[203]. - Dividends paid to shareholders increased by 9% in 2024[203]. - Total backlog at December 31, 2024, was $5,070 million, with an expectation that approximately 50% will be recognized as revenue in 2025[52]. - Gross margin improved to 37.5% in 2024, up from 36.9% in 2023, with a 60 basis point increase[213]. Revenue Segmentation - The Water Infrastructure segment generated $2,555 million in revenue, with 59% from transport applications and 41% from treatment[26]. - The Applied Water segment achieved $1,793 million in revenue, with 56% from building solutions and 44% from industrial water[26]. - The Measurement and Control Solutions segment reported $1,871 million in revenue, with 81% from smart metering and 19% from analytics[26]. - The Water Solutions and Services segment generated $2,343 million in revenue, with 58% from capital and other services and 42% from maintenance services[26]. - Water Solutions and Services revenue increased by $659 million, or 39.2%, to $2,343 million in 2024, driven by acquisitions and organic growth[208]. - Measurement and Control Solutions revenue rose by $259 million, or 16.1%, to $1,871 million, with organic growth of $255 million[207]. - Water Infrastructure revenue increased by $340 million, or 15.3%, to $2,555 million, with organic growth of $123 million[205]. - Applied Water revenue decreased by $60 million, or 3.3%, to $1,793 million, primarily due to organic declines[206]. Market and Competition - The total addressable market size of the global water industry is estimated to be approximately $750 billion[18]. - The company faces significant competition in the water industry, with key competitors including De Nora, Grundfos, and Veolia[30]. - Key competitors in the Applied Water segment include Franklin Electric Co., Inc, Grundfos, Pentair plc, and Wilo SE[34]. Sustainability and Corporate Responsibility - Xylem aims to address a 40% gap between global water supply and demand by 2030 due to rising consumption[18]. - The company focuses on sustainability leadership, aiming to decarbonize the water sector and promote resource conservation[24]. - The company has established three sustainability pillars: Decarbonizing the Water Sector, Accelerating Water Stewardship, and Advancing Water and Sanitation Hygiene (WASH) for All, with 2030 goals set for each pillar[64]. - The company aims to achieve Net Zero greenhouse gas emissions across its value chain before 2050, with updated 2030 science-based targets approved by the Science Based Target initiative[63]. - Approximately 79% of employees participated in volunteerism through the company's corporate responsibility program in 2024[84]. - The company has expanded its sustainability-linked compensation for senior leaders, aligning it with five strategically transformative 2025 Sustainability goals[80]. Operational Challenges - Significant operations and suppliers are located in China, which may be adversely affected by evolving laws, tariffs, and geopolitical changes, impacting the global supply chain and manufacturing costs[95]. - Manufacturing and operating costs are subject to fluctuations due to inflation, tariffs, and geopolitical factors, which adversely impacted cash flows and results of operations throughout 2024[96]. - The company relies on a complex network of suppliers, with potential disruptions from geopolitical conflicts, such as those in Ukraine and the Middle East, affecting logistics costs and supply availability[96]. - The competitive position depends on the ability to innovate and differentiate products, with challenges from new competitors and pricing pressures due to tariffs and emerging technologies[98]. - Supply chain disruptions, including shortages of key components like semiconductors, could materially affect the company's ability to fulfill customer orders and execute on backlog[108]. - The company is exposed to fluctuating costs for raw materials and components, which may be impacted by geopolitical factors and supply-demand dynamics[109]. - The company may incur significant costs and reputational damage from legal or environmental claims related to its business activities[115]. Cybersecurity and Compliance - Cybersecurity incidents pose risks to the company's operations and customer data, with potential adverse effects on business continuity and reputation[100]. - The company maintains a cybersecurity program but acknowledges the evolving nature of threats, which may lead to undetected intrusions[106]. - The company has a Cyber Risk Committee (CRC) that provides governance regarding cybersecurity management and receives regular updates on risks and incidents[164]. - The company has experienced cybersecurity threats in the past but does not believe they have materially affected its business or financial condition[166]. - The company is subject to increasing regulatory requirements around disclosures related to its impact on climate change, which complicates compliance efforts[150]. - The company is exposed to risks related to regulatory compliance, including anti-corruption laws and data privacy regulations[146][148]. Strategic Initiatives - The company is focused on enhancing product offerings and customer experience through innovative technologies, including artificial intelligence, to meet emerging regulations and trends[98]. - The company is engaged in a multi-year effort to transform its operating model, which may result in inefficiencies and loss of talent during transitional periods[123]. - The company is pursuing acquisitions and divestitures to enhance its portfolio, but may face challenges in integration and realizing expected returns[126]. - The acquisition of Evoqua was completed on May 24, 2023, and the company is focusing on realizing anticipated cost and revenue synergies from this integration[111]. - The company is launching initiatives in 2024 aimed at improving margins and customer centricity through business simplification and operational productivity measures[122]. Employee Engagement and Culture - The company is committed to a high-impact culture that fosters innovation and accountability among its employees[69]. - The company conducts regular employee surveys to gauge engagement and identify areas for improvement[71]. - The company recognizes the importance of labor organizations and respects employees' rights to join or refrain from joining such organizations[85]. - The company is focused on attracting and retaining highly qualified talent, which is critical for executing its strategy and driving innovation[120].
Permascand and Magneto Special Anodes merge to create a global leader in the advanced electrochemical sector - David Ekberg joins as CEO of the new company
Prnewswire· 2025-02-10 12:29
Company Overview - Permascand, based in Sweden and owned by Altor, has merged with Magneto Special Anodes to create a global leader in catalytic coatings and electrodes for premium segment customers [1] - Magneto Special Anodes was previously a brand of Xylem Inc., with production facilities located in the Netherlands and China [1] Technological Leadership - Both companies possess technological leadership in electrochemical catalytic coatings and electrodes, serving complementary customer segments [2] - The ambition is to grow within existing segments and leverage technology expertise into new segments, particularly in green hydrogen, which is vital for the green transition of industry [2] Leadership Changes - David Ekberg has been appointed as CEO of the newly formed company, bringing experience from Stora Enso, Climeon, and Ericsson [3] - Ekberg expressed that the merger marks a new chapter for both companies and highlights the potential to address critical needs for the green transition [4] Strategic Vision - Under Ekberg's leadership, the company aims to embark on a growth journey, serving both existing and new customers with leading products and solutions [5] - Annica Bresky, Chair of the Board, emphasized Ekberg's entrepreneurial mindset and global experience in driving growth and innovation [5] Transaction Details - The transaction has been completed, and both entities will continue to operate under their existing names in the short term [6]
Xylem(XYL) - 2024 Q4 - Earnings Call Transcript
2025-02-04 18:48
Financial Data and Key Metrics Changes - For the full year 2024, revenue grew by 6%, EBITDA margins expanded by 170 basis points, and EPS increased by double digits [11][12][19] - The fourth quarter saw a revenue growth of 7%, with a quarterly EBITDA margin of 21%, up 140 basis points from the prior year [19][20] - Year-to-date free cash flow increased by 29% from the prior year, with a conversion rate of 116% [21] Business Line Data and Key Metrics Changes - Measurement and Control Solutions (MCS) experienced a 6% increase in orders and revenue, with an EBITDA margin of 17.1%, down 120 basis points year-over-year [22][23] - Water Infrastructure saw orders up by 10% and revenue increased by 8%, with an EBITDA margin up 360 basis points [24][25] - Applied Water had orders up by 5%, with revenue essentially flat year-over-year, and an EBITDA margin increase of 60 basis points [25] - Water Solutions and Services (WSS) reported an 8% increase in orders and an 11% revenue growth, with an EBITDA margin of 22.8%, up 10 basis points [26] Market Data and Key Metrics Changes - The ending backlog was $5.1 billion, essentially flat from the prior year, with a book-to-bill ratio near one for the quarter [18] - The company anticipates healthy demand overall through 2025, despite some uncertainty in specific end markets and regions [12][30] Company Strategy and Development Direction - The company is undergoing a transformation to simplify its operating model, moving from a matrix structure to a single access structure [13][15] - Recent capital deployment actions include increasing stake in Idrica and acquiring tuck-in companies to enhance offerings [14][15] - The company aims to optimize its portfolio for growth and profitability while focusing on sustainability and addressing water-related disasters [45][46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for 2025, expecting organic revenue growth across segments, with MCS projected to grow in high single digits [29][30] - The company is prepared for potential tariff impacts and is actively managing its supply chain to mitigate risks [40][41][120] - Management highlighted the importance of maintaining strong relationships with government entities regarding water infrastructure funding [128][129] Other Important Information - The company expects to incur total pretax charges of approximately $95 million to $115 million due to restructuring, with anticipated net benefits of about $130 million over the next two years [55][56] - The restructuring plan will impact less than 10% of the workforce, primarily in SG&A [57] Q&A Session Summary Question: Can you provide more details on the restructuring announcement? - Management confirmed that the restructuring plan is consistent with previous discussions and aims to reduce complexity while ensuring a smooth transition for affected employees [50][51] Question: What are the expectations regarding PFAS regulations? - Management indicated that there are no anticipated impacts from PFAS regulations on municipal drinking water, and they remain optimistic about the regulatory environment [60][62] Question: How do you view the margin progression for MCS? - Management expects sequential improvement in MCS margins throughout the year, with a focus on normalizing the mix of products sold [66][71] Question: What is the outlook for Applied Water? - Management anticipates a return to growth in Applied Water, driven by larger project wins and recovery in developed markets, despite some challenges in emerging markets [90][92] Question: How is the company approaching M&A and capital deployment? - Management emphasized a disciplined approach to capital deployment, focusing on core business optimization and accretive M&A opportunities [96][99]
Xylem's Q4 Earnings & Revenues Beat Estimates, Orders Up Y/Y
ZACKS· 2025-02-04 16:20
Core Insights - Xylem Inc. reported fourth-quarter 2024 adjusted earnings of $1.18 per share, exceeding the Zacks Consensus Estimate of $1.12, marking a 19% year-over-year increase [1] - The company's revenues for the quarter reached $2.30 billion, surpassing the consensus estimate of $2.18 billion, and reflecting a 7% year-over-year growth driven by strong demand across all segments [1] - For the full year 2024, Xylem's net revenues were $8.6 billion, a 16% increase year over year, with adjusted earnings of $4.27 per share, up 13% from the previous year [2] Segment Performance - The Water Infrastructure segment generated revenues of $727 million, an 8% increase year over year, supported by strong demand for water transportation and treatment solutions [3] - The Applied Water segment reported revenues of $454 million, down 1% year over year, with organic sales remaining flat due to weakness in commercial and industrial markets [4] - The Measurement & Control Solutions segment achieved revenues of $469 million, up 7% year over year, driven by demand for smart metering [5] - The Water Solutions and Services segment recorded revenues of $606 million, a 10% increase year over year, with organic sales up 11% due to capital projects and services [5] Financial Metrics - Xylem's adjusted EBITDA for the quarter was $473 million, a 13.7% increase from the previous year, with an improved margin of 21.0% [6] - Adjusted operating income rose to $377 million, up 20.5% year over year, with an operating margin increase to 16.7% [6] - The company ended the fourth quarter with cash and cash equivalents of $1.1 billion, up from $1.02 billion at the end of December 2023, while long-term debt decreased to $1.99 billion [6] Cash Flow and Shareholder Returns - In 2024, Xylem generated net cash of $1.26 billion from operating activities, compared to $837 million in the prior year [7] - Capital expenditures increased by 18.5% year over year to $321 million, while adjusted free cash flow rose to $942 million from $729 million [7] - The company paid dividends of $350 million in 2024, a 17.1% increase year over year, and repurchased shares worth $20 million [7] 2025 Guidance - Xylem expects revenues for 2025 to be in the range of $8.6 billion to $8.7 billion, indicating a 0-2% increase from the prior year [8] - The company forecasts adjusted EBITDA margin to be approximately 21.3-21.8%, reflecting an expansion of 70-120 basis points [8] - Adjusted earnings are projected to be between $4.50 and $4.70 per share, an increase from $4.27 in 2024 [8]