Xylem Inc. Reports Fourth Quarter and Full Year 2024 Results

Xylem Inc., a leading global water solutions company, has released its financial results for the fourth quarter and full year of 2024. The company, dedicated to addressing the world's most challenging water issues, has shown significant growth and strong performance across various financial metrics.

Financial Highlights

For the fourth quarter of 2024, Xylem reported:

• Orders of $2.2 billion, up 7% on both a reported and organic basis.
• Revenue of $2.3 billion, also up 7% on both a reported and organic basis.
• Earnings per share (EPS) of $1.34, a 22% increase; adjusted EPS of $1.18, up 19%.

For the full year of 2024, the company reported:

• Revenue of $8.6 billion, up 16% on a reported basis and 6% organically.
• EPS of $3.65, up 31%; adjusted EPS of $4.27, up 13%.
• Net income for the quarter was $326 million, or $1.34 per share, with a net income margin increase of 190 basis points to 14.5%.

Business and Operational Highlights

Xylem's strong performance was driven by robust execution and demand across all segments. The company set new benchmarks for full-year revenue, net income, and adjusted EBITDA margins. Fourth-quarter adjusted EBITDA margin was 21.0%, reflecting a year-over-year increase of 140 basis points, driven by productivity savings, strong price realization, and higher volume.

Strategic Initiatives and Corporate Developments

The Board of Directors declared a first-quarter dividend of $0.40 per share, an increase of 11%, payable on March 19, 2025. Additionally, the company experienced a non-recurring gain on the remeasurement of its previously held equity interest in Idrica, partially offset by non-recurring tax benefits in the prior year, a loss on the sale of businesses, and increased restructuring and realignment costs.

Management's Perspective

Matthew Pine, Xylem’s CEO, commented, "The team delivered a strong fourth quarter to close a record-breaking year for Xylem. We set new benchmarks for full-year revenue, net income, and adjusted EBITDA margins, and earnings per share, with the team showing great operating discipline across the portfolio. All segments delivered strong Q4 orders growth, giving us momentum coming into 2025 on resilient underlying demand."

He further added, "In a year of transition and transformation, the team focused on what matters while delivering on the initiatives that have laid the foundation for sustainable growth and value creation. Our 2025 guidance reflects the team’s commitment to our long-term framework as we continue to enable our customers to address the world’s greatest water challenges."

Future Outlook

Looking ahead, Xylem forecasts full-year 2025 revenue of approximately $8.6 to $8.7 billion, up approximately 0 to 2% on a reported basis and up approximately 3 to 4% on an organic basis. The company expects full-year 2025 adjusted EBITDA margin to be approximately 21.3 to 21.8%, an increase of 70 to 120 basis points from 2024 adjusted results. Full-year free cash flow margin is expected to be approximately 9 to 10%.

SEC Filing: Xylem Inc. [ XYL ] - 8-K - Feb. 04, 2025