Core Insights - Xylem reported quarterly earnings of $1.18 per share, exceeding the Zacks Consensus Estimate of $1.12 per share, and showing an increase from $0.99 per share a year ago, resulting in an earnings surprise of 5.36% [1] - The company generated revenues of $2.26 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.37% and up from $2.12 billion year-over-year [2] - Xylem's stock has increased approximately 5.8% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1 on revenues of $2.09 billion, and for the current fiscal year, it is $4.66 on revenues of $8.79 billion [7] - The estimate revisions trend for Xylem is currently unfavorable, leading to a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Waste Removal Services industry, to which Xylem belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Waste Connections, is expected to report quarterly earnings of $1.20 per share, reflecting a year-over-year increase of 8.1% [9]

Financial Performance - Total revenue for Q4 2024 was $2.3 billion, exceeding prior guidance, with a year-over-year increase of 7%[1][3] - Net income for Q4 2024 was $326 million, or $1.34 per share, with a net income margin increase of 190 basis points to 14.5%[2][3] - Adjusted EBITDA margin for Q4 2024 was 21.0%, reflecting a year-over-year increase of 140 basis points[3] - Full-year 2024 revenue reached $8.6 billion, up 16% on a reported basis and 6% organically[3] - Adjusted net income for Q4 2024 was $287 million, or $1.18 per share, up 19%[2][3] - Full-year 2024 earnings per share were $3.65, up 31% compared to the previous year[3] - Net income for 2024 increased to $890 million, up 46% from $609 million in 2023[16] - Operating cash flow for 2024 was $1,263 million, a significant increase from $837 million in 2023[16] - Free cash flow for 2024 was calculated as net cash from operating activities minus capital expenditures, resulting in $942 million[24] - Total operating income for the year 2024 was $1,009 million, significantly higher than $652 million in 2023[33] - The adjusted operating margin for Total Xylem for the year 2024 was 16.0%, compared to 14.6% in 2023[36] Revenue Forecast - The company forecasts full-year 2025 revenue of approximately $8.6 to $8.7 billion, representing a growth of 0 to 2% on a reported basis[5] - Full-year 2025 adjusted EBITDA margin is expected to be approximately 21.3 to 21.8%, an increase of 70 to 120 basis points from 2024[5] - The company expects to maintain a positive outlook for 2025, projecting continued revenue growth driven by demand in water infrastructure and solutions[29] Dividends and Shareholder Returns - The Board of Directors declared a first-quarter dividend of $0.40 per share, an increase of 11%[4] - Dividends paid increased to $350 million in 2024, compared to $299 million in 2023, reflecting a commitment to returning value to shareholders[16] Segment Performance - Xylem Inc. reported a revenue of $8,730 million for 2024, representing a 16% increase compared to $7,501 million in 2023[29] - The Water Infrastructure segment achieved $2,727 million in revenue, up 18% from $2,313 million in the previous year[29] - The Water Solutions and Services segment saw a significant revenue increase of 43%, reaching $2,507 million compared to $1,748 million in 2023[29] - The Applied Water segment experienced a slight decline in revenue, down 3% to $1,793 million from $1,853 million[31] - The Measurement and Control Solutions segment reported a revenue increase of 16%, totaling $1,871 million compared to $1,612 million in 2023[31] - Water Infrastructure segment reported Q4 2024 revenue of $727 million, a 7.9% increase from $674 million in Q4 2023[33] Orders and Growth Indicators - The company reported orders of $2.2 billion in Q4 2024, up 7% on both reported and organic bases[3] - The company indicated a strong order growth with a book-to-bill ratio of 1.02 for the year[29] Operational Efficiency - Adjusted EBITDA margin is a key performance indicator, reflecting the company's operational efficiency[22] - Organic revenue growth is a focus, excluding impacts from foreign currency and acquisitions, to better assess underlying performance[19] Cash Flow and Investments - Capital expenditures rose to $321 million in 2024, compared to $271 million in 2023, reflecting ongoing investment in growth[16] - The company reported a net cash decrease in investing activities of $482 million in 2024, down from $628 million in 2023[16] - The effect of exchange rate changes on cash was a negative $53 million in 2024, contrasting with a positive impact of $23 million in 2023[16] Special Charges and Costs - Restructuring & realignment costs for Q1 2024 totaled $36 million, up from $24 million in Q1 2023, while year-to-date costs were $91 million compared to $106 million in 2023[37] - Special charges in Q1 2024 included $15 million for acquisition & integration costs and $6 million for intangible asset impairment, compared to $21 million in 2023[37] - Year-to-date purchase accounting intangible amortization increased to $216 million in 2024 from $176 million in 2023[37] - Special charges for the year-to-date 2024 amounted to $50 million, significantly lower than $134 million in 2023[37] Quarterly Performance - For the quarter ended December 31, 2024, Xylem Inc. achieved a revenue of $2,256 million, a 7% increase from $2,118 million in the same quarter of 2023[31] - Total revenue for Q1 2024 reached $2,033 million, compared to $1,448 million in Q1 2023, reflecting a year-over-year growth of approximately 40.4%[39] - Adjusted operating income for Total Xylem in Q4 2024 was $377 million, compared to $313 million in Q4 2023, reflecting a 20.5% increase[34] - The operating margin for Total Xylem improved to 16.7% in Q4 2024, up from 14.8% in Q4 2023[36] - Adjusted diluted EPS for Q4 2024 was $1.18, an increase from $0.99 in Q4 2023[36] - The company reported a net income of $287 million in Q4 2024, compared to $239 million in Q4 2023[36]

Company Overview - Xylem Inc is a global leader in water technology, spun out from ITT Inc in 2011 [1] - Originally a pure-play water pump manufacturer, the company has expanded its operations both upstream and downstream [1] Analyst Background - The analyst has a background in equity and real estate markets, specializing in identifying long-only opportunities with safe and growing dividends [1] - The analyst has experience managing over $100 million in commercial real estate investments and has a background in economics and applied mathematics [1] Disclosure - The analyst has no stock, option, or derivative positions in any of the mentioned companies and no plans to initiate such positions within the next 72 hours [1] - The article expresses the analyst's own opinions and is not receiving compensation other than from Seeking Alpha [1]

Group 1 - Xylem's shares have experienced a 20% pullback from the 2024 highs, attributed to high valuations and a slight correction in the full-year outlook [1] - The investing group "Value In Corporate Events" focuses on major earnings events, M&A, IPOs, and other significant corporate events, providing actionable ideas for members [1] - The group covers approximately 10 major events each month, aiming to identify the best investment opportunities [1]

US & Canada, Jan. 09, 2025 (GLOBE NEWSWIRE) -- According to a new comprehensive report from The Insight Partners, "the global Water Treatment System Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Filtration Process (Distillation, Ultra-violet Sterilization, Reverse Osmosis, Filtration, Ion-Exchange, and Others), Type (Drinking Water Treatment Systems, Industrial Water Treatment Systems, Wastewater Treatment Systems, Portable Wate ...

Xylem Inc. (XYL) recently completed the acquisition of a majority stake in Idrica. The financial terms of the transaction have been kept under wraps.Idrica is a water cycle management company that drives digital transformation in utilities through advanced water technology. It utilizes data management and analytics to streamline water-cycle operations globally.Xylem’s Acquisition RationaleXylem Vue combines Xylem’s digital water solutions and Idrica’s technology platform. It helps customers solve key challe ...

Xylem Inc. (XYL) has failed to impress investors with its recent operational performance due to softness in the Applied Water segment. Also, increasing expenses are likely to impede the company’s earnings in the quarters ahead.Headquartered in Rye Brook, NY, Xylem is one of the leading providers of water solutions worldwide. The company is involved in the full water-process cycle, including the collection, distribution and return of water to the environment. It has a significant presence in the United State ...

Group 1 - The article discusses the journey to financial independence through disciplined living and smart investing strategies [2] - It highlights the importance of dividend growth investing and focusing on undervalued high-quality dividend stocks [2] - The founder transitioned from financial instability at age 27 to achieving financial freedom by age 33 [2] Group 2 - The content emphasizes creating long-term investment opportunities and the significance of living off dividends [2] - It mentions the founder's experience in blogging about financial independence since 2011 [2] - The article reflects on the strategies employed to achieve financial goals, including intelligent capital investment [2]

No one likes it when their investment posts a double miss on yearly guidance.On the back of Xylem's (XYL -6.48%) latest quarterly earnings report, investors eagerly traded out of the stock on the second-to-last trading day of the week. This news-fueled decline left the shares with a more than 6% price haircut at market close, notably worse than the almost 2% decrease of the S&P 500 (^GSPC -1.86%) index.Modest rises in key fundamentalsXylem's third quarter saw the water technology specialist earn $2.1 billio ...

Financial Performance - Net income for the three months ended September 30, 2024, was $217 million, compared to $152 million for the same period in 2023, representing a 42.8% increase[7]. - For the nine months ended September 30, 2024, net income was $564 million, up from $343 million in 2023, reflecting a 64.3% growth[11]. - The company reported comprehensive income of $330 million for the three months ended September 30, 2024, compared to $78 million in the same period of 2023, a significant increase of 323.1%[7]. - Basic earnings per share for Q3 2024 were $0.89, up from $0.63 in Q3 2023, representing a 41.3% increase[49]. - The company reported a total revenue of $2,104 million for Q3 2024, a slight increase from $2,076 million in Q3 2023, indicating a growth of 1.4%[101]. - Total revenue for the three months ended September 30, 2024, was $1,973 million, a slight increase from $1,950 million in the same period of 2023, representing a growth of 1.2%[35]. Assets and Liabilities - Total current assets increased to $4,013 million as of September 30, 2024, from $3,884 million at the end of 2023, marking a 3.3% rise[9]. - Cash and cash equivalents at the end of the period were $989 million, compared to $705 million at the end of September 2023, indicating a 40.4% increase[11]. - The company’s long-term debt decreased to $1,977 million as of September 30, 2024, from $2,268 million at the end of 2023, a reduction of 12.8%[9]. - Total liabilities decreased to $5,446 million as of September 30, 2024, down from $5,936 million at the end of 2023, reflecting an 8.2% decline[9]. - Total inventories as of September 30, 2024, were $1,091 million, an increase from $1,018 million as of December 31, 2023[51]. Cash Flow and Operating Activities - The company reported a net cash provided by operating activities of $688 million for the nine months ended September 30, 2024, compared to $382 million in 2023, an increase of 80.1%[11]. - The income tax provision for Q3 2024 was $52 million, resulting in an effective tax rate of 19.3%, compared to 17.8% in Q3 2023[46]. - The effective tax rate for the nine months ended September 30, 2024, was 20.7%, compared to 19.3% for the same period in 2023[46]. Acquisitions and Divestitures - Xylem completed the acquisition of Evoqua Water Technologies Corp. on May 24, 2023, enhancing its portfolio in water and wastewater applications[14]. - The company completed the acquisition of Evoqua Water Technologies Corp. on May 24, 2023, for a total consideration of $6,900 million, which included $6,121 million in common stock and $619 million to repay Evoqua's indebtedness[19]. - The acquisition resulted in the recognition of $4,801 million in goodwill, primarily due to expected synergies and economies of scale from combining operations[21]. - The company sold the former Evoqua hemodialysis concentrates business for approximately $12 million during the third quarter ended September 30, 2023[30]. - The company also divested the former Evoqua carbon reactivation and slurry operations to Desotec US LLC for approximately $91 million, equal to the fair value less costs to sell[30]. Capital Expenditures - Capital expenditures for the nine months ended September 30, 2024, were $221 million, compared to $177 million in 2023, representing a 24.9% increase[11]. - Total capital expenditures for the total company were $74 million in Q3 2024, unchanged from Q3 2023[101]. Restructuring and Impairment - Restructuring costs for the three months ended September 30, 2024, totaled $4 million, a decrease from $20 million in the same period of 2023[41]. - Total restructuring and asset impairment charges for the nine months ended September 30, 2024, were $37 million, compared to $57 million in 2023[41]. - Impairment charges recognized in Q2 2024 amounted to $16 million, primarily related to customer relationships and trademarks[43]. Shareholder Equity and Dividends - Total stockholders' equity increased from $10,176 million on January 1, 2024, to $10,600 million by September 30, 2024, reflecting a growth of 4.2%[78]. - Dividends declared for the nine months ended September 30, 2024, totaled $263 million, with a per-share dividend of $0.36, consistent with the previous year[78]. - The company has $182 million remaining under its share repurchase program as of September 30, 2024[89]. Segment Performance - Water Infrastructure revenue for the three months ended September 30, 2024, was $349 million, compared to $333 million in 2023, reflecting a growth of 4.8%[33]. - Measurement and Control Solutions segment revenue rose to $458 million in Q3 2024, up from $413 million in Q3 2023, marking an increase of 10.9%[101]. - Water Solutions and Services segment revenue was $576 million in Q3 2024, down from $586 million in Q3 2023, a decrease of 1.7%[101]. Accounting and Reporting Changes - The company plans to adopt new accounting standards related to segment reporting and income tax disclosures in its 2024 Annual Report[17]. - The company has recast prior period segment amounts to align with the new segment reporting structure effective January 1, 2024[19].