Xylem(XYL) - 2024 Q4 - Annual Results

Financial Performance - Total revenue for Q4 2024 was $2.3 billion, exceeding prior guidance, with a year-over-year increase of 7$326 million, or $1.34 per share, with a net income margin increase of 190 basis points to 14.5$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$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$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$2,507 million compared to $1,748 million in 2023[29] - The Applied Water segment experienced a slight decline in revenue, down 3$1,793 million from $1,853 million[31] - The Measurement and Control Solutions segment reported a revenue increase of 16$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$377 million, compared to $313 million in Q4 2023, reflecting a 20.5$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]