Xylem(US:XYL)2024-10-31 20:04Financial 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].