Xylem(XYL) ZACKS·2025-02-04 16:20Core 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]