On July 30, 2024, Xylem Inc (XYL, Financial) released its 8-K filing for the second quarter of 2024. Xylem, a global leader in water technology, reported robust financial results, surpassing analyst estimates and raising its full-year guidance.
Company Overview
Xylem Inc (XYL, Financial) is a global leader in water technology, offering a wide range of solutions for the transport, treatment, testing, and efficient use of water. The company serves customers in the utility, industrial, commercial, and residential sectors. Spun off from ITT in 2011, Xylem is based in Rye Brook, New York, and operates in over 150 countries with 16,200 employees. In 2023, the company generated $7.4 billion in revenue.
Q2 2024 Financial Performance
For the second quarter of 2024, Xylem Inc (XYL, Financial) reported:
| Metric | Q2 2024 | Analyst Estimate |
|---|---|---|
| Revenue | $2.2 billion | $2.178 billion |
| Earnings Per Share (EPS) | $0.80 (reported), $1.09 (adjusted) | $0.93 |
Revenue increased by 26% on a reported basis and 9% organically, driven by strong execution and demand. Reported EPS rose by 78%, while adjusted EPS increased by 11%, both exceeding previous guidance.
Key Financial Achievements
Xylem's net income for Q2 2024 was $194 million, or $0.80 per share, with a net income margin of 8.9%, up 360 basis points. Adjusted net income was $266 million, or $1.09 per share. The company's adjusted EBITDA margin was 20.8%, reflecting a year-over-year increase of 170 basis points, driven by productivity savings, volume, and price improvements.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $2.169 billion | $1.722 billion |
| Gross Profit | $819 million | $651 million |
| Operating Income | $253 million | $119 million |
| Net Income | $194 million | $92 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Xylem reported total assets of $15.765 billion, with cash and cash equivalents of $815 million. The company's total liabilities stood at $5.417 billion, while stockholders' equity was $10.348 billion. Net cash from operating activities was $377 million for the first half of 2024, with capital expenditures amounting to $147 million.
Outlook and Guidance
Xylem has raised its full-year 2024 revenue guidance to $8.55 billion, up approximately 16% on a reported basis, with organic revenue growth of 5% to 6%. The company also increased its full-year adjusted EPS guidance to a range of $4.18 to $4.28, from the previous range of $4.10 to $4.25.
"The team continued to build on Xylem’s momentum and outperformed expectations on all metrics in the second quarter," said Xylem’s President and CEO, Matthew Pine. "Healthy demand, combined with the team’s disciplined operational execution, delivered significant margin expansion in the quarter. Evoqua integration and synergies are also well on track."
Conclusion
Xylem Inc (XYL, Financial) has demonstrated strong financial performance in Q2 2024, exceeding analyst estimates and raising its full-year guidance. The company's robust revenue growth, improved margins, and strategic execution position it well to address global water challenges and drive long-term value for shareholders.
Explore the complete 8-K earnings release (here) from Xylem Inc for further details.
