Fourth-Quarter Highlights
- Orders of $2.0 billion, up 42% on a reported basis and 10%
organically
- Revenue of $2.1 billion, up 41% on a reported basis and 9%
organically
- Earnings per share of $1.10, up 34%; $0.99 on an adjusted
basis, down 1%
Full-Year Highlights
- Revenue of $7.4 billion, up 33% on a reported basis and 12%
organically
- Earnings per share of $2.79, up 42%; $3.78 on an adjusted
basis, up 20%
- Initiating 2024 full-year revenue guidance of $8.4 to $8.5
billion, up 3% to 5% organically, and adjusted earnings per share
range of $4.00 to $4.20
Xylem Inc. (NYSE: XYL), a leading global water technology
company dedicated to solving the world’s most challenging water
issues, today reported fourth-quarter and full-year 2023 results.
The Company’s total revenue of $2.1 billion surpassed prior
guidance, on continued strong execution and demand. Fourth-quarter
earnings exceeded Xylem’s previous guidance.
“The team delivered an outstanding fourth quarter, fueling
momentum as we enter 2024,” said Matthew Pine, Xylem president and
CEO. “Revenue, margin and earnings per share all exceeded
expectations, driven by strong execution on healthy demand across
our business. In a transformational year for Xylem, the team stayed
focused on serving our customers and delivered strong results on
both the top and bottom lines.”
“That discipline and focus, paired with continuing resilient
underlying demand, gives us confidence in further growth and margin
expansion in the year ahead. Our integration of Evoqua is ahead of
schedule, and our team is taking full advantage of the breadth of
our combined offering to solve even more of our customers’ water
challenges.”
Net income was $266 million, or $1.10 per share. Net income
margin increased 270 basis points to 12.6 percent. These results
are driven by strong operational performance and non-recurring tax
benefits, partially offset by higher acquisition and integration
costs related to the Evoqua transaction, purchase accounting
intangible amortization, special charges, and restructuring and
realignment costs. Adjusted net income was $239 million, or $0.99
per share, which excludes the impacts of special charges, purchase
accounting intangible amortization, and restructuring and
realignment costs.
Fourth-quarter adjusted earnings before interest, tax,
depreciation, and amortization (EBITDA) margin was 19.6 percent,
reflecting a year-over-year increase of 90 basis points.
Productivity savings, strong price realization and higher volume
drove the margin expansion, exceeding the impact of inflation and
strategic investments.
The Board of Directors of Xylem has declared a first-quarter
dividend of $0.36 per share, an increase of 9 percent. The dividend
is payable on March 20, 2024, to shareholders of record as of
February 21, 2024.
Outlook
Xylem forecasts full-year 2024 revenue of approximately $8.4 to
$8.5 billion, up approximately 14 to 15 percent on a reported basis
and up approximately 3 to 5 percent on an organic basis.
Full-year 2024 adjusted EBITDA margin is expected to be
approximately 19.4 to 19.9 percent, an increase of 50 to 100 basis
points from Xylem’s 2023 adjusted results. Full-year free cash flow
conversion to net income is expected to be approximately 115
percent.
Further 2024 planning assumptions are included in Xylem’s
fourth-quarter 2023 earnings materials posted at
www.xylem.com/investors. Excluding revenue, Xylem provides guidance
only on a non-GAAP basis due to the inherent difficulty in
forecasting certain amounts that would be included in GAAP
earnings, such as discrete tax items, without unreasonable
effort.
Supplemental information on Xylem’s fourth-quarter 2023 earnings
and reconciliations for certain non-GAAP items is posted at
www.xylem.com/investors.
About Xylem
Xylem (XYL) is a leading global water technology company
committed to solving the world’s critical water challenges with
innovation and expertise. Our 23,000 diverse employees delivered
combined pro forma revenue of $8.1 billion in 2023. We are creating
a more sustainable world by enabling our customers to optimize
water and resource management and helping communities in more than
150 countries become water-secure. Join us at www.xylem.com and
Let’s Solve Water.
Forward-Looking Statements
This press release contains “forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Generally, the words “anticipate,” “estimate,” “expect,”
“project,” “intend,” “plan,” "contemplate," "predict," “forecast,”
“likely,” “believe,” “target,” “will,” “could,” “would,” “should,”
"potential," "may" and similar expressions or their negative, may,
but are not necessary to, identify forward-looking statements. By
their nature, forward-looking statements address uncertain matters
and include any statements that: are not historical, such as
statements about our strategy, financial plans, outlook,
objectives, plans, intentions or goals (including those related to
our social, environmental and other sustainability goals); or
address possible or future results of operations or financial
performance, including statements relating to orders, revenues,
operating margins and earnings per share growth.
Although we believe that the expectations reflected in any of
our forward-looking statements are reasonable, actual results could
differ materially from those projected or assumed in any of our
forward-looking statements. Our future financial condition and
results of operations, as well as any forward-looking statements,
are subject to change and to inherent risks and uncertainties, many
of which are beyond our control. Important factors that could cause
our actual results, performance and achievements, or industry
results to differ materially from estimates or projections
contained in or implied by our forward-looking statements include,
among others, the following: the impact of overall industry and
general economic conditions, including industrial, governmental,
and public and private sector spending, interest rates, inflation
and related monetary policy by governments in response to
inflation, and the strength of the residential and commercial real
estate markets, on economic activity and our operations;
geopolitical events, including the ongoing and possible escalation
of the conflicts involving between Russia and Ukraine, and the
Middle East, as well as regulatory, economic and other risks
associated with our global sales and operations, including those
related to domestic content requirements applicable to projects
receiving governmental funding; manufacturing and operating cost
increases due to macroeconomic conditions, including inflation,
energy supply, supply chain shortages, logistics challenges, tight
labor markets, prevailing price changes, tariffs and other factors;
demand for our products, disruption, competition or pricing
pressures in the markets we serve; cybersecurity incidents or other
disruptions of information technology systems on which we rely, or
involving our connected products and services; lack of availability
or delays in receiving parts and raw materials from our supply
chain, including electronic components (in particular,
semiconductors); disruptions in operations at our facilities or
that of third parties upon which we rely; uncertainty related to
the realization of the benefits and synergies from our acquisition
of Evoqua; safe and compliant treatment and handling of water,
wastewater and hazardous materials; failure to successfully execute
large projects, including with respect to meeting performance
guarantees and customers’ budgets, timelines and safety
requirements; our ability to retain and attract leadership and
other diverse and key talent, as well as competition for overall
talent and labor; defects, security, warranty and liability claims,
and recalls with respect to our products; uncertainty related to
restructuring and realignment actions and related costs and
savings; our ability to execute strategic investments for growth,
including related to acquisitions and divestitures; availability,
regulation or interference with radio spectrum used by certain of
our products; volatility in served markets or impacts on our
business and operations due to weather conditions, including the
effects of climate change; risks related to our sustainability
commitments and related disclosures; fluctuations in foreign
currency exchange rates; difficulty predicting our financial
results; risk of future impairments to goodwill and other
intangible assets; changes in our effective tax rates or tax
expenses; financial market risks related to our pension and other
defined benefit plans; failure to comply with, or changes in, laws
or regulations, including those pertaining to our business conduct,
operations, products and services, including anti-corruption, data
privacy and security, trade, competition, the environment, climate
change and health and safety; legal, governmental or regulatory
claims, investigations or proceedings and associated contingent
liabilities; matters related to intellectual property infringement
or expiration of rights; and other factors set forth under “Item
1A. Risk Factors” in our Annual Report on Form 10-K for the year
ended December 31, 2022 and in subsequent filings we make with the
Securities and Exchange Commission (“SEC”).
Forward-looking and other statements in this press release
regarding our environmental and other sustainability plans and
goals are not an indication that these statements are necessarily
material to investors or are required to be disclosed in our
filings with the SEC. In addition, historical, current, and
forward-looking social, environmental and sustainability-related
statements may be based on standards for measuring progress that
are still developing, internal controls and processes that continue
to evolve, and assumptions that are subject to change in the
future. All forward-looking statements made herein are based on
information currently available to us as of the date of this press
release. We undertake no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
XYLEM INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(Unaudited)
(In Millions, except per share data)
Year Ended December 31,
2023
2022
2021
Revenue from products
$
6,291
$
4,978
$
4,684
Revenue from services
1,073
544
511
Revenue
7,364
5,522
5,195
Cost of revenue from products
3,817
3,002
2,831
Cost of revenue from services
830
436
389
Cost of revenue
4,647
3,438
3,220
Gross profit
2,717
2,084
1,975
Selling, general and administrative
expenses
1,757
1,227
1,179
Research and development expenses
232
206
204
Restructuring and asset impairment
charges
76
29
7
Operating income
652
622
585
Interest expense
49
50
76
U.K. pension settlement expense
—
140
—
Other non-operating income, net
33
7
—
(Loss) Gain on sale of businesses
(1
)
1
2
Income before taxes
635
440
511
Income tax expense
26
85
84
Net income
$
609
$
355
$
427
Earnings per share:
Basic
$
2.81
$
1.97
$
2.37
Diluted
$
2.79
$
1.96
$
2.35
Weighted average number of shares:
Basic
217.0
180.2
180.2
Diluted
218.2
181.0
181.5
XYLEM INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In Millions, except per share
amounts)
December 31,
2023
2022
ASSETS
Current assets:
Cash and cash equivalents
$
1,019
$
944
Receivables, less allowances for
discounts, returns and credit losses of $56 and $50 in 2023 and
2022, respectively
1,617
1,096
Inventories
1,018
799
Prepaid and other current assets
230
173
Total current assets
3,884
3,012
Property, plant and equipment, net
1,169
630
Goodwill
7,587
2,719
Other intangible assets, net
2,529
930
Other non-current assets
943
661
Total assets
$
16,112
$
7,952
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
968
$
723
Accrued and other current liabilities
1,221
867
Short-term borrowings and current
maturities of long-term debt
16
—
Total current liabilities
2,205
1,590
Long-term debt, net
2,268
1,880
Accrued post-retirement benefit
obligations
344
286
Deferred income tax liabilities
557
222
Other non-current accrued liabilities
562
471
Total liabilities
5,936
4,449
Stockholders’ equity:
Common stock — par value $0.01 per
share:
Authorized 750.0 shares, issued 257.6 and
196.0 shares in 2023 and 2022, respectively
3
2
Capital in excess of par value
8,564
2,134
Retained earnings
2,601
2,292
Treasury stock – at cost 16.0 shares and
15.8 shares in 2023 and 2022, respectively
(733
)
(708
)
Accumulated other comprehensive loss
(269
)
(226
)
Total stockholders’ equity
10,166
3,494
Non-controlling interest
10
9
Total equity
10,176
3,503
Total liabilities and stockholders’
equity
$
16,112
$
7,952
XYLEM INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (In
Millions) (Unaudited)
Year Ended December 31,
2023
2022
2021
Operating Activities
Net income
$
609
$
355
$
427
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
193
111
118
Amortization
243
125
127
Deferred income taxes
(79
)
(64
)
10
Share-based compensation
60
37
33
Restructuring and asset impairment
charges
76
29
7
U.K. pension settlement expense
—
140
—
Loss (gain) from sale of businesses
1
(1
)
(2
)
Other, net
—
(4
)
8
Payments for restructuring
(30
)
(11
)
(25
)
Contributions to post-retirement benefit
plans
(25
)
(19
)
(29
)
Changes in assets and liabilities (net of
acquisitions):
Changes in receivables
(87
)
(192
)
(70
)
Changes in inventories
41
(147
)
(167
)
Changes in accounts payable
22
117
81
Changes in accrued liabilities
(4
)
57
7
Changes in accrued and deferred taxes
(109
)
57
(9
)
Net changes in other assets and
liabilities
(74
)
6
22
Net Cash — Operating activities
837
596
538
Investing Activities
Capital expenditures
(271
)
(208
)
(208
)
Proceeds from the sale of property, plant
and equipment
1
4
3
Acquisitions of businesses, net of cash
acquired
(476
)
—
—
Proceeds from sale of businesses
105
1
10
Cash received from investments
1
5
—
Cash paid for investments
(1
)
(11
)
—
Cash paid for equity investments
(57
)
(3
)
(5
)
Cash received from interest rate swaps
38
—
—
Cash received from cross-currency
swaps
28
28
14
Settlement of currency forward
agreement
—
(10
)
—
Other, net
4
3
3
Net Cash — Investing activities
(628
)
(191
)
(183
)
Financing Activities
Long-term debt issued, net
278
—
—
Long-term debt repaid, net
(160
)
(527
)
(600
)
Repurchase of common stock
(25
)
(52
)
(68
)
Proceeds from exercise of employee stock
options
62
8
19
Dividends paid
(299
)
(217
)
(203
)
Other, net
(13
)
(2
)
(3
)
Net Cash — Financing activities
(157
)
(790
)
(855
)
Effect of exchange rate changes on
cash
23
(20
)
(26
)
Net change in cash and cash
equivalents
75
(405
)
(526
)
Cash and cash equivalents at beginning of
year
944
1,349
1,875
Cash and cash equivalents at end of
year
$
1,019
$
944
$
1,349
Supplemental disclosure of cash flow
information:
Cash paid during the year for:
Interest
$
69
$
76
$
99
Income taxes (net of refunds received)
$
211
$
91
$
83
Xylem Inc. Non-GAAP Measures
Management reviews key performance indicators including revenue,
gross margins, segment operating income and margins, orders growth,
working capital and backlog, among others. In addition, we consider
certain non-GAAP (or "adjusted") measures to be useful to
management and investors evaluating our operating performance for
the periods presented, and to provide a tool for evaluating our
ongoing operations, liquidity and management of assets. This
information can assist investors in assessing our financial
performance and measures our ability to generate capital for
deployment among competing strategic alternatives and initiatives,
including but not limited to, dividends, acquisitions, share
repurchases and debt repayment. Excluding revenue, Xylem provides
guidance only on a non-GAAP basis due to the inherent difficulty in
forecasting certain amounts that would be included in GAAP
earnings, such as discrete tax items, without unreasonable effort.
These adjusted metrics are consistent with how management views our
business and are used to make financial, operating and planning
decisions. These metrics, however, are not measures of financial
performance under GAAP and should not be considered a substitute
for revenue, operating income, net income, earnings per share
(basic and diluted) or net cash from operating activities as
determined in accordance with GAAP. We consider the following items
to represent the non-GAAP measures we consider to be key
performance indicators, as well as the related reconciling items to
the most directly comparable measure calculated and presented in
accordance with GAAP. The non-GAAP measures may not be comparable
to similarly titled measures reported by other companies.
“Organic revenue" and "Organic orders” defined as revenue
and orders, respectively, excluding the impact of fluctuations in
foreign currency translation and contributions from acquisitions
and divestitures. Divestitures include sales or discontinuance of
insignificant portions of our business that did not meet the
criteria for classification as a discontinued operation. The
period-over-period change resulting from foreign currency
translation impacts is determined by translating current period and
prior period activity using the same currency conversion rate.
“Constant currency” defined as financial results
adjusted for foreign currency translation impacts by translating
current period and prior period activity using the same currency
conversion rate. This approach is used for countries whose
functional currency is not the U.S. dollar.
“EBITDA”
defined as earnings before interest, taxes, depreciation and
amortization expense.
“Adjusted EBITDA” and
"Adjusted
Segment EBITDA" reflect the adjustments to EBITDA and segment
EBITDA, respectively, to exclude share-based compensation charges,
restructuring and realignment costs, gain or loss from sale of
businesses and special charges.
"Adjusted EBITDA
Margin" and
"Adjusted Segment EBITDA Margin" defined as
adjusted EBITDA and adjusted segment EBITDA divided by total
revenue and segment revenue, respectively.
"Adjusted
Operating Income", "Adjusted Segment Operating Income", "Adjusted
Net Income" and “Adjusted EPS” defined as operating income,
segment operating income, net income and earnings per share,
adjusted to exclude restructuring and realignment costs,
amortization of acquired intangible assets, gain or loss from sale
of businesses, special charges and tax-related special items, as
applicable.
"Adjusted Operating Margin" and
"Adjusted Segment Operating Margin" defined as adjusted
operating income and adjusted segment operating income divided by
total revenue and segment revenue, respectively.
“Free
Cash Flow” defined as net cash from operating activities, as
reported in the Statement of Cash Flows, less capital expenditures,
and
"Free Cash Flow Conversion" defined as Free Cash Flows
divided by net income, excluding the gain on sale of businesses and
other non-recurring, significant non-cash impacts, such as non-cash
impairment charges and significant deferred tax items. Our
definitions of "free cash flow" and "free cash flow conversion" do
not consider certain non-discretionary cash payments, such as debt.
"Adjusted Free Cash Flow" defined as free cash flow
adjusted for significant cash items for which the corresponding
income statement impact does not occur within the same fiscal year.
“Realignment costs” defined as costs not included in
restructuring costs that are incurred as part of actions taken to
reposition our business, including items such as professional fees,
severance, relocation, travel, facility set-up and other costs.
“Special charges" defined as costs incurred by the
Company, such as acquisition and integration related costs,
non-cash impairment charges and both operating and non-operating
adjustments for costs related to the UK pension plan buyout.
“Tax-related special items" defined as tax items, such as
tax return versus tax provision adjustments, tax exam impacts, tax
law change impacts, excess tax benefits/losses and other discrete
tax adjustments.
Xylem Inc. Non-GAAP Reconciliation
Reported vs. Organic & Constant Currency Orders ($ Millions)
(As Reported - GAAP) (As Adjusted - Organic)
Constant Currency
(A)
(B)
(C)
(D)
(E) = B+C+D
(F) = E/A
(G) = (E - C) / A
Change
% Change
Acquisitions / Divestitures
Change
% Change
Orders
Orders
2023 v. 2022
2023 v. 2022
FX Impact
Adj. 2023 v. 2022
Adj. 2023 v. 2022
2023
2022
Year Ended December 31 Xylem Inc.
7,501
6,257
1,244
20
%
(1,220
)
41
65
1
%
21
%
Water Infrastructure
3,060
2,607
453
17
%
(352
)
23
124
5
%
18
%
Applied Water
1,770
1,794
(24
)
(1
%)
-
18
(6
)
(0
%)
(0
%)
Measurement and Control Solutions
1,803
1,856
(53
)
(3
%)
-
-
(53
)
(3
%)
(3
%)
Integrated Solutions and Services
868
-
868
N/A
(868
)
-
-
N/A
N/A
Quarter Ended December 31 Xylem Inc.
2,044
1,439
605
42
%
(451
)
(17
)
137
10
%
41
%
Water Infrastructure
820
622
198
32
%
(130
)
(9
)
59
9
%
30
%
Applied Water
420
400
20
5
%
-
(2
)
18
5
%
5
%
Measurement and Control Solutions
483
417
66
16
%
-
(6
)
60
14
%
14
%
Integrated Solutions and Services
321
-
321
N/A
(321
)
-
-
N/A
N/A
Quarter Ended September 30 Xylem Inc.
2,031
1,419
612
43
%
(547
)
(18
)
47
3
%
42
%
Water Infrastructure
850
594
256
43
%
(163
)
(10
)
83
14
%
41
%
Applied Water
422
409
13
3
%
-
(4
)
9
2
%
2
%
Measurement and Control Solutions
375
416
(41
)
(10
%)
-
(4
)
(45
)
(11
%)
(11
%)
Integrated Solutions and Services
384
-
384
N/A
(384
)
-
-
N/A
N/A
Quarter Ended June 30 Xylem Inc.
1,856
1,684
172
10
%
(222
)
23
(27
)
(2
%)
12
%
Water Infrastructure
751
731
20
3
%
(59
)
13
(26
)
(4
%)
5
%
Applied Water
445
480
(35
)
(7
%)
-
6
(29
)
(6
%)
(6
%)
Measurement and Control Solutions
497
473
24
5
%
-
4
28
6
%
6
%
Integrated Solutions and Services
163
-
163
N/A
(163
)
-
-
N/A
N/A
Quarter Ended March 31 Xylem Inc.
1,570
1,715
(145
)
(8
%)
-
53
(92
)
(5
%)
(5
%)
Water Infrastructure
639
660
(21
)
(3
%)
-
29
8
1
%
1
%
Applied Water
483
505
(22
)
(4
%)
-
18
(4
)
(1
%)
(1
%)
Measurement and Control Solutions
448
550
(102
)
(19
%)
-
6
(96
)
(17
%)
(17
%)
Integrated Solutions and Services
-
-
-
N/A
-
-
-
N/A
N/A
Xylem Inc. Non-GAAP Reconciliation Reported vs.
Organic & Constant Currency Revenue ($ Millions)
(As Reported - GAAP)
(As Adjusted -
Organic)
Constant Currency
(A)
(B)
(C)
(D)
(E) = B+C+D
(F) = E/A
(G) = (E - C) / A
Change
% Change
Acquisitions / Divestitures
Change
% Change
Revenue
Revenue
2023 v. 2022
2023 v. 2022
FX Impact
Adj. 2023 v. 2022
Adj. 2023 v. 2022
2023
2022
Year Ended December 31 Xylem Inc.
7,364
5,522
1,842
33
%
(1,177
)
25
690
12
%
34
%
Water Infrastructure
2,967
2,364
603
26
%
(362
)
14
255
11
%
26
%
Applied Water
1,853
1,767
86
5
%
-
10
96
5
%
5
%
Measurement and Control Solutions
1,729
1,391
338
24
%
-
1
339
24
%
24
%
Integrated Solutions and Services
815
-
815
N/A
(815
)
-
-
N/A
N/A
Quarter Ended December 31 Xylem Inc.
2,118
1,506
612
41
%
(459
)
(17
)
136
9
%
40
%
Water Infrastructure
871
668
203
30
%
(137
)
(9
)
57
9
%
29
%
Applied Water
457
455
2
0
%
-
(4
)
(2
)
(0
%)
(0
%)
Measurement and Control Solutions
468
383
85
22
%
-
(4
)
81
21
%
21
%
Integrated Solutions and Services
322
-
322
N/A
(322
)
-
-
N/A
N/A
Quarter Ended September 30 Xylem Inc.
2,076
1,380
696
50
%
(540
)
(22
)
134
10
%
49
%
Water Infrastructure
803
574
229
40
%
(172
)
(14
)
43
7
%
37
%
Applied Water
465
458
7
2
%
-
(3
)
4
1
%
1
%
Measurement and Control Solutions
440
348
92
26
%
-
(5
)
87
25
%
25
%
Integrated Solutions and Services
368
-
368
N/A
(368
)
-
-
N/A
N/A
Quarter Ended June 30 Xylem Inc.
1,722
1,364
358
26
%
(178
)
19
199
15
%
28
%
Water Infrastructure
704
589
115
20
%
(53
)
12
74
13
%
22
%
Applied Water
478
429
49
11
%
-
4
53
12
%
12
%
Measurement and Control Solutions
415
346
69
20
%
-
3
72
21
%
21
%
Integrated Solutions and Services
125
-
125
N/A
(125
)
-
-
N/A
N/A
Quarter Ended March 31 Xylem Inc.
1,448
1,272
176
14
%
-
45
221
17
%
17
%
Water Infrastructure
589
533
56
11
%
-
25
81
15
%
15
%
Applied Water
453
425
28
7
%
-
13
41
10
%
10
%
Measurement and Control Solutions
406
314
92
29
%
-
7
99
32
%
32
%
Integrated Solutions and Services
-
-
-
N/A
-
-
-
N/A
N/A
Xylem Inc. Non-GAAP Reconciliation Adjusted Operating
Income ($ Millions)
Q1
Q2
Q3
Q4
YTD
2023
2022
(1)
2023
2022
(1)
2023
2022
(1)
2023
2022
(1)
2023
2022
(1)
Total Revenue • Total Xylem
1,448
1,272
1,722
1,364
2,076
1,380
2,118
1,506
7,364
5,522
• Water Infrastructure
589
533
704
589
803
574
871
668
2,967
2,364
• Applied Water
453
425
478
429
465
458
457
455
1,853
1,767
• Measurement and Control Solutions
406
314
415
346
440
348
468
383
1,729
1,391
• Integrated Solutions and Services
-
-
125
-
368
-
322
-
815
-
• Corporate/ Other
-
-
-
-
-
-
-
-
-
-
Operating Income (Loss) • Total Xylem
131
111
119
146
191
168
211
197
652
622
• Water Infrastructure
70
74
106
108
128
104
115
132
419
418
• Applied Water
83
59
84
61
73
77
70
61
310
258
• Measurement and Control Solutions
20
(10
)
26
(5
)
27
(2
)
40
19
113
2
• Integrated Solutions and Services
-
-
(7
)
-
(3
)
-
18
-
8
-
• Corporate/ Other
(42
)
(12
)
(90
)
(18
)
(34
)
(11
)
(32
)
(15
)
(198
)
(56
)
Operating Margin • Total Xylem
9.0
%
8.7
%
6.9
%
10.7
%
9.2
%
12.2
%
10.0
%
13.1
%
8.9
%
11.3
%
• Water Infrastructure
11.9
%
13.9
%
15.1
%
18.3
%
15.9
%
18.1
%
13.2
%
19.8
%
14.1
%
17.7
%
• Applied Water
18.3
%
13.9
%
17.6
%
14.2
%
15.7
%
16.8
%
15.3
%
13.4
%
16.7
%
14.6
%
• Measurement and Control Solutions
4.9
%
(3.2
%)
6.3
%
(1.4
%)
6.1
%
(0.6
%)
8.5
%
5.0
%
6.5
%
0.1
%
• Integrated Solutions and Services
N/A
N/A
(5.6
%)
N/A
(0.8
%)
N/A
5.6
%
N/A
1.0
%
N/A
• Corporate/ Other
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Special Charges • Total Xylem
25
1
67
1
24
13
22
1
138
16
• Water Infrastructure
-
-
12
-
6
-
11
-
29
-
• Applied Water
-
-
-
-
-
-
-
-
-
-
• Measurement and Control Solutions
2
-
-
1
1
12
1
1
4
14
• Integrated Solutions and Services
-
-
7
-
9
-
5
-
21
-
• Corporate/ Other
23
1
48
-
8
1
5
-
84
2
Restructuring & Realignment Costs • Total Xylem
11
4
37
8
34
6
24
16
106
34
• Water Infrastructure
3
1
3
3
3
3
13
4
22
11
• Applied Water
3
1
2
2
6
1
3
9
14
13
• Measurement and Control Solutions
5
2
3
3
6
2
6
3
20
10
• Integrated Solutions and Services
-
-
7
-
8
-
-
-
15
-
• Corporate/ Other
-
-
22
-
11
-
2
-
35
-
Purchase Accounting Intangible Amortization
Adjustment • Total Xylem
18
18
36
18
66
18
56
18
176
72
• Water Infrastructure
1
1
8
1
15
1
25
1
49
4
• Applied Water
-
-
-
-
-
-
-
-
-
-
• Measurement and Control Solutions
17
17
17
17
16
17
16
17
66
68
• Integrated Solutions and Services
-
-
11
-
35
-
15
-
61
-
• Corporate/ Other
-
-
-
-
-
-
-
-
-
-
Adjusted Operating Income (Loss) • Total Xylem
185
134
259
173
315
205
313
232
1,072
744
• Water Infrastructure
74
76
129
112
152
108
164
137
519
433
• Applied Water
86
60
86
63
79
78
73
70
324
271
• Measurement and Control Solutions
44
9
46
16
50
29
63
40
203
94
• Integrated Solutions and Services
-
-
18
-
49
-
38
-
105
-
• Corporate/ Other
(19
)
(11
)
(20
)
(18
)
(15
)
(10
)
(25
)
(15
)
(79
)
(54
)
Adjusted Operating Margin • Total Xylem
12.8
%
10.5
%
15.0
%
12.7
%
15.2
%
14.9
%
14.8
%
15.4
%
14.6
%
13.5
%
• Water Infrastructure
12.6
%
14.3
%
18.3
%
19.0
%
18.9
%
18.8
%
18.8
%
20.5
%
17.5
%
18.3
%
• Applied Water
19.0
%
14.1
%
18.0
%
14.7
%
17.0
%
17.0
%
16.0
%
15.4
%
17.5
%
15.3
%
• Measurement and Control Solutions
10.8
%
2.9
%
11.1
%
4.6
%
11.4
%
8.3
%
13.5
%
10.4
%
11.7
%
6.8
%
• Integrated Solutions and Services
N/A
N/A
14.4
%
N/A
13.3
%
N/A
11.8
%
N/A
12.9
%
N/A
• Corporate/ Other
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
(1) 2022 amounts have been recast to adjust for historical
purchase accounting intangible amortization.
Xylem Inc.
Non-GAAP Reconciliation Adjusted Diluted EPS ($ Millions,
except per share amounts)
Q4 2023 Q4 2022 (1)
As Reported Adjustments Adjusted
As Reported Adjustments Adjusted
Total Revenue
2,118
-
2,118
1,506
-
1,506
Operating Income
211
102
a
313
197
35
a
232
Operating Margin
10.0
%
14.8
%
13.1
%
15.4
%
Interest Expense
(14
)
-
(14
)
(13
)
-
(13
)
Other Non-Operating Income (Expense)
14
-
14
5
-
b
5
Gain/(Loss) From Sale of Business
(1
)
1
-
-
-
-
Income before Taxes
210
103
313
189
35
224
Provision for Income Taxes
56
(130
)
c
(74
)
(40
)
(2
)
c
(42
)
Net Income
266
(27
)
239
149
33
182
Diluted Shares
242.5
242.5
181.3
181.3
Diluted EPS
$
1.10
($
0.11
)
$
0.99
$
0.82
$
0.18
$
1.00
Year-over-year currency translation impact on current year diluted
EPS
$
0.02
$
0.00
$
0.02
Diluted EPS at Constant Currency
$
1.08
($
0.11
)
$
0.97
Q4 YTD 2023 Q4 YTD 2022 (1)
As Reported Adjustments Adjusted
As Reported Adjustments Adjusted
Total Revenue
7,364
-
7,364
5,522
-
5,522
Operating Income
652
420
a
1,072
622
122
a
744
Operating Margin
8.9
%
14.6
%
11.3
%
13.5
%
Interest Expense
(49
)
-
(49
)
(50
)
-
(50
)
Other Non-Operating Income (Expense)
33
-
33
7
4
b
11
UK Pension Buyout Settlement
-
-
-
(140
)
140
-
Gain/(Loss) From Sale of Business
(1
)
1
-
1
(1
)
-
Income before Taxes
635
421
1,056
440
265
705
Provision for Income Taxes
(26
)
(205
)
c
(231
)
(85
)
(50
)
c
(135
)
Net Income
609
216
825
355
215
570
Diluted Shares
218.2
218.2
181.0
181.0
Diluted EPS
$
2.79
$
0.99
$
3.78
$
1.96
$
1.19
$
3.15
Year-over-year currency translation impact on current year diluted
EPS
$
0.02
$
0.00
$
0.02
Diluted EPS at Constant Currency
$
2.77
$
0.99
$
3.76
(1) 2022 amounts have been recast to adjust for historical purchase
accounting intangible amortization.
a
Quarter-to-date: Restructuring & realignment costs: 2023
- $24 million and 2022 - $16 million Special charges: 2023 - $19
million of acquisition & integration cost, $1 million of asset
impairment and $2 million of other special charges; 2022 - $1
million of asset impairment charges Purchase accounting intangible
amortization: 2023 - $56 million and 2022 - $18 million
Year-to-date: Restructuring & realignment costs: 2023 -
$106 million and 2022 - $34 million Special charges: 2023 - $126
million of acquisition & integration related costs, $8 million
of other special charges and $4 million of asset impairment
charges; 2022 - $14 million of asset impairment charges and $2
million UK pension plan charges Purchase accounting intangible
amortization: 2023 - $176 million and 2022 - $72 million
b
Quarter-to-date and Year-to-date: 2022 - Special
non-operating charges consist of charges related to the UK pension
plan exited as part of a buy-out of $0 million and $4 million,
respectively
c Quarter-to-date: 2023 - Net tax impact
on pre-tax adjustments (note a) of $23 million and other tax
special items of $107 million; 2022 - Net tax impact on pre-tax
adjustments (notes a and b) of $7 million and other tax related
special items of $(5) million
Year-to-date: 2023 - Net tax
impact on pre-tax adjustments (note a) of $90 million and other tax
special items of $115 million; 2022 - Net tax impact on pre-tax
adjustments (notes a and b) of $51 million and other tax related
special items of $(1) million
Xylem Inc. Non-GAAP
Reconciliation Net Cash - Operating Activities vs. Free Cash
Flow ($ Millions)
Q1
Q2
Q3
Q4
Year-to-Date
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
Net Cash - Operating Activities
($19
)
($81
)
$28
$113
$373
$202
$455
$362
$837
$596
Capital Expenditures - PP&E
(33
)
(31
)
(42
)
(30
)
(57
)
(37
)
(76
)
(41
)
(208
)
(139
)
Capital Expenditures - Software
(16
)
(18
)
(12
)
(16
)
(17
)
(16
)
(18
)
(19
)
(63
)
(69
)
Capital Expenditures
(49
)
(49
)
(54
)
(46
)
(74
)
(53
)
(94
)
(60
)
(271
)
(208
)
Cash paid in excess of tax provision for R&D law
change adoption
33
-
-
-
-
-
-
-
33
-
Free Cash Flow
($35
)
($130
)
($26
)
$67
$299
$149
$361
$302
$599
$388
Cash paid by Xylem for Evoqua's pre-close transaction
costs
-
-
70
-
-
-
-
-
70
-
Cash paid for Idrica distribution agreement
-
-
60
-
-
-
-
-
60
-
Adjusted Free Cash Flow
($35
)
($130
)
$104
$67
$299
$149
$361
$302
$729
$388
Net Income
$99
$82
$92
$112
$152
$12
$266
$149
$609
$355
Gain/(Loss) from sale of business
-
1
-
-
-
-
(1
)
-
(1
)
1
Restructuring Charges - non-cash stock acceleration
-
-
(14
)
-
(11
)
-
(2
)
-
(27
)
-
Significant non-cash tax benefit/(charge)
-
-
-
-
-
-
70
-
70
-
U.K. pension buyout settlement - non-cash release from AOCI
-
-
-
-
-
(140
)
-
-
-
(140
)
U.K. pension buyout settlement - non-cash tax release from
AOCI
-
-
-
-
-
23
-
-
-
23
Special Charges - Inventory step-up
-
-
(15
)
-
(5
)
-
(5
)
-
(25
)
-
Special Charges - non-cash impairment
(2
)
-
-
(1
)
(1
)
(12
)
(1
)
(1
)
(4
)
(14
)
Net Income, excluding gain/(loss) on sale of businesses and
non-cash restructuring and special charges
$101
$81
$121
$113
$169
$141
$205
$150
$596
$485
Operating Cash Flow Conversion
(19
%)
(99
%)
30
%
101
%
245
%
1683
%
171
%
243
%
137
%
168
%
Free Cash Flow Conversion
(35
%)
(160
%)
86
%
59
%
177
%
106
%
176
%
201
%
122
%
80
%
Xylem Inc. Non-GAAP Reconciliation EBITDA and
Adjusted EBITDA by Quarter ($ Millions)
2023
Q1 Q2 Q3 Q4 Total Net Income
99
92
152
266
609
Net Income margin
6.8
%
5.3
%
7.3
%
12.6
%
8.3
%
Depreciation
28
41
63
61
193
Amortization
32
51
84
76
243
Interest Expense (Income), net
2
5
6
8
21
Income Tax Expense
27
22
33
(56
)
26
EBITDA
188
211
338
355
1,092
Share-based Compensation
12
15
18
15
60
Restructuring & Realignment
11
36
33
23
103
Special Charges
25
67
22
22
136
Loss/(Gain) from sale of business
-
-
-
1
1
Adjusted EBITDA
236
329
411
0
416
1,392
Revenue
1,448
1,722
2,076
2,118
7,364
Adjusted EBITDA Margin
16.3
%
19.1
%
19.8
%
19.6
%
18.9
%
2022
Q1 Q2 Q3 Q4 Total Net Income
82
112
12
149
355
Net Income margin
6.4
%
8.2
%
0.9
%
9.9
%
6.4
%
Depreciation
28
28
27
28
111
Amortization
30
32
31
32
125
Interest Expense (Income), net
11
10
7
6
34
Income Tax Expense
16
24
5
40
85
EBITDA
167
206
82
255
710
Share-based Compensation
9
9
10
9
37
Restructuring & Realignment
4
8
6
16
34
U.K. Pension Settlement
-
-
140
-
140
Special Charges
2
3
14
1
20
Loss/(Gain) from sale of business
(1
)
-
-
-
(1
)
Adjusted EBITDA
181
226
252
281
940
Revenue
1,272
1,364
1,380
1,506
5,522
Adjusted EBITDA Margin
14.2
%
16.6
%
18.3
%
18.7
%
17.0
%
Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted
EBITDA by Quarter ($ Millions) Water Infrastucture
2023
Q1 Q2 Q3 Q4 Total Operating Income
70
106
128
115
419
Operating Margin
11.9
%
15.1
%
15.9
%
13.2
%
14.1
%
Depreciation
12
14
14
15
55
Amortization
2
10
16
27
55
Other non-operating expense, excluding interest income
-
1
-
2
3
EBITDA
84
131
158
159
532
Share-based Compensation
2
5
3
5
15
Restructuring & Realignment
3
3
3
13
22
Special Charges
-
12
6
11
29
Adjusted EBITDA
89
151
170
188
598
Revenue
589
704
803
871
2,967
Adjusted EBITDA Margin
15.1
%
21.4
%
21.2
%
21.6
%
20.2
%
2022
Q1 Q2 Q3 Q4 Total Operating Income
74
108
104
132
418
Operating Margin
13.9
%
18.3
%
18.1
%
19.8
%
17.7
%
Depreciation
11
11
11
11
44
Amortization
2
3
1
3
9
Other non-operating expense, excluding interest income
(4
)
1
-
(1
)
(4
)
EBITDA
83
123
116
145
467
Share-based Compensation
1
-
-
1
2
Restructuring & Realignment
1
3
3
4
11
Adjusted EBITDA
85
126
119
150
480
Revenue
533
589
574
668
2,364
Adjusted EBITDA Margin
15.9
%
21.4
%
20.7
%
22.5
%
20.3
%
Xylem Inc. Non-GAAP Reconciliation EBITDA and
Adjusted EBITDA by Quarter ($ Millions) Applied Water
2023
Q1 Q2 Q3 Q4 Total Operating Income
83
84
73
70
310
Operating Margin
18.3
%
17.6
%
15.7
%
15.3
%
16.7
%
Depreciation
5
4
6
4
19
Amortization
-
1
-
1
2
Other non-operating expense, excluding interest income
(1
)
-
-
(1
)
(2
)
EBITDA
87
89
79
74
329
Share-based Compensation
1
-
1
2
4
Restructuring & Realignment
3
2
5
3
13
Adjusted EBITDA
91
91
85
79
346
Revenue
453
478
465
457
1,853
Adjusted EBITDA Margin
20.1
%
19.0
%
18.3
%
17.3
%
18.7
%
2022
Q1 Q2 Q3 Q4 Total Operating Income
59
61
77
61
258
Operating Margin
13.9
%
14.2
%
16.8
%
13.4
%
14.6
%
Depreciation
5
4
4
4
17
Amortization
-
1
-
1
2
Other non-operating expense, excluding interest income
(1
)
-
(1
)
-
(2
)
EBITDA
63
66
80
66
275
Share-based Compensation
1
1
2
-
4
Restructuring & Realignment
1
2
1
9
13
Adjusted EBITDA
65
69
83
75
292
Revenue
425
429
458
455
1,767
Adjusted EBITDA Margin
15.3
%
16.1
%
18.1
%
16.5
%
16.5
%
Xylem Inc. Non-GAAP Reconciliation EBITDA and
Adjusted EBITDA by Quarter ($ Millions) Measurement and Control
Solutions
2023
Q1 Q2 Q3 Q4 Total Operating Income
20
26
27
40
113
Operating Margin
4.9
%
6.3
%
6.1
%
8.5
%
6.5
%
Depreciation
7
9
8
8
32
Amortization
27
26
26
28
107
Other non-operating expense, excluding interest income
-
-
(1
)
(3
)
(4
)
EBITDA
54
61
60
73
248
Share-based Compensation
2
2
2
1
7
Restructuring & Realignment
5
2
6
5
18
Special Charges
2
-
1
1
4
Loss/(Gain) from sale of business
-
-
-
1
1
Adjusted EBITDA
63
65
69
81
278
Revenue
406
415
440
468
1,729
Adjusted EBITDA Margin
15.5
%
15.7
%
15.7
%
17.3
%
16.1
%
2022
Q1 Q2 Q3 Q4 Total Operating Income
(10
)
(5
)
(2
)
19
2
Operating Margin
(3.2
%)
(1.4
%)
(0.6
%)
5.0
%
0.1
%
(Loss)/Gain from sale of business
1
-
-
-
1
Depreciation
9
8
8
8
33
Amortization
25
26
27
26
104
Other non-operating expense, excluding interest income
-
(1
)
(1
)
-
(2
)
EBITDA
25
28
32
53
138
Share-based Compensation
1
2
2
1
6
Restructuring & Realignment
2
3
2
3
10
Special Charges
-
1
12
1
14
Loss/(Gain) from sale of business
(1
)
-
-
-
(1
)
Adjusted EBITDA
27
34
48
58
167
Revenue
314
346
348
383
1,391
Adjusted EBITDA Margin
8.6
%
9.8
%
13.8
%
15.1
%
12.0
%
Xylem Inc. Non-GAAP Reconciliation EBITDA and
Adjusted EBITDA by Quarter ($ Millions) Integrated Solutions and
Services
Q1 Q2 Q3 Q4 Total Operating Income
-
(7
)
(3
)
18
8
Operating Margin
-
(5.6
%)
(0.8
%)
5.6
%
1.0
%
Depreciation
-
8
30
27
65
Amortization
-
12
36
17
65
EBITDA
-
13
63
62
138
Share-based Compensation
-
3
3
1
7
Restructuring & Realignment
-
7
8
-
15
Special Charges
-
7
9
5
21
Adjusted EBITDA
-
30
83
68
181
Revenue
-
125
368
322
815
Adjusted EBITDA Margin
-
24.0
%
22.6
%
21.1
%
22.2
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240205187558/en/
Media Houston Spencer +1 (914) 323-5723
houston.spencer@xylem.com
Investors Andrea van der Berg +1 (914) 260-8612
andrea.vanderberg@xylem.com
Xylem (NYSE:XYL)
과거 데이터 주식 차트
부터 3월(3) 2025 으로 4월(4) 2025
Xylem (NYSE:XYL)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 4월(4) 2025
