Xylem Inc ( (XYL) ) has released its Q3 earnings. Here is a breakdown of the information Xylem Inc presented to its investors.
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Xylem Inc. is a global water technology company that provides innovative solutions for water resource management, aiming to build a more water-secure world. The company reported a modest revenue increase in the third quarter of 2024, with a total of $2.1 billion, reflecting a 1% rise on both a reported and organic basis. Earnings per share saw a significant uptick of 41% on a reported basis, reaching $0.89, while adjusted earnings per share were up 12% at $1.11.
Key financial highlights from the quarter include an 8% increase in orders, indicating strong demand across all segments. The integration of Evoqua is progressing ahead of schedule, contributing to margin expansion and outperforming expectations. This strategic move is expected to bolster the company’s earnings and growth prospects further. Xylem also reported a net income of $217 million, with a net income margin increase to 10.3%, driven by strong operational performance and cost efficiency.
Looking forward, Xylem has narrowed its full-year earnings guidance, projecting revenue of $8.5 billion, a 15% increase from the previous year, with organic revenue growth of approximately 5%. The company expects an adjusted EBITDA margin of around 20.5% for the full year, and free cash flow conversion to net income is anticipated to be at least 120%. Xylem remains confident in its strategic direction, focusing on sustainable and profitable growth.
