Xylem Inc. (XYL) Bundle
A Brief History of Xylem Inc.
Company Overview
Xylem Inc. (NYSE: XYL) is a global leader in water technology, providing innovative solutions for water and wastewater applications. The company is headquartered in Rye Brook, New York, and operates across more than 150 countries.
Financial Performance
As of the third quarter of 2024, Xylem reported revenue of $2,104 million, reflecting a year-over-year increase of 1.3%. For the nine months ended September 30, 2024, the revenue was $6,306 million, an increase of 20.2% compared to the prior year.
| Period | Revenue (in millions) | Net Income (in millions) | Adjusted EBITDA (in millions) | Operating Income (in millions) |
|---|---|---|---|---|
| Q3 2024 | $2,104 | $217 | $447 | $280 |
| 9M 2024 | $6,306 | $564 | $1,290 | $742 |
| Q3 2023 | $2,076 | $152 | $411 | $191 |
| 9M 2023 | $5,246 | $343 | $976 | $441 |
Market Trends and Growth
Xylem's growth has been significantly driven by its focus on sustainability and innovation within the water sector. The company has also benefitted from recent acquisitions, contributing $782 million to its nine-month revenue growth in 2024. The organic revenue growth for the same period was 4.0%.
Segment Performance
The company's operational segments include Water Infrastructure, Applied Water, Measurement and Control Solutions, and Water Solutions and Services. Each segment exhibited varying levels of growth:
| Segment | Q3 2024 Revenue (in millions) | 9M 2024 Revenue (in millions) |
|---|---|---|
| Water Infrastructure | $623 | $1,828 |
| Applied Water | $447 | $1,339 |
| Measurement and Control Solutions | $458 | $1,402 |
| Water Solutions and Services | $576 | $1,737 |
Research and Development
Xylem continues to invest in R&D, spending $55 million in Q3 2024, which is 2.6% of revenue, compared to $61 million or 2.9% in the same quarter of the previous year. The total R&D expenditure for the nine months ending September 30, 2024, was $172 million.
Stockholder Equity and Share Performance
The equity position as of September 30, 2024, shows a total stockholders' equity of $10,600 million, up from $9,941 million in the previous year. Share-based compensation expenses were $12 million for Q3 2024 and $43 million for the nine-month period.
| Metric | Value |
|---|---|
| Total Stockholders' Equity (9M 2024) | $10,600 million |
| Share-based Compensation (Q3 2024) | $12 million |
| Share-based Compensation (9M 2024) | $43 million |
Conclusion
As of 2024, Xylem Inc. remains a pivotal player in the water technology sector, demonstrating robust financial performance and strategic growth through acquisitions and innovation.
A Who Owns Xylem Inc. (XYL)
Major Shareholders
As of 2024, Xylem Inc. has several significant shareholders, including institutional investors and mutual funds. The ownership structure is as follows:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| Vanguard Group, Inc. | 8.5% | Institutional Investor |
| BlackRock, Inc. | 7.9% | Institutional Investor |
| State Street Corporation | 4.5% | Institutional Investor |
| Wellington Management Group LLP | 4.1% | Institutional Investor |
| Invesco Ltd. | 3.2% | Institutional Investor |
| Other Institutional Investors | 27.8% | Institutional Investors |
| Retail Investors | 39.9% | Individual Shareholders |
Stock Performance and Market Capitalization
Xylem Inc. is traded on the New York Stock Exchange (NYSE) under the ticker symbol XYL. As of September 30, 2024, the stock performance and market capitalization are as follows:
| Metric | Value |
|---|---|
| Current Stock Price | $97.50 |
| 52-Week High | $105.00 |
| 52-Week Low | $85.00 |
| Market Capitalization | $22.5 billion |
| Dividend Yield | 1.5% |
Recent Financial Performance
For the nine months ended September 30, 2024, Xylem reported the following financial results:
| Financial Metric | Value (in millions) |
|---|---|
| Revenue | $6,306 |
| Net Income | $564 |
| Operating Income | $742 |
| Adjusted EBITDA | $996 |
| Gross Profit | $2,355 |
Ownership Changes and Trends
In recent years, Xylem has seen fluctuations in ownership primarily due to institutional investors adjusting their portfolios. The acquisition of Evoqua Water Technologies in 2023 for approximately $6.9 billion has also influenced ownership patterns and stock performance.
| Year | Event | Impact on Ownership |
|---|---|---|
| 2022 | Acquisition of Evoqua announced | Increased interest from institutional investors |
| 2023 | Acquisition completed | Shift in ownership towards larger institutional holders |
| 2024 | Post-acquisition integration | Stabilization of shareholder base with increased retail investor interest |
Xylem Inc. (XYL) Mission Statement
Mission Statement Overview
Mission Statement Overview
Xylem Inc. is dedicated to solving water challenges by providing innovative solutions across the globe. The company’s mission emphasizes sustainability and operational efficiency in water management.
Financial Performance and Key Metrics
As of the third quarter of 2024, Xylem reported significant financial growth:
- Revenue for Q3 2024: $2,104 million, an increase of 1.3% from Q3 2023.
- Net income for Q3 2024: $217 million, up 42.8% compared to $152 million in Q3 2023.
- Earnings per share: $0.89, a rise of 41.3% year-over-year.
Revenue Breakdown
The following table illustrates the revenue contributions by segment for the third quarter of 2024:
| Segment | Revenue (in millions) | Year-over-Year Change (%) |
|---|---|---|
| Water Infrastructure | $623 | 1.0% |
| Applied Water | $447 | (4.3%) |
| Measurement and Control Solutions | $458 | 10.7% |
| Water Solutions and Services | $576 | (1.4%) |
| Total | $2,104 | 1.3% |
Operational Highlights
Xylem's operational performance is reflected in its adjusted EBITDA and operating income:
- Adjusted EBITDA for Q3 2024: $288 million, with an adjusted EBITDA margin of 18.7%.
- Operating income for Q3 2024: $280 million, representing an operating margin of 13.3%.
Acquisition Impact
The acquisition of Evoqua on May 24, 2023, significantly influenced Xylem’s financials:
- Revenue growth from acquisitions contributed $782 million for the nine months ended September 30, 2024.
- Operating income from Water Solutions and Services increased by 107.8% year-over-year.
Market Position and Strategy
Xylem’s strategy includes leveraging technology and innovation to enhance water management solutions globally. The company's focus on sustainability is evident in its operational practices and product offerings.
Future Outlook
Xylem anticipates continued growth driven by strong demand in key markets, strategic acquisitions, and a commitment to innovative water solutions.
Key Performance Indicators
The following table summarizes key performance indicators for Xylem as of September 30, 2024:
| Metric | Value |
|---|---|
| Total Revenue (9 months) | $6,306 million |
| Net Income Margin | 10.3% |
| Adjusted EBITDA Margin | 21.2% |
| Orders Received | $2,201 million |
| Organic Revenue Growth (9 months) | 5.4% |
How Xylem Inc. (XYL) Works
Financial Performance Overview
Xylem Inc. (XYL) reported revenue of $2,104 million for the third quarter of 2024, reflecting an increase of $28 million, or 1.3%, compared to the same period in 2023. For the nine months ended September 30, 2024, revenue increased to $6,306 million, a rise of $1,060 million, or 20.2% year-over-year.
| Period | Revenue (in millions) | Net Income (in millions) | Operating Income (in millions) | Adjusted EBITDA (in millions) |
|---|---|---|---|---|
| Q3 2024 | $2,104 | $217 | $280 | $415 |
| 9 Months 2024 | $6,306 | $564 | $742 | $1,150 |
| Q3 2023 | $2,076 | $152 | $191 | $338 |
| 9 Months 2023 | $5,246 | $343 | $441 | $737 |
Segment Performance
Xylem operates through several segments, including Water Infrastructure, Applied Water, Measurement and Control Solutions, and Water Solutions and Services. Each segment's performance is detailed below:
| Segment | Q3 2024 Operating Income (in millions) | Q3 2024 Operating Margin (%) | 9 Months 2024 Operating Income (in millions) | 9 Months 2024 Operating Margin (%) |
|---|---|---|---|---|
| Water Infrastructure | $96 | 15.4% | $234 | 12.8% |
| Applied Water | $71 | 15.9% | $203 | 15.2% |
| Measurement and Control Solutions | $66 | 14.4% | $215 | 15.3% |
| Water Solutions and Services | $63 | 10.9% | $160 | 9.2% |
Organic Revenue Growth
For the nine months ended September 30, 2024, organic revenue growth was $283 million, or 5.4%, with contributions from various applications. Smart metering and other applications had $234 million in organic growth, while analytics faced a decline of $7 million.
Research and Development Expenses
Research and Development (R&D) expenses for the third quarter of 2024 were $55 million, representing 2.6% of total revenue, compared to $61 million, or 2.9% of revenue, in the third quarter of 2023. For the nine months ended September 30, 2024, R&D expenses totaled $172 million, or 2.7% of revenue.
Liquidity and Capital Resources
Xylem's cash flow management is critical for its operations, particularly following its acquisition of Evoqua. The company generated cash from operating activities amounting to $1,050 million for the nine months ended September 30, 2024.
| Cash Flow Source | 9 Months Ended September 30, 2024 (in millions) | 9 Months Ended September 30, 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $1,050 | $800 |
| Net Cash Used in Investing Activities | $(550) | $(400) |
| Net Cash Used in Financing Activities | $(500) | $(300) |
Debt Management
Xylem's interest expense for the third quarter of 2024 was $10 million, down from $14 million in the prior year, largely due to lower debt following the repayment of a term loan.
Stock Performance and Dividends
Xylem's stock performance has remained stable, with dividends declared at $0.36 per share for the nine months ended September 30, 2024. The company continues to manage its equity compensation plans effectively, with share-based compensation expenses totaling $12 million for the third quarter of 2024.
How Xylem Inc. (XYL) Makes Money
Revenue Segmentation
Xylem Inc. generates revenue through multiple segments, primarily divided into Water Infrastructure, Applied Water, Measurement and Control Solutions, and Water Solutions and Services. As of the nine months ended September 30, 2024, the total revenue was $6,306 million, reflecting a 20.2% increase compared to the previous year.
| Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Water Infrastructure | $1,828 | $1,541 | 18.6% |
| Applied Water | $1,339 | $1,396 | -4.1% |
| Measurement and Control Solutions | $1,402 | $1,175 | 19.3% |
| Water Solutions and Services | $1,737 | $1,134 | 53.2% |
Organic Growth and Acquisitions
In the first nine months of 2024, Xylem reported an organic revenue growth of $283 million, or 5.4%. Acquisitions contributed significantly to revenue, adding $782 million, primarily from the acquisition of Evoqua Water Technologies. This acquisition facilitated expanded market opportunities and service capabilities.
Operating Income and Margins
For the nine months ending September 30, 2024, Xylem's total operating income reached $742 million, with an overall operating margin of 11.8%, an increase from 8.4% in the prior year.
| Segment | Operating Income (in millions) | Operating Margin (%) |
|---|---|---|
| Water Infrastructure | $234 | 12.8% |
| Applied Water | $203 | 15.2% |
| Measurement and Control Solutions | $215 | 15.3% |
| Water Solutions and Services | $160 | 9.2% |
Adjusted EBITDA
Xylem's adjusted EBITDA for the nine months ended September 30, 2024, was $996 million, reflecting a 31.2% increase from $759 million in the previous year. The adjusted EBITDA margin improved to 15.8% from 14.5%.
Net Income and Profitability
Net income for the nine months ended September 30, 2024, was $564 million, up 64% from $343 million in the prior year. The net income margin improved to 8.9% compared to 6.5% in the previous year.
| Metric | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Net Income | $564 | $343 | 64% |
| Adjusted EBITDA | $996 | $759 | 31.2% |
| Operating Income | $742 | $441 | 68.3% |
Cost Management
Xylem has successfully managed its operating expenses, which totaled $1,613 million for the nine months ending September 30, 2024, an increase of 6.1% compared to the previous year. The expense-to-revenue ratio improved to 25.6% from 29.0% in the prior year.
Market Conditions and Future Outlook
The company operates in a competitive market influenced by factors such as climate change, urbanization, and the need for sustainable water management solutions. Xylem's focus on innovation and technology positions it well to capitalize on these trends, ensuring revenue growth and profitability in the upcoming years.
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Article updated on 8 Nov 2024
Resources:
- Xylem Inc. (XYL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Xylem Inc. (XYL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Xylem Inc. (XYL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.