01—Abstract
Summary
Summary of the 10-K filed March 3, 2025. Cited figures are marked; the original filing is the authoritative source.
Xylem Inc. (NYSE: XYL) reported 2024 revenue of $8,562 milliona, up $1,198 million, or 16.3%, from $7,364 million in 2023, with organic revenue growth of $424 million and acquisitions contributing $786 million at constant currency.
Operating income rose to $1,009 millionb (11.8% operating margin) from $652 million, and net income increased to $890 million, or $3.65 per diluted share. Adjusted net income was $1,041 million, or $4.27 per diluted share. Net cash from operating activities was $1,263 million and free cash flow was $942 million, compared with $566 million in 2023 by the filing's own reconciliation.
Growth was led by Water Infrastructure and Water Solutions and Services and Measurement and Control Solutions, while Applied Water declined organically. Total backlog was $5,070 millionc at December 31, 2024, versus $5,088 million a year earlier, and orders reached $8,730 million. Gross margin improved to 37.5% from 36.9%, and the company cited productivity savings and price realization as offsets to inflation.
Looking ahead, management guides to total revenue growth of up to 2% in 2025 and organic revenue growth of 3% to 4%. In January 2025 management committed to a workforce restructuring plan, with expected 2025 restructuring and realignment charges of $90 million to $110 milliond and incremental savings of $75 million to $95 million. The company ended 2024 with about $2.1 billion of liquidity, including $1.1 billion of cash, and its securities are rated investment grade.
02—Key points
Key Highlights
- Revenue of $8,562 million in 2024, up 16.3% from $7,364 million, including $786 million from acquisitions and $424 million of organic growth.
- Operating income of $1,009 million (11.8% margin) versus $652 million in 2023; adjusted operating margin was 16.0% versus 14.6%.
- Net income of $890 million, or $3.65 per diluted share; adjusted EPS was $4.27, up from $3.78.
- Free cash flow of $942 million, versus $566 million in 2023, on operating cash flow of $1,263 million.
- Total backlog of $5,070 million at year-end 2024, roughly flat versus $5,088 million at year-end 2023; orders were $8,730 million, up 16.4%.
- 2025 outlook calls for total revenue growth of up to 2% and organic growth of 3% to 4%, alongside a January 2025 restructuring plan with $90 million to $110 million of charges.
- Pending tax litigation in Sweden: the Swedish Tax Agency's appeal to the Supreme Administrative Court is pending, and no unrecognized tax benefit is recorded for this position.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Xylem kept $0.10.
- Revenue$8.56B100.0%
- Cost of revenue−$5.35B62.5%
- Gross profit$3.21B37.5%
- Operating costs−$2.20B25.7%
- Operating income$1.01B11.8%
- Interest, other & tax−$119.0M1.4%
- Net income$890.0M10.4%
Where FY2024 revenue went
$8.56B- Cost of revenue: $5.35B, 62% of revenue
- SG&A: $1.91B, 22% of revenue
- Net income: $890.0M, 10% of revenue
- R&D: $230.0M, 2.7% of revenue
- Other operating costs: $62.0M, 0.7% of revenue
- Interest, other & tax: $119.0M, 1.4% of revenue
Kept 10% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed March 3, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $8.56B$7.36B | +16.3% |
| Cost of Revenue | $5.35B$4.65B | +15.1% |
| Gross Profit | $3.21B$2.72B | +18.2% |
| R&D Expenses | $230.00M$232.00M | −0.9% |
| SG&A Expenses | $1.91B$1.76B | +8.8% |
| Operating Income | $1.01B$652.00M | +54.8% |
| Net Income | $890.00M$609.00M | +46.1% |
| EPS (Basic) | $3.67$2.81 | +30.6% |
| EPS (Diluted) | $3.65$2.79 | +30.8% |
| Shares Outstanding (Basic) | 242.58M217.01M | +11.8% |
| Shares Outstanding (Diluted) | 243.52M218.18M | +11.6% |
05—Questions
Frequently Asked Questions
How did Xylem perform in 2024 compared with 2023?
Revenue rose 16.3% to $8,562 million, operating income increased 54.8% to $1,009 million, and net income grew to $890 million from $609 million. Part of the increase reflected the Evoqua acquisition, which contributed $786 million of revenue growth at constant currency, while organic revenue grew $424 million.
Which segments drove growth and which declined?
Water Solutions and Services revenue rose 39.2% to $2,343 million, Measurement and Control Solutions rose 16.1% to $1,871 million, and Water Infrastructure rose 15.3% to $2,555 million. Applied Water revenue fell 3.3% to $1,793 million, with organic declines of $58 million.
What is the 2025 outlook?
Management anticipates total revenue growth of up to 2% and organic revenue growth of 3% to 4% in 2025. It also expects restructuring and realignment charges of $90 million to $110 million and incremental savings of $75 million to $95 million from the January 2025 restructuring actions.
How strong is Xylem's liquidity and cash generation?
Available liquidity was approximately $2.1 billion, consisting of $1.1 billion of cash and $1 billion of available credit facilities. Operating cash flow was $1,263 million and free cash flow was $942 million. Total debt was $2,016 million at year-end 2024.
What were the main acquisitions and capital return actions in 2024?
In December 2024 Xylem acquired an additional 35.9% of Idrica for $154 million, bringing its ownership to 61.0%, and acquired Heusser for $40 million. Dividends paid were $350 million, and no shares were repurchased under the $500 million authorization during 2024, leaving $182 million available.
06—Continue