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XYL · Xylem

47 filings

10-Q

XYL 10-Q Quarterly Reports

Xylem - 47 quarterly reports

Filing record · 2016–202610-K1110-Q338-K102

XYL filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 102 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Dec ’17Dec ’17
  2. Leadership change8-K · Aug ’20Aug ’20
  3. Deal closed8-K · May ’23May ’23
  4. FY2024 annual report10-K · Mar ’25Mar ’25
  1. 2026-Q3

    Xylem Quarterly Report for Q3 Ended Sep 30, 2026

    Xylem Inc. reported third-quarter 2026 revenue of $2,201 million, a decrease of 3.0% from $2,268 million a year earlier. The filing attributes the decline mainly to $80 million of revenue lost from divestitures, partly offset by $17 million from acquisitions, while organic revenue fell $7 million. Profitability improved: operating income rose to $385 million from $334 million, and net income attributable to Xylem reached $291 million, or $1.25 per diluted share, versus $227 million, or $0.93, a year earlier. Adjusted EBITDA was flat at $527 million. For the nine months, revenue was $6,662 million (up $24 million), operating income was $1,019 million, and diluted EPS was $3.14 compared with $2.55. Orders were $2,331 million in the quarter, up from $2,181 million, and total backlog reached $5,466 million at September 30, 2026, compared with $4,819 million a year earlier. Management updated its 2026 outlook to a decline in total revenue of approximately 1% and flat organic revenue. The balance sheet shifted meaningfully. Total debt rose to $2,895 million from $1,942 million after new senior notes were issued, and the company repurchased shares for $1,580 million in cash during the nine months. Cash fell to $708 million from $1,479 million. The company also agreed to acquire the Cornell Pump and Roper Pump businesses for approximately $1,460 million, expected to close in the fourth quarter of 2026, and completed the WaterFleet and TriOS acquisitions in 2026.

    Oct 27, 2026
  2. 2026-Q2

    Xylem Quarterly Report for Q2 Ended Jun 30, 2026

    Xylem Inc. reported second-quarter 2026 revenue of $2,336 million, up 1.5% from $2,301 million a year earlier, with organic revenue growth of $30 million, or 1.3%. Operating income rose to $390 million from $305 million, and net income attributable to Xylem was $263 million, or $1.11 per diluted share, compared with $226 million, or $0.93, in the prior-year quarter. Gross margin improved to 41.2% from 38.8%. Management cites productivity savings and price realization as drivers of margin expansion, partially offset by inflation. Orders were $3,086 million, up 42.0% from $2,174 million, and total backlog reached $5,315 million at June 30, 2026. Capital allocation was a major theme in the first half of 2026. Xylem repurchased 10.5 million shares for $1,243 million, issued $1.0 billion of senior notes due 2033 and 2036, and paid $207 million in dividends. Cash and cash equivalents fell to $1,276 million from $1,479 million at year-end 2025, and long-term debt rose to $2,395 million from $1,408 million. Free cash flow for the six months was $219 million, compared with $169 million a year earlier. Management updated its 2026 outlook to total revenue growth of approximately 2% and organic revenue growth of 2% to 3%. Acquisition activity continued after quarter-end, with a definitive agreement signed on July 24, 2026 to acquire WaterFleet for approximately $200 million, and the July 1, 2026 closing of TriOS for approximately €190 million ($216 million). The filing also reports a $12 million IEEPA tariff refund receivable recognized in the quarter and a pending Swedish tax matter for which no unrecognized tax benefit has been recorded.

    Jul 28, 2026
  3. 2026-Q1

    Xylem Quarterly Report for Q1 Ended Mar 31, 2026

    Xylem Inc. reported first-quarter 2026 revenue of $2,125 million, up 2.7% from $2,069 million in the prior-year quarter, with favorable foreign currency translation of $65 million partially offset by an organic decline of $9 million (0.4%). Operating income rose to $244 million (11.5% operating margin) from $231 million, and net income attributable to Xylem was $193 million, or $0.79 per diluted share, versus $169 million and $0.69 a year earlier. Adjusted operating margin was 16.1% and adjusted EBITDA margin was 20.6%, per the company's non-GAAP reconciliations. Orders were $2,228 million, up 3.2%, though down 0.3% organically, and total backlog was $4,712 million, a decrease of 7.5% from a year earlier. Cash flow and capital returns dominated the quarter's financing activity. Operating cash flow was $108 million and free cash flow was $18 million, compared with $33 million and negative $38 million a year earlier. Xylem repurchased 4.8 million shares for $595 million, and cash and cash equivalents fell to $808 million from $1,479 million at December 31, 2025. The company's board authorized a new $1.5 billion repurchase program on February 25, 2026, of which $1.1 billion remained available at quarter end. Total debt was $1,938 million, and the $1 billion revolving credit facility was undrawn. The company raised its 2026 total revenue growth outlook to 2% to 3% and maintained its organic revenue growth outlook at 2% to 4%. It also agreed on March 25, 2026 to acquire an optical sensing and measurement systems company for approximately $219 million, expected to close in 2026. Management expects to incur $40 to $55 million in restructuring costs for the full year, and a pending Swedish tax matter of SEK837 million remains under appeal with no unrecognized tax benefit recorded.

    Apr 28, 2026
  4. 2025-Q3

    Xylem Quarterly Report for Q3 Ended Sep 30, 2025

    Xylem Inc. reported third-quarter 2025 revenue of $2,268 million, up 7.8% from $2,104 million in the prior-year quarter, with organic revenue growth of 6.9% led by double-digit organic growth in Measurement and Control Solutions and Water Solutions and Services. Operating income rose to $334 million (operating margin of 14.7%) from $280 million, while net income attributable to Xylem was $227 million, or $0.93 per diluted share, versus $217 million and $0.89 a year earlier. Results were weighed down by a $37 million loss on sale of businesses in the quarter, which included a $39 million loss on assets held for sale related to the international metering business. Orders were $2,181 million, down 0.9% from the prior year, and total backlog was $4,819 million at September 30, 2025, down 8.3% year over year. For the nine months ended September 30, 2025, revenue was $6,638 million (up 5.3%), operating income was $870 million, and net income attributable to Xylem was $622 million, or $2.55 per diluted share. Operating cash flow was $698 million and capital expenditures were $248 million, leaving free cash flow of $450 million, compared with $467 million a year earlier. Cash and cash equivalents were $1,191 million at quarter-end, and the company cited available liquidity of approximately $2.2 billion, including $1 billion of undrawn credit facilities. The company raised its 2025 total revenue growth outlook to 5% to 6% and organic revenue growth outlook to 4% to 5%. During the period, Xylem completed the acquisition of EnviroMix for $106 million in cash, reclassified its international metering business as held for sale, and divested the former Evoqua Magneto business. The company also recorded restructuring and asset impairment charges of $70 million for the nine months, and management expects restructuring costs of $90 million to $100 million for the full year. The Swedish tax assessment remains under litigation, with no unrecognized tax benefit recorded as of September 30, 2025.

    Oct 28, 2025
  5. 2025-Q2

    Xylem Quarterly Report for Q2 Ended Jun 30, 2025

    Xylem Inc. reported second-quarter 2025 revenue of $2,301 million, up 6.1% from $2,169 million a year earlier, with organic revenue growth of 5.5% across all segments, led by Measurement and Control Solutions. Gross margin rose to 38.8% from 37.8%, and operating income increased to $305 million (operating margin of 13.3%) from $253 million. Net income attributable to Xylem was $226 million, or $0.93 per diluted share, compared with $194 million, or $0.80, in the prior-year quarter. Adjusted earnings per share were $1.26, up 15.6%. Orders reached $2,174 million, up 4.1%, while total backlog of $5,018 million was down 2.7% from a year earlier. For the six months ended June 30, 2025, revenue was $4,370 million, up 4.0%, and net income attributable to Xylem was $395 million. Operating cash flow fell to $338 million from $377 million, and free cash flow was $169 million versus $230 million. Cash and cash equivalents were $1,170 million at June 30, 2025, and total debt was $1,996 million. Management raised its 2025 total revenue growth outlook to 4% to 5% and expects organic revenue growth of approximately 4%. Subsequent to the quarter, Xylem completed the acquisition of EMX Holdings, Inc. (EnviroMix) on July 23, 2025 for $108 million in cash. The filing also notes that the One Big Beautiful Bill Act was enacted on July 4, 2025, and that the company is assessing its impact on its consolidated financial statements.

    Jul 31, 2025
  6. 2025-Q1

    Xylem Quarterly Report for Q1 Ended Mar 31, 2025

    Xylem Inc. reported first-quarter 2025 revenue of $2,069 million, up 1.8% from $2,033 million a year earlier, with organic revenue growth of 3.3% led by strong volume in Measurement and Control Solutions and organic growth in Water Infrastructure. Operating income rose to $231 million (operating margin 11.2%) from $209 million, and net income attributable to Xylem increased to $169 million, or $0.69 per diluted share, from $153 million, or $0.63. Adjusted earnings per share were $1.03, up from $0.90 in the prior year period, according to the filing's non-GAAP reconciliation. Gross margin was essentially flat at 37.1%, with productivity savings and price offsetting inflation and unfavorable mix. Cash flow was weaker. Operating cash flow fell to $33 million from $89 million, and free cash flow was negative $38 million, compared with $15 million a year earlier. The filing attributes the decline mainly to higher accounts payable outflows, higher receivables and timing of customer payments. Orders declined 3.9% to $2,158 million, and total backlog was $5,095 million at March 31, 2025, down 3.4% year over year. Cash and equivalents were $1,059 million, and the company reported about $2.1 billion of available liquidity, including a $1 billion undrawn revolving credit facility. Management maintained its 2025 outlook of 1% to 2% total revenue growth and 3% to 4% organic revenue growth. The filing also reports restructuring charges of $17 million, an expected 2025 restructuring cost range of $60 to $70 million, the acquisition of Simply Clean, the divestiture of Evoqua Magneto for $61 million in cash, and a pending Swedish tax matter in which the company believes it is more likely than not to prevail.

    Apr 29, 2025
  7. 2024-Q3

    Xylem Quarterly Report for Q3 Ended Sep 30, 2024

    Xylem Inc. reported third-quarter 2024 revenue of $2,104 million, up 1.3% from $2,076 million a year earlier, with organic revenue up 1.1%, driven mainly by Measurement and Control Solutions. Net income rose to $217 million from $152 million, and diluted EPS was $0.89 versus $0.63. Operating income increased to $280 million (13.3% operating margin) from $191 million (9.2%), helped by lower special charges, restructuring and acquired intangible amortization. Orders were $2,201 million, up 8.4%, and total backlog reached $5,253 million at September 30, 2024. For the nine months, revenue was $6,306 million, up 20.2%, including $782 million from acquisitions and divestitures, with organic revenue up 5.4%. Net income was $564 million and diluted EPS was $2.32. Operating cash flow was $688 million, and free cash flow was $467 million compared with $205 million a year earlier. Cash and cash equivalents were $989 million, total debt was $1,994 million, and the company repaid its €250 million term loan in April 2024. Management updated its 2024 outlook to total revenue growth of 15% and organic revenue growth of approximately 5%. Subsequent to quarter-end, Xylem sent notice to exercise a call option to acquire an additional 35.9% equity interest in Idrica for approximately €146 million ($163 million), with closing expected in December 2024.

    Oct 31, 2024
  8. 2024-Q2

    Xylem Quarterly Report for Q2 Ended Jun 30, 2024

    Xylem Inc. reported second-quarter 2024 revenue of $2,169 million, up 26.0% from $1,722 million in the prior-year quarter. Organic revenue grew 9.2%, and acquisitions and divestitures, net, contributed $302 million. Net income rose to $194 million, or $0.80 per diluted share, from $92 million, or $0.45. Operating income was $253 million, up 112.6%, and adjusted earnings per share were $1.09, up 11.2%. Orders were $2,087 million, up 12.4% overall but down 1.2% on an organic basis. Gross margin was flat at 37.8%. For the six months ended June 30, 2024, revenue was $4,202 million, up 32.6%, and net income was $347 million. Operating cash flow improved to $377 million from $9 million, and free cash flow was $230 million. Cash and cash equivalents were $815 million at June 30, 2024, and total debt was $1,998 million, down from $2,284 million at year-end 2023, after the company settled its €250 million ($268 million) term loan with cash on hand in April 2024. Total backlog was $5,156 million, down 2.2% from June 30, 2023. Xylem updated its 2024 outlook to total revenue growth of 16% and organic revenue growth of 5% to 6%. The company expects $40 million to $50 million in restructuring costs for the full year. The filing also discloses a Swedish tax dispute involving an assessment of SEK837 million (approximately $79 million). A Swedish appellate court ruled in Xylem's favor on May 15, 2024, but the Swedish Tax Agency has appealed to the Supreme Administrative Court. Separately, Evoqua entered a non-prosecution agreement with the U.S. Attorney's Office and paid an $8.5 million criminal monetary penalty.

    Jul 30, 2024
  9. 2024-Q1

    Xylem Quarterly Report for Q1 Ended Mar 31, 2024

    Xylem Inc. reported first-quarter 2024 revenue of $2,033 million, up 40.4% from $1,448 million a year earlier. The filing attributes $480 million of the increase to acquisitions and divestitures, net, and organic revenue grew 7.1%, led by Measurement and Control Solutions and Water Solutions and Services. Net income rose to $153 million from $99 million, and diluted EPS was $0.63, up 16.7% from the prior year. On an adjusted basis, EPS was $0.90 versus $0.79. Operating income rose to $209 million, with an operating margin of 10.3%, and adjusted EBITDA margin expanded to 19.2% from 16.3%. The results reflect the May 2023 Evoqua acquisition, which added revenue, amortization and integration costs. Orders were $2,246 million, up 43.1%, and total backlog reached $5,272 million at March 31, 2024. Cash flow from operations was $89 million, compared with a use of $19 million a year earlier, and free cash flow was $15 million. Cash and cash equivalents were $947 million, and total debt was $2,270 million. The company paid $88 million in dividends and said it had about $1.9 billion of available liquidity, including $1 billion of undrawn credit facilities. The company updated its 2024 outlook to total revenue growth of 15% to 16% and organic revenue growth of 4% to 6%. Operating results were mixed across segments. Water Infrastructure and Measurement and Control Solutions improved, while Applied Water revenue declined 3.8% on an organic decline of $18 million driven by building solutions and industrial applications. The filing also discloses an ongoing U.S. Attorney's Office investigation into financial misstatements in Evoqua's public filings. The company says it does not expect a material adverse effect.

    May 2, 2024
  10. 2023-Q3

    Xylem Quarterly Report for Q3 Ended Sep 30, 2023

    Xylem Inc. reported third-quarter 2023 revenue of $2,076 million, up 50.4% from $1,380 million in the prior-year quarter. The increase reflects organic revenue growth of 9.7% together with contributions from the Evoqua acquisition, which Xylem completed on May 24, 2023. Net income was $152 million, or $0.63 per diluted share, compared with $12 million, or $0.07 per share, a year earlier. On an adjusted basis, earnings per share were $0.99, up 13.8%. Adjusted EBITDA was $411 million, with an adjusted EBITDA margin of 19.8%. Operating income was $191 million, a 9.2% operating margin, compared with 12.2% in the prior year, and the filing attributes the margin decline mainly to acquisition-related amortization, special charges and restructuring costs. The Evoqua transaction materially changed the balance sheet. Xylem issued 58,779,096 shares to Evoqua stockholders, and the total acquisition-date fair value of consideration was $6,900 million, which produced $4,442 million of goodwill and $2,245 million of identifiable intangible assets. Total assets rose to $15,905 million from $7,952 million at December 31, 2022, and total debt was $2,270 million. Orders reached $2,031 million, up 43.1%, and total backlog was $5,169 million at September 30, 2023. For the nine months, operating cash flow was $382 million and free cash flow was $238 million, and cash and cash equivalents stood at $705 million. For full-year 2023, management updated its outlook to total revenue growth of approximately 32% and organic revenue growth of approximately 11%. Management expects restructuring and realignment costs of approximately $95 million in 2023. The filing also discloses an ongoing U.S. Attorney's Office investigation, inherited from Evoqua, into whether financial misstatements were made in Evoqua's public filings. Xylem states it is cooperating and believes the matter will not have a material adverse effect on the company.

    Oct 31, 2023
  11. 2023-Q2

    Xylem Quarterly Report for Q2 Ended Jun 30, 2023

    Xylem Inc. reported second-quarter 2023 revenue of $1,722 million, up 26.2% from $1,364 million a year earlier, with organic growth of 14.6% and an 13.0% contribution from the Evoqua acquisition, which closed on May 24, 2023. Operating income fell to $119 million (6.9% margin) from $146 million (10.7%), and net income declined to $92 million from $112 million, with diluted EPS of $0.45 versus $0.62. The filing attributes the decline mainly to special charges of $67 million, primarily acquisition and integration costs tied to Evoqua, along with higher restructuring and acquired-intangible amortization. Management reported adjusted operating income of $259 million (15.0% adjusted margin) versus $173 million (12.7%) in the prior-year quarter, and adjusted EPS of $0.98 versus $0.98 is not stated; the filing gives adjusted EPS of $0.98 for Q2 2023 compared with $0.74 in Q2 2022. The acquisition materially changed the balance sheet. Total assets rose to $16,097 million from $7,952 million at December 31, 2022, driven by goodwill of $7,108 million and other intangible assets of $3,188 million. The Evoqua purchase price was $6,900 million, including $6,121 million in Xylem stock issued to Evoqua shareholders, and total debt rose to $2,507 million from $1,880 million, with cash and equivalents falling to $708 million. Operating cash flow was only $9 million for the first half of 2023 versus $32 million a year earlier, and free cash flow was negative at $(61) million, reflecting higher tax payments and transaction costs. Orders grew 10.2% in the quarter to $1,856 million, and total backlog reached $5,271 million at June 30, 2023. Management updated its 2023 outlook to total revenue growth of approximately 30% and organic revenue growth of 9% to 10%.

    Aug 4, 2023
  12. 2023-Q1

    Xylem Quarterly Report for Q1 Ended Mar 31, 2023

    Xylem Inc. reported first-quarter 2023 revenue of $1,448 million, up 13.8% from $1,272 million a year earlier, or 17.4% on a constant currency basis, driven by organic growth in all three segments and in all major geographic regions. Operating income rose to $131 million (a 9.0% operating margin) from $111 million, and net income increased to $99 million from $82 million. Diluted earnings per share were $0.54 versus $0.45. On an adjusted basis, which excludes restructuring and realignment costs and special charges, adjusted earnings per share were $0.72 compared with $0.47, and adjusted operating margin was 11.5% versus 9.1%. The company attributed the margin improvement mainly to price realization, productivity savings and favorable volume, partly offset by inflation and higher special charges. Special charges of $25 million related primarily to acquisition and integration costs for the pending Evoqua acquisition. Orders declined 8.5% to $1,570 million, or 5.4% on an organic basis, largely because the Measurement & Control Solutions segment lapped strong prior-year order growth. Total backlog nonetheless rose to $3,743 million at March 31, 2023, from $3,605 million at December 31, 2022. Operating cash flow was negative at $19 million, and free cash flow was negative at $35 million, though both improved year over year. Cash and cash equivalents were $837 million, and the company reported available liquidity of approximately $1.8 billion, including $1 billion of available credit facilities. The new $1 billion 2023 Five-Year Revolving Credit Facility was undrawn at quarter end. The filing describes the pending all-stock acquisition of Evoqua Water Technologies Corp., at an implied enterprise value of approximately $7.5 billion, which is expected to close in mid-2023 subject to shareholder, stockholder and regulatory approvals. Management updated its 2023 outlook to total and organic revenue growth of 8% to 9%. The company also disclosed a pending Swedish tax matter involving SEK800 million (approximately $77 million) and stated that it does not hold any unrecognized tax benefits related to that position.

    May 4, 2023
  13. 2022-Q3

    Xylem Quarterly Report for Q3 Ended Sep 30, 2022

    Xylem Inc. reported third-quarter 2022 revenue of $1,380 million, up from $1,265 million in the prior-year quarter, with organic growth of $199 million across all segments and end markets. Net income fell sharply to $12 million ($0.07 per diluted share) from $114 million ($0.63), driven primarily by a $140 million U.K. pension settlement expense recorded in the quarter, which the company completed by transferring the remaining benefit obligations to an insurer. Operating income was $168 million, up from $152 million, and adjusted operating income was $187 million (adjusted margin of 13.6%) versus $155 million a year earlier. Orders of $1,419 million declined 6.5% from the prior year, though orders for the nine months rose to $4,818 million, and total backlog reached $3,667 million at September 30, 2022. For the nine months, net cash from operating activities was $234 million, down from $318 million, reflecting higher working capital including increased safety stock and receivables, and free cash flow was $86 million. Cash and cash equivalents stood at $1,186 million at quarter-end, with total debt of $2,363 million. The company stated it intends to repay its Senior Notes due 2023 in December 2022 using cash on hand, and it reported available liquidity of approximately $2.0 billion. Investors should also note the Measurement & Control Solutions segment swung to an operating loss of $2 million in the quarter, including a $12 million asset impairment, and an adverse June 2022 court decision in Sweden on a tax assessment for SEK788 million (approximately $70 million), which the company is appealing with no unrecognized tax benefit recorded. The company raised its 2022 outlook to approximately 4% total revenue growth, with organic revenue growth of 9% to 10%.

    Nov 1, 2022
  14. 2022-Q2

    Xylem Quarterly Report for Q2 Ended Jun 30, 2022

    Xylem Inc. reported second-quarter 2022 revenue of $1,364 million, up 1.0% from $1,351 million a year earlier, and up 5.4% on a constant currency basis, driven by organic growth in Applied Water and Water Infrastructure partially offset by organic declines in Measurement & Control Solutions. Operating income fell 8.8% to $146 million (operating margin of 10.7% versus 11.8%), and diluted EPS was $0.62, flat year over year. Adjusted operating income was $155 million (adjusted margin of 11.4%) versus $166 million a year earlier, with management citing cost inflation, increased strategic investment spending and unfavorable mix, partially offset by price realization and productivity savings. Cash flow was weak in the first half: operating cash flow was $32 million versus $206 million in the prior-year period, and free cash flow was negative $63 million. Management attributed the decline to higher working capital, including safety stock and advance payments to suppliers to manage supply chain volatility, and higher receivables. Orders were $1,684 million in the quarter, up 1.4% (5.8% organic), and total backlog reached $3,757 million at June 30, 2022, up 35.2% from a year earlier. Management updated its 2022 outlook to total revenue growth of 3% to 5% and organic revenue growth of 8% to 10%. The filing also discloses an adverse Swedish tax court decision of $80 million, which Xylem intends to appeal; no unrecognized tax benefit has been recorded for this matter. Cash and cash equivalents were $1,113 million at June 30, 2022, and total debt was $2,400 million, including $521 million classified as short-term.

    Aug 2, 2022
  15. 2022-Q1

    Xylem Quarterly Report for Q1 Ended Mar 31, 2022

    Xylem Inc. reported first-quarter 2022 revenue of $1,272 million, up 1.3% from $1,256 million in the prior-year quarter, or 3.9% on a constant currency basis, driven by organic growth in Applied Water and Water Infrastructure partially offset by organic declines in Measurement & Control Solutions. Net income was $82 million, or $0.45 per diluted share, compared with $87 million, or $0.48 per diluted share, a year earlier. Operating income fell 16.5% to $111 million, with operating margin of 8.7% versus 10.6%, as cost inflation, increased logistics costs and strategic investments pressured margins. The company stated adjusted operating income was $116 million (adjusted margin of 9.1%) versus $143 million (11.4%) a year earlier. Orders rose 11.5% to $1,715 million (14.5% organic), and total backlog reached $3,552 million at March 31, 2022, up from $3,240 million at December 31, 2021. Management attributed the Measurement & Control Solutions organic decline to electronic component shortages affecting smart metering. Cash flow was weak in the quarter: operating activities used $81 million and free cash flow was negative $130 million, compared with negative $65 million a year earlier, reflecting higher working capital, including safety stock and advance payments to suppliers. Cash and cash equivalents fell to $1,117 million, and short-term debt rose to $555 million following the 2023 notes becoming current. For 2022, Xylem anticipates total revenue growth of 1% to 3% and organic revenue growth of 4% to 6%. The company stated that available liquidity was approximately $1.9 billion, consisting of $1.1 billion of cash and $800 million of available credit facilities.

    May 4, 2022
  16. 2021-Q3

    Xylem Quarterly Report for Q3 Ended Sep 30, 2021

    Xylem Inc. reported third-quarter 2021 revenue of $1,265 million, up 3.7% from $1,220 million a year earlier, and net income of $114 million, or $0.63 per diluted share, versus $37 million, or $0.20, in the prior-year quarter. On a constant currency basis, revenue rose 2.0%, driven by organic growth in Water Infrastructure and Applied Water, partially offset by Measurement & Control Solutions. Operating income was $152 million (a 12.0% margin) compared with $73 million, and adjusted operating income was $155 million (a 12.3% adjusted margin) versus $158 million (13.0%) a year earlier, with management citing cost inflation, strategic investment spending, and logistics costs as drivers of the lower adjusted margin. Nine-month results show revenue of $3,872 million, up 10.5%, and net income of $314 million, or $1.73 diluted EPS. Orders grew 21.8% in the quarter to $1,518 million and 26.1% year to date to $4,716 million, lifting total backlog to $2,964 million at September 30, 2021, up 35.2% year over year. Management raised its 2021 total revenue growth outlook to 5% to 7%, with organic growth of 3% to 4%, and noted that supply chain constraints, particularly electronic component shortages, continue to affect timing. Balance sheet and cash flow were weaker. Operating cash flow for the nine months was $318 million, down from $454 million, and free cash flow was $191 million. Cash and cash equivalents fell to $1,255 million from $1,875 million at year-end 2020. On October 1, 2021, the company settled its $600 million 4.875% Senior Notes due 2021 with cash on hand. Management described available liquidity of approximately $2.1 billion, consisting of $1.3 billion of cash and $800 million of available credit facilities.

    Nov 2, 2021
  17. 2021-Q2

    Xylem Quarterly Report for Q2 Ended Jun 30, 2021

    Xylem Inc. reported second-quarter 2021 revenue of $1,351 million, up 16.5% from $1,160 million a year earlier, with organic revenue growth of $128 million (11.0%) across all segments. Operating income rose to $160 million (11.8% margin) from $54 million (4.7%), helped by lower restructuring and realignment costs and the absence of 2020 special charges. Net income was $113 million, or $0.62 diluted EPS, compared with $31 million, or $0.17, in the prior-year quarter. For the six months, revenue was $2,607 million and net income was $200 million, or $1.10 diluted EPS. Orders were $1,660 million for the quarter, up 34.7% (28.8% organic), and total backlog reached $2,779 million at June 30, 2021, up 38.1% from a year earlier. Management noted that the global electronic component shortage is delaying large clean water utility project deployments, which it expects to continue through the rest of 2021. The 2021 outlook calls for total revenue growth of 8% to 10% and organic growth of 6% to 8%. Liquidity remained solid, with cash and equivalents of $1,840 million and available liquidity of approximately $2.6 billion, including $800 million of available credit facilities. Operating cash flow for the six months was $206 million and free cash flow was $126 million. Management expects to repay $600 million of Senior Notes due in 2021 from cash. The filing also discloses a roughly $80 million Swedish tax assessment that Xylem is contesting, for which no unrecognized tax benefit has been recorded.

    Aug 3, 2021
  18. 2021-Q1

    Xylem Quarterly Report for Q1 Ended Mar 31, 2021

    Xylem Inc. reported first-quarter 2021 revenue of $1,256 million, up 11.8% from $1,123 million in the prior-year quarter, or 7.9% on a constant currency basis, driven by organic growth across all end markets. Operating income rose to $133 million (10.6% margin) from $61 million (5.4% margin), and net income increased to $87 million from $38 million. Diluted earnings per share were $0.48 versus $0.21. Adjusted operating income was $143 million (11.4% adjusted margin), and the company cited cost reductions from productivity and restructuring initiatives, favorable volume, and lower quality management costs as primary drivers, partially offset by cost inflation and strategic investments. Orders were $1,538 million, up 22.0% (18.6% organic), and total backlog reached $2,403 million at March 31, 2021, up 13.1% from December 31, 2020. Cash flow was weaker: net cash used by operating activities was $26 million, and free cash flow was negative $65 million, reflecting higher working capital to support growth as well as higher interest and tax payments. Cash and cash equivalents declined to $1,688 million from $1,875 million, and the company reported total debt of $3,060 million, with $600 million of Senior Notes due in 2021 expected to be repaid from cash. Management guided to 2021 total revenue growth of 8% to 10% and organic revenue growth of 5% to 7%, with restructuring and realignment costs of $50 million to $60 million. The company stated it had approximately $2.5 billion of available liquidity, consisting of $1.7 billion of cash and $800 million of available credit facilities, and that its securities are rated investment grade.

    May 4, 2021
  19. 2020-Q3

    Xylem Quarterly Report for Q3 Ended Sep 30, 2020

    Xylem Inc. reported third-quarter 2020 revenue of $1,220 million, down 5.9% from $1,296 million a year earlier, with the decline at constant currency driven entirely by organic declines across all segments, mainly from industrial and utility end markets. Operating income rose to $73 million from $11 million, but this comparison is distorted by lower special charges and restructuring costs versus 2019. Net income fell to $37 million ($0.20 diluted EPS) from $65 million ($0.36), reflecting a $58 million goodwill impairment charge tied to the AIA reporting unit within Measurement & Control Solutions, which reflects COVID-19 volume impacts on the assessment services business. Adjusted operating margin declined to 13.0% from 15.1%, as cost inflation, unfavorable volume, and unfavorable mix offset productivity savings. For the nine months, revenue was $3,503 million, down 9.7%, and net income was $106 million versus $283 million. Orders were $1,246 million in the quarter, down 7.4%, while total backlog rose 21.7% from December 31, 2019 to $2,192 million. Operating cash flow was $454 million and free cash flow was $318 million for the nine months. Xylem issued $1 billion of Green Bond senior notes in June 2020, and cash and cash equivalents reached $1,402 million at September 30, 2020, with total debt of $3,093 million. The company withdrew its 2020 guidance in March, and now expects fourth-quarter revenue to be down 5% to 7%, or 6% to 8% organically. Management stated that COVID-19 is expected to continue adversely affecting results beyond the third quarter of 2020. The company also expects 2020 restructuring and realignment costs of $75 million to $85 million, and has restructuring actions planned through 2021. Liquidity is described as sufficient, with approximately $2.4 billion available including cash, undrawn credit facilities, and short-term investments.

    Oct 29, 2020
  20. 2020-Q2

    Xylem Quarterly Report for Q2 Ended Jun 30, 2020

    Xylem Inc. reported a sharp decline in second-quarter 2020 results as COVID-19 weighed on demand across all three segments. Revenue for the quarter was $1,160 million, down from $1,345 million a year earlier, with a 11.9% organic decline at constant currency. Operating income fell to $54 million (4.7% margin) from $171 million (12.7%), reflecting restructuring and realignment costs and special charges, while net income dropped to $31 million, or $0.17 per diluted share, from $139 million, or $0.77. On an adjusted basis, operating income was $108 million (9.3% margin) versus $192 million in the prior-year quarter. Orders were $1,232 million, down 11.5%, though total backlog rose 11.8% from December 31, 2019 to $2,013 million. The balance sheet and liquidity strengthened materially. Cash and cash equivalents rose to $1,577 million from $724 million at year-end 2019, driven by $1 billion of Green Bond senior notes issued June 26, 2020 (two $500 million tranches due 2028 and 2031). Total debt increased to $3,243 million from $2,316 million. Management states the company had approximately $2.4 billion of available liquidity, consisting of $1.6 billion of cash and $800 million of available credit facilities. The company withdrew full-year 2020 guidance in March and is providing only a third-quarter revenue outlook of a 10% to 14% decline, or 8% to 12% organically. Management committed to new restructuring actions on June 2, 2020, with expected 2020 restructuring and realignment costs of $80 million to $100 million and expected net savings of approximately $67 million in 2020. The company also amended its 2019 credit facility, shifting the financial covenant to a net leverage test through the quarter ending September 30, 2021, and restricting stock repurchases until March 31, 2021. A Swedish tax assessment of approximately $80 million remains under appeal, with no related unrecognized tax benefit recorded.

    Jul 30, 2020
  21. 2020-Q1

    Xylem Quarterly Report for Q1 Ended Mar 31, 2020

    Xylem Inc. reported first-quarter 2020 revenue of $1,123 million, down 9.2% from $1,237 million a year earlier, with the decline driven entirely by organic volume reductions across all three segments as COVID-19 disrupted operations and customer demand. Operating income fell to $61 million (5.4% margin) from $109 million (8.8% margin), and net income dropped to $38 million, or $0.21 per diluted share, from $79 million, or $0.43. Adjusted operating income was $70 million (6.2% adjusted margin) versus $133 million (10.8%) a year earlier, reflecting unfavorable volume, cost inflation, a warranty issue at Sensus, and unfavorable mix. Orders declined 4.1% to $1,261 million, while total backlog rose 4.8% from year-end to $1,887 million. Cash flow weakened sharply, with operating activities using $2 million compared with $83 million provided in the prior-year quarter, and free cash flow of negative $53 million. Management withdrew full-year 2020 guidance on March 31, 2020, and instead guided to second-quarter total organic revenue down 20% to 30%. The company identified approximately $100 million in net reductions of planned spending for the rest of 2020 and said it is reevaluating capital expenditures, strategic investments and dividends. Liquidity remained substantial, with approximately $1.7 billion of cash and available credit facilities as of the filing. Total debt was $2,490 million at March 31, 2020, up from $2,316 million at year-end, largely due to $191 million of other borrowings and higher short-term debt. Subsequent to quarter-end, Xylem arranged a €100 million 12-month term loan with ING Bank and a $50 million 12-month term loan with ANZ, which was fully drawn. The company also disclosed an unresolved Swedish tax assessment of roughly $80 million, which management believes it is more likely than not to prevail on, and recorded no related unrecognized tax benefit.

    May 5, 2020
  22. 2019-Q3

    Xylem Quarterly Report for Q3 Ended Sep 30, 2019

    Xylem Inc. reported third-quarter 2019 revenue of $1,296 million, up 0.7% from $1,287 million a year earlier (2.6% at constant currency), with organic revenue growth of $37 million, or 2.9%. Operating income fell to $11 million (0.8% margin) from $176 million, driven by a $148 million goodwill impairment charge tied to the Advanced Infrastructure Analytics (AIA) reporting unit, plus $7 million of asset impairments and higher restructuring and realignment costs. Net income declined to $65 million, or $0.36 per diluted share, from $130 million, or $0.72. Excluding special charges and restructuring and realignment costs, adjusted operating income was $196 million (15.1% adjusted margin) versus $188 million (14.6%) in the prior-year quarter. For the nine months, revenue rose 1.5% to $3,878 million and net income fell to $283 million from $324 million. Operating cash flow was $451 million, up from $388 million, and free cash flow was $276 million. Orders were $1,346 million in the quarter, down 0.7%, while total backlog reached $1,868 million at September 30, 2019, up 7.2% year over year. Cash and cash equivalents rose to $453 million, and total debt was $2,336 million, including $306 million of Euro commercial paper outstanding. The company also disclosed a Swedish tax assessment of approximately $80 million for tax, penalties and interest, which it is appealing and for which no unrecognized tax benefit has been recorded. The quarter's results were shaped by the AIA impairment and the Measurement & Control Solutions segment, which posted an operating loss of $136 million. Management stated it expects total 2019 revenue growth of approximately 1% and organic growth of 3% to 4%, and expects to incur $75 million to $85 million in restructuring and realignment costs during 2019.

    Oct 31, 2019
  23. 2019-Q2

    Xylem Quarterly Report for Q2 Ended Jun 30, 2019

    Xylem Inc. (XYL) reported second-quarter 2019 revenue of $1,345 million, up from $1,317 million in the second quarter of 2018, with net income of $139 million and diluted earnings per share of $0.77, compared with $115 million and $0.64 a year earlier. Operating income was flat at $171 million, and operating margin declined to 12.7% from 13.0%, reflecting higher restructuring and realignment costs of $21 million. On a constant currency basis, revenue rose 4.6% in the quarter, driven by organic revenue growth of $69 million, or 5.2%, across all three segments. Adjusted operating income was $192 million, with an adjusted operating margin of 14.3% versus 13.8% in 2018. For the six months, revenue was $2,582 million and net income was $218 million. Total orders for the quarter were $1,392 million, up 1.0% (3.9% organic), and total backlog stood at $1,865 million at June 30, 2019, up 9.3% from June 30, 2018. Cash flow from operating activities was $206 million for the six months, and free cash flow was $77 million, down from $90 million. Management reaffirmed 2019 total revenue growth guidance of 2% to 3%, with organic growth expected at 5% to 6%, and expects restructuring and realignment costs of $60 million to $70 million for the year. Balance sheet items to note include total debt of $2,453 million, with commercial paper of $259 million outstanding, and a Swedish tax assessment of approximately $80 million for tax, penalties and interest, which Xylem is appealing and for which it has recorded no unrecognized tax benefit.

    Aug 1, 2019
  24. 2019-Q1

    Xylem Quarterly Report for Q1 Ended Mar 31, 2019

    Xylem Inc. reported first-quarter 2019 revenue of $1,237 million, up 1.6% from $1,217 million in the prior-year quarter, with 5.8% growth at constant currency and organic revenue growth of $76 million, or 6.2%, driven by all three segments. Net income was flat at $79 million, and diluted EPS was $0.43, unchanged from the prior year. Operating income declined 3.5% to $109 million, with operating margin falling to 8.8% from 9.3%, reflecting higher restructuring and realignment costs, cost inflation and increased strategic spending. Adjusted operating income was $133 million (adjusted margin of 10.8%) versus $135 million (11.1%) a year earlier, and adjusted EPS was $0.52 versus $0.51. Orders were $1,315 million, down 0.4% as reported but up 4.0% organically, and total backlog rose to $1,833 million. Cash flow from operations was $83 million, compared with $63 million in the prior-year period, helped by working capital improvements. Capital expenditures were $69 million, leaving free cash flow of $14 million. Total debt was $2,348 million at March 31, 2019, and the company terminated its 2015 revolving credit facility and entered a new $800 million five-year facility on March 5, 2019, which was undrawn at quarter end. The company repurchased $39 million of common stock in the quarter and paid $44 million in dividends. The Measurement & Control Solutions segment was the main pressure point: its operating income fell 51.5% to $16 million, with operating margin down to 4.3% from 8.9%. Water Infrastructure and Applied Water both grew operating income. For 2019, the company expects total revenue growth of 2% to 4% and organic growth of 4% to 6%, with restructuring and realignment costs of $60 million to $70 million.

    May 2, 2019
  25. 2018-Q3

    Xylem Quarterly Report for Q3 Ended Sep 30, 2018

    Xylem Inc. reported third-quarter 2018 revenue of $1,287 million, up 7.7% from $1,195 million in the prior-year quarter, with organic revenue growth of $94 million, or 7.9%. Operating income rose to $176 million, a 13.7% margin versus 12.7% a year earlier, and diluted earnings per share were $0.72 versus $0.58. For the nine months, revenue was $3,821 million, up 11.4%, and net income was $324 million, with diluted EPS of $1.79 versus $1.44. Orders grew 8.6% in the quarter to $1,356 million, and total backlog reached $1,742 million at September 30, 2018, up 12.0% year over year. The balance sheet expanded materially during the period. Xylem spent $433 million on acquisitions in the first nine months, mainly Pure Technologies Ltd., acquired January 31, 2018 for approximately $420 million net of cash received, and funded it partly with a €225 million (about $264 million) term loan and $410 million of short-term debt issued. Total debt rose to $2,531 million from $2,200 million at year-end 2017, and goodwill increased to $3,008 million. Operating cash flow was $388 million for the nine months, while capital expenditures of $171 million reduced free cash flow to $217 million, compared with $260 million a year earlier. Management's 2018 outlook anticipates total revenue growth of 10% to 11% and organic revenue growth of approximately 7% to 8%. The company also disclosed a $19 million restructuring charge for the nine months and expects approximately $22 million of restructuring costs for the full year. In the quarter, the effective tax rate was 19.0%, reflecting the 2017 Tax Act, which produced a $154 million Transition Tax obligation to date and a $108 million deferred tax benefit from the corporate rate reduction.

    Oct 30, 2018
  26. 2018-Q2

    Xylem Quarterly Report for Q2 Ended Jun 30, 2018

    Xylem Inc. reported second-quarter 2018 revenue of $1,317 million, up 13.1% from $1,164 million in the second quarter of 2017, with constant-currency revenue up 10.7% and organic revenue growth of $98 million, or 8.4%. Operating income rose to $171 million (13.0% margin) from $137 million (11.8%), and diluted EPS was $0.64 versus $0.55 a year earlier. For the six months, revenue was $2,534 million (up 13.4%), net income attributable to Xylem was $194 million, and diluted EPS was $1.07 versus $0.86. Orders grew 13.7% to $1,378 million in the quarter, and total backlog reached $1,707 million at June 30, 2018. Cash flow from operating activities was $201 million for the six months, up from $151 million, while investing outflows of $537 million were driven mainly by the $430 million spent on acquisitions, primarily Pure Technologies, which was acquired on January 31, 2018 for approximately $420 million net of cash received. Total debt rose to $2,540 million from $2,200 million, reflecting a $261 million term loan and $98 million of commercial paper used in part to fund the Pure acquisition. Cash and cash equivalents declined to $321 million from $414 million at year-end 2017. Management's 2018 outlook calls for total revenue growth of 10% to 11% and organic growth of approximately 6% to 7%, with expected integration, restructuring and realignment costs of $45 million for the year. The filing also notes that the Tax Act provisional estimates remain open, with GILTI accounting not yet complete.

    Jul 31, 2018
  27. 2018-Q1

    Xylem Quarterly Report for Q1 Ended Mar 31, 2018

    Xylem Inc. reported first-quarter 2018 revenue of $1,217 million, up from $1,071 million in the prior-year quarter, with net income of $79 million (diluted EPS of $0.43) versus $56 million ($0.31) a year earlier. Operating income rose to $113 million from $86 million, with operating margin of 9.3% compared to 8.0%. The company cited organic revenue growth of $77 million, or 7.2%, across all end markets, along with $20 million of acquisition revenue, partially offset by $5 million from divestitures. Orders were $1,320 million, up 16.1%, and total backlog reached $1,735 million at March 31, 2018. The quarter was also marked by the acquisition of Pure Technologies Ltd. on January 31, 2018, for approximately $420 million net of cash received, funded partly by a 12-month €225 million (about $279 million) term loan and $371 million of short-term debt. Total debt rose to $2,599 million from $2,200 million at year-end 2017, and cash and cash equivalents declined to $297 million from $414 million. Operating cash flow was $63 million, while capital expenditures of $61 million produced free cash flow of $2 million. Management's 2018 outlook calls for total revenue growth of 8% to 10%, including roughly 2% from recently announced AIA-platform acquisitions, and organic growth of 4% to 6%. The company expects $35 million in integration, restructuring and realignment costs for 2018. Share repurchases totaled $33 million in the quarter, with up to $388 million remaining under the $500 million authorization.

    May 1, 2018
  28. 2017-Q3

    Xylem Quarterly Report for Q3 Ended Sep 30, 2017

    Xylem Inc. reported third-quarter 2017 revenue of $1,195 million, up 33.2% from $897 million a year earlier, with growth driven mostly by the Sensus acquisition, which contributed $234 million of revenue in the quarter. Organic revenue grew $44 million. Operating income rose 39.4% to $152 million, with operating margin of 12.7% versus 12.2%. Diluted EPS was $0.58, up from $0.41. For the nine months, revenue was $3,430 million, up 28.2%, and operating cash flow was $379 million. Free cash flow excluding Sensus acquisition-related costs was $283 million. The company now reports three segments: Water Infrastructure, Applied Water, and Measurement & Control Solutions (formerly Sensus & Analytics). Measurement & Control Solutions revenue rose to $321 million in the quarter from $76 million, reflecting the Sensus acquisition, which closed October 31, 2016 for $1,766 million. Total backlog was $1,556 million at September 30, 2017, up 100.8% from September 30, 2016 and 20.4% from December 31, 2016. Balance sheet items include total debt of $2,286 million, cash of $283 million, and stockholders' equity of $2,463 million. Management's 2017 outlook calls for total revenue growth of 24% to 25%, with organic revenue growth in the low-single-digits, and restructuring and realignment costs of approximately $50 million.

    Oct 31, 2017
  29. 2017-Q2

    Xylem Quarterly Report for Q2 Ended Jun 30, 2017

    Xylem Inc. reported second-quarter 2017 revenue of $1,164 million, up 24.9% from $932 million a year earlier, with revenue growth driven mostly by the Sensus acquisition, which contributed $238 million. Organic revenue grew $10 million in the quarter. Operating income rose 27.5% to $139 million, with operating margin of 11.9% versus 11.7%. Diluted earnings per share were $0.55, up from $0.39, and adjusted earnings per share were $0.59 versus $0.48. Orders were $1,212 million, up 31.3%, or 8.1% on an organic basis, and total backlog reached $1,531 million at June 30, 2017. For the six months, net income attributable to Xylem was $155 million, and operating cash flow was $151 million. Free cash flow was $74 million, or $96 million excluding Sensus acquisition-related costs. Total debt stood at $2,411 million and cash at $288 million at quarter end. The company also reorganized its segments, moving Analytics into Sensus to form the new Sensus & Analytics segment, which now generated $321 million of quarterly revenue and $29 million of operating income. Management expects 2017 total revenue growth of 24% to 25%, with organic revenue growth in the low-single-digits, and anticipates about $40 million in Sensus integration, restructuring and realignment costs during 2017. Gross margin slipped 20 basis points to 39.4% as cost inflation and Sensus mix offset procurement and restructuring savings. Interest expense rose to $21 million for the quarter from $20 million, reflecting debt raised to fund the Sensus purchase.

    Aug 1, 2017
  30. 2017-Q1

    Xylem Quarterly Report for Q1 Ended Mar 31, 2017

    Xylem Inc. reported first-quarter 2017 revenue of $1,071 million, up 26.4% from $847 million in the first quarter of 2016, with the increase driven mainly by $242 million of revenue from the Sensus acquisition completed October 31, 2016. Organic revenue decreased $7 million, reflecting declines in the public utility and industrial end markets, partially offset by growth in residential and commercial markets. Net income fell to $56 million from $66 million, and diluted earnings per share were $0.31 versus $0.37 a year earlier. Adjusted earnings per share were $0.39, up from $0.35 on the company's adjusted basis. Operating income rose 8.9% to $86 million, but operating margin declined to 8.0% from 9.3%, mainly because of $10 million of Sensus acquisition-related costs, higher restructuring and realignment costs and special charges. Adjusted operating margin was 10.5% versus 10.9%, with cost inflation and strategic investments cited as the largest pressures. Orders rose 28.0% to $1,137 million, and total backlog reached $1,146 million at March 31, 2017, up 47.7% year over year. At quarter-end, Xylem held $287 million in cash and total debt of $2,387 million, against stockholders' equity of $2,251 million. Operating cash flow was $52 million and free cash flow was $9 million, or $26 million excluding Sensus acquisition-related costs. The company stated that its present sources of funds should provide sufficient liquidity over the next twelve months. Its 2017 outlook anticipates total revenue growth of 20% to 22%, with organic growth in the low-single-digits.

    May 2, 2017
  31. 2016-Q3

    Xylem Quarterly Report for Q3 Ended Sep 30, 2016

    Xylem Inc. reported third-quarter 2016 revenue of $897 million, a decrease of 0.6% from $902 million a year earlier, while nine-month revenue rose 0.6% to $2,676 million. Net income fell to $73 million for the quarter (EPS of $0.41, versus $0.48) and to $210 million for the nine months (EPS of $1.17, versus $1.24 diluted). Operating income declined 9.2% in the quarter to $109 million, with operating margin of 12.2% versus 13.3%. The filing attributes the decline to higher restructuring and realignment charges and special charges, which rose $8 million and $10 million respectively. Management reported adjusted operating income of $131 million (14.6% margin) for the quarter and adjusted EPS of $0.54, up 10.2%. Gross margin improved to 39.8% for the quarter from 38.9%, driven by sourcing savings and continuous improvement, which more than offset cost inflation. Orders were $946 million, up 0.7%. Water Infrastructure revenue rose 2.0% for the nine months on public utility strength, while Applied Water revenue declined 1.4%. Management kept its 2016 outlook for low single-digit organic revenue growth, with industrial markets expected to decline in the mid-single digits. The balance sheet shows total assets of $4.78 billion and total debt of $1.21 billion at September 30, 2016. The company issued $540 million of euro-denominated senior notes in March 2016 and repaid $608 million of 2016 notes. Subsequent to quarter-end, Xylem agreed to acquire the Sensus subsidiaries for $1.7 billion, net of cash acquired, closing on October 31, 2016, and financed the deal with $900 million of new senior notes issued October 11, 2016, a term loan, and commercial paper.

    Nov 1, 2016
  32. 2016-Q2

    Xylem Quarterly Report for Q2 Ended Jun 30, 2016

    Xylem Inc. reported second-quarter 2016 revenue of $932 million, up 1.3% from $920 million a year earlier, with a 2.7% increase on a constant currency basis. Operating income rose 4.8% to $109 million, and operating margin improved to 11.7% from 11.3%. Diluted earnings per share were $0.39, down from $0.41, while adjusted earnings per share rose to $0.48 from $0.43. Net income was $71 million compared with $74 million in the prior-year quarter. Orders of $923 million declined 2.2%, and total backlog stood at $727 million at June 30, 2016, down 10.5% from a year earlier. For the first half of 2016, revenue was $1,779 million and operating income was $188 million, flat with the prior year. Gross margin improved to 39.2% from 37.7%, supported by global sourcing and continuous improvement initiatives. Operating cash flow was $125 million and free cash flow was $63 million, compared with $66 million a year earlier. Restructuring charges rose to $12 million for the six months, and management reiterated expectations for low single-digit organic revenue growth in 2016. Balance sheet activity was significant in the period. Xylem acquired Tideland Signal Corporation for $70 million and issued €500 million of 2.250% Senior Notes due 2023. It used the proceeds to settle $600 million of 3.550% Senior Notes due 2016 for $607 million, including a $7 million make-whole premium recorded as interest expense. Cash and cash equivalents declined to $586 million from $680 million at year-end 2015, and total debt was $1,234 million.

    Aug 2, 2016
  33. 2016-Q1

    Xylem Quarterly Report for Q1 Ended Mar 31, 2016

    Xylem Inc. reported first-quarter 2016 revenue of $847 million, up 1.2% from $837 million a year earlier, and up 4.4% on a constant currency basis, driven by organic growth in public utility and commercial markets and the Tideland acquisition, partly offset by residential declines. Operating income was $79 million, down 4.8% from $83 million, with operating margin of 9.3% versus 9.9%. Excluding restructuring and realignment charges and special charges, adjusted operating income rose to $92 million, with an adjusted operating margin of 10.9% versus 10.8%. Net income was $66 million, or $0.37 per diluted share, compared with $64 million, or $0.35, a year earlier. The quarter's income tax line was a $1 million benefit, an effective tax rate of negative 1.6%, reflecting the settlement of a tax examination. Orders were $888 million, down 3.0% but flat on an organic basis, and total backlog was $776 million. The company's balance sheet changed materially: cash rose to $1,193 million from $680 million, and total debt increased to $1,873 million from $1,274 million after the March 2016 issuance of EUR 500 million of 2.250% Senior Notes due 2023 and a $600 million draw-down of short-term and long-term debt. Operating cash flow was $41 million and free cash flow was $4 million. Management continues to expect low-to-mid single-digit organic revenue growth in 2016, and the company reported that the Senior Notes due 2016 were settled on April 11, 2016 for $607 million, including $7 million of make-whole interest expense. The filing also reports that the Spanish competition fine was paid in March 2016 and the matter is now closed, and that the company expects approximately $15 million in restructuring costs for 2016.

    May 3, 2016
  34. 2015-Q3

    Xylem Quarterly Report for Q3 Ended Sep 30, 2015

    Xylem Inc. reported third-quarter 2015 revenue of $902 million, down from $963 million in the prior-year quarter, and net income of $88 million, or $0.48 per diluted share, versus $106 million and $0.58 a year earlier. Management attributed the operating income decline of $10 million (to $120 million) to cost inflation, foreign exchange impacts and unfavorable mix, partly offset by cost savings from continuous improvement and restructuring. On a constant currency basis, revenue rose 2.1% in the quarter, with organic growth led by public utility and industrial end markets, while orders of $939 million were flat organically but down 8.6% as reported. For the nine months, revenue was $2,659 million (down 7.5%), net income was $226 million and operating cash flow was $260 million, giving free cash flow of $182 million versus $176 million a year earlier. Management continues to expect low-single-digit organic revenue growth for 2015, with foreign exchange translation expected to be a high-single-digit headwind. Backlog stood at $812 million at September 30, 2015. The balance sheet shows cash of $611 million, total debt of $1,275 million, and stockholders' equity of $2,043 million. During the quarter the Board authorized a new share repurchase program of up to $500 million, and $470 million remained available under it at quarter end. The company also disclosed a Korea Fair Trade Commission fine of approximately $1.6 million and an internal investigation into the conduct of its Korean subsidiary, which it said is not expected to have a material adverse effect; the SEC has informed the company it will not bring an enforcement action.

    Oct 29, 2015
  35. 2015-Q2

    Xylem Quarterly Report for Q2 Ended Jun 30, 2015

    Xylem Inc. reported second-quarter 2015 revenue of $920 million, down 8.5% from $1,005 million in the prior-year quarter, but flat on a constant currency basis, with organic growth of 1.0% offset by the divestiture of its Wolverhampton valves business. Operating income fell to $104 million from $116 million, and net income declined to $74 million from $86 million, or $0.41 per diluted share versus $0.47. The filing attributes the margin pressure mainly to cost inflation, unfavorable foreign exchange translation, unfavorable mix and the divestiture, partly offset by cost-saving initiatives and restructuring savings. Gross margin contracted to 37.8% from 38.6%. For the first six months, revenue was $1,757 million versus $1,911 million, and net income rose 2.2% to $138 million, helped by a $9 million gain from the sale of businesses. Operating cash flow was $123 million compared with $98 million, and free cash flow was $66 million versus $50 million. Orders were $944 million for the quarter, down 8.4% as reported but up 1.0% organically, and backlog stood at $812 million at June 30, 2015. Management reiterated its 2015 outlook for low single-digit organic revenue growth, with the filing noting a continued negative foreign exchange impact in the high single digits. Investors should also note an ongoing internal investigation at Xylem South Korea covering bid-rigging allegations and Foreign Corrupt Practices Act compliance, which the company has voluntarily disclosed to the SEC and the Department of Justice. The company states it cannot reasonably estimate any potential liability but does not expect a material adverse effect. Liquidity remained solid, with $600 million in cash and an undrawn $600 million revolving credit facility.

    Jul 30, 2015
  36. 2015-Q1

    Xylem Quarterly Report for Q1 Ended Mar 31, 2015

    Xylem Inc. reported first-quarter 2015 revenue of $837 million, down from $906 million in the first quarter of 2014, with the filing stating revenue was flat on a constant currency basis due to organic growth of 1.0% offset by the divestiture of the Wolverhampton valves business. Operating income rose to $83 million from $76 million, driven by cost-saving initiatives and restructuring savings, which more than offset cost inflation and unfavorable foreign exchange. Net income was $64 million, or $0.35 per diluted share, compared with $49 million, or $0.27, a year earlier. The company also cited adjusted earnings per share of $0.33 versus $0.34 in the prior year, and orders of $915 million, down from $993 million. Cash flow from operations improved to $39 million from $22 million, and free cash flow was $2 million versus negative $3 million. Cash and cash equivalents fell to $554 million from $663 million at year-end 2014, largely reflecting a $41 million effect of exchange rate changes. Total debt was $1.276 billion, and the company entered a $600 million five-year revolving credit facility in March 2015 that remained undrawn at quarter end. Total stockholders' equity declined to $1.989 billion, reflecting a $134 million other comprehensive loss driven mainly by foreign currency translation. The filing also discloses an internal investigation, begun after a Korea Fair Trade Commission decision on bid-rigging at Xylem Water Solutions South Korea, which was broadened to include Foreign Corrupt Practices Act compliance. The company voluntarily contacted the SEC and the Department of Justice and stated it cannot reasonably estimate potential liability, while believing the matters will not have a material adverse effect. For 2015, management continues to anticipate low single-digit organic revenue growth and expects approximately $20 million in restructuring and realignment costs.

    Apr 30, 2015
  37. 2014-Q3

    Xylem Quarterly Report for Q3 Ended Sep 30, 2014

    Xylem Inc. reported third-quarter 2014 revenue of $963 million, essentially flat (a decrease of 0.2%) versus $965 million in the prior year period, with flat constant currency revenue reflecting 0.7% organic growth offset by the divestiture of its Wolverhampton valves business. Operating income rose to $130 million from $98 million, and net income increased to $106 million from $73 million, or $0.58 diluted EPS versus $0.39. Management attributed the margin improvement mainly to lean six sigma savings, global sourcing initiatives and restructuring actions, along with the absence of $20 million in special charges recorded in the prior-year quarter. Gross margin declined to 39.0% from 39.8%, pressured by emerging-market geographic mix, foreign exchange headwinds and negative price impacts. For the nine months ended September 30, 2014, revenue rose 2.5% to $2,874 million and net income reached $241 million, or $1.31 per diluted share. Operating cash flow was $253 million and free cash flow was $176 million, compared with $72 million a year earlier. Orders grew 7.5% in the quarter to $1,027 million, and total backlog was $844 million at September 30, 2014, up 12.2% from a year earlier. Balance sheet items were stable: cash and equivalents were $529 million, long-term debt was $1,199 million, and total stockholders' equity was $2,193 million. Share repurchases totaled $130 million for the nine months under the $250 million program authorized in August 2013, with up to $70 million remaining. The company expects 2014 restructuring costs of approximately $30 to $35 million and realignment costs of approximately $10 to $15 million.

    Oct 28, 2014
  38. 2014-Q2

    Xylem Quarterly Report for Q2 Ended Jun 30, 2014

    Xylem Inc. reported second-quarter 2014 revenue of $1,005 million, up 4.7% from $960 million a year earlier (4.0% on a constant currency basis). Operating income rose to $116 million from $70 million, and diluted earnings per share were $0.47 versus $0.25. Management attributes the improvement to sales volume increases, savings from lean six sigma, restructuring and global sourcing initiatives, partially offset by cost inflation and unfavorable price and sales mix. Adjusted earnings per share were $0.48, compared with $0.36 in the prior-year quarter. Orders grew 2.2% to $1,031 million, and backlog reached $816 million at June 30, 2014. Segment results were mixed. Water Infrastructure revenue rose 6.7% to $636 million and its operating income nearly doubled to $77 million, driven by organic growth in public utility and industrial water markets. Applied Water revenue rose 1.8% to $388 million, but organic revenue declined in the quarter on weakness in commercial and residential markets, and its constant currency revenue fell 0.5%. Operating cash flow for the six months was $98 million, and free cash flow was $50 million. Cash of $450 million and $1.2 billion of long-term debt were on the balance sheet at quarter end. Capital returns continued, with $102 million of common stock repurchased in the first half and $47 million of dividends paid. The company said it expects $30 to $35 million in restructuring costs for 2014 and approximately $15 million of total net savings in 2014. It also disclosed a July 2, 2014 divestiture of its Wolverhampton, U.K. pneumatic and hydraulic valves business for approximately $30 million.

    Jul 29, 2014
  39. 2014-Q1

    Xylem Quarterly Report for Q1 Ended Mar 31, 2014

    Xylem Inc. reported first-quarter 2014 revenue of $906 million, up 3.1% from $879 million in the first quarter of 2013 (3.5% on a constant currency basis), driven by organic growth across most end markets and strength in emerging markets such as Greater Asia, China and India. Operating income rose to $76 million from $66 million, reflecting savings from lean six sigma, restructuring actions initiated in 2013 and global sourcing initiatives. Net income was $49 million, or $0.27 per diluted share, compared with $41 million, or $0.22, a year earlier. The company stated adjusted earnings per share of $0.34, up 25.9% from $0.27 in the prior year period, and orders grew 3.2% to $993 million. Profitability was offset by restructuring and realignment costs of $18 million, versus $12 million a year earlier, and gross margin slipped to 37.7% from 38.0%. Operating cash flow was only $22 million, and free cash flow was negative $3 million, compared with negative $10 million in the prior year period, as higher inventories and receivables absorbed working capital. Total backlog reached $793 million at March 31, 2014, up 9.7% year over year. Management expects a slow recovery in U.S. industrial and most developed markets, continued weakness in mining, and 2014 restructuring costs of approximately $30 to $35 million. Balance sheet and capital return activity were steady. Cash and cash equivalents fell to $466 million from $533 million, and total debt was $1.243 billion, including $1.2 billion of senior notes. The company repurchased $50 million of stock under its $250 million program, leaving up to $150 million available, and paid $24 million in dividends. The $600 million credit facility remained undrawn, and the company reported it was in compliance with all covenants. The filing also notes a new President and CEO, Patrick K. Decker, named on March 17, 2014.

    Apr 29, 2014
  40. 2013-Q3

    Xylem Quarterly Report for Q3 Ended Sep 30, 2013

    Xylem Inc. reported third-quarter 2013 revenue of $965 million, up 3.7% from $931 million in the prior-year quarter, with organic growth across most end markets and strength in China and eastern Europe. Operating income fell to $98 million from $111 million, reflecting restructuring and realignment costs, special charges, continued investment, higher pension costs, and unfavorable price and mix. Net income was $73 million, or $0.39 per diluted share, compared with $72 million, or $0.38, a year earlier. The company cites adjusted net income of $92 million, or $0.49 per diluted share, on an adjusted basis. For the nine months, revenue was $2,804 million, down 0.6% from $2,822 million, and net income fell to $160 million from $224 million. Gross margin contracted to 38.8% from 39.7%. Management attributes the year-to-date weakness to lower volumes in Europe during the first half, and expects stabilization in the third quarter to continue for the rest of 2013, with the exception of southern Europe. Orders were $955 million in the quarter, up 8.3%, and backlog stood at $752 million at September 30, 2013. Cash flow from operations was $163 million for the nine months, down from $230 million, driven by working capital use and restructuring payments. Free cash flow was $72 million. The board authorized a new share repurchase program of up to $250 million on August 20, 2013, under which $25 million had been repurchased by quarter end. Total debt was $1,202 million, and the $600 million revolving credit facility and the €120 million R&D facility remained undrawn.

    Oct 29, 2013
  41. 2013-Q2

    Xylem Quarterly Report for Q2 Ended Jun 30, 2013

    Xylem Inc. reported second-quarter 2013 revenue of $960 million, down 0.6% from $966 million a year earlier, and operating income of $70 million, down 45.7% from $129 million. Net income fell to $46 million, or $0.25 per diluted share, compared with $89 million, or $0.48, in the second quarter of 2012. The filing attributes the profit decline primarily to sales volume declines, restructuring and realignment costs, continued investment in the business, and foreign currency headwinds, partially offset by cost reduction savings. Management describes market conditions in Europe and the United States as significantly challenging for the remainder of 2013. Orders for the quarter rose 4.0% to $1,009 million, and total backlog was $759 million at June 30, 2013. For the six months ended June 30, 2013, revenue was $1,839 million, down 2.7%, and operating income was $136 million, down 40.4%. Operating cash flow was $62 million, versus $125 million a year earlier, and free cash flow was $2 million, versus $86 million. Restructuring charges totaled $20 million in the quarter and $25 million year to date, and management expects full-year restructuring costs of approximately $40 to $50 million, with net savings of $13 to $15 million in 2013. The balance sheet remained solid, with cash of $360 million, long-term debt of $1,199 million, and stockholders' equity of $2,052 million at June 30, 2013. The company completed two acquisitions in 2013, PIMS and MultiTrode, and its $600 million revolving credit facility and €120 million R&D facility remain undrawn. The filing reports no material change to risk factors from the 2012 Annual Report.

    Jul 30, 2013
  42. 2013-Q1

    Xylem Quarterly Report for Q1 Ended Mar 31, 2013

    Xylem Inc. reported first-quarter 2013 revenue of $879 million, down 5.0% from $925 million in the first quarter of 2012, with revenue declining 4.8% on a constant currency basis. Management attributed the decline primarily to sales volume declines across most applications, partly offset by pricing initiatives and new product launches. Operating income fell to $66 million from $99 million, and net income declined to $41 million, or $0.22 per diluted share, from $63 million, or $0.34 per diluted share. Adjusted net income was $50 million, or $0.27 per diluted share, after excluding restructuring and realignment costs. Gross margin narrowed to 38.0% from 39.2%, and the Water Infrastructure segment's operating income dropped 44.0% to $42 million. Cash flow weakened sharply. Net cash provided by operating activities was $20 million versus $61 million a year earlier, and free cash flow was negative $10 million. Cash and cash equivalents fell to $375 million from $504 million at December 31, 2012, largely because of $78 million in net acquisition spending for PIMS Group and MultiTrode. Total debt stayed at $1,205 million, and the company's $600 million revolving credit facility and its EIB R&D facility both remained undrawn as of March 31, 2013. Management expects 2013 to remain challenging given weak economic conditions in the United States and Europe. The company expects approximately $40 to $50 million in restructuring costs and about $20 million in realignment costs for the full year, with anticipated net savings of $13 to $15 million during 2013. Orders of $962 million declined 4.2%, and backlog stood at $723 million at March 31, 2013.

    Apr 30, 2013
  43. 2012-Q3-A

    Xylem Quarterly Report (Amendment) for Q3 Ended Sep 30, 2012

    Xylem Inc. reported third-quarter 2012 revenue of $931 million, a decrease of 0.9% from $939 million in the prior-year quarter, though revenue grew 3.2% on a constant currency basis, driven by the YSI and MJK acquisitions and strength in public utility and agriculture. Operating income rose to $111 million from $79 million, primarily due to lower separation costs ($4 million versus $46 million). Net income was $72 million, or $0.38 per diluted share, compared with $77 million, or $0.42, a year earlier. Adjusted earnings per share were $0.44 versus $0.54 in the prior-year quarter, per the company's non-GAAP reconciliation. Orders declined 8.7% to $882 million in the quarter, with organic orders down 6.8%. Water Infrastructure orders fell 9.2% on delays in large public utility capital expenditure orders and weaker European demand, while Applied Water orders declined 6.7%. Total backlog was $690 million at September 30, 2012, down 8.5% year over year. Management cited drier U.S. weather and difficult European economic conditions, and said it began restructuring and realignment actions in the second half of 2012, expecting about $15 million of such costs for the remainder of 2012. Balance sheet and liquidity remained solid. Cash rose to $424 million, and total debt was $1,212 million, consisting primarily of $600 million 3.550% Senior Notes due 2016 and $600 million 4.875% Senior Notes due 2021. The $600 million credit facility was undrawn. Nine-month free cash flow was $171 million, and the company paid $56 million in dividends. Subsequent to quarter end, Xylem acquired Heartland Pump Rental & Sales, Inc. for approximately $29 million.

    Nov 6, 2012
  44. 2012-Q3

    Xylem Quarterly Report for Q3 Ended Sep 30, 2012

    Xylem Inc. reported third-quarter 2012 revenue of $931 million, down 0.9% from $939 million in the prior-year quarter, though revenue grew 3.2% on a constant currency basis, driven by the YSI and MJK acquisitions and strong public utility and agriculture performance. Operating income rose to $111 million from $79 million, an increase of 40.5%, primarily due to lower separation costs ($4 million versus $46 million). Net income was $72 million, or $0.38 per diluted share, compared with $77 million, or $0.42, a year earlier. For the nine months, revenue was $2,822 million and net income was $224 million, or $1.20 per diluted share. Orders were $882 million in the quarter, down 8.7%, with organic orders down 6.8%, reflecting weaker U.S. dewatering demand, declining large public utility orders and European economic uncertainty. Total backlog was $690 million at September 30, 2012, down 8.5% year over year. Gross margin improved to 40.2% for the quarter from 38.9%, while SG&A rose to 24.8% of revenue from 22.9%, as the company absorbed standalone public-company costs. Balance sheet and liquidity remained solid. Cash rose to $424 million, and total debt was $1,212 million, consisting mainly of $600 million 3.550% Senior Notes due 2016 and $600 million 4.875% Senior Notes due 2021. The $600 million credit facility was undrawn at quarter end. Nine-month free cash flow was $171 million, and the company paid $56 million in dividends. On October 26, 2012, Xylem acquired Heartland Pump Rental & Sales for approximately $29 million.

    Nov 1, 2012
  45. 2012-Q2

    Xylem Quarterly Report for Q2 Ended Jun 30, 2012

    Xylem Inc. reported second-quarter 2012 revenue of $966 million, down 0.5% from $971 million a year earlier, though up 4.5% on a constant currency basis, driven by the recently acquired YSI business and industrial performance. Net income rose to $89 million, or $0.48 per diluted share, from $72 million ($0.39) in the prior-year quarter. Operating income was $129 million, up 11.2%, while adjusted operating income excluding separation costs of $6 million was $135 million, up 0.7%. Results for the first half of 2012 show revenue of $1,891 million (up 1.6%) and net income of $152 million ($0.82 per diluted share), with operating cash flow of $125 million and free cash flow of $86 million, down $48 million from the prior year period. Interest expense rose sharply to $13 million in the quarter from $1 million, reflecting the $1.2 billion of Senior Notes issued in September 2011 following the spin-off from ITT Corporation. The effective tax rate fell to 23.3% in the quarter from 37.4% a year earlier, primarily due to lower separation costs. Total backlog was $720 million at June 30, 2012, and orders grew 2.3% at constant currency in the quarter, though organic order growth declined 0.7%. Management cited difficult economic conditions in Europe that are expected to persist into the second half of 2012. The company plans restructuring and realignment actions, primarily in Europe, with approximately $15 to $20 million of costs expected in the remainder of 2012. Roughly 63% of revenue came from outside the U.S., and the company is exposed to currency movements, particularly the Euro. The $600 million credit facility remained undrawn as of June 30, 2012.

    Aug 2, 2012
  46. 2012-Q1

    Xylem Quarterly Report for Q1 Ended Mar 31, 2012

    Xylem Inc. filed its quarterly report on Form 10-Q for the period ended March 31, 2012, following its October 31, 2011 spin-off from ITT Corporation. Revenue rose 3.9% to $925 million from $890 million, driven mainly by the acquired YSI business and strength in industrial and commercial markets, partly offset by residential weakness. Operating income was $99 million, down 1.0%, as standalone company costs and $5 million of separation costs weighed on results. Excluding separation costs, operating income was $104 million, up 1.0%. Net income was $63 million, or $0.34 per diluted share, versus $78 million, or $0.42, a year earlier. Management reported a gross margin of 39.2%, up from 37.9%. Orders grew 2.7% to $1,004 million, with organic order growth of 0.7%, and total backlog reached $739 million at March 31, 2012, up 13.5% from December 31, 2011. Operating cash flow was $61 million and free cash flow was $41 million, down $13 million from the prior year. Cash and cash equivalents rose to $347 million, and total debt was $1,206 million, consisting mainly of $600 million of 3.55% senior notes due 2016 and $600 million of 4.875% senior notes due 2021. The company also had an undrawn $600 million credit facility. Xylem paid dividends of $19 million, or $0.1012 per share declared, during the quarter. The filing states that the ITT bondholder lawsuit is not expected to have a material adverse effect, and that ITT will indemnify Xylem for asbestos product liability matters. Management also disclosed that remaining Spin-off activities are estimated to carry a pre-tax cash impact of $10 million to $15 million.

    May 3, 2012
  47. 2011-Q3

    Xylem Quarterly Report for Q3 Ended Sep 30, 2011

    Xylem Inc. (f/k/a ITT WCO, Inc.) filed this Form 10-Q for the quarter ended September 30, 2011, its first quarterly report following the October 31, 2011 spin-off from ITT Corporation. The financial statements are condensed combined statements of the water equipment and services businesses of ITT, prepared on a carve-out basis. For the third quarter of 2011, revenue was $939 million, up from $806 million, and net income was $77 million, down from $91 million. Third-quarter separation costs of $46 million weighed on operating income, which fell to $79 million from $107 million; excluding those costs, operating income was $125 million. For the nine months, revenue reached $2.80 billion (up 23.5%) and net income was $227 million, versus $232 million a year earlier. Pro forma earnings per share were $0.42 for the quarter and $1.23 for the nine months, based on 184.6 million shares. Balance sheet and financing changes are significant. On September 20, 2011, Xylem issued $1.2 billion of senior notes ($600 million due 2016 at 3.55% and $600 million due 2021 at 4.875%), with proceeds used largely to fund a special cash dividend to ITT and repay debt used to acquire YSI Incorporated for $309 million. Total debt stood at $1.207 billion at September 30, 2011, compared with $4 million a year earlier. Post-spin, the company expects about $200 million in cash and has a $600 million four-year credit facility with JPMorgan Chase Bank, N.A., as agent, with no borrowings as of October 31, 2011. Management notes ITT will indemnify Xylem for asbestos product liability matters, and the company's board declared a fourth-quarter dividend of $0.1012 per share. Investors should note that the statements are unaudited and include allocations from ITT that may not reflect costs as a standalone company. The company expects roughly $30 million to $50 million of remaining after-tax cash impact from separation activities. Backlog was $754 million at September 30, 2011, with about $500 million expected to convert to revenue in the remainder of 2011.

    Nov 21, 2011