01—Abstract
Summary
Summary of the 8-K filed February 4, 2025. Cited figures are marked; the original filing is the authoritative source.
Xylem Inc. reported fourth-quarter and full-year 2024 results in a Form 8-K furnished under Item 2.02, with the details in Exhibit 99.1.
Fourth-quarter orders were $2.2 billiona and revenue was $2.3 billion, both up 7% on a reported and organic basis. Full-year revenue was $8.6 billion, up 16% on a reported basis and 6% organically. Diluted EPS for the year was $3.65, up 31%, and adjusted EPS was $4.27, up 13%.
Fourth-quarter reported net income of $326 millionb, or $1.34 per diluted share, was boosted by a non-recurring gain on the remeasurement of Xylem's previously held equity interest in Idrica, which was $152 million on the income statement. Excluding this and other items, adjusted net income was $287 million, or $1.18 per share, up 19%. Fourth-quarter adjusted EBITDA margin was 21.0%, up 140 basis points year over year, driven by productivity savings, price realization and higher volume.
For 2025, Xylem guided to full-year revenue of approximately $8.6 to $8.7 billionc, up approximately 0 to 2% reported and 3 to 4% organically, and adjusted EBITDA margin of approximately 21.3% to 21.8%. Adjusted EPS guidance is $4.50 to $4.70. The Board declared a first-quarter dividend of $0.40 per share, an 11% increase, payable March 19, 2025 to holders of record on February 18, 2025.
02—Key points
Key Highlights
- Q4 2024 orders of $2.2 billion and revenue of $2.3 billion, each up 7% on a reported and organic basis
- Full-year 2024 revenue of $8.6 billion, up 16% reported and 6% organic; net income of $890 million
- Full-year diluted EPS of $3.65, up 31%; adjusted EPS of $4.27, up 13%
- Q4 reported EPS of $1.34 included a $152 million non-recurring gain on remeasurement of the previously held Idrica equity interest; adjusted EPS was $1.18, up 19%
- Q4 adjusted EBITDA margin of 21.0%, up 140 basis points year over year
- 2025 guidance: revenue of $8.6 to $8.7 billion (0 to 2% reported, 3 to 4% organic), adjusted EBITDA margin of 21.3% to 21.8%, and adjusted EPS of $4.50 to $4.70
- Quarterly dividend raised 11% to $0.40 per share, payable March 19, 2025
03—Questions
Frequently Asked Questions
How did Xylem perform in the fourth quarter of 2024?
Orders were $2.2 billion and revenue was $2.3 billion, both up 7% on a reported and organic basis. Reported EPS was $1.34, up 22%, and adjusted EPS was $1.18, up 19%. Adjusted EBITDA margin was 21.0%, up 140 basis points.
Why is reported net income higher than adjusted net income for the quarter?
Reported fourth-quarter net income of $326 million includes a non-recurring gain on the remeasurement of Xylem's previously held equity interest in Idrica, which was $152 million on the income statement. Adjusted net income of $287 million excludes this gain, along with the loss on sale of businesses, purchase accounting intangible amortization, restructuring and realignment costs, and special charges.
What is Xylem's outlook for 2025?
Xylem forecasts full-year 2025 revenue of approximately $8.6 to $8.7 billion, up approximately 0 to 2% reported and 3 to 4% organically. Adjusted EBITDA margin is expected to be approximately 21.3% to 21.8%, an increase of 70 to 120 basis points from 2024 adjusted results, and free cash flow margin is expected to be approximately 9% to 10%. Adjusted EPS guidance is $4.50 to $4.70.
What dividend did Xylem declare?
The Board declared a first-quarter dividend of $0.40 per share, an increase of 11%. It is payable on March 19, 2025 to shareholders of record as of February 18, 2025.
What drove full-year 2024 results?
Full-year revenue of $8.6 billion rose 16% reported and 6% organically. Diluted EPS was $3.65, up 31%, and adjusted EPS was $4.27, up 13%. Management cited strong execution, operating discipline across the portfolio, and resilient underlying demand, with all segments delivering strong fourth-quarter orders growth.
04—Continue