Slide 1: 2024 Second Quarter Results and Earnings
2024 Second Quarter Results and Earnings July 30, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Generally, the words “anticipate,” “estimate,” “expect,” “project,” “int
Slide 3: Q2 2024 Performance Summary
Q2 2024 Performance Summary ($ in millions, unless otherwise noted) Measurement Water Solutions Xylem Consolidated Water Infrastructure Applied Water and Control Solutions and Services Reported Q2 Adj* Q2 Reported Q2 Adj* Q2 Reported Q2 Adj* Q2 Reported Q2 Adj* Q2 Reported Q2 Adj* Q2 Orders 2,087 2,
Slide 4: Q2 2024 Earnings Highlights
Q2 2024 Earnings Highlights Strong results driven by execution and integration momentum Outperformed guidance across all metrics, strong adj. EBITDA* margin expansion of 170 bps Healthy demand with book-to-bill ~1x, particular strength in Water Infrastructure Evoqua integration and synergies well on
Slide 5: Q2 2024 Financial Performance
Q2 2024 Financial Performance Orders Revenue Adj. EBITDA* Margin Adj. EPS* YTD Adj. Free Cash Flow* $2,087 $2,169 20.8% $1.09 $230 $1,856 19.1% $0.98 $1,722 233% $69 Organic* (1%) Organic* 9% +170 bps 11% Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 2023 2024 FCF Conversion* 31% 6
Slide 6: Q2 2024 Segment Performance Summary
Q2 2024 Segment Performance Summary Measurement and Water Solutions Water Infrastructure Applied Water Control Solutions and Services Orders / Organic Growth* $384M (18%) $690M +8% $465M +5% $548M (1%) Revenue / Organic Growth* $482M +26% $631M +7% $456M (4%) $600M +12% Adj. EBITDA* $113M $125M $80M
Slide 7: FY 2024 and Q3 2024 Guidance
FY 2024 and Q3 2024 Guidance Prior FY Guide FY Guide Q3 Guide Highlights ~$8.5B ~$8.55B $2.14B – $2.18B Revenue 15% – 16% Total Growth ~16% Total Growth 3 – 5% Total Growth 4 – 6% Organic* Growth 5 – 6% Organic* Growth 3 – 5% Organic* Growth Raising full-year 2024 guide • Revenue growth driven by st
Slide 8: Key Takeaways
Key Takeaways Strong results driven by execution and integration momentum Guidance raise reflects Q2 outperformance and healthy demand Raising the bar with our 2030 sustainability goals Significant opportunity for profitable above-market growth 8 Q2 2024 Results & Earnings
Slide 9: Appendix
Appendix 9 Q2 2024 Results & Earnings
Slide 10: FY 2024 Guidance Key Assumptions
FY 2024 Guidance Key Assumptions FY 2024 Assumptions Corporate Expense ~$75M Restructuring & Realignment Costs* ~$60 – 80M Capex ~$350M Estimated Tax Rate1 ~23% Purchase Accounting Intangible Amortization ~$220M EUR / USD Rate 1.09 10 Q2 2024 Results & Earnings *See appendix for definitions of non-G
Slide 11: Segment Key Facts
Segment Key Facts Water Solutions and Services Applied Water Treatment, transport and assessment services solutions with an Industrial and buildings solutions applications including pumps, extensive service network and highly recurring revenue valves, heat exchangers, controls, and dispensing equipm
Slide 12: Xylem Inc. Non-GAAP Measures
Xylem Inc. Non-GAAP Measures Management reviews key performance indicators including revenue, gross margins, segment operating income and margins, orders growth, working capital and backlog, among others. In addition, we consider certain non-GAAP (or "adjusted") measures to be useful to management a
Slide 13: Non-GAAP Reconciliation: Orders
Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic and Constant Currency Orders ($ Millions) (As Reported - GAAP) (As Adjusted - Organic) Constant Currency (A) (B) (C) (D) (E) = B+C+D (F) = E/A (G) = (E - C) / A Change % Change Acquisitions / Change % Change Orders Orders 2024 v. 2023 2024 v. 2
Slide 14: Non-GAAP Reconciliation: Revenue
Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic and Constant Currency Revenue ($ Millions) (As Reported - GAAP) (As Adjusted - Organic) Constant Currency (A) (B) (C) (D) (E) = B+C+D (F) = E/A (G) = (E - C) / A Change % Change Acquisitions / Change % Change Revenue Revenue 2024 v. 2023 2024 v
Slide 15: Non-GAAP Reconciliation: Adjusted Operating Income
Xylem Inc. Non-GAAP Reconciliation Q1 Q2 YTD Adjusted Operating Income ($ Millions) 2024 2023 2024 2023 2024 2023 Special Charges • Total Xylem 16 25 13 67 29 92 • Water Infrastructure 2 - 4 12 6 12 • Applied Water - - - - - - • Measurement and Control Solutions - 2 1 - 1 2 Q1 Q2 YTD • Water Solutio
Slide 16: Non-GAAP Reconciliation: Adjusted Diluted EPS Q2
Xylem Inc. Non-GAAP Reconciliation Adjusted Diluted EPS ($ Millions, except per share amounts) Q2 2024 Q2 2023 As Reported Adjustments Adjusted As Reported Adjustments Adjusted Total Revenue 2,169 - 2,169 1,722 - 1,722 Operating Income 253 99 a 352 119 140 a 259 Operating Margin 11.7% 16.2% 6.9% 15.
Slide 17: Non-GAAP Reconciliation: Adjusted Diluted EPS YTD
Xylem Inc. Non-GAAP Reconciliation Adjusted Diluted EPS ($ Millions, except per share amounts) Q2 YTD 2024 Q2 YTD 2023 As Reported Adjustments Adjusted As Reported Adjustments Adjusted Total Revenue 4,202 - 4,202 3,170 - 3,170 Operating Income 462 184 a 646 250 194 a 444 Operating Margin 11.0% 15.4%
Slide 18: Non-GAAP Reconciliation: EBITDA by Quarter
Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) 2024 Q1 Q2 Q3 Q4 Total Net Income 153 194 347 Net Income margin 7.5% 8.9% 8.3% Depreciation 61 62 123 Amortization 73 83 156 Int
Slide 19: Non-GAAP Reconciliation: Water Infrastructure and Applied Water EBITDA
Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Xylem Inc. Non-GAAP Reconciliation Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) EBITDA and Adjusted EBITDA by Quarter ($ Millions) Water Infrastucture Applied Water 2024 202
Slide 20: Non-GAAP Reconciliation: MCS and WSS EBITDA
Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Xylem Inc. Non-GAAP Reconciliation Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) EBITDA and Adjusted EBITDA by Quarter ($ Millions) Measurement and Control Solutions Water So
Slide 21: Non-GAAP Reconciliation: Free Cash Flow
Xylem Inc. Non-GAAP Reconciliation Net Cash – Operating Activities vs. Free Cash Flow ($ Millions) Q1 Q2 Year-to-Date 2024 2023 2024 2023 2024 2023 Net Cash - Operating Activities $89 ($19) $288 $28 $377 $9 Capital Expenditures - PPE (59) (33) (59) (42) (118) (75) Capital Expenditures - Software (15
Slide 22: Thank you.
Thank you. Q2 2024 Earnings & Results Replay of the webcast is available until midnight August 6, 2024 Replay: +1 (877) 344-7529 or +1 (412) 317-0088 (INTL) NYSE: XYL Xylem Investor Relations Website LinkedIn | Twitter | Facebook | YouTube | Instagram