Xylem Inc. · NYSE:XYL
Xylem — Q1 2024 Earnings Presentation
20 slides from Xylem's earnings presentation, May 2, 2024
Slide 1: 2024 First Quarter Results & Earnings
2024 First Quarter Results & Earnings
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: Q1 2024 Performance Summary
Q1 2024 Performance Summary ($ in millions, unless otherwise noted) Measurement Water Solutions Xylem Consolidated Water Infrastructure Applied Water and Control Solutions and Services Reported Q1 Adj* Q1 Reported Q1 Adj* Q1 Reported Q1 Adj* Q1 Reported Q1 Adj* Q1 Reported Q1 Adj* Q1 Orders $2,246 $
Slide 4: Q1 2024 Earnings Highlights
Q1 2024 Earnings Highlights Commercial and operational momentum to start the year Exceeded guidance across all metrics; Adj. EBITDA* margin expansion of 290 bps Healthy demand across most of our segments and end markets Integration well on track; continued focus on revenue and cost synergies Operati
Slide 5: Q1 2024 Financial Performance
Q1 2024 Financial Performance Orders Revenue Adj. EBITDA* Margin Adj. EPS* Adj. Free Cash Flow* $2,246 $2,033 19.2% $0.90 $15 $0.79 16.3% $1,570 $1,448 Organic* 3% Organic* 7% +290 bps 14% 143% Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 ($35) Q1 2023 Q1 2024 Q1 2023 Q1 2024 FCF Conversion* (35%
Slide 6: Q1 2024 Segment Performance Summary
Q1 2024 Segment Performance Summary Measurement and Water Solutions Water Infrastructure Applied Water Control Solutions and Services Orders / Organic Growth* $429 +3% $646M +6% $480M (1%) $691M +7% Revenue / Organic Growth* $462 +22% $574M +6% $436M (4%) $561M +6% $105M $102M $72M $125M Adj. EBITDA
Slide 7: FY 2024 and Q2 2024 Guidance
FY 2024 and Q2 2024 Guidance Previous FY 2024 Updated FY 2024 PriorGuide FY Guide Updated FY Guide 2QQ2 2024 Guide Guide Guide Highlights Revenue $8.4B – $8.5B ~$8.5B $2.12B – $2.16B 14% – 15% Total Growth 15% – 16% Total Growth 23% – 25% Total Growth Raising full year 2024 guide 3 – 5% Organic* Gro
Slide 8: Key Takeaways
Key Takeaways Strong start to 2024 with momentum on operational and commercial execution Evoqua integration and culture transformation well on track Guidance raise reflects Q1 outperformance and healthy demand Creating economic value, underpinned by sustainability 8 Q1 2024 Results & Earnings
Slide 9: Appendix
Appendix
Slide 10: FY 2024 Guidance Key Assumptions
FY 2024 Guidance Key Assumptions FY 2024 Assumptions Corporate Expense ~$75M Restructuring & Realignment Costs* ~$50 – 70M Capex ~$390M Estimated Tax Rate* ~23% Purchase Accounting Intangible Amortization ~$220M EUR / USD Rate 1.09 10 Q1 2024 Results & Earnings *See appendix for definitions of non-G
Slide 11: Segment Key Facts
Segment Key Facts Water Solutions and Services(2) Applied Water Treatment, transport and assessment services solutions with an Industrial and buildings solutions applications including pumps, extensive service network and highly recurring revenue valves, heat exchangers, controls, and dispensing equ
Slide 12: Xylem Inc. Non-GAAP Measures
Appendix Xylem Inc. Non-GAAP Measures Management reviews key performance indicators including revenue, gross margins, segment operating income and margins, orders growth, working capital and backlog, among others. In addition, we consider certain non-GAAP (or "adjusted") measures to be useful to man
Slide 13: Reported vs. Organic and Constant Currency Revenue
Appendix Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic and Constant Currency Revenue ($ 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. 20
Slide 14: Adjusted Operating Income
Xylem Inc. Non-GAAP Reconciliation Appendix Adjusted Operating Income ($ Millions) Q1 2024 2023 Special Charges • Total Xylem 16 25 Q1 • Water Infrastructure 2 - • Applied Water - - 2024 2023 • Measurement and Control Solutions - 2 Total Revenue • Water Solutions and Services 9 - • Total Xylem 2,033
Slide 15: Adjusted Diluted EPS
Appendix Xylem Inc. Non-GAAP Reconciliation Adjusted Diluted EPS ($ Millions, except per share amounts) Q1 2024 Q1 2023 As Reported Adjustments Adjusted As Reported Adjustments Adjusted Total Revenue 2,033 - 2,033 1,448 - 1,448 Operating Income 209 85 a 294 131 54 a 185 Operating Margin 10.3% 14.5%
Slide 16: EBITDA and Adjusted EBITDA by Quarter
Appendix Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Water Infrastucture 2024 2024 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Net Income 153 153 Operating Income 60 60 Net Income
Slide 17: EBITDA and Adjusted EBITDA by Quarter
Appendix Xylem Inc. Non-GAAP Reconciliation Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) EBITDA and Adjusted EBITDA by Quarter ($ Millions) Applied Water Measurement and Control Solutions 2024 2024 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Operating Income 70 70 Op
Slide 18: EBITDA and Adjusted EBITDA by Quarter
Xylem Inc. Non-GAAP Reconciliation Appendix EBITDA and Adjusted EBITDA by Quarter ($ Millions) Water Solutions and Services 2024 Q1 Q2 Q3 Q4 Total Operating Income 50 50 Operating Margin 8.9% - - A - A 8.9% (Loss)/Gain from sale of business (5) (5) Depreciation 38 38 Amortization 22 22 Other non-ope
Slide 19: Net Cash - Operating Activities vs. Free Cash Flow
Appendix Xylem Inc. Non-GAAP Reconciliation Net Cash - Operating Activities vs. Free Cash Flow ($ Millions) Q1 2024 2023 Net Cash - Operating Activities $89 ($19) Capital Expenditures - PPE (59) (33) Capital Expenditures - Software (15) (16) Capital Expenditures (74) (49) Cash paid in excess of tax
Slide 20: Thank you. Q1 2024 Earnings & Results
Thank you. NYSE: XYL Q1 2024 Earnings & Results Xylem Investor Relations Website Replay of the webcast is available until midnight May 9, 2024 Replay: +1 (877) 344-7529 or +1 (412) 317-0088 (INTL) LinkedIn | Twitter | Facebook | YouTube | Instagram