Slide 1: 2024 Fourth Quarter Results and Earnings
2024 Fourth Quarter Results and Earnings February 4, 2025
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: Q4 2024 Performance Summary
Q4 2024 Performance Summary ($ in millions, unless otherwise noted) Measurement Water Solutions Xylem Consolidated Water Infrastructure Applied Water and Control Solutions and Services Reported Q4 Adj* Q4 Reported Q4 Adj* Q4 Reported Q4 Adj* Q4 Reported Q4 Adj* Q4 Reported Q4 Adj* Q4 Orders 2,196 2,
Slide 4: 2024 Earnings Highlights
2024 Earnings Highlights Record full-year performance with strong Q4 close Record FY revenue, Adj. EBITDA* margin and Adj. EPS* Strong demand and FY book to bill >1, with MSD orders growth Solid Q4 revenue growth, up 7% across most applications and end markets, and record Adj. EPS* Momentum continue
Slide 5: Q4 2024 Financial Performance
Q4 2024 Financial Performance Orders Revenue Adj. EBITDA* Margin Adj. EPS* YTD Adj. Free Cash Flow* $2,196 $2,118 $2,256 21.0% $1.18 $942 $2,044 19.6% $0.99 $729 29% Organic* 7% Organic* 7% +140 bps 19% Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 2023 2024 FCF Conversion* 122% 11
Slide 6: Q4 2024 Segment Performance Summary
Q4 2024 Segment Performance Summary Measurement and Water Solutions Water Infrastructure Applied Water Control Solutions and Services Orders / Organic Growth* $473M +6% $691M +10% $442M +5% $590M +8% Revenue / Organic Growth* $469M +6% $727M +8% $454M (0%) $606M +11% Adj. EBITDA* $80M $175M $82M $13
Slide 7: FY 2025 Segment Outlook
FY 2025 Segment Outlook Measurement and Water Solutions Water Infrastructure Applied Water Control Solutions and Services Organic* Revenue Up High-Single Up Mid-Single Up Low-Single Up Mid-Single Growth Digits Digits Digits Digits Key Drivers • Sequential improvement • Resilient due to our mission-
Slide 8: FY 2025 and Q1 2025 Guidance
FY 2025 and Q1 2025 Guidance FY Guide** Q1 Guide Full-Year Highlights $8.6 - 8.7B ~$2.0B Revenue 0 - 2% Total Growth 0 - 2% Total Growth 3 - 4% Organic* Growth 1 - 2% Organic* Growth • Organic revenue growth driven by strong demand, backlog execution, and price more than offset 80/20 implementation
Slide 9: Key Takeaways
Key Takeaways Record full-year 2024 performance Momentum going into 2025 with focus on simplifying our business On track to deliver long-term framework Optimizing to serve our customers and drive profitable growth 9 Q4 2024 Results & Earnings
Slide 10: Appendix
Appendix 10 Q2 2024 Results & Earnings
Slide 11: FY 2025 Guidance Key Assumptions
FY 2025 Guidance Key Assumptions FY 2025 Assumptions Corporate Expense $65M - $70M Restructuring & Realignment Costs* $90M - $110M Capex ~$390M Estimated Tax Rate1 ~22 - 23% Purchase Accounting Intangible Amortization ~$240M EUR / USD Rate 1.03 11 Q4 2024 Results & Earnings *See appendix for definit
Slide 12: Segment Key Facts
Segment Key Facts Water Solutions and Services Applied Water Treatment, transport and assessment services solutions with an Industrial and buildings solutions applications including pumps, extensive service network and highly recurring revenue valves, heat exchangers, controls, and dispensing equipm
Slide 13: Xylem Inc. Non-GAAP Measures
Xylem Inc. Non-GAAP Measures Management reviews key performance indicators including revenue, gross margins, segment operating income and margins, orders growth, working capital and backlog, among others. In addition, we consider certain non-GAAP (or "adjusted") measures to be useful to management a
Slide 14: Xylem Inc. Non-GAAP Reconciliation
Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic and Constant Currency Orders ($ 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 15: Xylem Inc. Non-GAAP Reconciliation
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 16: Xylem Inc. Non-GAAP Reconciliation
Xylem Inc. Non-GAAP Reconciliation Adjusted Operating Income ($ Millions) Q1 Q2 Q3 Q4 YTD 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Total Revenue • Total Xylem 2,033 1,448 2,169 1,722 2,104 2,076 2,256 2,118 8,562 7,364 • Water Infrastructure 574 410 631 519 623 612 727 674 2,555 2,215 • App
Slide 17: Xylem Inc. Non-GAAP Reconciliation
Xylem Inc. Non-GAAP Reconciliation Adjusted Operating Income ($ Millions) Q1 Q2 Q3 Q4 YTD 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Special Charges • Total Xylem 16 25 13 67 7 24 21 22 57 138 • Water Infrastructure 2 - 4 12 (2) 6 6 10 10 28 • Applied Water - - - - - - - - - - • Measurement a
Slide 18: Xylem Inc. Non-GAAP Reconciliation
Xylem Inc. Non-GAAP Reconciliation Adjusted Diluted EPS ($ Millions, except per share amounts) Q4 2024 Q4 2023 As Reported Adjustments Adjusted As Reported Adjustments Adjusted Total Revenue 2,256 - 2,256 2,118 - 2,118 Operating Income 267 110 a 377 211 102 a 313 Operating Margin 11.8% 16.7% 10.0% 1
Slide 19: Xylem Inc. Non-GAAP Reconciliation
Xylem Inc. Non-GAAP Reconciliation Adjusted Diluted EPS ($ Millions, except per share amounts) Q4 YTD 2024 Q4 YTD 2023 As Reported Adjustments Adjusted As Reported Adjustments Adjusted Total Revenue 8,562 - 8,562 7,364 - 7,364 Operating Income 1,009 364 a 1,373 652 420 a 1,072 Operating Margin 11.8%
Slide 20: Xylem Inc. Non-GAAP Reconciliation
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 153 194 217 326 890 Net Income margin 7.5% 8.9% 10.3% 14.5% 10.4% Depreciation 61 62 68 67 258
Slide 21: Xylem Inc. Non-GAAP Reconciliation
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 22: Xylem Inc. Non-GAAP Reconciliation
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 23: Xylem Inc. Non-GAAP Reconciliation
Xylem Inc. Non-GAAP Reconciliation Net Cash – Operating Activities vs. Free Cash Flow ($ Millions) Q1 Q2 Q3 Q4 Year-to-Date 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Net Cash - Operating Activities $89 ($19) $288 $28 $311 $373 $575 $455 $1,263 $837 Capital Expenditures - PPE (59) (33) (59) (
Slide 24: Thank you.
Thank you. Q4 2024 Earnings & Results Replay of the webcast is available until midnight February 18, 2025 Replay: +1 (877) 344-7529 or +1 (412) 317-0088 (INTL) Access Code 5412340 NYSE: XYL Xylem Investor Relations Website LinkedIn | Twitter | Facebook | YouTube | Instagram