Xylem Sees 32% Growth in Water Infrastructure Orders

By Tamara Parker • Friday, March 08 10:17 • Permanent Link

Xylem Inc. has released its financial results for the year ended December 31, 2023, showcasing significant changes in various key metrics compared to the prior year.

Orders for the Water Infrastructure segment saw a substantial increase from $2,313 million in 2022 to $3,060 million in 2023, representing a 32% growth. Similarly, the Applied Water segment experienced a growth in orders from $1,770 million to $1,794 million, reflecting a 1% increase. Measurement and Control Solutions also saw an increase in orders from $1,803 million to $1,670 million, marking a 7% decrease.

In terms of revenue, the Water Infrastructure segment reported an increase from $2,967 million in 2022 to $3,060 million in 2023, while the Applied Water segment's revenue remained relatively stable at $1,853 million in 2022 and 2023. Measurement and Control Solutions reported a slight decrease in revenue from $1,729 million to $1,612 million.

Operating income for Water Infrastructure increased from $419 million in 2022 to $652 million in 2023, representing a significant 56% growth. The Applied Water segment also experienced growth in operating income from $310 million to $324 million, a 4% increase. Measurement and Control Solutions reported a substantial increase in operating income from $113 million to $133 million.

Adjusted EBITDA for Water Infrastructure grew from $532 million in 2022 to $1,092 million in 2023, reflecting a remarkable 105% increase. The Applied Water segment also witnessed an increase from $329 million to $336 million. Measurement and Control Solutions reported growth in adjusted EBITDA from $248 million to $252 million.

Looking at the quarterly performance in 2023, the fourth quarter stood out with notable increases in orders and revenue across all segments compared to the previous quarters. For example, Water Infrastructure segment’s orders increased from $633 million in the third quarter to $820 million in the fourth quarter, reflecting a 29% growth.

Furthermore, the adjusted organic constant currency growth for Xylem Inc. in the year ended December 31, 2023, showed a 21% increase, indicating positive performance for the company.

As a result of these announcements, the company's shares have moved 0.7% on the market, and are now trading at a price of $127.82. For the full picture, make sure to review Xylem's 8-K report.

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