Xylem Inc. has reported its second-quarter 2024 results, revealing a 26% increase in revenue to reach $2.2 billion. This impressive growth includes a 9% organic increase. Earnings per share also saw a substantial increase, rising by 78% on a reported basis and 11% on an adjusted basis to $0.80 and $1.09, respectively.
The company has raised its full-year revenue guidance to $8.55 billion, representing approximately a 16% increase on a reported basis and a 5% to 6% increase organically. This adjustment marks an improvement from the previous guidance of 15% to 16% on a reported basis and 4% to 6% organically.
Xylem's net income for the second quarter was $194 million, or $0.80 per share, with a net income margin increase of 360 basis points to 8.9%. Adjusted net income, which excludes certain impacts, was $266 million, or $1.09 per share.
The company's second-quarter adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) margin was 20.8%, reflecting a year-over-year increase of 170 basis points.
Looking ahead, Xylem now expects its full-year 2024 adjusted EBITDA margin to be approximately 20.5%, up from the previous guidance of 20.0%. This adjustment results in an increased range for adjusted earnings per share, now forecasted to be $4.18 to $4.28, up from the previous range of $4.10 to $4.25.
Xylem has also raised its full-year free cash flow conversion to net income expectation, now anticipating it to be at least 120%, up from the prior guidance of 115%.
For more detailed information, Xylem's second-quarter earnings materials and reconciliations for certain non-GAAP items can be found at www.xylem.com/investors.
The market has reacted to these announcements by moving the company's shares 0.5% to a price of $141.53. For the full picture, make sure to review Xylem's 8-K report.
