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Xylem's Q4 Earnings & Revenues Beat Estimates, Orders Up Y/Y
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Xylem Inc.’s (XYL - Free Report) fourth-quarter 2024 adjusted earnings of $1.18 per share beat the Zacks Consensus Estimate of $1.12. The bottom line increased 19% year over year.
XYL’s revenues of $2.30 billion beat the consensus estimate of $2.18 billion. The top line increased 7% year over year, driven by resilient demand reflected by solid orders growth across all segments. Organic revenues rose 7%.
Orders of $2.2 billion increased 7% year over year on a reported and organic basis.
For 2024, Xylem reported net revenues of $8.6 billion, which increased 16% year over year. For the year, the company’s adjusted earnings were $4.27 per share, up 13% year over year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
XYL's Segmental Details
Revenues in the Water Infrastructure segment totaled $727 million, up 8% year over year. Organic sales increased 8% year over year, buoyed by solid demand for its products and solutions for the transportation and treatment of water, including pumps, filtration and treatment equipment. The Zacks Consensus Estimate was pegged at $708 million.
The Applied Water segment generated revenues of $454 million, down 1% year over year. Organic sales were flat on a year-over-year basis. The segmental performance was hurt by softness in commercial and industrial end markets. The consensus estimate was pegged at $452 million.
Quarterly revenues of the Measurement & Control Solutions segment totaled $469 million, up 7% year over year. The Zacks Consensus Estimate was pegged at $467 million. Organic sales were up 6% year over year, driven by smart metering demand and execution.
Quarterly revenues at the Water Solutions and Services segment totaled $606 million, up 10% year over year. Organic sales were up 11% year over year, due to capital projects, dewatering and service. The consensus estimate was pegged at $558 million.
Xylem’s adjusted EBITDA was $473 million, up 13.7% from the year-ago quarter’s level. The margin improved to 21.0% from 19.6% in the prior year.
Adjusted operating income was $377 million, up 20.5% year over year. Adjusted operating margin increased to 16.7% from 14.8% in the year-earlier quarter.
Xylem’s Balance Sheet and Cash Flow
Exiting the fourth quarter, Xylem had cash and cash equivalents of $1.1 billion compared with $1.02 billion at the end of December 2023. Long-term debt was $1.99 billion at the end of the quarter compared with $2.3 billion at the end of December 2023.
In 2024, XYL generated net cash of $1.26 billion from operating activities compared with $837 million in the year-ago period.
Capital expenditure was $321 million, up 18.5% from the year-earlier quarter. Adjusted free cash flow was $942 million in the year compared with $729 million in the prior year period.
Xylem’s Rewards to Shareholders
In 2024, Xylem paid dividends of $350 million, up 17.1% year over year. The company also bought back shares worth $20 million in the same period compared with $25 million in the year-ago period.
XYL's 2025 Guidance
Xylem expects revenues to be in the range of $8.6-$8.7 billion for 2025. This indicates an increase of 0-2% from the prior-year level on a reported basis and 3-4% on an organic basis.
Adjusted EBITDA margin is estimated to be approximately 21.3-21.8%, indicating an expansion of 70-120 basis points from the year-earlier actual.
XYL forecasts adjusted earnings to be in the range of $4.50–$4.70 per share. This metric indicates an increase from earnings of $4.27 per share in 2024.
Xylem’s Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
Tetra Tech, Inc. (TTEK - Free Report) reported earnings of $0.35 per share in the first quarter of fiscal 2025 (ended December 2024), which beat the Zacks Consensus Estimate of $0.34. This compares with earnings of $0.28 per share a year ago.
Tetra posted revenues of $1.2 billion for the quarter ended December 2024, surpassing the consensus estimate by 8.85%. This compares with year-ago revenues of $1.02 billion. The company topped the consensus estimate for revenues in each of the last four quarters.
Waste Management, Inc. (WM - Free Report) reported earnings of $1.70 per share in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $1.79. This compares with earnings of $1.74 per share a year ago.
WM reported revenues of $5.89 billion for the quarter ended December 2024, surpassing the consensus estimate by 0.18%. This compares with year-ago revenues of $5.22 billion. The company topped the consensus estimate for revenues two times in the last four quarters.
Packaging Corporation of America (PKG - Free Report) reported adjusted earnings per share of $2.47 in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $2.51 by a margin of 2%. The bottom line matched PKG’s guidance and grew 16% year over year.
Sales in the fourth quarter rose 10.7% year over year to $2.15 billion due to higher volumes and price/mix in both segments. The top line beat the consensus estimate of $2.13 billion.
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Xylem's Q4 Earnings & Revenues Beat Estimates, Orders Up Y/Y
Xylem Inc.’s (XYL - Free Report) fourth-quarter 2024 adjusted earnings of $1.18 per share beat the Zacks Consensus Estimate of $1.12. The bottom line increased 19% year over year.
XYL’s revenues of $2.30 billion beat the consensus estimate of $2.18 billion. The top line increased 7% year over year, driven by resilient demand reflected by solid orders growth across all segments. Organic revenues rose 7%.
Orders of $2.2 billion increased 7% year over year on a reported and organic basis.
For 2024, Xylem reported net revenues of $8.6 billion, which increased 16% year over year. For the year, the company’s adjusted earnings were $4.27 per share, up 13% year over year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
XYL's Segmental Details
Revenues in the Water Infrastructure segment totaled $727 million, up 8% year over year. Organic sales increased 8% year over year, buoyed by solid demand for its products and solutions for the transportation and treatment of water, including pumps, filtration and treatment equipment. The Zacks Consensus Estimate was pegged at $708 million.
The Applied Water segment generated revenues of $454 million, down 1% year over year. Organic sales were flat on a year-over-year basis. The segmental performance was hurt by softness in commercial and industrial end markets. The consensus estimate was pegged at $452 million.
Quarterly revenues of the Measurement & Control Solutions segment totaled $469 million, up 7% year over year. The Zacks Consensus Estimate was pegged at $467 million. Organic sales were up 6% year over year, driven by smart metering demand and execution.
Quarterly revenues at the Water Solutions and Services segment totaled $606 million, up 10% year over year. Organic sales were up 11% year over year, due to capital projects, dewatering and service. The consensus estimate was pegged at $558 million.
Xylem Inc. Price, Consensus and EPS Surprise
Xylem Inc. price-consensus-eps-surprise-chart | Xylem Inc. Quote
XYL’s Margin Profile
Xylem’s adjusted EBITDA was $473 million, up 13.7% from the year-ago quarter’s level. The margin improved to 21.0% from 19.6% in the prior year.
Adjusted operating income was $377 million, up 20.5% year over year. Adjusted operating margin increased to 16.7% from 14.8% in the year-earlier quarter.
Xylem’s Balance Sheet and Cash Flow
Exiting the fourth quarter, Xylem had cash and cash equivalents of $1.1 billion compared with $1.02 billion at the end of December 2023. Long-term debt was $1.99 billion at the end of the quarter compared with $2.3 billion at the end of December 2023.
In 2024, XYL generated net cash of $1.26 billion from operating activities compared with $837 million in the year-ago period.
Capital expenditure was $321 million, up 18.5% from the year-earlier quarter. Adjusted free cash flow was $942 million in the year compared with $729 million in the prior year period.
Xylem’s Rewards to Shareholders
In 2024, Xylem paid dividends of $350 million, up 17.1% year over year. The company also bought back shares worth $20 million in the same period compared with $25 million in the year-ago period.
XYL's 2025 Guidance
Xylem expects revenues to be in the range of $8.6-$8.7 billion for 2025. This indicates an increase of 0-2% from the prior-year level on a reported basis and 3-4% on an organic basis.
Adjusted EBITDA margin is estimated to be approximately 21.3-21.8%, indicating an expansion of 70-120 basis points from the year-earlier actual.
XYL forecasts adjusted earnings to be in the range of $4.50–$4.70 per share. This metric indicates an increase from earnings of $4.27 per share in 2024.
Xylem’s Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Tetra Tech, Inc. (TTEK - Free Report) reported earnings of $0.35 per share in the first quarter of fiscal 2025 (ended December 2024), which beat the Zacks Consensus Estimate of $0.34. This compares with earnings of $0.28 per share a year ago.
Tetra posted revenues of $1.2 billion for the quarter ended December 2024, surpassing the consensus estimate by 8.85%. This compares with year-ago revenues of $1.02 billion. The company topped the consensus estimate for revenues in each of the last four quarters.
Waste Management, Inc. (WM - Free Report) reported earnings of $1.70 per share in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $1.79. This compares with earnings of $1.74 per share a year ago.
WM reported revenues of $5.89 billion for the quarter ended December 2024, surpassing the consensus estimate by 0.18%. This compares with year-ago revenues of $5.22 billion. The company topped the consensus estimate for revenues two times in the last four quarters.
Packaging Corporation of America (PKG - Free Report) reported adjusted earnings per share of $2.47 in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $2.51 by a margin of 2%. The bottom line matched PKG’s guidance and grew 16% year over year.
Sales in the fourth quarter rose 10.7% year over year to $2.15 billion due to higher volumes and price/mix in both segments. The top line beat the consensus estimate of $2.13 billion.