xylem investor day presentation

• Get 7 Days Free

Xylem to Host Investor Day on May 30, 2024

Xylem Inc. (NYSE: XYL), a leading global water technology company dedicated to solving the world’s most challenging water issues, today announced it will host its 2024 Investor Day on May 30, beginning at 11:00 a.m. (ET). The venue will be the Reservoir Center for Water Solutions at 301 Water Street SE, Washington, DC 20003. Investors can also attend and participate virtually.

Matthew Pine, Xylem’s President and CEO, Bill Grogan, Senior Vice President and Chief Financial Officer, and other members of the senior leadership team will provide information about the company’s plans to drive profitable growth and value creation.

The program will comprise presentations and discussions with Xylem’s leadership team and will include an update on the company’s strategy, integration of Evoqua, long-term financial targets, and capital allocation priorities.

The hybrid physical/virtual event will be carried by live webcast, including an opportunity to participate in a Q&A session. Investors interested in attending virtually can register in advance by visiting Investors Events | Xylem US . A recording will be available shortly after the event concludes.

About Xylem

Xylem (XYL) is a leading global water technology company committed to solving the world’s critical water challenges with innovation and expertise. Our 23,000 diverse employees delivered combined pro forma revenue of $8.1 billion in 2023. We are creating a more sustainable world by enabling our customers to optimize water and resource management and helping communities in more than 150 countries become water-secure. Join us at www.xylem.com and Let’s Solve Water.

Media Houston Spencer +1 (914) 240-3046 [email protected] Investors Andrea van der Berg +1 (914) 260-8612 [email protected]

View source version on businesswire.com: https://www.businesswire.com/news/home/20240418195623/en/

Market Updates

5 things we learned from the q1 earnings season, after earnings, is palantir stock a buy, a sell, or fairly valued, what’s happening in the markets this week, can the fed declare victory on inflation, after earnings, is coinbase stock a buy, a sell, or fairly valued, after earnings, is albemarle stock a buy, a sell, or fairly valued, is servicenow stock a buy after earnings and its investor day, 3 stocks to buy and 3 stocks to sell after earnings, stock picks, today’s market volatility could provide tomorrow’s opportunities, 40 of the best investment picks, tech stock dividends are changing the face of dividend growth investing, roblox earnings: weakening engagement has weighed on growth, the best gaming stocks to buy, energy transfer earnings: m&a drives guidance increase in solid quarter, the best healthcare stocks to buy, going into earnings, is home depot stock a buy, a sell, or fairly valued, sponsor center.

• Markets Data

Company Announcements

Xylem to host investor day on may 30, 2024.

WASHINGTON --(BUSINESS WIRE)--Apr. 18, 2024-- Xylem Inc . (NYSE: XYL), a leading global water technology company dedicated to solving the world’s most challenging water issues, today announced it will host its 2024 Investor Day on May 30 , beginning at 11:00 a.m. (ET) . The venue will be the Reservoir Center for Water Solutions at 301 Water Street SE , Washington, DC 20003. Investors can also attend and participate virtually.

Bill Grogan , Senior Vice President and Chief Financial Officer, and other members of the senior leadership team will provide information about the company’s plans to drive profitable growth and value creation.

The program will comprise presentations and discussions with Xylem’s leadership team and will include an update on the company’s strategy, integration of Evoqua, long-term financial targets, and capital allocation priorities.

The hybrid physical/virtual event will be carried by live webcast, including an opportunity to participate in a Q&A session. Investors interested in attending virtually can register in advance by visiting Investors Events | Xylem US . A recording will be available shortly after the event concludes.

About Xylem

Xylem (XYL) is a leading global water technology company committed to solving the world’s critical water challenges with innovation and expertise. Our 23,000 diverse employees delivered combined pro forma revenue of $8.1 billion in 2023. We are creating a more sustainable world by enabling our customers to optimize water and resource management and helping communities in more than 150 countries become water-secure. Join us at www.xylem.com and Let’s Solve Water.

View source version on businesswire.com : https://www.businesswire.com/news/home/20240418195623/en/

Andrea van der Berg +1 (914) 260-8612 [email protected]

Source: Xylem Inc.

• Today's news
• Reviews and deals
• Climate change
• 2024 election
• Fall allergies
• Health news
• Mental health
• Sexual health
• Family health
• So mini ways
• Unapologetically
• Buying guides

Entertainment

• How to Watch
• My Portfolio
• Latest News
• Stock Market
• Premium News
• Biden Economy
• EV Deep Dive
• Stocks: Most Actives
• Stocks: Gainers
• Stocks: Losers
• Trending Tickers
• World Indices
• US Treasury Bonds
• Top Mutual Funds
• Highest Open Interest
• Highest Implied Volatility
• Stock Comparison
• Advanced Charts
• Currency Converter
• Basic Materials
• Communication Services
• Consumer Cyclical
• Consumer Defensive
• Financial Services
• Industrials
• Real Estate
• Mutual Funds
• Credit cards
• Balance Transfer Cards
• Cash-back Cards
• Rewards Cards
• Travel Cards
• Personal Loans
• Student Loans
• Car Insurance
• Morning Brief
• Market Domination
• Market Domination Overtime
• Opening Bid
• Stocks in Translation
• Lead This Way
• Good Buy or Goodbye?
• Fantasy football
• Pro Pick 'Em
• College Pick 'Em
• Fantasy baseball
• Fantasy hockey
• Fantasy basketball
• Download the app
• Daily fantasy
• Scores and schedules
• GameChannel
• World Baseball Classic
• Premier League
• CONCACAF League
• Champions League
• Motorsports
• Horse racing
• Newsletters

New on Yahoo

• Privacy Dashboard

Yahoo Finance

Xylem inc. (nyse:xyl) q4 2023 earnings call transcript.

Xylem Inc. (NYSE: XYL ) Q4 2023 Earnings Call Transcript February 6, 2024

Xylem Inc. isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter ( see the details here ).

Operator: Welcome to Xylem's Fourth Quarter 2023 Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Andrea van der Berg, Vice President of Investor Relations. Please go ahead.

Andrea van der Berg: Thank you, Operator. Good morning, everyone, and welcome to Xylem's fourth quarter 2023 earnings conference. With me today are Chief Executive Officer, Matthew Pine; and Chief Financial Officer, Bill Grogan. They will provide their perspectives on Xylem's fourth quarter and full-year 2023 results, and discuss our outlook and guidance for 2024. Following our prepared remarks, we will address questions related to the information covered on the call. I'll ask that you please keep to one question and a follow-up, and then return to the queue. As a reminder, this call and our webcast are accompanied by a slide presentation available in the Investor section of our website. A replay of today's call will be available until midnight, February 13.

Additionally, the call will be available for playback via the Investor section of our website under the heading Investor Events. Please turn to slide two. We will make some forward-looking statements in today's call, including references to future events or developments that we anticipate will or may occur in the future. These statements are subject to future risks and uncertainties, such as those factors described in Xylem's most recent annual report on Form 10-K and in subsequent reports filed with SEC. Please note that the company undertakes no obligation to update any forward-looking statements publicly to reflect subsequent events or circumstances, and actual events or results could differ materially from those anticipated. Please turn to slide three.

We have provided you with a summary of our key performance metrics, including both GAAP and non-GAAP metrics. For purposes of today's call, all references will be on an organic and or adjusted basis unless otherwise indicated, and non-GAAP financials have been reconciled for you and are included in the appendix section of the presentation. Now, please turn to slide four, and I'll turn the call over to our CEO, Matthew Pine.

Matthew Pine: Thanks, Andrea. Good morning, everyone, and thanks for joining us. It's a pleasure to share the Xylem team's exceptional performance in the fourth quarter of a transformational year for the enterprise. The team delivered both Q4 and full-year results exceeding expectations on revenue and earnings per share. Looking at the fourth quarter, strong demand drove organic revenue growth of 9%. With disciplined execution, delivering EBITDA margin expansion of 90 basis points that drove double-digit orders growth. And our backlog is now more than $5 billion. Our Q4 performance capped off a year in which the team over-delivered in every quarter. Full-year organic revenues were up 12%, with EBITDA margin expansion of 190 basis points, and adjusted earnings per share growth of 20%.

The team even delivered an Evoqua run-rate cost synergies in 2023, ahead of plan. Both the quarter and the full-year give us very strong momentum entering 2024. Despite a dynamic environment and the excitement of our combination with Evoqua, the team stayed focused on serving our customers. Joining forces with Evoqua has put the sector's most advanced portfolio of capabilities in the hands of our customers, and open up new opportunities to address even more of their water challenges. In our last earnings call, we shared a bit about the synergy traction we're seeing between the legacy Evoqua Services business and Xylem's dewatering business. And since them, we've seen the momentum continue to build as the team wins in the marketplace with our combined offering.

On January 1, we made it even easier for our customers to access the full breadth of our capabilities with the creation of the Water Solutions and Services segment, effectively combining Xylem and Evoqua services offerings in a realigned segment structure. The move supports the continuing growth of our services business and expansion of recurring revenues. And it puts Xylem in an even stronger position to capture value by serving industrial water customers who are increasingly outsourcing water management as water stresses intensify. Looking forward, we are starting strong in 2024 with momentum from our outperformance in '23 and continued healthy demand in our major end-markets, though we're keeping a close eye on demand dynamics in China, and are taking a prudent view of end-markets for Applied Water, which is our most cyclical segment.

Our backlog across the business is a source of continuing strength, especially at M&CS. We also feel very confident in our ability to drive continuing margin expansion by focusing our energy on the parts of the business delivering the greatest value. Overall, we're well-positioned for profitable and sustainable growth. We expect 2024 organic revenues to be up 3% to 5%, with solid EBITDA margin expansion, resulting in earnings per share between $4.00 and $4.20. I'll now turn it over to Bill to walk through the quarter's results and our outlook for 2024 in more detail.

Bill Grogan: Thanks, Matthew. Please turn to slide five. As Matthew mentioned, we are pleased with the strong finish to 2023. The team has stayed focused and consistently delivered throughout the year, exceeding on our expectations on revenue and earnings per share for Q4 and the full-year. We continue to see resilient demand and are supported by our $5.1 billion backlog, which grew 5% organically for the year. Organic orders grew 10% in the quarter, with book-to-bill approximately 1 for the quarter, and greater than 1 for the full-year. Total revenues grew 41%, while organic revenues rose 9%, exceeding our guidance of 4% to 5%. Outperformance was led by M&CS and Water Infrastructure. All regions grew led by double-digit growth in the U.S. EBITDA margin was 19.6%, up 90 basis points from the prior year, with productivity savings, price, and higher volume more than offsetting inflation.

This reflects 33% incremental on the legacy Xylem performance. We finished the year with EBITDA margin of 18.9%, up nearly 200 basis points over prior year. Our EPS in the quarter was $0.99, above the high end of our guide by $0.03. When excluding the impacts of Evoqua, EPS was $1.10, up 10% over prior year. Our financial position remains robust with over $1 billion in cash, and available liquidity of approximately $2 billion. We ended the year with adjusted free cash flow conversion of 122%, exceeding our expectations and significantly improved versus last year. Please turn to slide six. Before I highlight each segment's fourth quarter performance, I want to touch on some changes you'll see in our earnings materials going forward. In the spirit of 80/20, we have simplified our earnings materials to focus on what is most important for investors.

To assist with the transition this quarter, we have provided our historical presentation format in the Appendix. And now, on to the segment performance, measurement and Control Solutions saw robust orders growth of 14%, with strength across the portfolio led by metrology and assessment services. Backlog is $2.3 billion and book-to-bill is above 1, a reflection of the strong demand for our AMI solutions and other digital offerings. MCS revenue is up 21% driven by metrology backlog execution and strong demand. We finished the quarter with improved EBITDA margins of 17.3%, up 220 basis points versus the prior year, and up 160 basis points sequentially on productivity, price, and higher volumes. Water Infrastructure also saw orders growth of 9% for the quarter, with strength across the portfolio, led by robust treatment demand globally.

Revenue exceeded our expectations with total growth of 30% on organic growth of 9%, driven by robust OpEx demand across all regions. EBITDA margin for the segment was down 90 basis points driven by the impacts of legacy Evoqua. When excluding the impact of Evoqua, EBITDA margin was up 50 basis points primarily due to price, productivity, and volume more than offsetting inflation and unfavorable mix. In Applied Water, although orders grew, book-to-bill was 0.9 times as we continue to work down our backlog and we saw softer demand environment in the U.S., our largest geography. Revenues were flat, in line with our guide, with the decline developed markets offset slightly by growth in emerging markets. Segment EBITDA margin expanded 80 basis points, with productivity and price more than offsetting inflation and volume declines.

Integrated Solutions and Services, orders grew 5% on a pro forma basis, and book-to-bill was 1. Demand was driven by services. Pro forma revenue growth of 10% exceeded our expectations, as implied in our reported guidance, with healthy growth across the portfolio. Adjusted EBITDA margin was strong, at 21.1%, driven by price realization and volume. Please turn to slide seven, I will cover our segment outlook for the year. As Matthew mentioned, in December, we announced the creation of Water Solutions and Services segment. We are providing organic revenue guidance based on our previous reporting segments. Later this month, we will provide recast financial information aligned to the new segments. However, we expect the segment guidance outlook to largely be in line with the new segment structure, and will update as needed in our Q1 earnings call.

In M&CS, we expected growth of low teens. Demand and order momentum for our AMI solutions remain strong. We expect to see sequential revenue improvement throughout 2024 supported by our robust backlog. In Water Infrastructure, we expect growth of mid-single digits. We expect resilient OpEx demand due to mission critical nature of our applications, and a healthy CapEx demand. We are continuing to closely monitor its office in China, where the majority of our business is in the utility end-market. In Applied Water, we expect a modest decline of low single digits. We continue to see pockets of softness across our end-markets, particularly in developed markets which make up about 80% of our business. We also expect to see headwinds as we lap price increases and our backlog returns to more historic levels.

ISS growth is expected to be mid single digits with growth across both capital and services. We continue to see strong activity in our funnel, particularly in high-growth verticals such as food and beverage, energy, and life sciences. This segment is supported by $1 billion in backlog and a durable service business model. And as a reminder, the ISS growth outlook is on an organic basis. Now, let's turn to slide eight for our 2024 and Q1 guidance. The growth outlook by segment translates to 2024 full revenue of $8.4 billion to $8.5 billion, resulting in total revenue growth of 14% to 15%, organic revenue growth of 3% to 5%. EBITDA margin is expected to be 19.4% to 19.9%. This represents 50 to 100 basis points of expansion versus the prior year, driven by higher volume, productivity, and price offsetting inflation.

This yields an EPS range of $4 to $4.20, up 8% at the midpoint over prior year. We are expecting approximately $100 million of exit run-rate cost synergies in 2024, which is embedded in our guide. Free cash flow conversion for the year is expected to be 115% of net income. Drilling down on the first quarter, we anticipate total revenue growth will be in the 36% to 38% range on a reported basis and 4% to 6% organically. We expect first quarter EBITDA margin to be approximately 18%, up 170 basis points, driven by higher volumes, continued price realization, and productivity gains. This yield first quarter EPS of $0.80 to $0.85. We are entering the year with momentum and from a position of strength. Our balanced outlook reflects our strong commercial position and the durability of our portfolio.

While we also continue to monitor broader market conditions particularly in China in Applied Water which is our shortest cycle business. In the case of larger than expected volume declines, we are ready to take additional cost actions as needed to ensure continued focus on margin expansion. Overall, our expectations for the year remain positive as we build on a strong momentum. With that, please turn to slide nine. And, I'll turn the call back over to Matthew for closing comments.

Matthew Pine: Thanks, Bill. It's been incredibly exciting to step up as CEO at a time of such great momentum and opportunity for Xylem. I began the year by spending time with customers and colleagues in India and the Middle East. Bill and I started off in India. And, the scale of ambition there to modernize infrastructure and tackle the big water challenges is frankly awe-inspiring. We have an outstanding team there doing great work to serve customers from our localized R&D in manufacturing platform that gives us a real competitive advantage. And both India and the Middle East provide great reminders of the fundamental interconnectedness of economic value and social value creation in our business. These markets present expansive commercial opportunity.

And in both markets every project improves lives and increases sustainability of communities. We took some time out with colleagues in India to visit a school in a rural area outside of Bangalore. We got hands-on building a small scale water treatment system that now provides clean drinking water for the students and their community. I'll be honest. The experience of celebrating with those kids and their teachers as the clean water started to flow, well, it's just hard to describe. And you also know that the impact on educational outcomes, health, and quality of life is likely to be profound. That experience drove home for me not just the importance of what Xylem does but it reinforced the focus we are bringing into 2024. Whether it's a scale of a school or the scale of a megacity, we have to make it easier for customers and community to solve their big water challenges, reducing the complexity of water solutions that is our focus, simplifying water.

We have assembled the most advanced and most comprehensive portfolio of products, solutions, and services in the sector. The value creation opportunity in front of us is to make all that capability far easier for customers to access to empower them to solve their most critical water challenges and deliver great outcomes with far less complexity. We started the year with great pace with strong execution off the back of a great Q4 in 2023 across both legacy Xylem and legacy Evoqua businesses. And our integration is well on track to deliver on the full value creation opportunity of the combination. Our end markets are resilient. And as long as the long-term trends in waters continue to intensify, our team is energized to take all of our capabilities to deliver even greater impact for our customers.

Our investment thesis remains robust. And we continue to execute on the strategy that has positioned us so strongly for further economic and social value creation. We look forward to sharing further insights into our priorities and strategic direction at our upcoming Investor Day on May 30, in Washington, D.C., one I hope many of you will join us. Now, operator, I'll turn the call back over to you for questions.

See also 20 Best Places to Retire in Italy for US Citizens and 25 States with Lowest Percentage of College Graduates.

To continue reading the Q&A session, please click here .

Media Houston Spencer +1 (914) 240-3046 [email protected] Investors Matt Latino +1 (914) 323-5821 [email protected]

Release Summary

• #LetsSolveWater

Social Media Profiles

Elon Musk's Tesla overhaul hits executive bench he touted

• Medium Text

• Company Tesla Inc Follow

STRATEGY SHIFTS

Sign up here.

Reporting by Joseph White in Detroit, Aditya Soni in Bengaluru and Kevin Krolicki in Beijing Additional reporting by Hyunjoo Jin in San Francisco, Akash Sriram in Bengaluru and Ben Klayman in Detroit Writing by Joseph White Editing by Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles. New Tab , opens new tab

Thomson Reuters

Joe White is the global automotive correspondent for Reuters, based in Detroit. Joe joined Reuters in January 2015 as the transportation editor leading coverage of planes, trains and automobiles, and later became global automotive editor. Previously, he served as the global automotive editor of the Wall Street Journal, where he oversaw coverage of the auto industry and ran the Detroit bureau. Joe is co-author (with Paul Ingrassia) of Comeback: The Fall and Rise of the American Automobile Industry, and he and Paul shared the Pulitzer Prize for beat reporting in 1993. You can sign up for Joe's Auto File newsletter here: https://www.reuters.com/newsletters/reuters-auto-file/

Kevin Krolicki is Reuters mobility editor, based in Singapore, where he works with a global team of reporters covering autos and EVs, airlines, aerospace and the business of space and satellite launches. A Detroit native, he has worked in Tokyo, Los Angeles, Detroit and Washington as a reporter and editor in a 27-year career with Reuters.

Business Chevron

Us judge halts rule capping credit card late fees at $8.

A federal judge in Texas on Friday halted the Consumer Financial Protection Bureau's new rule capping credit card late fees at $8, a victory for business and banking groups challenging part of the Biden administration's crackdown on "junk fees."

Presentation of Viva Wine Group’s Q1-report 2024

Viva Wine Group’s report for the first quarter 2024 will be published on Thursday, 16 May at 8:00 a.m. CET.

In conjunction with this, analysts, investors and media are invited to a webcast with telephone conference on the same day at 11:00 a.m., where CEO Emil Sallnäs and CFO Linn Gäfvert will present and comment on the report. The presentation and presentation material will be made available at https://investors.vivagroup.se/reports-presentations/ and https://ir.financialhearings.com/viva-wine-group-q1-report-2024.

More information and access to the webcast with teleconference are available at https://financialhearings.com/event/48950. After the presentation, conference participants will be able to ask questions.

Participate via the webcast:

https://ir.financialhearings.com/viva-wine-group-q1-report-2024

Via the webcast, you can ask questions in writing.

Participate via conference call:

https://conference.financialhearings.com/teleconference/?id=50048950

Register to receive a phone number and conference ID to log into the presentation with. Via the telephone conference, you can ask questions verbally.

Certified Adviser FNCA Sweden AB is the Company's Certified Adviser on Nasdaq First North Premier Growth Market.

For more information, please contact: Linn Gäfvert, CFO Viva Wine Group Mobile: + 46 730 86 89 90 Email: [email protected]