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Xylem Reports Fourth-Quarter and Full-Year 2023 Results

Fourth-Quarter Highlights

  • Orders of $2.0 billion, up 42% on a reported basis and 10% organically
  • Revenue of $2.1 billion, up 41% on a reported basis and 9% organically
  • Earnings per share of $1.10, up 34%; $0.99 on an adjusted basis, down 1%

Full-Year Highlights

  • Revenue of $7.4 billion, up 33% on a reported basis and 12% organically
  • Earnings per share of $2.79, up 42%; $3.78 on an adjusted basis, up 20%
  • Initiating 2024 full-year revenue guidance of $8.4 to $8.5 billion, up 3% to 5% organically, and adjusted earnings per share range of $4.00 to $4.20

Xylem Inc. (NYSE: XYL), a leading global water technology company dedicated to solving the world’s most challenging water issues, today reported fourth-quarter and full-year 2023 results. The Company’s total revenue of $2.1 billion surpassed prior guidance, on continued strong execution and demand. Fourth-quarter earnings exceeded Xylem’s previous guidance.

“The team delivered an outstanding fourth quarter, fueling momentum as we enter 2024,” said Matthew Pine, Xylem president and CEO. “Revenue, margin and earnings per share all exceeded expectations, driven by strong execution on healthy demand across our business. In a transformational year for Xylem, the team stayed focused on serving our customers and delivered strong results on both the top and bottom lines.”

“That discipline and focus, paired with continuing resilient underlying demand, gives us confidence in further growth and margin expansion in the year ahead. Our integration of Evoqua is ahead of schedule, and our team is taking full advantage of the breadth of our combined offering to solve even more of our customers’ water challenges.”

Net income was $266 million, or $1.10 per share. Net income margin increased 270 basis points to 12.6 percent. These results are driven by strong operational performance and non-recurring tax benefits, partially offset by higher acquisition and integration costs related to the Evoqua transaction, purchase accounting intangible amortization, special charges, and restructuring and realignment costs. Adjusted net income was $239 million, or $0.99 per share, which excludes the impacts of special charges, purchase accounting intangible amortization, and restructuring and realignment costs.

Fourth-quarter adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) margin was 19.6 percent, reflecting a year-over-year increase of 90 basis points. Productivity savings, strong price realization and higher volume drove the margin expansion, exceeding the impact of inflation and strategic investments.

The Board of Directors of Xylem has declared a first-quarter dividend of $0.36 per share, an increase of 9 percent. The dividend is payable on March 20, 2024, to shareholders of record as of February 21, 2024.

Outlook

Xylem forecasts full-year 2024 revenue of approximately $8.4 to $8.5 billion, up approximately 14 to 15 percent on a reported basis and up approximately 3 to 5 percent on an organic basis.

Full-year 2024 adjusted EBITDA margin is expected to be approximately 19.4 to 19.9 percent, an increase of 50 to 100 basis points from Xylem’s 2023 adjusted results. Full-year free cash flow conversion to net income is expected to be approximately 115 percent.

Further 2024 planning assumptions are included in Xylem’s fourth-quarter 2023 earnings materials posted at www.xylem.com/investors. Excluding revenue, Xylem provides guidance only on a non-GAAP basis due to the inherent difficulty in forecasting certain amounts that would be included in GAAP earnings, such as discrete tax items, without unreasonable effort.

Supplemental information on Xylem’s fourth-quarter 2023 earnings and reconciliations for certain non-GAAP items is posted at www.xylem.com/investors.

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.

Forward-Looking Statements

This press release 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,” “intend,” “plan,” "contemplate," "predict," “forecast,” “likely,” “believe,” “target,” “will,” “could,” “would,” “should,” "potential," "may" and similar expressions or their negative, may, but are not necessary to, identify forward-looking statements. By their nature, forward-looking statements address uncertain matters and include any statements that: are not historical, such as statements about our strategy, financial plans, outlook, objectives, plans, intentions or goals (including those related to our social, environmental and other sustainability goals); or address possible or future results of operations or financial performance, including statements relating to orders, revenues, operating margins and earnings per share growth.

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in or implied by our forward-looking statements include, among others, the following: the impact of overall industry and general economic conditions, including industrial, governmental, and public and private sector spending, interest rates, inflation and related monetary policy by governments in response to inflation, and the strength of the residential and commercial real estate markets, on economic activity and our operations; geopolitical events, including the ongoing and possible escalation of the conflicts involving between Russia and Ukraine, and the Middle East, as well as regulatory, economic and other risks associated with our global sales and operations, including those related to domestic content requirements applicable to projects receiving governmental funding; manufacturing and operating cost increases due to macroeconomic conditions, including inflation, energy supply, supply chain shortages, logistics challenges, tight labor markets, prevailing price changes, tariffs and other factors; demand for our products, disruption, competition or pricing pressures in the markets we serve; cybersecurity incidents or other disruptions of information technology systems on which we rely, or involving our connected products and services; lack of availability or delays in receiving parts and raw materials from our supply chain, including electronic components (in particular, semiconductors); disruptions in operations at our facilities or that of third parties upon which we rely; uncertainty related to the realization of the benefits and synergies from our acquisition of Evoqua; safe and compliant treatment and handling of water, wastewater and hazardous materials; failure to successfully execute large projects, including with respect to meeting performance guarantees and customers’ budgets, timelines and safety requirements; our ability to retain and attract leadership and other diverse and key talent, as well as competition for overall talent and labor; defects, security, warranty and liability claims, and recalls with respect to our products; uncertainty related to restructuring and realignment actions and related costs and savings; our ability to execute strategic investments for growth, including related to acquisitions and divestitures; availability, regulation or interference with radio spectrum used by certain of our products; volatility in served markets or impacts on our business and operations due to weather conditions, including the effects of climate change; risks related to our sustainability commitments and related disclosures; fluctuations in foreign currency exchange rates; difficulty predicting our financial results; risk of future impairments to goodwill and other intangible assets; changes in our effective tax rates or tax expenses; financial market risks related to our pension and other defined benefit plans; failure to comply with, or changes in, laws or regulations, including those pertaining to our business conduct, operations, products and services, including anti-corruption, data privacy and security, trade, competition, the environment, climate change and health and safety; legal, governmental or regulatory claims, investigations or proceedings and associated contingent liabilities; matters related to intellectual property infringement or expiration of rights; and other factors set forth under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022 and in subsequent filings we make with the Securities and Exchange Commission (“SEC”).

Forward-looking and other statements in this press release regarding our environmental and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or are required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking social, environmental and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. All forward-looking statements made herein are based on information currently available to us as of the date of this press release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

XYLEM INC. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS (Unaudited)

(In Millions, except per share data)

 

Year Ended December 31,

2023

 

2022

 

2021

Revenue from products

$

6,291

 

 

$

4,978

 

$

4,684

Revenue from services

 

1,073

 

 

 

544

 

 

511

Revenue

 

7,364

 

 

 

5,522

 

 

5,195

Cost of revenue from products

 

3,817

 

 

 

3,002

 

 

2,831

Cost of revenue from services

 

830

 

 

 

436

 

 

389

Cost of revenue

 

4,647

 

 

 

3,438

 

 

3,220

Gross profit

 

2,717

 

 

 

2,084

 

 

1,975

Selling, general and administrative expenses

 

1,757

 

 

 

1,227

 

 

1,179

Research and development expenses

 

232

 

 

 

206

 

 

204

Restructuring and asset impairment charges

 

76

 

 

 

29

 

 

7

Operating income

 

652

 

 

 

622

 

 

585

Interest expense

 

49

 

 

 

50

 

 

76

U.K. pension settlement expense

 

 

 

 

140

 

 

Other non-operating income, net

 

33

 

 

 

7

 

 

(Loss) Gain on sale of businesses

 

(1

)

 

 

1

 

 

2

Income before taxes

 

635

 

 

 

440

 

 

511

Income tax expense

 

26

 

 

 

85

 

 

84

Net income

$

609

 

 

$

355

 

$

427

Earnings per share:

 

 

 

 

 

Basic

$

2.81

 

 

$

1.97

 

$

2.37

Diluted

$

2.79

 

 

$

1.96

 

$

2.35

Weighted average number of shares:

 

 

 

 

 

Basic

 

217.0

 

 

 

180.2

 

 

180.2

Diluted

 

218.2

 

 

 

181.0

 

 

181.5

   

XYLEM INC. AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS (Unaudited)

(In Millions, except per share amounts)

   

December 31,

2023

 

2022

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

1,019

 

 

$

944

 

Receivables, less allowances for discounts, returns and credit losses of $56 and $50 in 2023 and 2022, respectively

 

1,617

 

 

 

1,096

 

Inventories

 

1,018

 

 

 

799

 

Prepaid and other current assets

 

230

 

 

 

173

 

Total current assets

 

3,884

 

 

 

3,012

 

Property, plant and equipment, net

 

1,169

 

 

 

630

 

Goodwill

 

7,587

 

 

 

2,719

 

Other intangible assets, net

 

2,529

 

 

 

930

 

Other non-current assets

 

943

 

 

 

661

 

Total assets

$

16,112

 

 

$

7,952

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

968

 

 

$

723

 

Accrued and other current liabilities

 

1,221

 

 

 

867

 

Short-term borrowings and current maturities of long-term debt

 

16

 

 

 

 

Total current liabilities

 

2,205

 

 

 

1,590

 

Long-term debt, net

 

2,268

 

 

 

1,880

 

Accrued post-retirement benefit obligations

 

344

 

 

 

286

 

Deferred income tax liabilities

 

557

 

 

 

222

 

Other non-current accrued liabilities

 

562

 

 

 

471

 

Total liabilities

 

5,936

 

 

 

4,449

 

Stockholders’ equity:

 

 

 

Common stock — par value $0.01 per share:

 

 

 

Authorized 750.0 shares, issued 257.6 and 196.0 shares in 2023 and 2022, respectively

 

3

 

 

 

2

 

Capital in excess of par value

 

8,564

 

 

 

2,134

 

Retained earnings

 

2,601

 

 

 

2,292

 

Treasury stock – at cost 16.0 shares and 15.8 shares in 2023 and 2022, respectively

 

(733

)

 

 

(708

)

Accumulated other comprehensive loss

 

(269

)

 

 

(226

)

Total stockholders’ equity

 

10,166

 

 

 

3,494

 

Non-controlling interest

 

10

 

 

 

9

 

Total equity

 

10,176

 

 

 

3,503

 

Total liabilities and stockholders’ equity

$

16,112

 

 

$

7,952

 

 

XYLEM INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Millions) (Unaudited)

 

Year Ended December 31,

2023

 

2022

 

2021

Operating Activities

 

 

 

 

 

Net income

$

609

 

 

$

355

 

 

$

427

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation

 

193

 

 

 

111

 

 

 

118

 

Amortization

 

243

 

 

 

125

 

 

 

127

 

Deferred income taxes

 

(79

)

 

 

(64

)

 

 

10

 

Share-based compensation

 

60

 

 

 

37

 

 

 

33

 

Restructuring and asset impairment charges

 

76

 

 

 

29

 

 

 

7

 

U.K. pension settlement expense

 

 

 

 

140

 

 

 

 

Loss (gain) from sale of businesses

 

1

 

 

 

(1

)

 

 

(2

)

Other, net

 

 

 

 

(4

)

 

 

8

 

Payments for restructuring

 

(30

)

 

 

(11

)

 

 

(25

)

Contributions to post-retirement benefit plans

 

(25

)

 

 

(19

)

 

 

(29

)

Changes in assets and liabilities (net of acquisitions):

 

 

 

 

 

Changes in receivables

 

(87

)

 

 

(192

)

 

 

(70

)

Changes in inventories

 

41

 

 

 

(147

)

 

 

(167

)

Changes in accounts payable

 

22

 

 

 

117

 

 

 

81

 

Changes in accrued liabilities

 

(4

)

 

 

57

 

 

 

7

 

Changes in accrued and deferred taxes

 

(109

)

 

 

57

 

 

 

(9

)

Net changes in other assets and liabilities

 

(74

)

 

 

6

 

 

 

22

 

Net Cash — Operating activities

 

837

 

 

 

596

 

 

 

538

 

Investing Activities

 

 

 

 

 

Capital expenditures

 

(271

)

 

 

(208

)

 

 

(208

)

Proceeds from the sale of property, plant and equipment

 

1

 

 

 

4

 

 

 

3

 

Acquisitions of businesses, net of cash acquired

 

(476

)

 

 

 

 

 

 

Proceeds from sale of businesses

 

105

 

 

 

1

 

 

 

10

 

Cash received from investments

 

1

 

 

 

5

 

 

 

 

Cash paid for investments

 

(1

)

 

 

(11

)

 

 

 

Cash paid for equity investments

 

(57

)

 

 

(3

)

 

 

(5

)

Cash received from interest rate swaps

 

38

 

 

 

 

 

 

 

Cash received from cross-currency swaps

 

28

 

 

 

28

 

 

 

14

 

Settlement of currency forward agreement

 

 

 

 

(10

)

 

 

 

Other, net

 

4

 

 

 

3

 

 

 

3

 

Net Cash — Investing activities

 

(628

)

 

 

(191

)

 

 

(183

)

Financing Activities

 

 

 

 

 

Long-term debt issued, net

 

278

 

 

 

 

 

 

 

Long-term debt repaid, net

 

(160

)

 

 

(527

)

 

 

(600

)

Repurchase of common stock

 

(25

)

 

 

(52

)

 

 

(68

)

Proceeds from exercise of employee stock options

 

62

 

 

 

8

 

 

 

19

 

Dividends paid

 

(299

)

 

 

(217

)

 

 

(203

)

Other, net

 

(13

)

 

 

(2

)

 

 

(3

)

Net Cash — Financing activities

 

(157

)

 

 

(790

)

 

 

(855

)

Effect of exchange rate changes on cash

 

23

 

 

 

(20

)

 

 

(26

)

Net change in cash and cash equivalents

 

75

 

 

 

(405

)

 

 

(526

)

Cash and cash equivalents at beginning of year

 

944

 

 

 

1,349

 

 

 

1,875

 

Cash and cash equivalents at end of year

$

1,019

 

 

$

944

 

 

$

1,349

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

Cash paid during the year for:

 

 

 

 

 

Interest

$

69

 

 

$

76

 

 

$

99

 

Income taxes (net of refunds received)

$

211

 

 

$

91

 

 

$

83

 

 
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 and investors evaluating our operating performance for the periods presented, and to provide a tool for evaluating our ongoing operations, liquidity and management of assets. This information can assist investors in assessing our financial performance and measures our ability to generate capital for deployment among competing strategic alternatives and initiatives, including but not limited to, dividends, acquisitions, share repurchases and debt repayment. Excluding revenue, Xylem provides guidance only on a non-GAAP basis due to the inherent difficulty in forecasting certain amounts that would be included in GAAP earnings, such as discrete tax items, without unreasonable effort. These adjusted metrics are consistent with how management views our business and are used to make financial, operating and planning decisions. These metrics, however, are not measures of financial performance under GAAP and should not be considered a substitute for revenue, operating income, net income, earnings per share (basic and diluted) or net cash from operating activities as determined in accordance with GAAP. We consider the following items to represent the non-GAAP measures we consider to be key performance indicators, as well as the related reconciling items to the most directly comparable measure calculated and presented in accordance with GAAP. The non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
 
“Organic revenue" and "Organic orders” defined as revenue and orders, respectively, excluding the impact of fluctuations in foreign currency translation and contributions from acquisitions and divestitures. Divestitures include sales or discontinuance of insignificant portions of our business that did not meet the criteria for classification as a discontinued operation. The period-over-period change resulting from foreign currency translation impacts is determined by translating current period and prior period activity using the same currency conversion rate.
 
“Constant currency” defined as financial results adjusted for foreign currency translation impacts by translating current period and prior period activity using the same currency conversion rate. This approach is used for countries whose functional currency is not the U.S. dollar.
 
“EBITDA” defined as earnings before interest, taxes, depreciation and amortization expense. “Adjusted EBITDA” and "Adjusted Segment EBITDA" reflect the adjustments to EBITDA and segment EBITDA, respectively, to exclude share-based compensation charges, restructuring and realignment costs, gain or loss from sale of businesses and special charges.
 
"Adjusted EBITDA Margin" and "Adjusted Segment EBITDA Margin" defined as adjusted EBITDA and adjusted segment EBITDA divided by total revenue and segment revenue, respectively.
 
"Adjusted Operating Income", "Adjusted Segment Operating Income", "Adjusted Net Income" and “Adjusted EPS” defined as operating income, segment operating income, net income and earnings per share, adjusted to exclude restructuring and realignment costs, amortization of acquired intangible assets, gain or loss from sale of businesses, special charges and tax-related special items, as applicable.
 
"Adjusted Operating Margin" and "Adjusted Segment Operating Margin" defined as adjusted operating income and adjusted segment operating income divided by total revenue and segment revenue, respectively.
 
“Free Cash Flow” defined as net cash from operating activities, as reported in the Statement of Cash Flows, less capital expenditures, and "Free Cash Flow Conversion" defined as Free Cash Flows divided by net income, excluding the gain on sale of businesses and other non-recurring, significant non-cash impacts, such as non-cash impairment charges and significant deferred tax items. Our definitions of "free cash flow" and "free cash flow conversion" do not consider certain non-discretionary cash payments, such as debt.
 
"Adjusted Free Cash Flow" defined as free cash flow adjusted for significant cash items for which the corresponding income statement impact does not occur within
the same fiscal year.
 
“Realignment costs” defined as costs not included in restructuring costs that are incurred as part of actions taken to reposition our business, including items such as professional fees, severance, relocation, travel, facility set-up and other costs.
 
“Special charges" defined as costs incurred by the Company, such as acquisition and integration related costs, non-cash impairment charges and both operating and non-operating adjustments for costs related to the UK pension plan buyout.
 
“Tax-related special items" defined as tax items, such as tax return versus tax provision adjustments, tax exam impacts, tax law change impacts, excess tax benefits/losses and other discrete tax adjustments.
 
Xylem Inc. Non-GAAP Reconciliation
Reported vs. Organic & 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 /

Divestitures

 

 

 

Change

 

% Change

 

 

Orders

 

Orders

 

2023 v. 2022

 

2023 v. 2022

 

 

FX Impact

 

Adj. 2023 v. 2022

 

Adj. 2023 v. 2022

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31
Xylem Inc.

7,501

6,257

1,244

 

20

%

(1,220

)

41

 

65

 

1

%

21

%

Water Infrastructure

3,060

2,607

453

 

17

%

(352

)

23

 

124

 

5

%

18

%

Applied Water

1,770

1,794

(24

)

(1

%)

-

 

18

 

(6

)

(0

%)

(0

%)

Measurement and Control Solutions

1,803

1,856

(53

)

(3

%)

-

 

-

 

(53

)

(3

%)

(3

%)

Integrated Solutions and Services

868

-

868

 

N/A

(868

)

-

 

-

 

N/A

N/A

 
Quarter Ended December 31
Xylem Inc.

2,044

1,439

605

 

42

%

(451

)

(17

)

137

 

10

%

41

%

Water Infrastructure

820

622

198

 

32

%

(130

)

(9

)

59

 

9

%

30

%

Applied Water

420

400

20

 

5

%

-

 

(2

)

18

 

5

%

5

%

Measurement and Control Solutions

483

417

66

 

16

%

-

 

(6

)

60

 

14

%

14

%

Integrated Solutions and Services

321

-

321

 

N/A

(321

)

-

 

-

 

N/A

N/A

 
Quarter Ended September 30
Xylem Inc.

2,031

1,419

612

 

43

%

(547

)

(18

)

47

 

3

%

42

%

Water Infrastructure

850

594

256

 

43

%

(163

)

(10

)

83

 

14

%

41

%

Applied Water

422

409

13

 

3

%

-

 

(4

)

9

 

2

%

2

%

Measurement and Control Solutions

375

416

(41

)

(10

%)

-

 

(4

)

(45

)

(11

%)

(11

%)

Integrated Solutions and Services

384

-

384

 

N/A

 

(384

)

-

 

-

 

N/A

N/A

 
Quarter Ended June 30
Xylem Inc.

1,856

1,684

172

 

10

%

(222

)

23

 

(27

)

(2

%)

12

%

Water Infrastructure

751

731

20

 

3

%

(59

)

13

 

(26

)

(4

%)

5

%

Applied Water

445

480

(35

)

(7

%)

-

 

6

 

(29

)

(6

%)

(6

%)

Measurement and Control Solutions

497

473

24

 

5

%

-

 

4

 

28

 

6

%

6

%

Integrated Solutions and Services

163

-

163

 

N/A

 

(163

)

-

 

-

 

N/A

N/A

 
Quarter Ended March 31
Xylem Inc.

1,570

1,715

(145

)

(8

%)

-

 

53

 

(92

)

(5

%)

(5

%)

Water Infrastructure

639

660

(21

)

(3

%)

-

 

29

 

8

 

1

%

1

%

Applied Water

483

505

(22

)

(4

%)

-

 

18

 

(4

)

(1

%)

(1

%)

Measurement and Control Solutions

448

550

(102

)

(19

%)

-

 

6

 

(96

)

(17

%)

(17

%)

Integrated Solutions and Services

-

-

-

 

N/A

 

-

 

-

 

-

 

N/A

N/A

 
Xylem Inc. Non-GAAP Reconciliation
Reported vs. Organic & 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 /

Divestitures

 

 

 

Change

 

% Change

 

 

Revenue

 

Revenue

 

2023 v. 2022

 

2023 v. 2022

 

 

FX Impact

 

Adj. 2023 v. 2022

 

Adj. 2023 v. 2022

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31
Xylem Inc.

7,364

5,522

1,842

33

%

(1,177

)

25

 

690

 

12

%

34

%

Water Infrastructure

2,967

2,364

603

26

%

(362

)

14

 

255

 

11

%

26

%

Applied Water

1,853

1,767

86

5

%

-

 

10

 

96

 

5

%

5

%

Measurement and Control Solutions

1,729

1,391

338

24

%

-

 

1

 

339

 

24

%

24

%

Integrated Solutions and Services

815

-

815

N/A

(815

)

-

 

-

 

N/A

N/A

 
Quarter Ended December 31
Xylem Inc.

2,118

1,506

612

41

%

(459

)

(17

)

136

 

9

%

40

%

Water Infrastructure

871

668

203

30

%

(137

)

(9

)

57

 

9

%

29

%

Applied Water

457

455

2

0

%

-

 

(4

)

(2

)

(0

%)

(0

%)

Measurement and Control Solutions

468

383

85

22

%

-

 

(4

)

81

 

21

%

21

%

Integrated Solutions and Services

322

-

322

N/A

(322

)

-

 

-

 

N/A

N/A

 
Quarter Ended September 30
Xylem Inc.

2,076

1,380

696

50

%

(540

)

(22

)

134

 

10

%

49

%

Water Infrastructure

803

574

229

40

%

(172

)

(14

)

43

 

7

%

37

%

Applied Water

465

458

7

2

%

-

 

(3

)

4

 

1

%

1

%

Measurement and Control Solutions

440

348

92

26

%

-

 

(5

)

87

 

25

%

25

%

Integrated Solutions and Services

368

-

368

N/A

(368

)

-

 

-

 

N/A

N/A

 
Quarter Ended June 30
Xylem Inc.

1,722

1,364

358

26

%

(178

)

19

 

199

 

15

%

28

%

Water Infrastructure

704

589

115

20

%

(53

)

12

 

74

 

13

%

22

%

Applied Water

478

429

49

11

%

-

 

4

 

53

 

12

%

12

%

Measurement and Control Solutions

415

346

69

20

%

-

 

3

 

72

 

21

%

21

%

Integrated Solutions and Services

125

-

125

N/A

(125

)

-

 

-

 

N/A

N/A

 
Quarter Ended March 31
Xylem Inc.

1,448

1,272

176

14

%

-

 

45

 

221

 

17

%

17

%

Water Infrastructure

589

533

56

11

%

-

 

25

 

81

 

15

%

15

%

Applied Water

453

425

28

7

%

-

 

13

 

41

 

10

%

10

%

Measurement and Control Solutions

406

314

92

29

%

-

 

7

 

99

 

32

%

32

%

Integrated Solutions and Services

-

-

-

N/A

-

 

-

 

-

 

N/A

N/A

 
Xylem Inc. Non-GAAP Reconciliation
Adjusted Operating Income ($ Millions)
 
 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

2023

2022 (1)

 

2023

2022 (1)

 

2023

2022 (1)

 

2023

2022 (1)

 

2023

2022 (1)

Total Revenue
• Total Xylem

1,448

 

1,272

 

1,722

 

1,364

 

2,076

 

1,380

 

2,118

 

1,506

 

7,364

 

5,522

 

• Water Infrastructure

589

 

533

 

704

 

589

 

803

 

574

 

871

 

668

 

2,967

 

2,364

 

• Applied Water

453

 

425

 

478

 

429

 

465

 

458

 

457

 

455

 

1,853

 

1,767

 

• Measurement and Control Solutions

406

 

314

 

415

 

346

 

440

 

348

 

468

 

383

 

1,729

 

1,391

 

• Integrated Solutions and Services

-

 

-

 

125

 

-

 

368

 

-

 

322

 

-

 

815

 

-

 

• Corporate/ Other

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 
Operating Income (Loss)
• Total Xylem

131

 

111

 

119

 

146

 

191

 

168

 

211

 

197

 

652

 

622

 

• Water Infrastructure

70

 

74

 

106

 

108

 

128

 

104

 

115

 

132

 

419

 

418

 

• Applied Water

83

 

59

 

84

 

61

 

73

 

77

 

70

 

61

 

310

 

258

 

• Measurement and Control Solutions

20

 

(10

)

26

 

(5

)

27

 

(2

)

40

 

19

 

113

 

2

 

• Integrated Solutions and Services

-

 

-

 

(7

)

-

 

(3

)

-

 

18

 

-

 

8

 

-

 

• Corporate/ Other

(42

)

(12

)

(90

)

(18

)

(34

)

(11

)

(32

)

(15

)

(198

)

(56

)

 
Operating Margin
• Total Xylem

9.0

%

8.7

%

6.9

%

10.7

%

9.2

%

12.2

%

10.0

%

13.1

%

8.9

%

11.3

%

• Water Infrastructure

11.9

%

13.9

%

15.1

%

18.3

%

15.9

%

18.1

%

13.2

%

19.8

%

14.1

%

17.7

%

• Applied Water

18.3

%

13.9

%

17.6

%

14.2

%

15.7

%

16.8

%

15.3

%

13.4

%

16.7

%

14.6

%

• Measurement and Control Solutions

4.9

%

(3.2

%)

6.3

%

(1.4

%)

6.1

%

(0.6

%)

8.5

%

5.0

%

6.5

%

0.1

%

• Integrated Solutions and Services

N/A

N/A

(5.6

%)

N/A

(0.8

%)

N/A

5.6

%

N/A

1.0

%

N/A

• Corporate/ Other

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

 
Special Charges
• Total Xylem

25

 

1

 

67

 

1

 

24

 

13

 

22

 

1

 

138

 

16

 

• Water Infrastructure

-

 

-

 

12

 

-

 

6

 

-

 

11

 

-

 

29

 

-

 

• Applied Water

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

• Measurement and Control Solutions

2

 

-

 

-

 

1

 

1

 

12

 

1

 

1

 

4

 

14

 

• Integrated Solutions and Services

-

 

-

 

7

 

-

 

9

 

-

 

5

 

-

 

21

 

-

 

• Corporate/ Other

23

 

1

 

48

 

-

 

8

 

1

 

5

 

-

 

84

 

2

 

 
Restructuring & Realignment Costs
• Total Xylem

11

 

4

 

37

 

8

 

34

 

6

 

24

 

16

 

106

 

34

 

• Water Infrastructure

3

 

1

 

3

 

3

 

3

 

3

 

13

 

4

 

22

 

11

 

• Applied Water

3

 

1

 

2

 

2

 

6

 

1

 

3

 

9

 

14

 

13

 

• Measurement and Control Solutions

5

 

2

 

3

 

3

 

6

 

2

 

6

 

3

 

20

 

10

 

• Integrated Solutions and Services

-

 

-

 

7

 

-

 

8

 

-

 

-

 

-

 

15

 

-

 

• Corporate/ Other

-

 

-

 

22

 

-

 

11

 

-

 

2

 

-

 

35

 

-

 

 
Purchase Accounting Intangible Amortization Adjustment
• Total Xylem

18

 

18

 

36

 

18

 

66

 

18

 

56

 

18

 

176

 

72

 

• Water Infrastructure

1

 

1

 

8

 

1

 

15

 

1

 

25

 

1

 

49

 

4

 

• Applied Water

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

• Measurement and Control Solutions

17

 

17

 

17

 

17

 

16

 

17

 

16

 

17

 

66

 

68

 

• Integrated Solutions and Services

-

 

-

 

11

 

-

 

35

 

-

 

15

 

-

 

61

 

-

 

• Corporate/ Other

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

 
Adjusted Operating Income (Loss)
• Total Xylem

185

 

134

 

259

 

173

 

315

 

205

 

313

 

232

 

1,072

 

744

 

• Water Infrastructure

74

 

76

 

129

 

112

 

152

 

108

 

164

 

137

 

519

 

433

 

• Applied Water

86

 

60

 

86

 

63

 

79

 

78

 

73

 

70

 

324

 

271

 

• Measurement and Control Solutions

44

 

9

 

46

 

16

 

50

 

29

 

63

 

40

 

203

 

94

 

• Integrated Solutions and Services

-

 

-

 

18

 

-

 

49

 

-

 

38

 

-

 

105

 

-

 

• Corporate/ Other

(19

)

(11

)

(20

)

(18

)

(15

)

(10

)

(25

)

(15

)

(79

)

(54

)

 
Adjusted Operating Margin
• Total Xylem

12.8

%

10.5

%

15.0

%

12.7

%

15.2

%

14.9

%

14.8

%

15.4

%

14.6

%

13.5

%

• Water Infrastructure

12.6

%

14.3

%

18.3

%

19.0

%

18.9

%

18.8

%

18.8

%

20.5

%

17.5

%

18.3

%

• Applied Water

19.0

%

14.1

%

18.0

%

14.7

%

17.0

%

17.0

%

16.0

%

15.4

%

17.5

%

15.3

%

• Measurement and Control Solutions

10.8

%

2.9

%

11.1

%

4.6

%

11.4

%

8.3

%

13.5

%

10.4

%

11.7

%

6.8

%

• Integrated Solutions and Services

N/A

N/A

14.4

%

N/A

13.3

%

N/A

11.8

%

N/A

12.9

%

N/A

• Corporate/ Other

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

 
(1) 2022 amounts have been recast to adjust for historical purchase accounting intangible amortization.
 
Xylem Inc. Non-GAAP Reconciliation
Adjusted Diluted EPS
($ Millions, except per share amounts)
 
Q4 2023 Q4 2022 (1)
As Reported Adjustments Adjusted As Reported Adjustments Adjusted
Total Revenue

 

2,118

 

 

-

 

 

2,118

 

 

1,506

 

 

-

 

 

1,506

 

Operating Income

 

211

 

 

102

 

a

 

313

 

 

197

 

 

35

 

a

 

232

 

Operating Margin

 

10.0

%

 

14.8

%

 

13.1

%

 

15.4

%

Interest Expense

 

(14

)

 

-

 

 

(14

)

 

(13

)

 

-

 

 

(13

)

Other Non-Operating Income (Expense)

 

14

 

 

-

 

 

14

 

 

5

 

 

-

 

b

 

5

 

Gain/(Loss) From Sale of Business

 

(1

)

 

1

 

 

-

 

 

-

 

 

-

 

 

-

 

Income before Taxes

 

210

 

 

103

 

 

313

 

 

189

 

 

35

 

 

224

 

Provision for Income Taxes

 

56

 

 

(130

)

c

 

(74

)

 

(40

)

 

(2

)

c

 

(42

)

Net Income

 

266

 

 

(27

)

 

239

 

 

149

 

 

33

 

 

182

 

Diluted Shares

 

242.5

 

 

242.5

 

 

181.3

 

 

181.3

 

Diluted EPS

$

1.10

 

($

0.11

)

$

0.99

 

$

0.82

 

$

0.18

 

$

1.00

 

Year-over-year currency translation impact on current year diluted EPS

$

0.02

 

$

0.00

 

$

0.02

 

Diluted EPS at Constant Currency

$

1.08

 

($

0.11

)

$

0.97

 

 
 
Q4 YTD 2023 Q4 YTD 2022 (1)
As Reported Adjustments Adjusted As Reported Adjustments Adjusted
Total Revenue

 

7,364

 

 

-

 

 

7,364

 

 

5,522

 

 

-

 

 

5,522

 

Operating Income

 

652

 

 

420

 

a

 

1,072

 

 

622

 

 

122

 

a

 

744

 

Operating Margin

 

8.9

%

 

14.6

%

 

11.3

%

 

13.5

%

Interest Expense

 

(49

)

 

-

 

 

(49

)

 

(50

)

 

-

 

 

(50

)

Other Non-Operating Income (Expense)

 

33

 

 

-

 

 

33

 

 

7

 

 

4

 

b

 

11

 

UK Pension Buyout Settlement

 

-

 

 

-

 

 

-

 

 

(140

)

 

140

 

 

-

 

Gain/(Loss) From Sale of Business

 

(1

)

 

1

 

 

-

 

 

1

 

 

(1

)

 

-

 

Income before Taxes

 

635

 

 

421

 

 

1,056

 

 

440

 

 

265

 

 

705

 

Provision for Income Taxes

 

(26

)

 

(205

)

c

 

(231

)

 

(85

)

 

(50

)

c

 

(135

)

Net Income

 

609

 

 

216

 

 

825

 

 

355

 

 

215

 

 

570

 

Diluted Shares

 

218.2

 

 

218.2

 

 

181.0

 

 

181.0

 

Diluted EPS

$

2.79

 

$

0.99

 

$

3.78

 

$

1.96

 

$

1.19

 

$

3.15

 

Year-over-year currency translation impact on current year diluted EPS

$

0.02

 

$

0.00

 

$

0.02

 

Diluted EPS at Constant Currency

$

2.77

 

$

0.99

 

$

3.76

 

(1) 2022 amounts have been recast to adjust for historical purchase accounting intangible amortization.
 
a Quarter-to-date:
Restructuring & realignment costs: 2023 - $24 million and 2022 - $16 million
Special charges: 2023 - $19 million of acquisition & integration cost, $1 million of asset impairment and $2 million of other special charges; 2022 - $1 million of asset impairment charges
Purchase accounting intangible amortization: 2023 - $56 million and 2022 - $18 million
Year-to-date:
Restructuring & realignment costs: 2023 - $106 million and 2022 - $34 million
Special charges: 2023 - $126 million of acquisition & integration related costs, $8 million of other special charges and $4 million of asset impairment charges; 2022 - $14 million of asset impairment charges and $2 million UK pension plan charges
Purchase accounting intangible amortization: 2023 - $176 million and 2022 - $72 million
b Quarter-to-date and Year-to-date: 2022 - Special non-operating charges consist of charges related to the UK pension plan exited as part of a buy-out of $0 million and $4 million, respectively
c Quarter-to-date: 2023 - Net tax impact on pre-tax adjustments (note a) of $23 million and other tax special items of $107 million; 2022 - Net tax impact on pre-tax adjustments (notes a and b) of $7 million and other tax related special items of $(5) million
Year-to-date: 2023 - Net tax impact on pre-tax adjustments (note a) of $90 million and other tax special items of $115 million; 2022 - Net tax impact on pre-tax adjustments (notes a and b) of $51 million and other tax related special items of $(1) million
 
Xylem Inc. Non-GAAP Reconciliation
Net Cash - Operating Activities vs. Free Cash Flow ($ Millions)
 

Q1

 

Q2

 

Q3

 

Q4

 

Year-to-Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

2022

 

2023

 

2022

 

2023

 

2022

 

2023

 

2022

 

2023

 

2022

 
Net Cash - Operating Activities

($19

)

($81

)

$28

 

$113

 

$373

 

$202

 

$455

 

$362

 

$837

 

$596

 

 
Capital Expenditures - PP&E

(33

)

(31

)

(42

)

(30

)

(57

)

(37

)

(76

)

(41

)

(208

)

(139

)

Capital Expenditures - Software

(16

)

(18

)

(12

)

(16

)

(17

)

(16

)

(18

)

(19

)

(63

)

(69

)

Capital Expenditures

(49

)

(49

)

(54

)

(46

)

(74

)

(53

)

(94

)

(60

)

(271

)

(208

)

 
Cash paid in excess of tax provision for R&D law change adoption

33

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

33

 

-

 

 
Free Cash Flow

($35

)

($130

)

($26

)

$67

 

$299

 

$149

 

$361

 

$302

 

$599

 

$388

 

 
Cash paid by Xylem for Evoqua's pre-close transaction costs

-

 

-

 

70

 

-

 

-

 

-

 

-

 

-

 

70

 

-

 

Cash paid for Idrica distribution agreement

-

 

-

 

60

 

-

 

-

 

-

 

-

 

-

 

60

 

-

 

 
Adjusted Free Cash Flow

($35

)

($130

)

$104

 

$67

 

$299

 

$149

 

$361

 

$302

 

$729

 

$388

 

 
Net Income

$99

 

$82

 

$92

 

$112

 

$152

 

$12

 

$266

 

$149

 

$609

 

$355

 

Gain/(Loss) from sale of business

-

 

1

 

-

 

-

 

-

 

-

 

(1

)

-

 

(1

)

1

 

Restructuring Charges - non-cash stock acceleration

-

 

-

 

(14

)

-

 

(11

)

-

 

(2

)

-

 

(27

)

-

 

Significant non-cash tax benefit/(charge)

-

 

-

 

-

 

-

 

-

 

-

 

70

 

-

 

70

 

-

 

U.K. pension buyout settlement - non-cash release from AOCI

-

 

-

 

-

 

-

 

-

 

(140

)

-

 

-

 

-

 

(140

)

U.K. pension buyout settlement - non-cash tax release from AOCI

-

 

-

 

-

 

-

 

-

 

23

 

-

 

-

 

-

 

23

 

Special Charges - Inventory step-up

-

 

-

 

(15

)

-

 

(5

)

-

 

(5

)

-

 

(25

)

-

 

Special Charges - non-cash impairment

(2

)

-

 

-

 

(1

)

(1

)

(12

)

(1

)

(1

)

(4

)

(14

)

Net Income, excluding gain/(loss) on sale of businesses and non-cash restructuring and special charges

$101

 

$81

 

$121

 

$113

 

$169

 

$141

 

$205

 

$150

 

$596

 

$485

 

 
Operating Cash Flow Conversion

(19

%)

(99

%)

30

%

101

%

245

%

1683

%

171

%

243

%

137

%

168

%

Free Cash Flow Conversion

(35

%)

(160

%)

86

%

59

%

177

%

106

%

176

%

201

%

122

%

80

%

 
Xylem Inc. Non-GAAP Reconciliation
EBITDA and Adjusted EBITDA by Quarter ($ Millions)
 
 

2023

Q1 Q2 Q3 Q4 Total
 
Net Income

99

 

92

 

152

 

266

 

609

 

Net Income margin

6.8

%

5.3

%

7.3

%

12.6

%

8.3

%

Depreciation

28

 

41

 

63

 

61

 

193

 

Amortization

32

 

51

 

84

 

76

 

243

 

Interest Expense (Income), net

2

 

5

 

6

 

8

 

21

 

Income Tax Expense

27

 

22

 

33

 

(56

)

26

 

EBITDA

188

 

211

 

338

 

355

 

1,092

 

Share-based Compensation

12

 

15

 

18

 

15

 

60

 

Restructuring & Realignment

11

 

36

 

33

 

23

 

103

 

Special Charges

25

 

67

 

22

 

22

 

136

 

Loss/(Gain) from sale of business

-

 

-

 

-

 

1

 

1

 

Adjusted EBITDA

236

 

329

 

411

 

0

416

 

1,392

 

Revenue

1,448

 

1,722

 

2,076

 

2,118

 

7,364

 

Adjusted EBITDA Margin

16.3

%

19.1

%

19.8

%

19.6

%

18.9

%

 

2022

Q1 Q2 Q3 Q4 Total
 
Net Income

82

 

112

 

12

 

149

 

355

 

Net Income margin

6.4

%

8.2

%

0.9

%

9.9

%

6.4

%

Depreciation

28

 

28

 

27

 

28

 

111

 

Amortization

30

 

32

 

31

 

32

 

125

 

Interest Expense (Income), net

11

 

10

 

7

 

6

 

34

 

Income Tax Expense

16

 

24

 

5

 

40

 

85

 

EBITDA

167

 

206

 

82

 

255

 

710

 

Share-based Compensation

9

 

9

 

10

 

9

 

37

 

Restructuring & Realignment

4

 

8

 

6

 

16

 

34

 

U.K. Pension Settlement

-

 

-

 

140

 

-

 

140

 

Special Charges

2

 

3

 

14

 

1

 

20

 

Loss/(Gain) from sale of business

(1

)

-

 

-

 

-

 

(1

)

Adjusted EBITDA

181

 

226

 

252

 

281

 

940

 

Revenue

1,272

 

1,364

 

1,380

 

1,506

 

5,522

 

Adjusted EBITDA Margin

14.2

%

16.6

%

18.3

%

18.7

%

17.0

%

Xylem Inc. Non-GAAP Reconciliation
EBITDA and Adjusted EBITDA by Quarter ($ Millions)
Water Infrastucture
 

2023

Q1 Q2 Q3 Q4 Total
 
Operating Income

70

 

106

 

128

 

115

 

419

 

Operating Margin

11.9

%

15.1

%

15.9

%

13.2

%

14.1

%

Depreciation

12

 

14

 

14

 

15

 

55

 

Amortization

2

 

10

 

16

 

27

 

55

 

Other non-operating expense, excluding interest income

-

 

1

 

-

 

2

 

3

 

EBITDA

84

 

131

 

158

 

159

 

532

 

Share-based Compensation

2

 

5

 

3

 

5

 

15

 

Restructuring & Realignment

3

 

3

 

3

 

13

 

22

 

Special Charges

-

 

12

 

6

 

11

 

29

 

Adjusted EBITDA

89

 

151

 

170

 

188

 

598

 

Revenue

589

 

704

 

803

 

871

 

2,967

 

Adjusted EBITDA Margin

15.1

%

21.4

%

21.2

%

21.6

%

20.2

%

 

2022

Q1 Q2 Q3 Q4 Total
 
Operating Income

74

 

108

 

104

 

132

 

418

 

Operating Margin

13.9

%

18.3

%

18.1

%

19.8

%

17.7

%

Depreciation

11

 

11

 

11

 

11

 

44

 

Amortization

2

 

3

 

1

 

3

 

9

 

Other non-operating expense, excluding interest income

(4

)

1

 

-

 

(1

)

(4

)

EBITDA

83

 

123

 

116

 

145

 

467

 

Share-based Compensation

1

 

-

 

-

 

1

 

2

 

Restructuring & Realignment

1

 

3

 

3

 

4

 

11

 

Adjusted EBITDA

85

 

126

 

119

 

150

 

480

 

Revenue

533

 

589

 

574

 

668

 

2,364

 

Adjusted EBITDA Margin

15.9

%

21.4

%

20.7

%

22.5

%

20.3

%

 
Xylem Inc. Non-GAAP Reconciliation
EBITDA and Adjusted EBITDA by Quarter ($ Millions)
Applied Water
 

2023

Q1 Q2 Q3 Q4 Total
 
Operating Income

83

 

84

 

73

 

70

 

310

 

Operating Margin

18.3

%

17.6

%

15.7

%

15.3

%

16.7

%

Depreciation

5

 

4

 

6

 

4

 

19

 

Amortization

-

 

1

 

-

 

1

 

2

 

Other non-operating expense, excluding interest income

(1

)

-

 

-

 

(1

)

(2

)

EBITDA

87

 

89

 

79

 

74

 

329

 

Share-based Compensation

1

 

-

 

1

 

2

 

4

 

Restructuring & Realignment

3

 

2

 

5

 

3

 

13

 

Adjusted EBITDA

91

 

91

 

85

 

79

 

346

 

Revenue

453

 

478

 

465

 

457

 

1,853

 

Adjusted EBITDA Margin

20.1

%

19.0

%

18.3

%

17.3

%

18.7

%

 

2022

Q1 Q2 Q3 Q4 Total
 
Operating Income

59

 

61

 

77

 

61

 

258

 

Operating Margin

13.9

%

14.2

%

16.8

%

13.4

%

14.6

%

Depreciation

5

 

4

 

4

 

4

 

17

 

Amortization

-

 

1

 

-

 

1

 

2

 

Other non-operating expense, excluding interest income

(1

)

-

 

(1

)

-

 

(2

)

EBITDA

63

 

66

 

80

 

66

 

275

 

Share-based Compensation

1

 

1

 

2

 

-

 

4

 

Restructuring & Realignment

1

 

2

 

1

 

9

 

13

 

Adjusted EBITDA

65

 

69

 

83

 

75

 

292

 

Revenue

425

 

429

 

458

 

455

 

1,767

 

Adjusted EBITDA Margin

15.3

%

16.1

%

18.1

%

16.5

%

16.5

%

 
Xylem Inc. Non-GAAP Reconciliation
EBITDA and Adjusted EBITDA by Quarter ($ Millions)
Measurement and Control Solutions
 

2023

Q1 Q2 Q3 Q4 Total
 
Operating Income

20

 

26

 

27

 

40

 

113

 

Operating Margin

4.9

%

6.3

%

6.1

%

8.5

%

6.5

%

Depreciation

7

 

9

 

8

 

8

 

32

 

Amortization

27

 

26

 

26

 

28

 

107

 

Other non-operating expense, excluding interest income

-

 

-

 

(1

)

(3

)

(4

)

EBITDA

54

 

61

 

60

 

73

 

248

 

Share-based Compensation

2

 

2

 

2

 

1

 

7

 

Restructuring & Realignment

5

 

2

 

6

 

5

 

18

 

Special Charges

2

 

-

 

1

 

1

 

4

 

Loss/(Gain) from sale of business

-

 

-

 

-

 

1

 

1

 

Adjusted EBITDA

63

 

65

 

69

 

81

 

278

 

Revenue

406

 

415

 

440

 

468

 

1,729

 

Adjusted EBITDA Margin

15.5

%

15.7

%

15.7

%

17.3

%

16.1

%

 

2022

Q1 Q2 Q3 Q4 Total
 
Operating Income

(10

)

(5

)

(2

)

19

 

2

 

Operating Margin

(3.2

%)

(1.4

%)

(0.6

%)

5.0

%

0.1

%

(Loss)/Gain from sale of business

1

 

-

 

-

 

-

 

1

 

Depreciation

9

 

8

 

8

 

8

 

33

 

Amortization

25

 

26

 

27

 

26

 

104

 

Other non-operating expense, excluding interest income

-

 

(1

)

(1

)

-

 

(2

)

EBITDA

25

 

28

 

32

 

53

 

138

 

Share-based Compensation

1

 

2

 

2

 

1

 

6

 

Restructuring & Realignment

2

 

3

 

2

 

3

 

10

 

Special Charges

-

 

1

 

12

 

1

 

14

 

Loss/(Gain) from sale of business

(1

)

-

 

-

 

-

 

(1

)

Adjusted EBITDA

27

 

34

 

48

 

58

 

167

 

Revenue

314

 

346

 

348

 

383

 

1,391

 

Adjusted EBITDA Margin

8.6

%

9.8

%

13.8

%

15.1

%

12.0

%

 
Xylem Inc. Non-GAAP Reconciliation
EBITDA and Adjusted EBITDA by Quarter ($ Millions)
Integrated Solutions and Services
 

 

Q1 Q2 Q3 Q4 Total
 
Operating Income

-

(7

)

(3

)

18

 

8

 

Operating Margin

-

(5.6

%)

(0.8

%)

5.6

%

1.0

%

Depreciation

-

8

 

30

 

27

 

65

 

Amortization

-

12

 

36

 

17

 

65

 

EBITDA

-

13

 

63

 

62

 

138

 

Share-based Compensation

-

3

 

3

 

1

 

7

 

Restructuring & Realignment

-

7

 

8

 

-

 

15

 

Special Charges

-

7

 

9

 

5

 

21

 

Adjusted EBITDA

-

30

 

83

 

68