Xylem Reports 7 Percent Organic Revenue Increase in First Quarter
Xylem, global water technology company, pump manufacturer and rental specialist, posted $1,217 million in first quarter revenue compared to $1,071 million in the first quarter of 2017, a 13.6-percent year-over-year increase. Adjusted EBITDA improved by 130 basis points year over year to 17.5 percent driven by volume leverage and savings from productivity initiatives.
Reported operating margin in the quarter was 9.3 percent and adjusted operating margin increased 60 basis points to 11.1 percent. The company delivered adjusted net income of $93 million, or $0.51 per share in the quarter, a 31-percent increase compared to the first quarter of 2017.
Revenue for the quarter increased 7 percent on an organic basis, driven by a strong performance in the utilities and industrial end markets in nearly every geography and continued solid growth in the commercial and residential end markets.
“Focused execution and increased collaboration by our teams resulted in a strong start to 2018,” said Patrick Decker, president and CEO of Xylem. “We delivered another consecutive quarter of strong growth in revenue, orders and backlog, which sets us up for a solid year ahead. We’re encouraged by the continuing momentum we see in both the utilities and industrial end markets, where we are capturing share. In addition, our growing portfolio of advanced technologies is opening up new opportunities to expand our relationship with current customers and cultivate new ones. We continue to successfully execute against our productivity plans, which is helping to fund our growth initiatives and mitigate inflation. Looking ahead, we have strong confidence in our plans to drive continued profitable growth as we deepen our customer relationships and partnerships.”
Xylem is forecasting full-year 2018 revenue in the range of $5.1 to $5.2 billion, up 8 to 10 percent, including growth from previously announced acquisitions. On an organic basis, Xylem anticipates revenue growth in the range of 4 to 6 percent.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.