Xylem’s Revenue Jumps 11.4 Percent for First Nine Months of 2018
Global water technology company and pump manufacturer and rental company Xylem Inc. posted $1.287 billion in third quarter 2018 revenue, up 7.7 percent year over year excluding the impact of foreign exchange and acquisitions. Revenue for the quarter increased 8 percent on an organic basis, driven by continued strong growth in all end markets and across all major geographies. Orders also increased 8 percent organically for the second consecutive quarter.
For the first nine months of 2018, Xylem posted revenue of $3.821 billion compared to $3.430 billion in the first nine months of 2017, an 11.4-percent jump.
Adjusted EBITDA margin improved by 110 basis points year over year to 20.3 percent driven by volume leverage, savings from productivity initiatives, and price realization. Reported operating margin in the quarter was 13.7 percent and adjusted operating margin increased 50 basis points year over year to 14.6 percent.
“Our team delivered another quarter of strong results, positioning us well to meet our long-term growth and financial commitments,” said Patrick Decker, Xylem president and CEO. “The organic growth we delivered in revenue and orders reflects strong performance in each of our major geographies and across all end markets. We see momentum strengthening in our ongoing efforts to drive commercial excellent and leverage our expanded portfolio, which are yielding more wins and share gains.”
Xylem continues to forecast full-year 2018 revenue of about $5.2 billion, up approximately 10 percent compared to 2017, including growth from previously announced acquisitions. On an organic basis, Xylem now anticipates revenue growth in the range of 7 to 8 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.