Xylem Inc., global water technology company and pump manufacturer, reported second quarter 2021 revenue of $1.35 billion. Revenues grew 16 percent on a reported basis and 11 percent organically, reflecting strong underlying demand in all segments.
Revenue for the second quarter was $1.351 billion compared to $1.160 billion for the second quarter of 2020, a 16.5 percent increase. Net income was $113 million compared to $31 million for the second quarter a year ago.
Revenue for the first six months of 2021 was $2.607 billion compared to $2.283 billion for the first six months of 2020, a 14.2-percent hike. Net income for the first six months of the year was $200 million, nearly triple the $69 million in the first six months of last year.
Adjusted EBITDA margin was 17.3 percent, a 200-basis-point increase. Net income as a percentage of revenue was 8.4 percent, a 570-basis-point jump.
“Our team capitalized on robust global demand for our offerings, driving revenues above expectations, and fueling exceptional growth in new orders and backlog,” said Patrick Decker, Xylem’s president and CEO. “That commercial momentum puts us in a strong position for the second half and beyond, as we continue to invest in sustainable growth. We expect the team to build on continuing market recovery, giving us confidence in lifting full-year guidance.
“During the quarter we also reported progress toward our 2025 sustainability goals including moving major facilities onto renewable energy, and helping customers recycle more than a trillion gallons of water. The report demonstrates the strong link between our business and sustainability strategies. We partner with customers to provide more resilient infrastructure, drive affordability, and create a more sustainable water sector. That’s our purpose and our business. As climate change drives water challenges in communities around the world, we intend to be part of the solution.”
Xylem is now expecting full-year organic revenue growth to be in the range of 6 to 8 percent and 9 to 11 percent on a reported basis, an increase from the company’s previous guidance. Full-year adjust earnings per share is now expected to be in the range of $2.55 to $2.70. The increased guidance reflects commercial momentum from the first half, as well as continuing demand and price realization in the second half, partially offset by incremental inflation and supply chain challenges.
Xylem’s Water Infrastructure segment consists of its portfolio of businesses serving wastewater transport and treatment, clean water delivery and dewatering. Second quarter 2021 revenue was $569 million, up 14 percent year over year on a reported basis.
Xylem’s Applied Water segment consists of its portfolio of businesses in industrial, commercial building and residential applications. Second quarter 2021 revenue was $414 million, up 23 percent on a reported basis. Growth was driven by strong demand from industrial, residential and commercial end markets driven by broad recovery from COVID challenges in 2020.
For Xylem’s sustainability report, click here 2020 Sustainability Report | Xylem US
