Xylem, which manufacturers and rents a wide variety of dewatering pumps and is dedicated to solving challenging water issues, reported $1.722 billion in revenue for the second quarter of 2023, compared to $1.364 billion in the second quarter of 2022, a 26.2-percent increase. The quarter included the May 24 acquisition of Evoqua Water Technologies Corp.
Organic growth for the quarter was 15 percent, surpassing previous guidance, on strong commercial and operational execution. Orders increased 10 percent on a reported basis and dropped 2 percent organically, while backlog grew to $5.3 billion, a 7-percent organic increase that included $1.3 billion from Evoqua. The company cited resilient underlying demand.
“This past quarter, we took another transformative step as a leading water solutions company to help our communities and customers solve the greatest water challenges facing our society and economies: water scarcity, resilience of our infrastructure to climate change, and the need to address these challenges affordably with the power of technology and innovation,” said Patrick Decker, Xylem president and CEO. “These challenges are intensifying every day and our powerful portfolio is now even more strongly positioned to deliver solutions at scale.
“We are already seeing the momentum created by integrating two strong companies. On the strength of the market’s continuing underlying demand and our team’s disciplined execution, we are further raising our full-year guidance on revenues, margins and earnings per share.”
Second quarter adjusted EBITDA margin was 19.1 percent, reflecting a year-over-year increase of 250 basis points. Excluding the Evoqua results, adjusted EBITDA margin was 18.6 percent, a 200-basis-point hike compared to the same period in 2022. Strong price realization more than offset inflation and, coupled with productivity savings and higher volume, drove the margin expansion, exceeding the impact of strategic investments.
For the first six months of 2023, Xylem’s revenue totaled $3.170 billion compared to $2.636 billion in the first six months of 2022, a 20.3-percent increase.
Xylem Inc. is headquartered in Washington, D.C.