Xylem’s Revenue Jumps 26.2 Percent in Second Quarter
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.
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.