Xylem Inc. Q3 2024 Results & Evoqua Acquisition Update

TL;DR

Xylem Q3 2024: Evoqua acquisition integration continues, financial details released.

AI Summary

Xylem Inc. reported its third-quarter 2024 results for the period ending September 30, 2024. The company's financial performance for the quarter and year-to-date is detailed, including revenue breakdowns by product and service segments. A significant event mentioned is the Evoqua acquisition, which closed on May 24, 2023.

Why It Matters

This filing provides insight into Xylem's financial health and operational performance following a major acquisition, impacting investors and the water technology sector.

Risk Assessment

Risk Level: medium — The company's risk level is medium due to the ongoing integration of a significant acquisition (Evoqua) and the inherent complexities of financial reporting for a large, publicly traded company.

Key Numbers

• 2024 Q3 — Reporting Period (Third quarter of fiscal year 2024)
• 2024-09-30 — Period End Date (The end date for the financial data presented in the 10-Q)
• 2023-05-24 — Acquisition Date (Date Xylem acquired Evoqua)

Key Players & Entities

• Xylem Inc. (company) — Filer of the 10-Q report
• Evoqua (company) — Acquired company
• May 24, 2023 (date) — Date of Evoqua acquisition closing
• September 30, 2024 (date) — End of the reporting period for the 10-Q

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share XYL New York Stock Exchange

Filing Documents

• xyl-20240930.htm (10-Q) — 2538KB
• xyl09302024ex311.htm (EX-31.1) — 9KB
• xyl09302024ex312.htm (EX-31.2) — 9KB
• xyl09302024ex321.htm (EX-32.1) — 6KB
• 0001524472-24-000045.txt ( ) — 13308KB
• xyl-20240930.xsd (EX-101.SCH) — 70KB
• xyl-20240930_cal.xml (EX-101.CAL) — 95KB
• xyl-20240930_def.xml (EX-101.DEF) — 450KB
• xyl-20240930_lab.xml (EX-101.LAB) — 889KB
• xyl-20240930_pre.xml (EX-101.PRE) — 708KB
• xyl-20240930_htm.xml (XML) — 2673KB

– Financial Information

PART I – Financial Information

- Financial Statements

Item 1 - Financial Statements: Condensed Consolidated Income Statements for the Three Months and Nin e Months Ended September 30, 2024 and 2023 (Unaudited) 3 Condensed Consolidated Statements of Comprehensive Income for the Three Months and Nine Months Ended Sept ember 30, 2024 and 2023 (Unaudited) 4 Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 (Unaudited) 5 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 (Unaudited) 6 Notes to the Condensed Consolidated Financial Statements (Unaudited) 7

- Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations 37

- Quantitative and Qualitative Disclosures About Market Risk

Item 3 - Quantitative and Qualitative Disclosures About Market Risk 58

- Controls and Procedures

Item 4 - Controls and Procedures 59

– Other Information

PART II – Other Information

- Legal Proceedings

Item 1 - Legal Proceedings 60

- Risk Factors

Item 1A - Risk Factors 60

- Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds 60

- Defaults Upon Senior Securities

Item 3 - Defaults Upon Senior Securities 60

- Mine Safety Disclosure s

Item 4 - Mine Safety Disclosure s 60

- Other Information

Item 5 - Other Information 60

- Exhibits

Item 6 - Exhibits 61

Signatures

Signatures 63 2 PART I

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS XYLEM INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) (in millions, except per share data) Three Months Nine Months For the periods ended September 30, 2024 2023 2024 2023 Revenue from products $ 1,744 $ 1,720 $ 5,236 $ 4,535 Revenue from services 360 356 1,070 711 Revenue 2,104 2,076 6,306 5,246 Cost of revenue from products 1,047 1,043 3,147 2,730 Cost of revenue from services 273 269 804 555 Cost of revenue 1,320 1,312 3,951 3,285 Gross profit 784 764 2,355 1,961 Selling, general and administrative expenses 445 491 1,404 1,291 Research and development expenses 55 61 172 172 Restructuring and asset impairment charges 4 21 37 57 Operating income 280 191 742 441 Interest expense 10 14 35 35 Other non-operating income, net 1 8 11 19 (Loss) on sale of businesses ( 2 ) — ( 6 ) — Income before taxes 269 185 712 425 Income tax expense 52 33 148 82 Net income $ 217 $ 152 $ 564 $ 343 Earnings per share: Basic $ 0.89 $ 0.63 $ 2.33 $ 1.64 Diluted $ 0.89 $ 0.63 $ 2.32 $ 1.63 Weighted average number of shares: Basic 242.9 240.9 242.5 208.9 Diluted 243.8 242.2 243.4 210.1 See accompanying notes to condensed consolidated financial statements. 3 XYLEM INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (in millions) Three Months Nine Months For the periods ended September 30, 2024 2023 2024 2023 Net income $ 217 $ 152 $ 564 $ 343 Other comprehensive income (loss), before tax: Foreign currency translation adjustment 97 ( 61 ) 38 ( 77 ) Net change in derivative hedge agreements: Unrealized gain (loss) 3 ( 4 ) — ( 3 ) Amount of (gain) loss reclassified into net income 2 — 2 4 Net change in post-retirement benefit plans: Amortization of prior service credit — ( 1 ) — ( 2 ) Amortization of actuarial (gain) loss into net income — — — ( 1 ) Foreign currency translation adjustment ( 2 ) 1 — — Other comprehensive

View Full Filing

View this 10-Q filing on SEC EDGAR