Q2 2024 Xylem Inc Earnings Call Transcript
Key Points
- Xylem Inc (XYL) delivered high single-digit revenue growth, driven by gains in both volume and price.
- The company expanded adjusted EBIT by 170 basis points and achieved an 11% increase in adjusted EPS.
- Measurement & Control Solutions (MCS) segment revenue was up 26%, with EBITDA margins increasing by 700 basis points.
- The integration of Volker is on track, contributing to the company's strong performance and synergy realization.
- Xylem Inc (XYL) raised its full-year guidance for both revenue and margin, reflecting strong operational and commercial momentum.
- Organic orders were down 1% in the quarter, driven by project timing within MCS and Water Solutions & Services (WSS).
- Applied Water segment revenues were down 4%, primarily due to softness in the commercial and industrial markets.
- MCS orders were down 18%, and book-to-bill came in under one due to project timing.
- Water infrastructure segment adjusted EBITDA margin declined by 60 basis points, impacted by inflation and acquisition costs.
- China's economic situation and project delays pose challenges, particularly in the water infrastructure segment.
Good day, everyone, and welcome to the Xylem's second-quarter 2024 results conference call. (Operator Instructions) Please note this event is being recorded.
I'll now turn the conference over to Andrea van der Berg, Vice President of Investor Relations. Please go ahead.
Thank you, operator. Good morning, everyone, and welcome to Xylem's second-quarter 2024 earnings call. With me today are Chief Executive Officer, Matthew Pine; and Chief Financial Officer, Bill Grogan. They will provide their perspective on Xylem's second-quarter 2024 results and discuss the third quarter and full-year outlook.
Following our prepared remarks, we will address questions related to the information covered on the call. Also, please keep to one question and follow-up and then return to the queue. As a reminder, this call and webcast are accompanied by a slide presentation available on the Investors section of our website. A replay of today's call will be available until midnight, August 6.
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