Xylem (XYL) Q3 2024 Earnings Call Transcript

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Oct. 31, 2024, astatine 9 a.m. ET

• Chief Executive Officer — Matthew Pine

• Chief Financial Officer — Bill Grogan

We person provided you with a summary of cardinal show metrics, including some GAAP and non-GAAP metrics with references to the anterior twelvemonth conception metrics being made connected a comparative basis, reflecting the alteration successful segments arsenic of the opening of the year. For the purposes of today's call, each references volition beryllium connected an integrated and/or adjusted basis, unless different indicated, and non-GAAP financials person been reconciled for you and are included successful the Appendix conception of the presentation. Now delight crook to Slide 4, and I volition crook the telephone implicit to our CEO, Matthew Pine.

Matthew Pine: Thanks, Keith. Good morning, everyone, and convey you for joining us. As you've seen successful our property merchandise earlier this morning, the squad delivered precise beardown net successful the quarter. In fact, I privation to admit the full Xylem squad for disciplined execution crossed the business. The effect was grounds EBITDA margins and grounds net per stock successful the quarter. Operational subject besides delivered accelerated momentum successful our integration of Evoqua. We're present good up of docket and capturing the expected outgo synergies ending the twelvemonth supra our tally complaint targets. Our profitability is besides opening to payment from the enactment to optimize our portfolio and simplify our organization.

All that enactment is successful work of reducing Xylem's complexity successful serving our customers amended successful summation to delivering systematic borderline betterment successful enactment of our semipermanent framework. The squad showed large lawsuit absorption delivering steadfast orders maturation crossed each segments successful the quarter. Organic orders were up precocious single-digits overall, with a book-to-bill greater than one, reflecting beardown underlying request successful resilient extremity markets that proceed to similar our differentiated mission-critical solutions. Moderated gross maturation successful the 4th was chiefly driven by task timing pushouts successful MCS and WSS, combined with pugnacious compares versus anterior year. Orders are up sharply successful some of those segments, indicating steadfast underlying request and lawsuit preference.

Overall, extremity marketplace request continues to beryllium resilient with a fewer pockets of softening successful the abbreviated term. With bully visibility done Q4, we're narrowing afloat twelvemonth net guidance and maintaining the midpoint contempt a somewhat little gross expectation. Also successful Q4, we expect to summation our involvement successful the Idrica associated venture, giving america a bulk ownership position. As a reminder, Idrica is simply a planetary person successful information absorption and analytics for h2o utilities. The strategy powering the Xylem presumption level astatine the bosom of our intelligent solutions for utilities. Having been borne retired of the inferior relation itself, the level has been deployed successful much than 300 customers astir the world.