The chart below shows how XYL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, XYL sees a -1.87% change in stock price 10 days leading up to the earnings, and a +0.56% change 10 days following the report. On the earnings day itself, the stock moves by +1.53%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Record EPS Achievement: Xylem Inc. reported a record EPS of $1.18 for Q4 2024, exceeding expectations of $1.13 and marking a 19% increase over the prior year.
Revenue and EBITDA Growth: Full year revenue grew by 6%, reaching new benchmarks, while EBITDA margins expanded by 170 basis points, reflecting strong operational discipline across all segments.
Order Growth Analysis: Orders increased by 7% in Q4, with Water Infrastructure leading the way at 10% growth, indicating robust demand across all segments.
Free Cash Flow Increase: Year-to-date free cash flow rose by 29% compared to the previous year, demonstrating improved cash generation capabilities.
EPS Growth Projections: The company anticipates a full year EPS range of $4.50 to $4.70 for 2025, representing an 8% increase at the midpoint over the prior year, with expectations for double-digit EPS growth excluding foreign exchange impacts.
Negative
Backlog Decline in MCS: Total Measurement and Control Solutions (MCS) backlog decreased by 13% year-over-year, indicating a decline in demand for smart metering conversion.
EBITDA Margin Decline: EBITDA margin for MCS was 17.1%, which is 120 basis points lower than the prior year, primarily due to unfavorable mix and inflationary pressures.
Stagnant Revenue Performance: Revenue growth for Applied Water was essentially flat compared to the prior year, primarily driven by softness in emerging markets, indicating stagnation in this segment.
2025 Revenue Guidance Outlook: Full year revenue guidance for 2025 is projected to grow only 0% to 2%, which is below the long-term growth framework due to the impact of 80/20 actions.
Q1 Revenue Growth Outlook: First quarter revenue growth is expected to be in the 0% to 2% range, reflecting a lack of momentum entering the new year.
Xylem Inc. (NYSE:XYL) Q4 2024 Earnings Call Transcript
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