Company revenues grew 12% on a reported basis and 8% organically, reflecting demand growth across all segments.
Xylem’s first-quarter adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) margin grew 480 basis points to 17.1%. The margin expansion was driven by volume benefits from strong demand, productivity gains and cost discipline.
Xylem generated a net income of US$87 million or US$0.48 per share, and an adjusted net income of US$102 million, or US$0.56 per share, which excludes the impact of restructuring, realignment and special charges.“Our Xylem team performed exceptionally well in the first quarter, despite ongoing pandemic challenges around the world. I’m so proud of how the team has served our customers and communities,” said Patrick Decker, Xylem’s president and CEO.
“We came into the year with growing momentum and are taking full advantage of resurgent demand alongside broader economic recovery, posting double-digit orders growth across all segments.
“The positive market signals we are seeing, and our team’s proven ability to manage through a challenging supply chain environment, give us confidence about the remainder of this year and beyond. On that basis, we are raising our guidance for the full year, for both top-line growth and earnings.”
Xylem, whose portfolio includes quarrying-suited Godwin and Flygt dewatering pumps, now expects full-year organic revenue growth to be in the range of 5 to 7% and 8 to 10% on a reported basis. This represents an increase from the company’s previous full-year organic revenue guidance of 3 to 5% and 6 to 8% on a reported basis. Full-year adjusted earnings per share are now expected to be in the range of $2.50 to $2.70, up from the $2.35 to $2.60 range. The increased guidance primarily reflects commercial momentum and broad demand recovery.
Xylem’s Water Infrastructure segment, which includes its quarrying dewatering product range, posted first-quarter 2021 revenue of US$509 million, up 11% organically, and up 16% as reported, compared with the first quarter 2020. Double-digit growth in both utilities and industrial end markets was driven by strong demand in wastewater applications and project deliveries in Europe, along with strength in emerging markets compared to a COVID-challenged environment in the first quarter of the prior year.
The segment’s first-quarter adjusted EBITDA margin was 17.3%, up 430 basis points from the prior year. Reported operating income for the segment was US$71 million, and adjusted operating income, which excludes US$5 million of restructuring and realignment costs, was US$76 million.