The Q2 results include the acquisition of Evoqua Water Technologies, a provider of water treatment solutions and services
Xylem says that orders were up 10% on a reported basis and down 2% organically, while backlog grew to US$5.3b, up 7% organically and including US$1.3bn from Evoqua, with resilient underlying demand. Xylem provides water and pump technology for global industries including quarrying.
Second-quarter earnings, excluding the acquisition, exceeded Xylem’s previous standalone guidance.
Xylem is updating its full-year 2023 guidance to reflect strong organic performance, the combination with Evoqua and the adjustment of purchase accounting intangible amortisation. Xylem now expects full-year 2023 revenue of approximately US$7.2bn, up approximately 30% on a reported basis and up 9 to 10% on an organic basis. This represents an increase from the Company’s previous full-year guidance of 8 to 9% on an organic and reported basis.
President and CEO Patrick Decker commented: “This past quarter, we took another transformative step as a leading water solutions company to help our communities and customers solve the greatest water challenges facing our society and economies: water scarcity, resilience of our infrastructure to climate change, and the need to address these challenges affordably with the power of technology and innovation.
“These challenges are intensifying every day and our powerful portfolio is now even more strongly positioned to deliver solutions at scale.”
Xylem’s water infrastructure segment, now including legacy-Evoqua’s Applied Product Technologies segment, consists of its portfolio of businesses serving clean water delivery, wastewater transport and treatment, and dewatering.
Second-quarter 2023 revenue for the water infrastructure segment was US$704m, a 20% increase on a reported basis and 13% organically, compared with second-quarter 2022.
This strong growth was driven by price realization and robust utilities and industrial demand, particularly in the US and Western Europe.
Xylem says its acquisition of Evoqua creates the world’s most advanced platform of capabilities to address customers’ and communities’ critical water challenges.