Provides Long-term Financial Framework and
Updates Current Year Outlook
Global water technology company, Xylem (NYSE:XYL), will reaffirm
its growth strategy and set out its long-term financial framework
at its Investor Day, to be held today. Xylem President and CEO
Patrick Decker, along with other senior leaders, will provide an
update on the Company’s plans to drive above-market organic growth
and margin expansion. It expects growth to reflect strong
underlying demand, across geographies and end-markets.
As the leader in the advanced technologies transforming the
water sector, Xylem will also provide an update on its digital
strategy. The Company will announce the establishment of Xylem Vue,
a market-leading digital ecosystem bringing together the power of
Xylem’s advanced hardware and software technologies and service
capabilities.
“Underlying demand for sustainable, affordable water solutions
is strong and growing, as the long-term trends driving water
challenges accelerate,” said Decker. “Xylem is exceptionally well
positioned with leadership in water technology and a global
installed base in attractive, growing markets. We expect to
continue delivering above-market organic growth, with enhanced
margins, by helping our customers climb the technology curve as the
water sector digitizes.”
“With sustainability at the core of our strategy, our growth
creates both economic and social value, as we enable customers to
create better water outcomes for their communities. Alongside
growth, we expect to continue delivering strong free cash flow
conversion, providing capacity for significant capital deployment
underpinning sustained returns for years to come. That includes
using M&A when it enhances our capability to serve our
customers, accelerates our growth, and creates value for
shareholders.”
Long-term Financial Framework
Xylem’s long-term financial framework anticipates annual organic
revenue growth in the range of 4 percent to 6 percent, with average
annual adjusted EBITDA margin expansion of 50-75 basis points per
year. The Company is also maintaining its commitment to average
annual free cash flow conversion of 100 percent.
2021 Outlook
Underlying demand continues to be robust, with
higher-than-expected growth in orders and backlog, but the global
supply chain environment has become increasingly volatile,
including with respect to escalating electronic component
shortages. The Company currently estimates adverse revenue impacts
of approximately $100 million in the second half of the year. Xylem
will report third quarter earnings on November 2, 2021, and expects
to provide an updated full-year outlook at that time.
A live stream and replay of the Investor Day event will be
available, along with all presentation materials, on Investors
Events | Xylem US.
About Xylem
Xylem (XYL) is a leading global water technology company
committed to solving critical water and infrastructure challenges
with innovation. Our more than 16,000 diverse employees delivered
revenue of $4.88 billion in 2020. We are creating a more
sustainable world by enabling our customers to optimize water and
resource management, and helping communities in more than 150
countries become water-secure. Join us at www.xylem.com.
Forward-Looking Statements
This press release contains “forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Generally, the words “anticipate,” “estimate,” “expect,”
“project,” “intend,” “plan,” “contemplate,” “predict,” “forecast,”
“likely,” “believe,” “target,” “goal,” “will,” “could,” “would,”
“should,” "potential," "may" and similar expressions or their
negative, may, but are not necessary to, identify forward-looking
statements. By their nature, forward-looking statements address
uncertain matters and include any statements that are not
historical, such as statements about our strategy, financial plans,
outlook, objectives, plans, intentions or goals; or address
possible or future results of operations or financial performance,
including statements relating to orders, revenues, operating
margins and earnings per share growth.
Although we believe that the expectations reflected in any of
our forward-looking statements are reasonable, actual results could
differ materially from those projected or assumed in any of our
forward-looking statements. Our future financial condition and
results of operations, as well as any forward-looking statements,
are subject to change and to inherent risks and uncertainties, many
of which are beyond our control. Additionally, many of these risks
and uncertainties are, and may continue to be, amplified by the
coronavirus (“COVID-19”) pandemic. Important factors that could
cause our actual results, performance and achievements, or industry
results to differ materially from estimates or projections
contained in or implied by our forward-looking statements include,
among others, the following: overall industry and economic
conditions, including industrial, governmental and private sector
spending and the strength of the residential and commercial real
estate markets; geopolitical, regulatory, economic and other risks
associated with international operations; continued uncertainty
around the COVID-19 pandemic’s magnitude, duration and impacts on
our business, operations, growth, and financial condition, as well
as uncertainty around approved vaccines and the pace of recovery
when the pandemic subsides; actual or potential other epidemics,
pandemics or global health crises; manufacturing and operating cost
increases due to inflation, prevailing price changes, tariffs and
other factors; fluctuations in foreign currency exchange rates;
disruption, competition and pricing pressures in the markets we
serve; cybersecurity incidents or other disruptions of information
technology systems on which we rely, or involving our products;
disruptions in operations at our facilities or that of third
parties upon which we rely; availability of products, parts,
electronic components and raw materials from our supply chain;
availability, regulation and interference with radio spectrum used
by some of our products; our ability to retain and attract senior
management and other key talent; uncertainty related to
restructuring and realignment actions and related charges and
savings; our ability to continue strategic investments for growth;
our ability to successfully identify, execute and integrate
acquisitions; risks relating to products, including defects,
security, warranty and liability claims, and recalls; difficulty
predicting our financial results, including uncertainties due to
the nature of our short- and long-cycle businesses; volatility in
our results due to weather conditions, including the effects of
climate change; our ability to borrow or refinance our existing
indebtedness and the availability of liquidity sufficient to meet
our needs; risk of future impairments to goodwill and other
intangible assets; failure to comply with, or changes in, laws or
regulations, including those pertaining to anti-corruption, data
privacy and security, export and import, competition, and the
environment and climate change; changes in our effective tax rates
or tax expenses; legal, governmental or regulatory claims,
investigations or proceedings and associated contingent
liabilities; and other factors set forth under “Item 1A. Risk
Factors” in our Annual Report on Form 10-K for the year ended
December 31, 2020 and in subsequent filings we make with the
Securities and Exchange Commission.
All forward-looking statements made herein are based on
information currently available to us as of the date of this press
release. We undertake no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20210930005471/en/
Media Houston Spencer +1 (914) 323-5723
houston.spencer@xylem.com
Investors Matt Latino +1 (914) 323-5821
matthew.latino@xylem.com
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