Revenue growth 12% on a reported basis, 8% organically
Xylem has reported Q1 2021 revenue of US$1.26 billion. Revenues grew 12% on a reported basis, and 8% organically, reflecting demand growth across all segments. The company generate net income of $87 million, and adjusted net income of $102 million, which excludes the impact of restricting realignment and special charges.
Patrick Decker, president and CEO of Xylem, commented: “The positive market signals we are seeing, and our team’s 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 is now expecting full-year organic revenue growth to be in the range of 5-7%, and 8-10% on a reported basis. This represents an increase from the company’s previous full-year organic revenue guidance of 3-5%, and 6-8% on a reported basis.
Particularly for Xylem’s water infrastructure segment, Q1 2021 revenue was reported at $509 million, up 11% organically, and up 16% as reported, compared with Q1 2020. Double-digit growth in both utilities and industrial end markets was driven by demand in wastewater applications and project deliveries in Europe, along with strength in emerging markets compared to a COVID-challenged environment in Q1 of the prior year.
Additionally, the applied water segment, which consists of its portfolio of businesses in industrial, commercial building and residential applications, reported Q1 2021 revenue at $393 million, representing 13% organic growth year-over-year, and 16% growth on a reported basis. The growth from demand in industrial and residential end markets was supplemented by mid-single digit growth in the commercial end market.
As for its measurement and control solutions segment, consisting its portfolio of businesses in smart metering, network technologies, advanced infrastructure analytics and analytic instrumentation, Q1 2021 revenue was $354 million, flat organically and up 2% on a reported basis, as modest growth in water applications from demand in the test business was offset by declines in energy applications from COVID-19 related delays on smart metrology deployments.