WASHINGTON - Xylem Inc. (NYSE: NYSE:XYL), a prominent global water technology company, announced its multi-year growth strategy and long-term financial framework during its Investor Day held today. The company's executives, including President and CEO Matthew Pine, outlined plans to achieve above-market growth and improve margins through business simplification efforts.
The strategy includes a focus on integrating the recently acquired Evoqua and capitalizing on current and future growth opportunities. Xylem's long-term financial framework projects annual organic revenue growth of 4% to 6%, with margin expansion expected to accelerate, resulting in mid-teens adjusted earnings per share (EPS) growth annually.
In addition to the financial targets, the company has set its sights on achieving a low-double-digit annual free cash flow margin. These goals are part of Xylem's broader commitment to creating a sustainable, water-secure future while delivering value to shareholders.
Xylem reaffirmed its 2024 outlook, initially provided on May 2, 2024, maintaining the guidance for the current fiscal year. Details of the 2024 outlook and planning assumptions were shared in the company's first-quarter earnings materials, which are available on Xylem's investor relations website.
The company emphasized the importance of water management in the global economy and its leading role in generating value from it. Xylem's updated financial framework and sustainability goals reflect its dedication to purpose-driven, profitable growth.
The Investor Day event, including presentations and a Q&A session, was made available to both in-person and virtual attendees through a live stream and is accessible for replay on the company's website.
Xylem, with a diverse workforce of 23,000 employees, reported pro forma revenue of $8.1 billion in 2023. The company operates in over 150 countries, focusing on optimizing water and resource management to help communities become water-secure.
This article is based on a press release statement from Xylem Inc.
InvestingPro Insights
As Xylem Inc. (NYSE: XYL) steers towards its ambitious growth targets, the latest metrics from InvestingPro suggest a robust financial landscape that may interest investors. With a market capitalization of approximately $33.45 billion and a notable revenue growth of 39.51% in the last twelve months as of Q1 2023, Xylem is showing signs of strong upward momentum.
The company's focus on sustainable growth is reflected in its P/E ratio, which stands at 48.64, indicating investor confidence in its future earnings potential. This optimism is further supported by the fact that 8 analysts have revised their earnings upwards for the upcoming period, as per InvestingPro Tips. Moreover, Xylem's dedication to shareholder returns is evident with its impressive track record of raising its dividend for 13 consecutive years.
InvestingPro also highlights Xylem's financial stability, with liquid assets surpassing short-term obligations. This is a reassuring sign for investors considering the company's plans for business simplification and integration of acquisitions such as Evoqua.
For those looking to delve deeper into Xylem's financial health and growth prospects, more InvestingPro Tips are available, which could further inform investment decisions. To explore these insights, visit InvestingPro's XYL page and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 15 additional InvestingPro Tips listed for Xylem, providing a comprehensive analysis of the company's financial and market performance.
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