Xylem, global water technology company, pump manufacturer and rental specialist, posted $1,217 million in first quarter revenue compared to $1,071 million in the first quarter of 2017, a 13.6-percent year-over-year increase. Adjusted EBITDA improved by 130 basis points year over year to 17.5 percent driven by volume leverage and savings from productivity initiatives.
Reported operating margin in the quarter was 9.3 percent and adjusted operating margin increased 60 basis points to 11.1 percent. The company delivered adjusted net income of $93 million, or $0.51 per share in the quarter, a 31-percent increase compared to the first quarter of 2017.
Revenue for the quarter increased 7 percent on an organic basis, driven by a strong performance in the utilities and industrial end markets in nearly every geography and continued solid growth in the commercial and residential end markets.
“Focused execution and increased collaboration by our teams resulted in a strong start to 2018,” said Patrick Decker, president and CEO of Xylem. “We delivered another consecutive quarter of strong growth in revenue, orders and backlog, which sets us up for a solid year ahead. We’re encouraged by the continuing momentum we see in both the utilities and industrial end markets, where we are capturing share. In addition, our growing portfolio of advanced technologies is opening up new opportunities to expand our relationship with current customers and cultivate new ones. We continue to successfully execute against our productivity plans, which is helping to fund our growth initiatives and mitigate inflation. Looking ahead, we have strong confidence in our plans to drive continued profitable growth as we deepen our customer relationships and partnerships.”
Xylem is forecasting full-year 2018 revenue in the range of $5.1 to $5.2 billion, up 8 to 10 percent, including growth from previously announced acquisitions. On an organic basis, Xylem anticipates revenue growth in the range of 4 to 6 percent.
