Xylem Reaffirms Growth Strategy; Foresees ~$100M Adverse Revenue Impacts In 2H

Xylem Inc XYL plans to reaffirm its growth strategy and set out its long-term financial framework at Investor Day event held today.
Xylem noted the global supply chain environment has become increasingly volatile, including escalating electronic component shortages. For FY21, the company estimates adverse revenue impacts of ~$100 million in the second half of the year.
Xylem had earlier expected FY21 organic revenue growth of 6% - 8% and 9% - 11% on a reported basis and adjusted EPS of $2.55 - $2.70.
The company's long-term financial framework anticipates annual organic revenue growth of 4% - 6%, with an average annual adjusted EBITDA margin expansion of 50-75 bps per year. The company also maintains its commitment to average yearly free cash flow conversion of 100%.
Xylem will announce the establishment of Xylem Vue, a digital ecosystem bringing together the power of its advanced hardware and software technologies and service capabilities.
Xylem said it expects to continue delivering above-market organic growth with enhanced margins.
Price Action: XYL shares traded lower by 1.05% at $126.44 on the last check Thursday.