Global water technology company, Xylem, has reaffirmed its growth strategy and set out its long-term financial framework at its Investor Day. Xylem President and CEO Patrick Decker, along with other senior leaders, provided 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 provided an update on its digital strategy. The Company announced the establishment of Xylem Vue, a digital ecosystem bringing together Xylem’s advanced hardware and software technologies and service capabilities.
Cecker said: “Underlying demand for sustainable, affordable water solutions is strong and growing, as the long-term trends driving water challenges accelerate. 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.”
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.
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