Xylem Inc
For the period ended Jun 30, 2024. Filed Jul 30, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 30, 2024
XYL$97.83-2.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-02.
0001524472-24-000015
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-30.
0001524472-24-000033
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 117 previous paragraphs and 136 current paragraphs.
73 unchanged; 40 reworded; 19 added; 4 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 14 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
(a)Foreign currency translation impact for the year due to the weakening in value of various currencies against the U.S. Dollar, the largest being the Euro, British Pound, Chinese Yuan and the Chilean Peso.
Current report
Water Infrastructure revenue increased $112 million, or 21.6%, for the second quarter of 2024 (22.7% increase on a constant currency basis) as compared to the prior year. Revenue growth for the quarter contributed by acquisitions was $84 million, with the remainder of the increase coming from organic revenue growth of $34 million, or 6.6%, and $6 million of unfavorable impacts from foreign currency translation. The transport application experienced $24 million of organic revenue growth, driven by strength across all of our major geographic regions, led by western Europe and the emerging markets due to increased revenue from capital projects and in the U.S. due to increased sales volume and execution on infrastructure projects. Organic revenue for the treatment applications grew by $10 million, led by increased volume in the U.S.
Current report
For the six months ended June 30, 2024, revenue decreased $39 million, or 4.2% (3.9% decrease on a constant currency basis) as compared to the prior year. Revenue was negatively impacted by $3 million of foreign currency translation during the six month period, with the change at constant currency coming primarily from organic declines of $36 million. Organic weakness was driven by declines in both the industrial and building solutions applications. Industrial organic revenue decreased by $23 million due to softness in the U.S. and western Europe. Within building solutions, organic revenue declined $13 million as a result of softness in the U.S. and western Europe.
Current report
For the six months ended June 30, 2024, revenue increased $182 million, or 23.9% (24.0% increase on a constant currency basis) as compared to the prior year. Revenue was negatively impacted by $1 million of foreign currency translation, with the change at constant currency coming entirely from an organic increase of $183 million (24.0% increase). Organic revenue growth during the quarter was driven by $184 million in the smart metering and other applications, primarily in the U.S. driven by increased sales volume and backlog execution due to supply chain improvements. This growth was partially offset by a $1 million organic decline in analytics.
Current report
For the six months ended June 30, 2024, revenue increased $613 million, or 111.9% (112.2% increase on a constant currency basis) as compared to the prior year. Revenue growth contributed by acquisitions was $561 million, with the remainder of the increase coming from organic revenue growth of $54 million, or 9.8%, and $2 million of unfavorable impacts from foreign currency translation. Organic revenue growth was primarily from strength in the dewatering application across all major geographic markets, led by the U.S. due to increased sales volume and favorable price realization, and the emerging markets due to increased capital project revenue, as well as organic growth in the ISS applications in the U.S.
Current report
(a)Foreign currency translation impact for the year due to the weakening in value of various currencies against the U.S. Dollar, the largest being the Euro, British Pound, Chinese Yuan and the Chilean Peso.
Current report
During the three and six months ended June 30, 2024, we incurred restructuring charges of $23 million and $32 million, respectively. For the three and six months ended June 30, 2024, the charges incurred primarily related to strengthening our competitive positioning and the integration of Evoqua.
Current report
Operating income was $253 million (operating margin of 11.7%) during the second quarter of 2024, an increase of $134 million, or 112.6%, when compared to operating income of $119 million (operating margin of 6.9%) during the prior year. Operating margin increased 480 basis points, which included net favorable impacts of 360 basis points from decreases in special charges and restructuring and realignment costs, partially offset by increases in acquired intangible asset amortization compared to the prior year. Additionally, operating margin expansion included 530 basis points of favorable operational impacts driven by 240 basis points of productivity savings, 150 basis points of increased volumes, and 120 basis points of price realization. These favorable impacts were partially offset by 420 basis points of unfavorable operational impacts, driven by 180 basis points of inflation, 70 basis points of increased spending on strategic investments, 60 basis points of unfavorable mix and 50 basis points of increased employee costs. Excluding acquired intangible asset amortization, restructuring and realignment costs, and special charges, adjusted operating income was $352 million (adjusted operating margin of 16.2%) for the second quarter of 2024 as compared to adjusted operating income of $259 million (adjusted operating margin of 15.0%) during the comparable quarter in the prior year.
Current report
Net income for the six months ended June 30, 2024 was $347 million (net income margin of 8.3%), an increase of $156 million as compared to Net income in the prior year of $191 million (net income margin of 6.0%). The increase in net income was driven by increased operating income of $212 million, decreased non-operating income of $1 million, increased loss from sale of businesses of $4 million, increased interest expense of $4 million and increased income tax expense of $47 million. Adjusted EBITDA was $843 million (adjusted EBITDA margin of 20.1%) during the six months ended June 30, 2024, an increase of $278 million, or 49%, when compared to adjusted EBITDA of $565 million (adjusted EBITDA margin of 17.8%) during the comparable quarter in the prior year, an increase to adjusted EBITDA margin of 230 basis points. Adjusted EBITDA margin was impacted by the same offsetting factors impacting the adjusted operating margin; however, adjusted EBITDA margin also benefited from the exclusion of incremental depreciation and amortization.
Current report
Operating income for our Water Infrastructure segment was $78 million (operating margin of 12.4%) during the second quarter of 2024, an increase of $8 million, or 11.4%, when compared to operating income of $70 million (operating margin of 13.5%) during the prior year, or a total decrease in operating margin of 110 basis points. Operating margin declines included favorable impacts of 60 basis points from only a slight net increase in acquired intangible asset amortization, offset by special charges as compared to the prior year on increased revenue. Additionally, operating margin declines included 530 basis points of unfavorable operational impacts, driven by 160 basis points of inflation, 90 basis points of increased employee related costs, 90 basis points of decreased operating margin related to the Evoqua acquisition, 40 basis points of increased spending on strategic investments, and 40 basis points of decreased volume. Margin declines were offset by 360 basis points from favorable operating impacts driven by 240 basis points of productivity savings and 60 basis points of price realization. Excluding amortization of acquired intangibles, restructuring and realignment cost and special charges, adjusted operating income was $101 million (adjusted operating margin of 16.0%) for the second quarter of 2024 as compared to adjusted operating income of $92 million (adjusted operating margin of 17.7%) for the second quarter of 2023.
Current report
Adjusted EBITDA was $227 million (adjusted EBITDA margin of 18.8%) for the six months ended June 30, 2024, an increase of $61 million, or 37%, when compared to adjusted EBITDA of $166 million (adjusted EBITDA margin of 17.9%) during the prior year. Adjusted EBITDA margin was impacted by the same offsetting factors impacting the adjusted operating margin; however, adjusted EBITDA margin was not negatively impacted by the relative impact of depreciation, and software amortization expense.
Current report
Operating income for our Applied Water segment was $71 million (operating margin of 15.6%) during the second quarter of 2024, decrease of $13 million, or 15.5%, when compared to operating income of $84 million (operating margin of 17.6%) during the prior year, or a total decrease in operating margin of 200 basis points. Operating margin declines included 490 basis points from unfavorable operational impacts, driven by 200 basis points of inflation, 140 basis points of unfavorable mix, 60 basis points of inventory management costs, and 50 basis points of increased employee related costs. The decline in margin was partially offset by favorable operational impacts of 290 basis points driven by 250 basis points of productivity savings. Excluding restructuring and realignment costs, adjusted operating income was $73 million (adjusted operating margin of 16.0%) for the first quarter of 2024 as compared to adjusted operating income of $86 million (adjusted operating margin of 18.0%) for the second quarter of 2023.
Current report
Adjusted EBITDA was $80 million (adjusted EBITDA margin of 17.5%) for the second quarter of 2024, a decrease of $13 million, or 14%, when compared to adjusted EBITDA of $93 million (adjusted EBITDA margin of 19.5%) during the prior year. The decrease in adjusted EBITDA margin was primarily due to the same factors impacting the decrease in adjusted operating margin.
Current report
Adjusted EBITDA was $152 million (adjusted EBITDA margin of 17.0%) for the six months ended June 30, 2024, a decrease of $33 million, or 18%, when compared to adjusted EBITDA of $185 million (adjusted EBITDA margin of 19.9%) during the prior year. The decrease in adjusted EBITDA margin was primarily due to the same factors impacting the decrease in adjusted operating margin.
Current report
Operating income for our Measurement and Control Solutions segment was $79 million (operating margin of 16.4%) during the second quarter of 2024, an increase of $50 million, or 172.4%, when compared to operating income of $29 million (operating margin of 7.6%) during the prior year, or a total increase in operating margin of 880 basis points. Operating margin expansion included favorable impacts of 110 basis points from a net decrease in acquired intangible asset amortization, restructuring and realignment costs and special charges as compared to the prior year. Additionally, operating margin expansion included 1,040 basis points of favorable operational impacts, primarily consisting of 320 basis points of increased volume, 310 basis points of price realization, 300 basis points of productivity savings, and 100 basis points of favorable mix. Margin expansion was partially offset by negative operational impacts of 270 basis points driven by 170 basis points of inflation, 60 basis points of increased inventory management costs, and 40 basis points of increased spending on strategic investments. Excluding acquired intangible asset amortization, restructuring and realignment costs and special charges, adjusted operating income was $96 million (adjusted operating margin of 19.9%) for the second quarter of 2024 as compared to adjusted operating income of $47 million (adjusted operating margin of 12.2%) for the second quarter of 2023.
Current report
Adjusted EBITDA was $218 million (adjusted EBITDA margin of 23.1%) for the six months ended June 30, 2024, an increase of $90 million, or 70%, when compared to adjusted EBITDA of $128 million (adjusted EBITDA margin of 16.8%) during the prior year. The increase in adjusted EBITDA margin was due to the same factors as those impacting the increase in adjusted operating margin; however, adjusted EBITDA margin did not benefit from the relative impact of share based compensation and depreciation and software amortization.
Current report
Operating income for our Water Solutions and Services segment was $47 million (operating margin of 7.8%) during the second quarter of 2024, an increase of $21 million, or 80.8%, when compared to operating income of $26 million (operating margin of 7.6%) during the prior year, or a total increase in operating margin of 20 basis points. Operating margin expansion included unfavorable impacts of 50 basis points from increased acquired intangible asset amortization and restructuring and realignment costs, partially offset by decreases in special charges as compared to the prior year. Additionally, operating margin expansion included 610 basis points of favorable operational impacts, consisting of 370 basis points of increased volume, 120 basis points of productivity savings and 120 basis points of price realization. Margin expansion was offset by negative operational impacts of 540 basis points driven by 190 basis points of unfavorable mix, 150 basis points of inflation, and 60 basis points of increased spending on strategic investments. Excluding acquired intangible asset amortization, restructuring and realignment costs, and special charges, adjusted operating income was $99 million (adjusted operating margin of 16.5%) for the second quarter of 2024 as compared to adjusted operating income of $54 million (adjusted operating margin of 15.8%) for the second quarter of 2023.
Current report
Adjusted EBITDA was $143 million (adjusted EBITDA margin of 23.8%) for the second quarter of 2024, an increase of $64 million, or 81.0%, when compared to adjusted EBITDA of $79 million (adjusted EBITDA margin of 23.2%) during the prior year. The increase in adjusted EBITDA margin was primarily due to the same factors as those impacting the increase in adjusted operating margin.
Current report
Operating income for our Water Solutions and Services segment was $97 million (operating margin of 8.4%) during the six months ended June 30, 2024, an increase of $53 million, or 120.5%, when compared to operating income of $44 million (operating margin of 8.0%) during the prior year, or a total increase in operating margin of 40 basis points. Operating margin expansion included unfavorable impacts of 160 basis points from increases in acquired intangible asset amortization, restructuring and realignment costs, and special charges as compared to the prior year. Additionally, operating margin expansion included 560 basis points of favorable operational impacts, consisting of 260 basis points of increased volume, 110 basis points of accretive margin from the Evoqua acquisition, 100 basis points of price realization, and 90 basis points of productivity savings. Margin expansion was offset by negative operational impacts of 350 basis points driven by 110 basis points of inflation, 90 basis points of increased spending on strategic investments, and 20 basis points of unfavorable mix. Excluding acquired intangible asset amortization, special charges, and restructuring and realignment costs, adjusted operating income was $182 million (adjusted operating margin of 15.7%) for the six months ended June 30, 2024 as compared to adjusted operating income of $75 million (adjusted operating margin of 13.7%) for the six months ended June 30, 2023.
Removed paragraphs (4)
Previous report
From time to time, the Company will incur costs related to restructuring actions to optimize our cost base and more strategically position itself.
Previous report
Operating Income and Adjusted EBITDA
Previous report
Adjusted EBITDA was $102 million (adjusted EBITDA margin of 17.8%) for the first quarter of 2024, an increase of $42 million, or 70.0%, when compared to adjusted EBITDA of $60 million (adjusted EBITDA margin of 14.6%) during the prior year. Adjusted EBITDA was impacted by the same offsetting factors impacting the adjusted operating margin.
Previous report
Operating income for our Water Solutions and Services segment was $50 million (operating margin of 8.9%) during the first quarter of 2024, an increase of $32 million, or 177.8%, when compared to operating income of $18 million (operating margin of 8.7%) during the prior year, or a total increase of 20 basis points. Operating margin expansion included unfavorable impacts of 450 basis points from acquired intangible asset amortization, special charges, and restructuring and realignment costs as compared to the prior year. Additionally, operating margin expansion included 850 basis points of favorable operational impacts, consisting of 380 basis points of accretive margin from the Evoqua acquisition, 170 basis points of favorable mix, 130 basis points of increased volume, 70 basis points of productivity savings and 70 basis points of price realization. Margin expansion was offset by negative operational impacts of 380 basis points driven by 160 basis points of increased spending on strategic investments, 70 basis points of inflation, and 70 basis points of increased employee related costs. Excluding acquired intangible asset amortization, special charges, and restructuring and realignment costs, adjusted operating income was $83 million (adjusted operating margin of 14.8%) for the first quarter of 2024 as compared to adjusted operating income of $21 million (adjusted operating margin of 10.1%) for the first quarter of 2023.
Reworded paragraphs (40)
Previous wording
Xylem reported revenue for the first quarter of 2024 of $2,033 million, an increase of 40.4% compared to $1,448 million reported in the first quarter of 2023. The revenue increase consisted of organic growth of 7.1% on continued strong execution and demand across most of our reportable segments. Revenue contributed by acquisitions and divestitures, net was $480 million.
Current wording
Xylem reported revenue for the second quarter of 2024 of $2,169 million, an increase of 26.0% compared to $1,722 million reported in the second quarter of 2023. The revenue increase consisted primarily of organic growth of 9.2% on continued strong execution and demand across most of our reportable segments, as well as revenue contributed by acquisitions and divestitures, net, of $302 million.
Previous wording
•Orders of $2,246 million, up 43.1% from $1,570 million in the prior year period, and up 3.4% on an organic basis.
Current wording
•Orders of $2,087 million, up 12.4% from $1,856 million in the prior year period, and down 1.2% on an organic basis.
Previous wording
•Earnings per share of $0.63, up 16.7% compared to prior year ($0.90, up 13.9% versus prior year, on an adjusted basis).
Current wording
•Earnings per share of $0.80, up 77.8% compared to prior year ($1.09, up 11.2% versus prior year, on an adjusted basis).
Previous wording
•Net income as a percent of revenue of 7.5%, up 70 basis points compared to 6.8% in the prior year. Adjusted EBITDA margin of 19.2%, up 290 basis points when compared to 16.3% in the prior year.
Current wording
•Net income as a percent of revenue of 8.9%, up 360 basis points compared to 5.3% in the prior year. Adjusted EBITDA margin of 20.8%, up 170 basis points when compared to 19.1% in the prior year.
Previous wording
(a) The special charges for the three months ended March 31, 2024 and 2023 consist primarily of acquisition and integration costs related to the Evoqua transaction.
Current wording
(a) The special charges for the three and six months ended June 30, 2024 and 2023 consist primarily of acquisition and integration costs related to the Evoqua transaction.
Previous wording
•“special charges" defined as non-recurring costs incurred by the Company, such as acquisition and integration related costs and non-cash impairment charges.
Current wording
•“special charges" defined as non-recurring costs incurred by the Company, such as those related to acquisitions and integrations, divestitures and non-cash impairment charges.
Previous wording
Revenue generated during the three months ended March 31, 2024 was $2,033 million, reflecting an increase of $585 million, or 40.4%, compared to the prior year. On a constant currency basis, revenue grew 40.3% for the three months ended March 31, 2024. Revenue growth contributed by acquisitions and divestitures, net was $480 million for the three months ended March 31, 2024 and organic revenue increased $103 million, or 7.1% for the three months ended March 31, 2024, with foreign currency translation having a favorable impact on revenue of $2 million. The increases reflect strong organic growth across all of our major geographic regions, led by the U.S.
Current wording
Revenue generated during the three and six months ended June 30, 2024 was $2,169 million and $4,202 million, respectively, reflecting an increase of $447 million, or 26.0%, and $1,032 million, or 32.6%, respectively, compared to the prior year. On a constant currency basis, revenue grew 26.7% and 32.9% for the three and six months ended June 30, 2024. Revenue growth contributed by acquisitions and divestitures, net, was $302 million and $782 million for the three and six months ended June 30, 2024 and organic revenue increased $158 million, or 9.2%, and $261 million, or 8.2%, for the three and six months ended June 30, 2024, with foreign currency translation having unfavorable impacts on revenue of $13 million and $11 million, respectively. The increases reflect strong organic growth across all of our major geographic regions, led by the U.S. for the three and six months ended June 30, 2024.
Previous wording
The following table illustrates the impact from organic growth, recent acquisitions and divestitures, and foreign currency translation in relation to revenue during the three months ended March 31, 2024:
Current wording
The following table illustrates the impact from organic growth, recent acquisitions and divestitures, and foreign currency translation in relation to revenue during the three and six months ended June 30, 2024:
Previous wording
(a)Foreign currency translation impact for the year due to the strengthening in value of various currencies against the U.S. Dollar, the largest being the British Pound and the Euro, offset by the weakening in the Chinese Yuan and the Chilean Peso.
Current wording
(a)Foreign currency translation impact for the year due to the weakening in value of various currencies against the U.S. Dollar, the largest being the Chinese Yuan, Chilean Peso, Australian Dollar and the Egyptian pound, offset by the strengthening in the British Pound.
Previous wording
Water Infrastructure revenue increased $164 million, or 40.0%, for the first quarter of 2024 (39.8% increase on a constant currency basis) as compared to the prior year. Revenue growth for the quarter contributed by acquisitions was $137 million, with the remainder of the increase coming from organic revenue growth of $26 million, or 6.3%, and $1 million of favorable impacts from foreign currency translation. The transport application experienced $14 million of organic revenue growth, driven by backlog execution and timing of projects in western Europe and increased volumes in the U.S. Organic revenue for the treatment applications grew by $12 million, led by increased revenue from capital projects in the emerging markets and strength in the U.S. and western Europe.
Current wording
For the six months ended June 30, 2024, revenue increased $276 million, or 29.7% (30.2% increase on a constant currency basis) as compared to the prior year. Revenue growth contributed by acquisitions was $221 million, with the remainder of the increase coming from organic revenue growth of $60 million, or 6.4%, and $5 million of unfavorable impacts from foreign currency translation.The transport application experienced $38 million of organic revenue growth, driven by strength in all of our major geographic regions, led by backlog execution and timing of projects in western Europe and the emerging markets and increased volumes and execution on infrastructure projects in the U.S. Organic revenue for the treatment applications grew by $22 million, led by increased sales volume in the U.S. and increased revenue from capital projects in the emerging markets.
Previous wording
Applied Water revenue decreased $17 million, or 3.8%, for the first quarter of 2024 (4.0% decrease on a constant currency basis) as compared to the prior year. Revenue was positively impacted by $1 million of foreign currency translation, with the change at constant currency coming entirely from an organic decline of $18 million. Organic weakness was driven by declines in both the building solutions and industrial applications. Within building solutions, organic revenue declined $13 million as a result of softness in the U.S. and western Europe while organic revenue from the emerging markets was flat as compared to the prior year. Industrial water had organic revenue declines of $5 million in the quarter, primarily in the U.S. due to decreased demand as compared to the prior year.
Current wording
Applied Water revenue decreased $22 million, or 4.6%, for the second quarter of 2024 (3.8% decrease on a constant currency basis) as compared to the prior year. Revenue was negatively impacted by $4 million of foreign currency translation, with the change at constant currency coming entirely from an organic decline of $18 million. The decline was driven by the industrial applications as a result of softness in the U.S. and western Europe. Organic revenue was flat within the building solutions applications, due to modest growth in the emerging markets offset by declines in the U.S.
Previous wording
Measurement and Control Solutions revenue increased $84 million, or 22.2%, for the first quarter of 2024 (22.0% increase on a constant currency basis) as compared to the prior year. Revenue was positively impacted by $1 million of foreign currency translation, with the change at constant currency coming entirely from organic growth of $83 million, or 22.0%. Organic revenue growth during the quarter was driven by $86 million in the smart metering and other applications, primarily in the U.S. due to increased sales volume. This growth was partially offset by a $3 million organic decline in analytics, primarily due to decreased sales volume.
Current wording
Measurement and Control Solutions revenue increased $98 million, or 25.5%, for the second quarter of 2024 (26.0% increase on a constant currency basis) as compared to the prior year. Revenue was negatively impacted by $2 million of foreign currency translation, with the change at constant currency coming entirely from organic growth of $100 million, or 26.0%. Organic revenue growth during the quarter was driven by $99 million in the smart metering and other applications, primarily in the U.S. driven by increased sales volume due to supply chain improvements, as well as $1 million in organic growth from analytics.
Previous wording
Water Solutions and Services revenue increased $354 million, or 171.0%, for the first quarter of 2024 (171.5% increase on a constant currency basis) as compared to the prior year. Revenue growth for the quarter contributed by acquisitions was $343 million, with the remainder of the increase coming from organic revenue growth of $12 million, or 5.8%, and $1 million of unfavorable impacts from foreign currency translation. Organic revenue growth was primarily from strength in the dewatering application in the U.S. and the emerging markets due to increased volumes and favorable price realization.
Current wording
Water Solutions and Services revenue increased $259 million, or 76.0%, for the second quarter of 2024 (76.2% increase on a constant currency basis) as compared to the prior year. Revenue growth for the quarter contributed by acquisitions was $218 million, with the remainder of the increase coming from organic revenue growth of $42 million, or 12.3%, and $1 million of unfavorable impacts from foreign currency translation. Organic revenue growth was primarily driven by strength in the dewatering application across all major geographic markets, led by the U.S. due to increased sales volume and favorable price realization and the emerging markets due to increased capital project revenue, as well as organic growth in the integrated solutions and services ("ISS") applications in the U.S.
Previous wording
An order represents a legally enforceable, written document that includes the scope of work or services to be performed or equipment to be supplied to a customer, the corresponding price and the expected delivery date for the applicable products or services to be provided. An order often takes the form of a customer purchase order or a signed quote from a Xylem business. Orders received during the first quarter of 2024 were $2,246 million, an increase of $676 million, or 43.1%, over the prior year (43.0% increase on a constant currency basis). Orders contributed by acquisitions were $621 million in the three months ended March 31, 2024. Order intake benefited from $1 million of foreign currency translation for the three months ended March 31, 2024.
Current wording
An order represents a legally enforceable, written document that includes the scope of work or services to be performed or equipment to be supplied to a customer, the corresponding price and the expected delivery date for the applicable products or services to be provided. An order often takes the form of a customer purchase order or a signed quote from a Xylem business. Orders received during the second quarter of 2024 were $2,087 million, an increase of $231 million, or 12.4%, over the prior year (13.0% increase on a constant currency basis). Orders received during the six months ended of 2024 were $4,333 million, an increase of $907 million, or 26.5%, over the prior year (26.8% increase on a constant currency basis). Orders contributed by acquisitions were $265 million and $886 million in the three and six months ended ended June 30, 2024. Order intake was negatively impacted by $11 million and $10 million of foreign currency translation for the three and six months ended June 30, 2024, respectively with organic orders being a decline of $23 million (1.2%) and growth of $31 million (0.9%) for the three and six months ended June 30, 2024, respectively.
Previous wording
The following table illustrates the impact from organic growth, recent acquisitions and divestitures, and foreign currency translation in relation to orders during the three months ended March 31, 2024:
Current wording
The following table illustrates the impact from organic decline/growth, recent acquisitions and divestitures, and foreign currency translation in relation to orders during the three and six months ended June 30, 2024:
Previous wording
(a)Foreign currency translation impact for the quarter due to the strengthening in value of various currencies against the U.S. Dollar, the largest being the British Pound and the Euro, offset by the weakening in the Chinese Yuan and the Chilean Peso.
Current wording
(a)Foreign currency translation impact for the year due to the weakening in value of various currencies against the U.S. Dollar, the largest being the Chinese Yuan, Chilean Peso, Australian Dollar and the Egyptian pound, offset by the strengthening in the British Pound.
Previous wording
Backlog includes orders on hand as well as contractual customer agreements at the end of the period. Delivery schedules vary from customer to customer based on their requirements. Annual or multi-year contracts are subject to rescheduling and cancellation by customers due to the long-term nature of the contracts. As such, beginning total backlog, plus orders, minus revenues, will not equal ending total backlog due to contract adjustments, foreign currency fluctuations, and other factors. Typically, capital projects require longer lead production cycles and deployment schedules and delays occur from time to time. Total backlog was $5,272 million at March 31, 2024, an increase of $1,529 million or 40.8%, as compared to March 31, 2023 backlog of $3,743 million, with $1,417 million of the increase coming from acquired backlog. Backlog increased $184 million or 3.6%, as compared to December 31, 2023 backlog of $5,088 million, driven by the order intake and contract wins in the current period outpacing revenue. We anticipate that approximately 45% of the backlog at March 31, 2024 will be recognized as revenue in the remainder of 2024. There were no significant order cancellations during the quarter.
Current wording
Backlog includes orders on hand as well as contractual customer agreements at the end of the period. Delivery schedules vary from customer to customer based on their requirements. Annual or multi-year contracts are subject to rescheduling and cancellation by customers due to the long-term nature of the contracts. As such, beginning total backlog, plus orders, minus revenues, will not equal ending total backlog due to contract adjustments, foreign currency fluctuations, and other factors. Typically, capital projects require longer lead production cycles and deployment schedules and delays occur from time to time. Total backlog was $5,156 million at June 30, 2024, a decrease of $115 million or 2.2%, as compared to June 30, 2023 backlog of $5,271 million. The decrease in backlog was driven by backlog execution in the Measurement and Control Solutions segment. Backlog increased $68 million or 1.3%, as compared to December 31, 2023 backlog of $5,088 million. The increase in backlog was driven by the order intake and contract wins in the current period outpacing revenue and cancellations. We anticipate that approximately 40% of the backlog at June 30, 2024 will be recognized as revenue in the remainder of 2024. There were no significant order cancellations during the quarter.
Previous wording
Gross margin as a percentage of revenue decreased 70 basis points to 37.0% for the three months ended March 31, 2024, as compared to 37.7% for the comparative 2023 period. The gross margin decrease for the quarter included 100 basis points from increases in special charges and acquired intangible asset amortization as compared to the prior year. Additionally, gross margin decline included 330 basis points of unfavorable operational impacts, driven by 110 basis points of inflation, 100 basis points of unfavorable impacts from the Evoqua acquisition and 40 basis points of increased spending on strategic investments. The gross margin decrease was partially offset by 360 basis points of favorable operational impacts driven by 180 basis points of productivity savings, 80 basis points of favorable mix, and 70 basis points of price realization.
Current wording
Gross margin as a percentage of revenue remained flat at 37.8% for the three months ended June 30, 2024 and decreased 40 basis points to 37.4% for the six months ended June 30, 2024, as compared to 37.8% for the comparative 2023 period. Gross margin for the quarter included unfavorable impacts of 10 basis points from increases in special charges and acquired intangible asset amortization as compared to the prior year. Additionally, gross margin included 320 basis points of favorable operational impacts, driven by 170 basis points of favorable operational impacts, 90 basis points of price realization, and 50 basis points of increased volume. These increased in gross margin were offset by 310 basis points of unfavorable operational impacts driven by 120 basis points of inflation, 60 basis points of unfavorable mix, 30 basis points of inventory management costs, and 20 basis points of increased spending on strategic investments. The gross margin decrease for the six-month period included 50 basis points from increases in special charges and acquired intangible asset amortization as compared to the prior year. Additionally, gross margin decline included 290 basis points of unfavorable operational impacts, driven by 120 basis points of inflation and 100 basis points of unfavorable impacts from the Evoqua acquisition. The gross margin decrease was partially offset by 300 basis points of favorable operational impacts driven by 170 basis points of productivity savings, 80 basis points of favorable price realization, and 30 basis points of increased volume.
Previous wording
The following table presents operating expenses for the three months ended March 31, 2024 and 2023:
Current wording
The following table presents operating expenses for the three and six months ended June 30, 2024 and 2023:
Previous wording
SG&A expenses increased by $120 million to $474 million, or 23.3% of revenue, in the first quarter of 2024, as compared to $354 million, or 24.4% of revenue, in the comparable 2023 period. Increases in SG&A in the first quarter of 2024 as compared to the prior year primarily consisted of $91 million of additional operational SG&A from the acquisition of Evoqua, inflation of $11 million, and increased spending on strategic investments of $7 million. These increases to SG&A expenses were partially offset by $12 million of productivity savings and decreased realignment costs and special charges of $8 million.
Current wording
SG&A expenses increased by $39 million to $485 million, or 22.4% of revenue, in the second quarter of 2024, as compared to $446 million, or 25.9% of revenue, in the comparable 2023 period and increased $159 million to $959 million, or 22.8% of revenue, in the six-month period ended June 30, 2024, as compared to $800 million, or 25.2% of revenue, in the comparable 2023 period. Increases in SG&A in the second quarter of 2024 as compared to the prior year primarily consisted of $57 million of additional operational SG&A from the acquisition of Evoqua, inflation of $12 million, increased spending on strategic investments of $11 million, and $9 million of volume. These increases to SG&A expenses were partially offset by decreased realignment costs and special charges of $42 million and $14 million of productivity savings. Increases in SG&A in the six-month period ended June 30, 2024 as compared to the prior year primarily consisted of $148 million of additional operational SG&A from the acquisition of Evoqua, inflation of $23 million, increased spending on strategic investments of $18 million and $10 million of volume. These increases to SG&A expenses were partially offset by decreased realignment costs and special charges of $50 million and $25 million of productivity savings
Previous wording
R&D expense was $59 million, or 2.9% of revenue, in the first quarter of 2024, as compared to $53 million, or 3.7% of revenue in the first quarter of 2023 The R&D spend has remained fairly consistent year over year.
Current wording
R&D expense was $58 million, or 2.7% of revenue, in the second quarter of 2024, as compared to $58 million, or 3.4% of revenue in the second quarter of 2023, and was $117 million, or 2.8% of revenue, in the six months ended June 30, 2024, as compared to $111 million, or 3.5% of revenue in the six months ended June 30, 2023. The R&D spend has remained fairly consistent year over year.
Previous wording
Actions commenced in 2024 and 2023 consist primarily of severance charges. We currently expect to incur between $30 and $40 million in restructuring costs for the full year.
Current wording
Actions commenced in 2024 and 2023 consist primarily of severance charges. We currently expect to incur between $40 and $50 million in restructuring costs for the full year.
Previous wording
The following is a roll-forward for the three months ended March 31, 2024 and 2023 of employee position eliminations associated with restructuring activities:
Current wording
The following is a roll-forward for the six months ended June 30, 2024 and 2023 of employee position eliminations associated with restructuring activities:
Previous wording
Adjusted EBITDA was $391 million (adjusted EBITDA margin of 19.2%) during the first quarter of 2024, an increase of $155 million, or 65.7%, when compared to adjusted EBITDA of $236 million (adjusted EBITDA margin of 16.3%) during the comparable quarter in the prior year, an increase to adjusted EBITDA margin of 290 basis points. Adjusted EBITDA margin was impacted by the same offsetting factors impacting the adjusted operating margin; however, adjusted EBITDA margin also benefited 100 basis points from the exclusion of incremental depreciation and amortization.
Current wording
Net income for the second quarter was $194 million (net income margin of 8.9%), an increase of $102 million as compared to Net income in the prior year of $92 million (net income margin of 5.3%). The increase in net income was driven by increased operating income of $134 million, decreased non-operating income and gains from sale of businesses of $2 million, decreased interest expense of $1 million and increased income tax expense of $31 million. Adjusted EBITDA was $452 million (adjusted EBITDA margin of 20.8%) during the second quarter of 2024, an increase of $123 million, or 37%, when compared to adjusted EBITDA of $329 million (adjusted EBITDA margin of 19.1%) during the comparable quarter in the prior year, an increase to adjusted EBITDA margin of 170 basis points. Adjusted EBITDA margin was impacted by the same offsetting factors impacting the adjusted operating margin; however, adjusted EBITDA margin also benefited from the exclusion of incremental depreciation and amortization.
Previous wording
Operating income was $209 million (operating margin of 10.3%) during the first quarter of 2024, an increase of $78 million, or 59.5%, when compared to operating income of $131 million (operating margin of 9.0%) during the prior year. Operating margin increased 130 basis points, which included net unfavorable impacts of 40 basis points from increases in acquired intangible asset amortization and restructuring and realignment costs, partially offset by decreases special charges as compared to the prior year. Additionally, operating margin expansion included 570 basis points of favorable operational impacts driven by 250 basis points of productivity savings, 100 basis points of price realization, 100 basis points of increased volumes, and 80 basis points of favorable mix. These favorable impacts were partially offset by 400 basis points of unfavorable operational impacts, driven by a 180 basis point increase due to inflation, 100 basis points of increased spending on strategic investments, and 30 basis points of increased inventory management costs. Excluding acquired intangible asset amortization, restructuring and realignment costs, and special charges, adjusted operating income was $294 million (adjusted operating margin of 14.5%) for the first quarter of 2024 as compared to adjusted operating income of $185 million (adjusted operating margin of 12.8%) during the comparable quarter in the prior year.
Current wording
Operating income was $462 million (operating margin of 11.0%) during the six months ended June 30, 2024, an increase of $212 million, or 84.8%, when compared to operating income of $250 million (operating margin of 7.9%) during the prior year. Operating margin increased 310 basis points, which included net favorable impacts of 170 basis points from decreases in special charges and restructuring and realignment costs, partially offset by increases in acquired intangible asset amortization compared to the prior year. Additionally, operating margin expansion included 520 basis points of favorable operational impacts driven by 250 basis points of productivity savings, 130 basis points of increased volumes and 110 basis points of price realization. These favorable impacts were partially offset by 380 basis points of unfavorable operational impacts, driven by a 180 basis points of inflation, 80 basis points of increased spending on strategic investments and 40 basis points of increased inventory management costs. Excluding acquired intangible asset amortization, restructuring and realignment costs, and special charges, adjusted operating income was $646 million (adjusted operating margin of 15.4%) for the six months ended June 30, 2024 as compared to adjusted operating income of $444 million (adjusted operating margin of 14.0%) during the comparable period in the prior year.
Previous wording
Adjusted EBITDA was $125 million (adjusted EBITDA margin of 22.3%) for the first quarter of 2024, an increase of $93 million, or 290.6%, when compared to adjusted EBITDA of $32 million (adjusted EBITDA margin of 15.5%) during the prior year. The increase in adjusted EBITDA margin was due to the same factors as those impacting the increase in adjusted operating margin; however, adjusted EBITDA margin was not negatively impacted by the relative impact of depreciation and software amortization expense.
Current wording
Adjusted EBITDA was $125 million (adjusted EBITDA margin of 19.8%) for the second quarter of 2024, an increase of $19 million, or 17.9%, when compared to adjusted EBITDA of $106 million (adjusted EBITDA margin of 20.4%) during the prior year. Adjusted EBITDA margin was impacted by the same offsetting factors impacting the adjusted operating margin; however, adjusted EBITDA margin was not negatively impacted by the relative impact of depreciation, and software amortization expense.
Previous wording
Operating income for our Water Infrastructure segment was $60 million (operating margin of 10.5%) during the first quarter of 2024, an increase of $14 million, or 30.4%, when compared to operating income of $46 million (operating margin of 11.2%) during the prior year, or a total decrease of 70 basis points basis points. Operating margin declines included unfavorable impacts of 380 basis points from increases in acquired intangible asset amortization, restructuring and realignment costs and special charges as compared to the prior year. Additionally, operating margin declines included 390 basis points of unfavorable operational impacts, driven by 180 basis points of inflation, 90 basis points of increased spending on strategic investments, and 20 basis points of increased inventory management costs. Margin declines were offset by 700 basis points from favorable operating impacts consisting of 240 basis points of productivity savings, 230 basis points of favorable mix, 100 basis points of increased volume, 70 basis points of favorable foreign currency exchange impacts and 60 basis points of price realization. Excluding amortization of acquired intangibles, restructuring and realignment cost and special charges, adjusted operating income was $88 million (adjusted operating margin of 15.3%) for the first quarter of 2024 as compared to adjusted operating income of $50 million (adjusted operating margin of 12.2%) for the first quarter of 2023.
Current wording
Operating income for our Water Infrastructure segment was $138 million (operating margin of 11.5%) during the six months ended June 30, 2024, an increase of $22 million, or 19.0%, when compared to operating income of $116 million (operating margin of 12.5%) during the prior year, or a total decrease in operating margin of 100 basis points. Operating margin declines included net unfavorable impacts of 140 basis points from increases in acquired intangible asset amortization and restructuring and realignment costs partially offset by decreases in special charges as compared to the prior year. Additionally, operating margin declines included 460 basis points of unfavorable operational impacts, driven by 170 basis points of inflation, 60 basis points of increased spending on strategic investments, and 60 basis points of decreased operating margin related to the Evoqua acquisition. Margin declines were offset by 500 basis points from favorable operating impacts consisting of 240 basis points of productivity savings, 120 basis points of favorable mix, 60 basis points of price realization, 50 basis points of favorable currency impacts and 30 basis points of increased volume. Excluding amortization of acquired intangibles, restructuring and realignment cost and special charges, adjusted operating income was $189 million (adjusted operating margin of 15.7%) for the six months ended June 30, 2024 as compared to adjusted operating income of $142 million (adjusted operating margin of 15.3%) for the six months ended June 30, 2023.
Previous wording
Operating income for our Applied Water segment was $61 million (operating margin of 14.0%) during the first quarter of 2024, decrease of $22 million, or 26.5%, when compared to operating income of $83 million (operating margin of 18.3%) during the prior year, or a total decrease of 430 basis points. Operating margin declines included favorable impacts of 30 basis points from a decrease in restructuring and realignment costs as compared to the prior year. Additionally, operating margin declines included 820 basis points from unfavorable operational impacts, driven by 270 basis points of unfavorable mix, 230 basis points of inflation, 150 basis points of volume decline, 60 basis points of unfavorable foreign currency exchange impacts, and 50 basis points of inventory management costs. The decline in margin was partially offset by favorable operational impacts of 360 basis points driven by 340 basis points of productivity savings. Excluding restructuring and realignment costs, adjusted operating income was $63 million (adjusted operating margin of 14.4%) for the first quarter of 2024 as compared to adjusted operating income of $86 million (adjusted operating margin of 19.0%) for the first quarter of 2023.
Current wording
Operating income for our Applied Water segment was $132 million (operating margin of 14.8%) during the six months ended June 30, 2024, a decrease of $35 million, or 21.0%, when compared to operating income of $167 million (operating margin of 17.9%) during the prior year, or a total decrease in operating margin of 310 basis points. Operating margin declines included favorable impacts of 20 basis points from a decrease in restructuring and realignment costs as compared to the prior year. Additionally, operating margin declines included 630 basis points from unfavorable operational impacts, driven by 220 basis points of inflation, 200 basis points of unfavorable mix, 90 basis points of decreased volume and 50 basis points of inventory management costs. The decline in margin was partially offset by favorable operational impacts of 300 basis points of productivity savings. Excluding restructuring and realignment costs, adjusted operating income was $136 million (adjusted operating margin of 15.2%) for the six months ended June 30, 2024 as compared to adjusted operating income of $172 million (adjusted operating margin of 18.5%) for the six months ended June 30, 2023.
Previous wording
Adjusted EBITDA was $105 million (adjusted EBITDA margin of 22.7%) for the first quarter of 2024, an increase of $40 million, or 61.5%, when compared to adjusted EBITDA of $65 million (adjusted EBITDA margin of 17.2%) during the prior year. The increase in adjusted EBITDA margin was due to the same factors as those impacting the increase in adjusted operating margin; however, adjusted EBITDA margin did not benefit from the relative impact of share-based compensation expense, other non-operating expense and depreciation and software amortization.
Current wording
Adjusted EBITDA was $113 million (adjusted EBITDA margin of 23.4%) for the second quarter of 2024, an increase of $50 million, or 79%, when compared to adjusted EBITDA of $63 million (adjusted EBITDA margin of 16.4%) during the prior year. The increase in adjusted EBITDA margin was due to the same factors as those impacting the increase in adjusted operating margin; however, adjusted EBITDA margin did not benefit from the relative impact of share-based compensation expense and depreciation and software amortization.
Previous wording
Operating income for our Measurement and Control Solutions segment was $70 million (operating margin of 15.2%) during the first quarter of 2024, an increase of $44 million, or 169.2%, when compared to operating income of $26 million (operating margin of 6.9%) during the prior year, or a total increase of 830 basis points. Operating margin expansion included favorable impacts of 210 basis points from restructuring and realignment costs, special charges, and acquired intangible asset amortization as compared to the prior year. Additionally, operating margin expansion included 1,120 basis points of favorable operational impacts, consisting of 380 basis points of productivity savings, 370 basis points of increased volume, 260 basis points of price realization, and 90 basis points of favorable mix. Margin expansion was partially offset by negative operational impacts of 500 basis points driven by 240 basis points of inflation, 90 basis points of increased inventory management costs, and 60 basis points of increased spending on strategic investments. Excluding acquired intangible asset amortization, restructuring and realignment costs and special charges, adjusted operating income was $86 million (adjusted operating margin of 18.6%) for the first quarter of 2024 as compared to adjusted operating income of $47 million (adjusted operating margin of 12.4%) for the first quarter of 2023.
Current wording
Operating income for our Measurement and Control Solutions segment was $149 million (operating margin of 15.8%) during the six months ended June 30, 2024, an increase of $94 million, or 170.9%, when compared to operating income of $55 million (operating margin of 7.2%) during the prior year, or a total increase in operating margin of 860 basis points. Operating margin expansion included favorable impacts of 160 basis points from reduced restructuring and realignment costs, special charges, and acquired intangible asset amortization as compared to the prior year. Additionally, operating margin expansion included 1,060 basis points of favorable operational impacts, consisting of 340 basis points of productivity savings, 340 basis points of increased volume, 290 basis points of price realization, and 90 basis points of favorable mix. Margin expansion was partially offset by negative operational impacts of 360 basis points driven by 200 basis points of inflation, 70 basis points of increased inventory management costs, and 50 basis points of increased spending on strategic investments. Excluding acquired intangible asset amortization, restructuring and realignment costs and special charges, adjusted operating income was $182 million (adjusted operating margin of 19.3%) for the six months ended June 30, 2024 as compared to adjusted operating income of $94 million (adjusted operating margin of 12.3%) for the six months ended June 30, 2023.
Previous wording
Adjusted EBITDA was $72 million (adjusted EBITDA margin of 16.5%) for the first quarter of 2024, a decrease of $20 million, or 21.7%, when compared to adjusted EBITDA of $92 million (adjusted EBITDA margin of 20.3%) during the prior year. The decrease in adjusted EBITDA margin was primarily due to the same factors impacting the decrease in adjusted operating margin; however, adjusted EBITDA margin was not negatively impacted by the relative impact of share-based compensation, depreciation, and software amortization expense.
Current wording
Adjusted EBITDA was $268 million (adjusted EBITDA margin of 23.1%) for the six months ended June 30, 2024, an increase of $157 million, or 141%, when compared to adjusted EBITDA of $111 million (adjusted EBITDA margin of 20.3%) during the prior year. The increase in adjusted EBITDA margin was due to the same factors as those impacting the increase in adjusted operating margin; however, adjusted EBITDA margin was not negatively impacted by the relative impact of depreciation and software amortization expense.
Previous wording
Operating loss for corporate and other decreased $10 million, or 24%, during the first quarter of 2024 compared to the prior year period. The decrease in operating loss was primarily due to decreased special charges related to integration costs resulting from the acquisition of Evoqua. Excluding special charges and restructuring and realignment costs, adjusted operating loss for corporate and other increased $7 million, or 36.8%, for the three months ended March 31, 2024 driven primarily by increased spending on strategic investments and higher employee related costs.
Current wording
Operating loss for corporate and other decreased $78 million, or 59%, during six months ended June 30, 2024 compared to the prior year period. The decrease in operating loss was primarily due to decreased special charges and decreased restructuring costs related to the acquisition and integration of Evoqua. Excluding special charges and restructuring and realignment costs, adjusted operating loss for corporate and other increased $4 million, or 10.3%, for the six months ended June 30, 2024 driven primarily by increased spending on strategic investments.
Previous wording
Interest expense was $14 million for the three months ended March 31, 2024, compared to $9 million for the comparable prior year period. The increase in interest expense was primarily driven by a term loan entered into in May 2023 for use in funding the acquisition of Evoqua and securitization and equipment financing facilities assumed as part of our acquisition of Evoqua. Partially offsetting these items was a reduction of interest expense generated by cross currency swaps. See Note 10, “Derivative Financial Instruments” and Note 12, "Credit Facilities and Debt," of our condensed consolidated financial statements for a description of our net investment hedges and credit facilities and long-term debt, respectively.
Current wording
Interest expense was $11 million for the three months ended June 30, 2024, compared to $12 million for the comparable prior year period. The decrease in interest expense was primarily driven by a reduction of interest on commercial paper and the repayment of the term loan entered into in May 2023 for use in funding the acquisition of Evoqua. The term loan was repaid on April 19, 2024. Partially offsetting these items was an increase in interest expense from the securitization and equipment financing facilities assumed as part of our acquisition of Evoqua.
Previous wording
The income tax provision for the three months ended March 31, 2024 was $43 million resulting in an effective tax rate of 21.8%, compared to $27 million of expense resulting in an effective tax rate of 21.7% for the same period in 2023. The effective tax rate for the three month period ended March 31, 2024 was slightly higher than the effective tax rate for the same period in 2023, primarily due to earnings mix.
Current wording
The income tax provision for the three months ended June 30, 2024 was $53 million resulting in an effective tax rate of 21.4%, compared to $22 million of expense resulting in an effective tax rate of 19.1% for the same period in 2023. The income tax provision for the six months ended June 30, 2024 was $96 million resulting in an effective tax rate of 21.6%, compared to a $49 million expense resulting in an effective tax rate of 20.5% for the same period in 2023. The effective tax rate for the three and six month periods ended June 30, 2024 was higher than the effective tax rate for the same period in 2023, primarily due to earnings mix.
Previous wording
(a)The impact is primarily due to weakening of the Euro, Chilean Peso and the Canadian Dollar.
Current wording
(a)The impact is primarily due to weakening of the Euro.
Previous wording
Cash generated by operating activities was $89 million for the three months ended March 31, 2024 as compared to cash used in operating activities of $19 million in the comparable prior year period. The increase in cash provided was primarily driven by higher cash earnings and lower tax payments. Higher payments for employee benefit costs and increased prepaid expenses partially offset these items.
Current wording
Cash generated by operating activities was $377 million for the six months ended June 30, 2024 as compared to cash generated by operating activities of $9 million in the comparable prior year period. The increase in cash provided was primarily driven by higher cash earnings, the investment in a distribution agreement of select technology and payments made for Evoqua's pre-closing transaction costs in 2023 that did not recur in 2024, timing of collections of accounts receivables and lower tax payments. Increased inventory levels and the build up of payable balances in 2023 related to Evoqua acquisition transaction costs compared to the payment of trade payables in 2024 partially offset these items.
Previous wording
Cash used in investing activities was $51 million for the three months ended March 31, 2024 as compared to $37 million in the comparable prior year period. The increase in cash used reflects higher capital expenditures in the current period partially offset by proceeds from the sale of a business.
Current wording
Cash used in investing activities was $128 million for the six months ended June 30, 2024 as compared to $489 million in the comparable prior year period. The decrease in cash used reflects payments related to the 2023 Evoqua acquisition, cash received from the termination of acquired interest rate swaps in 2023 that did not recur in 2024 and reduced cash paid for equity investments. Lower proceeds from the sale of a businesses and higher capital expenditures partially offset these items.
Previous wording
Cash used by financing activities was $82 million for the three months ended March 31, 2024 as compared to cash used of $63 million in the comparable prior year period. The increase in cash used reflects higher dividend payments, increased purchases of common stock and the repayment of debt. Proceeds from the exercise of employee stock options partially offset these items.
Current wording
Cash used by financing activities was $419 million for the six months ended June 30, 2024 as compared to cash received of $235 million in the comparable prior year period. The increase in cash used reflects cash received from a new term loan agreement and the issuance of commercial paper in 2023 that did not recur in 2024, the repayment of a term loan in the current year, and higher dividend payments.
Previous wording
Based on our current global cash positions, cash flows from operations and access to the capital markets, we believe there is sufficient liquidity to meet our funding requirements and service debt and other obligations in both the U.S. and outside of the U.S. during the year. Currently, we have available liquidity of approximately $1.9 billion, consisting of $947 million of cash and $1 billion of available credit facilities as disclosed in Note 12, "Credit Facilities and Debt", of our condensed consolidated financial statements.
Current wording
Based on our current global cash positions, cash flows from operations and access to the capital markets, we believe there is sufficient liquidity to meet our funding requirements and service debt and other obligations in both the U.S. and outside of the U.S. during the year. Currently, we have available liquidity of approximately $1.8 billion, consisting of $815 million of cash and $1 billion of available credit facilities as disclosed in Note 12, "Credit Facilities and Debt", of our condensed consolidated financial statements.
Previous wording
We are updating our total revenue growth to be in the range of 15% to 16%, and organic revenue growth to be in the range of 4% to 6% in 2024. Our outlook reflects our current visibility and expectations based on the current market environment and other factors and is largely consistent with the outlook provided in our 2023 Annual Report. Our ability to meet our expectations is subject to a number of risks, including, but not limited to, those described in "Item 1A. Risk Factors" in our 2023 Annual Report.
Current wording
We are updating our total revenue growth to be 16%, and organic revenue growth to be in the range of 5% to 6% in 2024. Our outlook reflects our current visibility and expectations based on the current market environment and other factors and is largely consistent with the outlook provided in our 2023 Annual Report. Our ability to meet our expectations is subject to a number of risks, including, but not limited to, those described in "Item 1A. Risk Factors" in our 2023 Annual Report.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Operating Income, Net Income, and Adjusted EBITDA
Current report — wording carried from elsewhere
Operating loss for corporate and other decreased $68 million, or 76%, during the second quarter of 2024 compared to the prior year period. The decrease in operating loss was primarily due to decreased special charges and decreased restructuring costs related to the acquisition and integration of Evoqua. Excluding special charges and restructuring and realignment costs, adjusted operating loss for corporate and other decreased $3 million, or 15.0%, for the three months ended June 30, 2024 primarily due to productivity savings.
Current report — wording carried from elsewhere
For the six months ended June 30, 2024 interest expense was $25 million compared to $21 million for the six months ended June 30, 2023. The increase in interest expense was primarily driven by a term loan entered into in May 2023 for use in funding the acquisition of Evoqua and securitization and equipment financing facilities assumed as part of our acquisition of Evoqua. The term loan was repaid on April 19, 2024.
Current report — wording carried from elsewhere
See Note 10, “Derivative Financial Instruments” and Note 12, "Credit Facilities and Debt," of our condensed consolidated financial statements for a description of our net investment hedges and credit facilities and long-term debt, respectively.