Benzinga | Nov 16, 2021 09:33AM EST

Evoqua Water Technologies Clocks 11% Revenue Growth In Q4, Warns On Inflation Pressure

* Evoqua Water Technologies Corp (NYSE:AQUA) reported fourth-quarter revenue growth of 11% year-over-year to $425.99 million, +9.5% on an organic basis, beating the consensus of $415.76 million.

* Integrated Solutions and Services revenue increased 12.8% Y/Y to $281.4 million, and operating profit increased by 21.3% Y/Y to $52.4 million.

* Applied Product Technologies revenue increased 7.6% Y/Y to $144.6 million, and operating profit increased by 20.6% Y/Y to $28.7 million.

* The gross profit increased by 13.4% Y/Y $139.06 million, and the margin expanded by 70 bps to 32.6%.

* EPS decreased to $0.22 from $0.26 in 4Q20.

* Adjusted EBITDA increased by 8.3% Y/Y to $81.9 million, and margin contracted by 47 bps to 19.2%.

* Evoqua Water generated cash from operating activities for the year of $178.71 million, compared to $177.03 million a year ago.

* "We continue to see significant growth opportunities, both organic and inorganic, as we enter the new year. Supply chain challenges are expected to impact material availability and visibility during the coming year, however, we expect price/cost for the fiscal year 2022 to be positive," commented Mr. Ron Keating, Evoqua's CEO.

* FY22 Outlook: The company expects revenue of $1.50 billion - $1.58 billion (consensus $1.53 billion), increasing 2% - 8% Y/Y.

* It sees adjusted EBITDA of $255 million - $275 million, increasing 2% - 10% Y/Y.

* The company expects skilled labor shortages and inflation pressures to remain through the next six to twelve months.

* Price Action: AQUA shares are trading higher by 1.07% at $43.27 during the market session on Tuesday.