Sandra Rowland
Senior Vice President and Chief Financial Officer at Xylem
Thanks, Patrick. Please turn to Slide 5. The team did a great job over-delivering on commitments with disciplined commercial and operational execution on continuing strong demand. As a result, revenues grew globally high-teens in the US and mid-teens in emerging markets and Western Europe on strong price and backlog execution as supply chains modestly improved. In a moment, I'll detail performance by segment, but in short Utilities was up 15%, led by strength in the US and Western Europe. Industrial grew 16% with strength across all geographies, particularly in emerging markets and Western Europe. Commercial was up 17%, mainly due to strong backlog execution in the US, and residential was up 19%, led by commercial execution and backlog conversion in the US. Global demand remains healthy on strong end-market fundamentals, especially in Water Infrastructure and M&CS. That said, organic orders were down 1% in the quarter versus up 20% in the same period last year. Water Infrastructure was up 3%, AWS down 4%, and M&CS down 2%. Adjusted EBITDA margin was 18.3%, up 40 basis-points from the prior year and up 170 basis-points sequentially as price more than offset inflation. And as Patrick mentioned, our EPS in the quarter was $0.79, well above expectations.
Please turn to Slide 6 and I'll review the quarter's performance by segment. Water Infrastructure revenue grew 13% organically in the quarter exceeding expectations. Growth was broad-based, led by our wastewater utility business in the US and Western Europe, both up high-teens as supply-chain constraints improved. Industrial growth remained robust driven by continued dewatering demand in emerging markets and increased activity in Western Europe. Geographically, Western Europe grew mid-teens driven by robust transport and treatment demand. The US was up low-teens led by strong Utilities opex demand. Emerging markets was up low-double-digits driven by strength across Latin-America and Africa, and continued growth and dewatering. Orders in the third quarter were up 3% organically with robust dewatering demand in emerging markets and continued Utilities strength in the US. Segment EBITDA margin was largely in line with the prior year as favorable price realization offset inflation, but was also impacted by unfavorable mix and strategic investments.
Please turn to, page 7. In the Applied Water segment, third quarter revenues grew 20% organically, exceeding expectations. Growth was robust across all end-market was each up high-teens or greater. Geographically, the US was up high-teens with strength across all three end-markets due to price realization and modest improvements in supply chain. Western Europe was also up high-teens led by growth in the Industrial on strong price and continued demand. Emerging markets was up almost 30% driven by strong industrial demand in China and commercial development in the Middle-East and Africa. Orders were down 4% organically with continued growth in emerging markets offset by some moderation in residential in the US. As a reminder, residential, our most cyclical end-market is only about 5% of our overall revenue. EBITDA margin for the segment was up 110 basis-points compared to the prior year and 200 basis-points sequentially. Margin expansion was driven by strong price realization more than offsetting inflation supplemented with productivity savings.
And now let's turn to Slide 8, and I'll cover our Measurement and Control Solutions business. M&CS revenue was up 15% organically in line with our prior guidance as chip supply played out as expected with continued modest improvement sequentially. We also saw strong growth in test applications and our pipeline assessment services business. Geographically, the US was up more than 20% on improved chip availability versus the prior year and favorable price realization. Emerging markets was up mid-teens and Western Europe was up high-single-digits driven by strength in our test and pipeline assessment services businesses.
M&CS orders declined 2% organically in the quarter lapping a tough prior year compare of 42% orders growth. Underlying demand for our AMI offerings remained strong and orders continued to outpace revenue, yielding backlog growth of 35% versus the prior year. Our M&CS backlog alone exceeds $2 billion. Segment EBITDA margin in the quarter expanded 400 basis-points sequentially and is now approaching prior year levels. The team did a great job driving margin improvement even though volumes continued to be constrained by chip supply.
And now let's turn to Slide 9 for an overview of cash flows and our balance sheet. In the third quarter we generated free cash flow of $149 million driven by income conversion, partially offset by higher working capital. You will note that our working capital levels are elevated as we've chosen to carry about 30 days of extra inventory. And while supply chains are gradually improving, delivery metrics are below historical levels, and we can best serve our customers and communities by making the short-term investments. Having said that, our financial position remains strong with $1.2 billion in cash and $2 billion of available liquidity, and our net debt to EBITDA leverage is 1.3 times.
Please turn to Slide 10, and I'll hand it back to Patrick to give some color on underlying demand.