FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust continuing demand drove strong organic orders development: 1% on a reported
foundation, 6% organically
• Revenue of $1.4 billion, up 1% on a reported basis, up 6% organically
• Earnings per share of $0.62, adjusted earnings per share of $0.66
• Adjusted EBITDA margin exceeded steering by 160 basis points
• Raising full-year natural revenue guidance to a range of 8% to 10% from 4% to
6%, and adjusted EPS to a variety of $2.50 to $2.70 from $2.40 to $2.70
Washington, D.C., August 2, 2022 – Xylem Inc. (NYSE: XYL), a quantity one global water technology
company devoted to solving the world’s most difficult water points, right now reported second quarter
income of $1.4 billion, surpassing previous steerage in each business section. Strong continued
world demand drove orders and backlog development across the portfolio.
Second quarter adjusted earnings earlier than curiosity, tax, depreciation and amortization (EBITDA) margin
was 16.6 percent, better than the Company’s earlier guidance and reflecting a year-over-year
decrease of 70 basis points. Inflation and the impact of continuing chip shortages drove the margin
decline, exceeding the advantages of price realization and productiveness financial savings. เกจวัดแรงดันภาษาอังกฤษ generated web
income of $112 million, or $0.62 per share, and adjusted web earnings of $120 million, or $0.sixty six per share,
which excludes the impact of restructuring, realignment and particular costs.
“The group delivered very sturdy second quarter performance on all key metrics, and properly ahead of our
steerage for the quarter,” said Patrick Decker, Xylem president and CEO. “The outcome displays our
commercial momentum on continuing underlying demand, disciplined operational execution, and a
reasonable easing in chip provide constraints.”
“On the power of strong backlog and orders development, and the team’s demonstrated success mitigating
the consequences of inflation, we are raising our full-year steering on income and earnings. This additional
reinforces our longer-term growth and worth creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 organic income growth to be within the range of eight to 10 p.c, and three
to five % on a reported basis. This represents a rise from the Company’s earlier full-year
natural income guidance of four to six %, and 1 to three percent on a reported basis. Full-year 2022
adjusted EBITDA margin is now anticipated to be within the vary of sixteen.5 to 17.0 p.c, raising the low finish
of the earlier range of sixteen.0 to 17.0 p.c. This ends in adjusted earnings per share of $2.50 to
$2.70, elevating the low end from the earlier vary of $2.forty to $2.70. The elevated steering reflects
robust demand, gradual easing of supply chain constraints and value realization partially offset by
inflation and international change headwinds.
Further 2022 planning assumptions are included in Xylem’s second quarter 2022 earnings materials
posted at www.xylem.com/investors. Excluding income, Xylem provides steerage solely on a non-GAAP
basis due to the inherent issue in forecasting certain amounts that may be included in GAAP
earnings, similar to discrete tax gadgets, without unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure segment consists of its portfolio of businesses serving clear water
delivery, wastewater transport and treatment, and dewatering.
• Second quarter 2022 Water Infrastructure income was $589 million, a 9.zero p.c enhance
organically compared with second quarter 2021. This sturdy progress was pushed by robust value
realization, industrial dewatering demand, and wholesome activity in our wastewater utility enterprise
in the us and Western Europe.
• Second quarter adjusted EBITDA margin was 21.4 p.c, up 240 basis factors from the prior
yr. Reported operating income for the phase was $108 million. Adjusted working revenue
for the section, which excludes $3 million of restructuring and realignment, was $111 million, a
14.4 % increase versus the comparable interval final year. Reported working margin for
the phase was 18.3 p.c, up 200 basis factors versus the prior yr, and adjusted
working margin was 18.8 p.c, up 180 foundation points versus the prior 12 months. Strong price
realization, quantity, and productivity savings more than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water section consists of its portfolio of businesses in industrial, business building,
and residential functions.
• Second quarter 2022 Applied Water revenue was $429 million, a 7.0 percent enhance
organically year-over-year. The section delivered sturdy value realization and backlog
execution in industrial and residential end markets, partially offset by continued supply chain
constraints in industrial buildings within the United States.
• Second quarter adjusted EBITDA margin was sixteen.1 %, down one hundred thirty basis factors from the
prior 12 months. Reported working revenue for the section was $61 million and adjusted operating
earnings, which excludes $2 million of restructuring and realignment prices, was $63 million, a four.5
p.c lower versus the comparable period last 12 months. The section reported operating
margin was 14.2 p.c, down a hundred thirty basis factors versus the prior yr period. Adjusted
working margin declined 120 foundation factors to 14.7 %. Strong worth realization and
productivity financial savings were greater than offset by inflation and decrease volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions section consists of its portfolio of companies in good
metering, network technologies, advanced infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions revenue was $346 million, down 2.zero
p.c organically versus the prior year. While chip provide remains constrained, the result is
better than our expectations due to improved chip supply in the quarter, and power in our
water quality take a look at purposes.
• Second quarter adjusted EBITDA margin was 9.8 percent, down 410 basis factors from the prior
yr. Reported operating revenue for the section was $(5) million, and adjusted working
income, which excludes $3 million of restructuring and realignment prices and $1 million of
shortages, unfavorable combine and higher inflation greater than offset value realization and
productivity financial savings.
Supplemental data on Xylem’s second quarter 2022 earnings and reconciliations for sure nonGAAP gadgets is posted at www.xylem.com/investors.
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About Xylem
Xylem (XYL) is a number one global water know-how company committed to solving critical water and
infrastructure challenges with innovation. Our 17,000 diverse workers delivered revenue of $5.2
billion in 2021. We are making a more sustainable world by enabling our customers to optimize water
and resource management, and serving to communities in more than 150 international locations turn into watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press release contains “forward-looking statements” throughout the that means of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Generally, the phrases “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“contemplate,” “predict,” “forecast,” “likely,” “believe,” “target,” “will,” “could,” “would,” “should,”
“potential,” “may” and comparable expressions or their adverse, could, but usually are not necessary to, determine
forward-looking statements. By their nature, forward-looking statements handle uncertain matters and
include any statements that are not historical, similar to statements about our technique, financial plans,
outlook, goals, plans, intentions or goals (including these related to our social, environmental and
other sustainability goals); or handle potential or future results of operations or monetary efficiency,
including statements referring to orders, revenues, working margins and earnings per share progress.
Although we imagine that the expectations reflected in any of our forward-looking statements are
affordable, precise results may differ materially from these projected or assumed in any of our forwardlooking statements. Our future financial condition and results of operations, as well as any forwardlooking statements, are topic to vary and to inherent dangers and uncertainties, many of which are
beyond our control. Additionally, many of those risks and uncertainties are, and will proceed to be,
amplified by impacts from the war between Russia and Ukraine, as nicely as the ongoing coronavirus
(“COVID-19”) pandemic and associated macroeconomic circumstances (including inflation). Important components
that could cause our precise outcomes, efficiency and achievements, or industry results to differ
materially from estimates or projections contained in or implied by our forward-looking statements
embody, amongst others, the following: the impact of general business and general economic circumstances,
together with industrial, governmental, and public and private sector spending and the power of the
residential and commercial actual estate markets, on financial activity and our operations; geopolitical
events, including the struggle between Russia and Ukraine, and regulatory, economic and other risks
related to our global sales and operations, together with with respect to home content
requirements applicable to projects with governmental funding; continued uncertainty across the
ongoing COVID-19 pandemic’s magnitude, period and impacts on our enterprise, operations, growth,
and monetary situation; precise or potential different epidemics, pandemics or world well being crises;
availability, scarcity or delays in receiving electronic components (in particular, semiconductors), elements,
and uncooked supplies from our provide chain; manufacturing and operating price increases because of
macroeconomic situations, together with inflation, provide chain shortages, logistics challenges, tight labor
markets, prevailing worth modifications, tariffs and other components; demand for our products; disruption,
competition or pricing pressures in the markets we serve; cybersecurity incidents or other disruptions of
info know-how techniques on which we rely, or involving our products; disruptions in operations at
our services or that of third events upon which we rely; capacity to retain and appeal to senior administration
and different various and key expertise, as properly as competition for general expertise and labor; issue predicting
our financial results; defects, safety, guarantee and legal responsibility claims, and remembers with respect to merchandise;
availability, regulation or interference with radio spectrum utilized by certain of our products; uncertainty
related to restructuring and realignment actions and associated expenses and financial savings; our capacity to continue
strategic investments for progress; our capability to efficiently establish, execute and integrate acquisitions;
volatility in served markets or impacts on enterprise and operations as a end result of climate circumstances, together with
the consequences of climate change; fluctuations in international forex exchange rates; our capacity to borrow or
refinance our present indebtedness and uncertainty around the availability of liquidity enough to meet
our wants; danger of future impairments to goodwill and other intangible assets; failure to comply with, or
adjustments in, legal guidelines or laws, together with those pertaining to anti-corruption, knowledge privacy and security,
export and import, competition, and the setting and climate change; changes in our effective tax
rates or tax expenses; authorized, governmental or regulatory claims, investigations or proceedings and
related contingent liabilities; and different factors set forth underneath “Item 1A. Risk Factors” in our Annual
Report on Form 10-K for the year ended December 31, 2021 and in subsequent filings we make with
the Securities and Exchange Commission (“SEC”).
Forward-looking and other statements on this press release concerning our environmental and other
sustainability plans and objectives are not an indication that these statements are essentially material to
investors or are required to be disclosed in our filings with the SEC. In addition, historic, present, and
forward-looking social, environmental and sustainability associated statements may be primarily based on standards
for measuring progress which are still developing, internal controls and processes that continue to evolve,
and assumptions which may be topic to alter sooner or later. All forward-looking statements made herein
are primarily based on information at present available to us as of the date of this press launch. We undertake no
obligation to publicly replace or revise any forward-looking statements, whether or not as a result of new
data, future occasions or in any other case, except as required by legislation
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