FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust continuing demand drove strong natural orders growth: 1% on a reported
foundation, 6% organically
• Revenue of $1.4 billion, up 1% on a reported foundation, up 6% organically
• Earnings per share of $0.sixty two, adjusted earnings per share of $0.66
• Adjusted EBITDA margin exceeded steering by one hundred sixty basis factors
• Raising full-year natural income guidance to a range of 8% to 10% from 4% to
6%, and adjusted EPS to a range of $2.50 to $2.70 from $2.forty to $2.70
Washington, D.C., August 2, 2022 – Xylem Inc. (NYSE: XYL), a quantity one global water know-how
company dedicated to solving the world’s most difficult water points, at present reported second quarter
revenue of $1.four billion, surpassing previous guidance in every enterprise segment. Strong continued
global demand drove orders and backlog growth throughout the portfolio.
Second quarter adjusted earnings earlier than curiosity, tax, depreciation and amortization (EBITDA) margin
was 16.6 p.c, better than the Company’s earlier guidance and reflecting a year-over-year
decrease of 70 foundation factors. Inflation and the impression of continuous chip shortages drove the margin
decline, exceeding the benefits of worth realization and productiveness financial savings. Xylem generated web
income of $112 million, or $0.62 per share, and adjusted web revenue of $120 million, or $0.66 per share,
which excludes the impression of restructuring, realignment and particular charges.
“The team delivered very robust second quarter efficiency on all key metrics, and properly ahead of our
steerage for the quarter,” said Patrick Decker, Xylem president and CEO. “The end result reflects our
commercial momentum on persevering with underlying demand, disciplined operational execution, and a
moderate easing in chip provide constraints.”
“On the energy of sturdy backlog and orders progress, and the team’s demonstrated success mitigating
the effects of inflation, we’re elevating our full-year steerage on revenue and earnings. This further
reinforces our longer-term progress and value creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 organic revenue development to be within the vary of eight to 10 p.c, and three
to five percent on a reported basis. This represents a rise from the Company’s earlier full-year
natural income guidance of 4 to 6 p.c, and 1 to 3 p.c on a reported basis. Full-year 2022
adjusted EBITDA margin is now anticipated to be in the vary of sixteen.5 to 17.zero %, raising the low end
of the earlier range of sixteen.0 to 17.0 p.c. This results in adjusted earnings per share of $2.50 to
$2.70, raising the low end from the earlier vary of $2.forty to $2.70. The elevated steerage reflects
robust demand, gradual easing of supply chain constraints and worth realization partially offset by
inflation and overseas exchange headwinds.
Further 2022 planning assumptions are included in Xylem’s second quarter 2022 earnings supplies
posted at www.xylem.com/investors. Excluding income, Xylem provides guidance only on a non-GAAP
basis because of the inherent problem in forecasting certain quantities 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 section 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 9.0 % enhance
organically compared with second quarter 2021. This sturdy progress was driven by sturdy worth
realization, industrial dewatering demand, and healthy exercise in our wastewater utility enterprise
in the U.S. and Western Europe.
• เกจวัดแรงดันน้ำประปาราคา adjusted EBITDA margin was 21.four p.c, up 240 basis factors from the prior
12 months. Reported operating earnings for the phase was $108 million. Adjusted operating revenue
for the section, which excludes $3 million of restructuring and realignment, was $111 million, a
14.four % enhance versus the comparable interval last year. Reported working margin for
the phase was 18.three %, up 200 basis factors versus the prior yr, and adjusted
working margin was 18.8 percent, up a hundred and eighty foundation factors versus the prior year. Strong worth
realization, volume, and productivity financial savings more than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water phase consists of its portfolio of businesses in industrial, industrial building,
and residential purposes.
• Second quarter 2022 Applied Water revenue was $429 million, a 7.0 p.c increase
organically year-over-year. The phase delivered strong worth realization and backlog
execution in industrial and residential end markets, partially offset by continued provide chain
constraints in business buildings within the United States.
• Second quarter adjusted EBITDA margin was sixteen.1 %, down one hundred thirty basis points from the
prior 12 months. Reported working income for the phase was $61 million and adjusted working
earnings, which excludes $2 million of restructuring and realignment prices, was $63 million, a 4.5
percent decrease versus the comparable interval final year. The segment reported working
margin was 14.2 percent, down one hundred thirty basis factors versus the prior 12 months interval. Adjusted
working margin declined a hundred and twenty basis factors to 14.7 percent. Strong worth realization and
productiveness savings were greater than offset by inflation and lower volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions segment consists of its portfolio of businesses in good
metering, network applied sciences, advanced infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions income was $346 million, down 2.zero
percent organically versus the prior year. While chip supply remains constrained, the result’s
higher than our expectations because of improved chip provide in the quarter, and strength in our
water quality take a look at purposes.
• Second quarter adjusted EBITDA margin was 9.eight percent, down 410 basis points from the prior
year. Reported operating income for the segment was $(5) million, and adjusted operating
earnings, which excludes $3 million of restructuring and realignment prices and $1 million of
shortages, unfavorable combine and better inflation greater than offset value realization and
productiveness savings.
Supplemental data on Xylem’s second quarter 2022 earnings and reconciliations for certain nonGAAP objects is posted at www.xylem.com/investors.
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About Xylem
Xylem (XYL) is a quantity one international water technology company dedicated to solving critical water and
infrastructure challenges with innovation. Our 17,000 numerous employees delivered income of $5.2
billion in 2021. We are creating a more sustainable world by enabling our prospects to optimize water
and useful resource administration, and helping communities in additional than 150 countries turn into watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press release accommodates “forward-looking statements” inside the meaning 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 similar expressions or their adverse, could, but are not necessary to, identify
forward-looking statements. By their nature, forward-looking statements tackle uncertain matters and
embrace any statements that are not historic, similar to statements about our technique, monetary plans,
outlook, goals, plans, intentions or objectives (including those related to our social, environmental and
different sustainability goals); or tackle possible or future results of operations or financial performance,
together with statements regarding orders, revenues, working margins and earnings per share growth.
Although we consider that the expectations reflected in any of our forward-looking statements are
reasonable, precise results could differ materially from these projected or assumed in any of our forwardlooking statements. Our future monetary situation and results of operations, as properly as any forwardlooking statements, are topic to change and to inherent dangers and uncertainties, a lot of that are
beyond our management. Additionally, many of those risks and uncertainties are, and will continue to be,
amplified by impacts from the warfare between Russia and Ukraine, as nicely as the continuing coronavirus
(“COVID-19”) pandemic and associated macroeconomic situations (including inflation). Important components
that might cause our actual outcomes, performance and achievements, or business outcomes to differ
materially from estimates or projections contained in or implied by our forward-looking statements
embody, among others, the next: the impression of general trade and basic economic situations,
including industrial, governmental, and private and non-private sector spending and the energy of the
residential and business actual property markets, on financial exercise and our operations; geopolitical
occasions, including the struggle between Russia and Ukraine, and regulatory, financial and other risks
related to our world gross sales and operations, including with respect to domestic content
requirements applicable to projects with governmental funding; continued uncertainty across the
ongoing COVID-19 pandemic’s magnitude, length and impacts on our business, operations, growth,
and financial condition; precise or potential different epidemics, pandemics or international health crises;
availability, shortage or delays in receiving electronic elements (in particular, semiconductors), components,
and uncooked supplies from our provide chain; manufacturing and operating value will increase as a result of
macroeconomic conditions, together with inflation, supply chain shortages, logistics challenges, tight labor
markets, prevailing worth adjustments, tariffs and different components; demand for our merchandise; disruption,
competitors or pricing pressures within the markets we serve; cybersecurity incidents or different disruptions of
info expertise methods on which we rely, or involving our products; disruptions in operations at
our facilities or that of third parties upon which we rely; capacity to retain and attract senior administration
and different diverse and key talent, as properly as competitors for total expertise and labor; problem predicting
our monetary outcomes; defects, safety, guarantee and legal responsibility claims, and recollects with respect to products;
availability, regulation or interference with radio spectrum used by sure of our products; uncertainty
related to restructuring and realignment actions and related charges and financial savings; our capacity to continue
strategic investments for progress; our capacity to successfully establish, execute and integrate acquisitions;
volatility in served markets or impacts on business and operations because of climate circumstances, including
the results of local weather change; fluctuations in overseas foreign money exchange rates; our capacity to borrow or
refinance our present indebtedness and uncertainty across the availability of liquidity adequate to meet
our wants; threat of future impairments to goodwill and different intangible assets; failure to adjust to, or
modifications in, laws or laws, including these pertaining to anti-corruption, knowledge privateness and security,
export and import, competition, and the environment and climate change; modifications in our efficient tax
rates or tax bills; authorized, governmental or regulatory claims, investigations or proceedings and
related contingent liabilities; and different components set forth under “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 different statements on this press launch relating to our environmental and other
sustainability plans and targets usually are not an indication that these statements are necessarily material to
buyers or are required to be disclosed in our filings with the SEC. In addition, historical, current, and
forward-looking social, environmental and sustainability associated statements could additionally be based mostly on standards
for measuring progress which are still creating, inside controls and processes that continue to evolve,
and assumptions which are subject to vary sooner or later. All forward-looking statements made herein
are primarily based on info currently obtainable to us as of the date of this press launch. We undertake no
obligation to publicly update or revise any forward-looking statements, whether or not as a end result of new
info, future occasions or in any other case, besides as required by regulation
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