FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust persevering with demand drove robust natural orders development: 1% on a reported
basis, 6% organically
• Revenue of $1.four billion, up 1% on a reported basis, up 6% organically
• Earnings per share of $0.sixty two, adjusted earnings per share of $0.66
• Adjusted EBITDA margin exceeded guidance by 160 basis points
• Raising full-year organic revenue guidance to a spread of 8% to 10% from 4% to
6%, and adjusted EPS to a variety 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 international water know-how
firm devoted to fixing the world’s most difficult water issues, right now reported second quarter
income of $1.4 billion, surpassing previous guidance in each business phase. Strong continued
global demand drove orders and backlog development throughout the portfolio.
Second quarter adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margin
was 16.6 percent, higher than the Company’s earlier steerage and reflecting a year-over-year
lower of 70 foundation points. Inflation and the influence of continuous chip shortages drove the margin
decline, exceeding the advantages of worth realization and productiveness savings. Xylem generated net
earnings of $112 million, or $0.62 per share, and adjusted internet income of $120 million, or $0.66 per share,
which excludes the impact of restructuring, realignment and particular charges.
“The group delivered very strong second quarter performance on all key metrics, and nicely forward of our
steering for the quarter,” mentioned Patrick Decker, Xylem president and CEO. “The outcome reflects our
industrial momentum on persevering with underlying demand, disciplined operational execution, and a
moderate easing in chip provide constraints.”
“On the strength of robust backlog and orders growth, and the team’s demonstrated success mitigating
the effects of inflation, we are raising our full-year steering on revenue and earnings. This additional
reinforces our longer-term development and value creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 natural income growth to be in the vary of eight to 10 percent, and three
to five p.c on a reported basis. This represents a rise from the Company’s previous full-year
natural income steerage of 4 to 6 percent, and 1 to 3 p.c on a reported foundation. Full-year 2022
adjusted EBITDA margin is now expected to be in the vary of 16.5 to 17.0 %, elevating the low finish
of the earlier vary of sixteen.0 to 17.zero p.c. This leads to adjusted earnings per share of $2.50 to
$2.70, raising the low finish from the earlier vary of $2.40 to $2.70. The increased steering displays
strong demand, gradual easing of supply chain constraints and price realization partially offset by
inflation and foreign exchange headwinds.
Further 2022 planning assumptions are included in Xylem’s second quarter 2022 earnings materials
posted at www.xylem.com/investors. Excluding revenue, Xylem offers guidance solely on a non-GAAP
foundation because of the inherent issue in forecasting sure quantities that would be included in GAAP
earnings, similar to discrete tax items, with out unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure segment consists of its portfolio of companies serving clean water
supply, wastewater transport and therapy, and dewatering.
• Second quarter 2022 Water Infrastructure income was $589 million, a 9.zero % increase
organically in contrast with second quarter 2021. This sturdy development was pushed by sturdy price
realization, industrial dewatering demand, and wholesome exercise in our wastewater utility enterprise
in the united states and Western Europe.
• Second quarter adjusted EBITDA margin was 21.four p.c, up 240 basis points from the prior
year. Reported working income for the section was $108 million. Adjusted working income
for the phase, which excludes $3 million of restructuring and realignment, was $111 million, a
14.4 % enhance versus the comparable interval final yr. Reported operating margin for
the section was 18.three %, up 200 foundation points versus the prior year, and adjusted
working margin was 18.8 p.c, up a hundred and eighty foundation points versus the prior 12 months. Strong value
realization, volume, and productiveness savings greater than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water section consists of its portfolio of businesses in industrial, commercial constructing,
and residential purposes.
• Second quarter 2022 Applied Water income was $429 million, a 7.zero p.c enhance
organically year-over-year. ราคาเพรสเชอร์เกจ delivered strong price realization and backlog
execution in industrial and residential end markets, partially offset by continued supply chain
constraints in business buildings within the United States.
• Second quarter adjusted EBITDA margin was 16.1 %, down 130 basis points from the
prior yr. Reported operating earnings for the segment was $61 million and adjusted working
income, which excludes $2 million of restructuring and realignment costs, was $63 million, a four.5
p.c decrease versus the comparable interval last year. The segment reported working
margin was 14.2 %, down a hundred thirty foundation points versus the prior 12 months period. Adjusted
operating margin declined one hundred twenty foundation factors to 14.7 p.c. Strong price realization and
productiveness savings were greater than offset by inflation and decrease quantity.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions phase consists of its portfolio of businesses in smart
metering, community applied sciences, superior infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions revenue was $346 million, down 2.0
percent organically versus the prior year. While chip provide stays constrained, the result is
higher than our expectations because of improved chip provide within the quarter, and energy in our
water high quality check applications.
• Second quarter adjusted EBITDA margin was 9.8 percent, down 410 basis factors from the prior
year. Reported working revenue for the segment was $(5) million, and adjusted working
income, which excludes $3 million of restructuring and realignment costs and $1 million of
shortages, unfavorable mix and better inflation greater than offset value realization and
productivity savings.
Supplemental data on Xylem’s second quarter 2022 earnings and reconciliations for certain nonGAAP gadgets is posted at www.xylem.com/investors.
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About Xylem
Xylem (XYL) is a leading world water technology company dedicated to fixing critical water and
infrastructure challenges with innovation. Our 17,000 various employees delivered income of $5.2
billion in 2021. We are making a more sustainable world by enabling our customers to optimize water
and useful resource management, and helping communities in additional than 150 nations turn out to be watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press launch contains “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 negative, may, however aren’t essential to, determine
forward-looking statements. By their nature, forward-looking statements handle unsure matters and
embody any statements that are not historic, similar to statements about our technique, monetary plans,
outlook, aims, plans, intentions or targets (including those associated to our social, environmental and
other sustainability goals); or tackle attainable or future results of operations or financial performance,
together with statements referring to orders, revenues, operating margins and earnings per share development.
Although we believe that the expectations mirrored in any of our forward-looking statements are
affordable, precise outcomes may differ materially from those projected or assumed in any of our forwardlooking statements. Our future monetary condition and outcomes of operations, as well as any forwardlooking statements, are subject to vary and to inherent dangers and uncertainties, many of which are
past our management. Additionally, many of these dangers and uncertainties are, and should proceed to be,
amplified by impacts from the war between Russia and Ukraine, as properly as the continued coronavirus
(“COVID-19”) pandemic and related macroeconomic conditions (including inflation). Important factors
that would trigger our actual outcomes, efficiency and achievements, or business results to differ
materially from estimates or projections contained in or implied by our forward-looking statements
embody, amongst others, the following: the influence of total trade and general financial circumstances,
together with industrial, governmental, and public and private sector spending and the energy of the
residential and industrial real property markets, on economic activity and our operations; geopolitical
occasions, together with the war between Russia and Ukraine, and regulatory, economic and different risks
related to our world gross sales and operations, together with with respect to domestic content
necessities relevant to tasks 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 other epidemics, pandemics or global health crises;
availability, scarcity or delays in receiving electronic parts (in particular, semiconductors), components,
and raw materials from our supply chain; manufacturing and operating value will increase due to
macroeconomic circumstances, including inflation, provide chain shortages, logistics challenges, tight labor
markets, prevailing worth adjustments, tariffs and other components; demand for our products; disruption,
competitors or pricing pressures within the markets we serve; cybersecurity incidents or other disruptions of
data technology systems on which we rely, or involving our products; disruptions in operations at
our services or that of third parties upon which we rely; ability to retain and attract senior administration
and different numerous and key talent, in addition to competition for overall talent and labor; issue predicting
our monetary results; defects, security, warranty and liability claims, and remembers with respect to merchandise;
availability, regulation or interference with radio spectrum used by sure of our products; uncertainty
related to restructuring and realignment actions and related expenses and financial savings; our ability to proceed
strategic investments for progress; our capability to efficiently identify, execute and integrate acquisitions;
volatility in served markets or impacts on business and operations due to weather situations, including
the effects of climate change; fluctuations in overseas currency trade charges; our ability to borrow or
refinance our present indebtedness and uncertainty across the availability of liquidity enough to satisfy
our wants; danger of future impairments to goodwill and different intangible belongings; failure to adjust to, or
modifications in, legal guidelines or laws, including those pertaining to anti-corruption, data privateness and safety,
export and import, competition, and the surroundings and local weather change; changes in our efficient tax
charges or tax expenses; legal, governmental or regulatory claims, investigations or proceedings and
associated contingent liabilities; and different components set forth beneath “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 launch concerning our environmental and different
sustainability plans and targets aren’t a sign that these statements are essentially materials 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 primarily based on standards
for measuring progress that are still growing, inner controls and processes that continue to evolve,
and assumptions which would possibly be subject to alter sooner or later. All forward-looking statements made herein
are primarily based on information currently obtainable 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 on account of new
data, future occasions or in any other case, except as required by law
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