FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust continuing demand drove strong natural orders progress: 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 steerage by 160 foundation 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 $2.40 to $2.70
Washington, D.C., August 2, 2022 – Xylem Inc. (NYSE: XYL), a leading global water expertise
company dedicated to solving the world’s most challenging water points, right now reported second quarter
revenue of $1.4 billion, surpassing previous steerage in every business phase. Strong continued
global demand drove orders and backlog growth throughout the portfolio.
pressure gauge adjusted earnings earlier than interest, tax, depreciation and amortization (EBITDA) margin
was sixteen.6 %, better than the Company’s earlier steering and reflecting a year-over-year
decrease of 70 basis factors. เกจวัดแรงดันไนโตรเจน and the impression of continuous chip shortages drove the margin
decline, exceeding the advantages of value realization and productiveness financial savings. Xylem generated net
revenue of $112 million, or $0.62 per share, and adjusted net income of $120 million, or $0.66 per share,
which excludes the impression of restructuring, realignment and particular costs.
“The team delivered very sturdy second quarter efficiency on all key metrics, and well ahead of our
steering for the quarter,” stated Patrick Decker, Xylem president and CEO. “The outcome reflects our
business momentum on persevering with underlying demand, disciplined operational execution, and a
reasonable easing in chip provide constraints.”
“On the strength of strong backlog and orders progress, and the team’s demonstrated success mitigating
the consequences of inflation, we are elevating our full-year guidance on revenue and earnings. This further
reinforces our longer-term development and value creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 organic revenue development to be in the vary of 8 to 10 %, and three
to 5 p.c on a reported basis. This represents a rise from the Company’s earlier full-year
natural revenue steering of four to six p.c, and 1 to 3 p.c on a reported foundation. Full-year 2022
adjusted EBITDA margin is now expected to be in the range of sixteen.5 to 17.zero p.c, raising the low end
of the earlier vary of 16.zero to 17.zero percent. This ends in adjusted earnings per share of $2.50 to
$2.70, raising the low finish from the previous vary of $2.40 to $2.70. The increased steering displays
robust demand, gradual easing of provide chain constraints and value realization partially offset by
inflation and overseas 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 offers steering solely on a non-GAAP
foundation as a end result of inherent issue in forecasting certain amounts that might be included in GAAP
earnings, such as discrete tax items, 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 9.0 percent improve
organically compared with second quarter 2021. This robust growth was pushed by robust price
realization, industrial dewatering demand, and wholesome exercise in our wastewater utility enterprise
in the U.S. and Western Europe.
• Second quarter adjusted EBITDA margin was 21.4 %, up 240 basis points from the prior
12 months. Reported operating earnings for the segment was $108 million. Adjusted operating income
for the segment, 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 segment was 18.three percent, up 200 foundation points versus the prior yr, and adjusted
working margin was 18.eight percent, up one hundred eighty basis factors versus the prior 12 months. Strong value
realization, quantity, and productivity savings more than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water section consists of its portfolio of companies in industrial, industrial building,
and residential functions.
• Second quarter 2022 Applied Water income was $429 million, a 7.zero percent increase
organically year-over-year. The segment delivered robust price realization and backlog
execution in industrial and residential finish markets, partially offset by continued supply chain
constraints in business buildings within the United States.
• Second quarter adjusted EBITDA margin was 16.1 percent, down a hundred thirty basis points from the
prior yr. Reported working income for the section 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 yr. The phase reported working
margin was 14.2 p.c, down one hundred thirty basis factors versus the prior 12 months period. Adjusted
operating margin declined 120 basis factors to 14.7 percent. Strong price realization and
productivity financial savings have been more than offset by inflation and decrease volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions section consists of its portfolio of businesses in smart
metering, community technologies, superior infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions revenue was $346 million, down 2.zero
% organically versus the prior 12 months. While chip supply stays constrained, the result’s
better than our expectations because of improved chip supply in the quarter, and power in our
water high quality take a look at functions.
• Second quarter adjusted EBITDA margin was 9.eight percent, down 410 foundation factors from the prior
12 months. Reported operating income for the section was $(5) million, and adjusted working
earnings, which excludes $3 million of restructuring and realignment costs and $1 million of
shortages, unfavorable combine and higher inflation more than offset price realization and
productiveness savings.
Supplemental info on Xylem’s second quarter 2022 earnings and reconciliations for sure nonGAAP objects is posted at www.xylem.com/investors.
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About Xylem
Xylem (XYL) is a leading world water expertise firm committed to solving crucial water and
infrastructure challenges with innovation. Our 17,000 diverse staff delivered revenue 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 serving to communities in more than one hundred fifty countries turn into watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press launch incorporates “forward-looking statements” within 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 words “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“contemplate,” “predict,” “forecast,” “likely,” “believe,” “target,” “will,” “could,” “would,” “should,”
“potential,” “may” and similar expressions or their adverse, might, however aren’t essential to, establish
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 strategy, financial plans,
outlook, aims, plans, intentions or objectives (including these associated to our social, environmental and
different sustainability goals); or tackle attainable or future results of operations or financial efficiency,
including statements relating to orders, revenues, working margins and earnings per share development.
Although we imagine that the expectations mirrored in any of our forward-looking statements are
affordable, precise outcomes could differ materially from those projected or assumed in any of our forwardlooking statements. Our future financial situation and outcomes of operations, in addition to any forwardlooking statements, are topic to alter and to inherent dangers and uncertainties, a lot of that are
beyond our management. Additionally, many of these dangers and uncertainties are, and will continue to be,
amplified by impacts from the struggle between Russia and Ukraine, in addition to the continued coronavirus
(“COVID-19”) pandemic and associated macroeconomic situations (including inflation). Important factors
that might trigger our actual results, efficiency and achievements, or industry results to vary
materially from estimates or projections contained in or implied by our forward-looking statements
embrace, amongst others, the next: the influence of overall trade and common financial circumstances,
together with industrial, governmental, and public and private sector spending and the power of the
residential and commercial real property markets, on economic exercise and our operations; geopolitical
occasions, including the warfare between Russia and Ukraine, and regulatory, economic and other dangers
related to our world gross sales and operations, including with respect to domestic content material
requirements applicable to initiatives with governmental funding; continued uncertainty around the
ongoing COVID-19 pandemic’s magnitude, period and impacts on our business, operations, development,
and financial situation; precise or potential other epidemics, pandemics or international health crises;
availability, scarcity or delays in receiving digital components (in specific, semiconductors), parts,
and raw materials from our provide chain; manufacturing and working cost increases due to
macroeconomic conditions, including inflation, supply chain shortages, logistics challenges, tight labor
markets, prevailing price adjustments, tariffs and other elements; demand for our products; disruption,
competitors or pricing pressures within the markets we serve; cybersecurity incidents or different disruptions of
info technology methods 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 management
and other diverse and key talent, in addition to competitors for total talent and labor; problem predicting
our monetary outcomes; defects, security, warranty and liability claims, and recollects with respect to products;
availability, regulation or interference with radio spectrum used by certain of our products; uncertainty
associated to restructuring and realignment actions and related charges and savings; our ability to continue
strategic investments for growth; our capacity to successfully identify, execute and combine acquisitions;
volatility in served markets or impacts on business and operations because of climate circumstances, including
the results of local weather change; fluctuations in international forex exchange rates; our capacity to borrow or
refinance our current indebtedness and uncertainty around the availability of liquidity sufficient to satisfy
our wants; threat of future impairments to goodwill and different intangible property; failure to adjust to, or
modifications in, laws or regulations, including those pertaining to anti-corruption, knowledge privateness and security,
export and import, competition, and the environment and climate change; modifications in our effective tax
charges or tax expenses; legal, governmental or regulatory claims, investigations or proceedings and
related contingent liabilities; and different components 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 different statements on this press launch regarding our environmental and different
sustainability plans and goals aren’t a sign that these statements are essentially material to
investors or are required to be disclosed in our filings with the SEC. In addition, historic, current, and
forward-looking social, environmental and sustainability related statements could additionally be based mostly on requirements
for measuring progress that are nonetheless growing, inner controls and processes that proceed to evolve,
and assumptions that are subject to alter in the future. All forward-looking statements made herein
are based on info currently available to us as of the date of this press launch. We undertake no
obligation to publicly update or revise any forward-looking statements, whether as a result of new
info, future events or otherwise, except as required by legislation
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