FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust continuing demand drove robust organic orders progress: 1% on a reported
basis, 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 one hundred sixty foundation points
• Raising full-year natural revenue guidance to a spread 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 leading global water expertise
company dedicated to solving the world’s most difficult water points, at present reported second quarter
income of $1.four billion, surpassing earlier steerage in every enterprise phase. Strong continued
world demand drove orders and backlog development throughout the portfolio.
Second quarter adjusted earnings earlier than interest, tax, depreciation and amortization (EBITDA) margin
was 16.6 p.c, 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 price realization and productivity savings. Xylem generated web
income of $112 million, or $0.62 per share, and adjusted internet earnings of $120 million, or $0.66 per share,
which excludes the influence of restructuring, realignment and particular costs.
“The group delivered very strong second quarter efficiency on all key metrics, and nicely forward of our
steering for the quarter,” stated Patrick Decker, Xylem president and CEO. “The end result displays our
industrial momentum on persevering with underlying demand, disciplined operational execution, and a
average easing in chip supply constraints.”
“On the power of robust backlog and orders development, and the team’s demonstrated success mitigating
the results of inflation, we’re elevating our full-year guidance on income and earnings. This further
reinforces our longer-term development and value creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 natural revenue growth to be in the vary of eight to 10 %, and three
to five % on a reported foundation. This represents an increase from the Company’s earlier full-year
natural income guidance of 4 to six percent, and 1 to three p.c on a reported basis. Full-year 2022
adjusted EBITDA margin is now expected to be in the vary of 16.5 to 17.zero percent, elevating the low end
of the earlier vary of sixteen.0 to 17.zero percent. This results in adjusted earnings per share of $2.50 to
$2.70, elevating the low finish from the previous vary of $2.forty to $2.70. เกจวัดแรงดันpsi increased steering reflects
strong 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 supplies guidance solely on a non-GAAP
foundation because of the inherent issue in forecasting certain quantities that may be included in GAAP
earnings, similar to discrete tax objects, with out unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure segment consists of its portfolio of businesses serving clear water
supply, wastewater transport and remedy, and dewatering.
• Second quarter 2022 Water Infrastructure revenue was $589 million, a 9.0 percent enhance
organically compared with second quarter 2021. This sturdy growth was pushed by sturdy worth
realization, industrial dewatering demand, and healthy activity in our wastewater utility enterprise
in the us and Western Europe.
• Second quarter adjusted EBITDA margin was 21.four %, up 240 foundation points from the prior
year. Reported operating revenue for the section was $108 million. Adjusted operating income
for the section, which excludes $3 million of restructuring and realignment, was $111 million, a
14.4 % enhance versus the comparable period last 12 months. Reported operating margin for
the phase was 18.3 percent, up 200 basis points versus the prior year, and adjusted
operating margin was 18.8 percent, up a hundred and eighty foundation factors versus the prior year. Strong value
realization, volume, and productivity financial savings more than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water segment consists of its portfolio of companies in industrial, industrial building,
and residential purposes.
• Second quarter 2022 Applied Water revenue was $429 million, a 7.zero percent enhance
organically year-over-year. The segment delivered robust value realization and backlog
execution in industrial and residential end markets, partially offset by continued provide chain
constraints in commercial buildings in the United States.
• Second quarter adjusted EBITDA margin was sixteen.1 percent, down a hundred thirty basis factors from the
prior 12 months. Reported working income for the phase was $61 million and adjusted working
revenue, which excludes $2 million of restructuring and realignment prices, was $63 million, a four.5
% decrease versus the comparable interval final 12 months. The phase reported working
margin was 14.2 %, down 130 foundation factors versus the prior 12 months period. Adjusted
operating margin declined one hundred twenty basis factors to 14.7 percent. Strong worth realization and
productiveness financial savings were more than offset by inflation and lower quantity.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions phase consists of its portfolio of businesses in smart
metering, network applied sciences, superior infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions revenue was $346 million, down 2.zero
percent organically versus the prior year. While chip provide remains constrained, the result is
better than our expectations because of improved chip provide in the quarter, and energy in our
water high quality test functions.
• Second quarter adjusted EBITDA margin was 9.8 percent, down 410 foundation points from the prior
year. Reported working 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 value realization and
productiveness savings.
Supplemental info on Xylem’s second quarter 2022 earnings and reconciliations for certain nonGAAP items is posted at www.xylem.com/investors.
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About Xylem
Xylem (XYL) is a leading world water know-how company committed to fixing important water and
infrastructure challenges with innovation. Our 17,000 diverse employees delivered revenue of $5.2
billion in 2021. We are creating a extra sustainable world by enabling our prospects to optimize water
and useful resource management, and helping communities in additional than a hundred and fifty nations become watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press launch incorporates “forward-looking statements” inside 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 words “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“contemplate,” “predict,” “forecast,” “likely,” “believe,” “target,” “will,” “could,” “would,” “should,”
“potential,” “may” and similar expressions or their unfavorable, might, however aren’t necessary to, determine
forward-looking statements. By their nature, forward-looking statements handle unsure issues and
embody any statements that aren’t historic, corresponding to statements about our technique, monetary plans,
outlook, objectives, plans, intentions or targets (including these related to our social, environmental and
different sustainability goals); or handle potential or future outcomes of operations or financial efficiency,
together with statements referring to orders, revenues, operating margins and earnings per share growth.
Although we imagine that the expectations reflected in any of our forward-looking statements are
affordable, precise outcomes might differ materially from these projected or assumed in any of our forwardlooking statements. Our future financial condition and results of operations, as nicely as any forwardlooking statements, are topic to alter and to inherent dangers and uncertainties, many of which are
past our management. Additionally, many of those dangers and uncertainties are, and should continue to be,
amplified by impacts from the struggle between Russia and Ukraine, in addition to the ongoing coronavirus
(“COVID-19”) pandemic and associated macroeconomic circumstances (including inflation). Important factors
that could cause our actual outcomes, efficiency and achievements, or industry outcomes to vary
materially from estimates or projections contained in or implied by our forward-looking statements
include, among others, the following: the impact of total trade and general economic circumstances,
including industrial, governmental, and private and non-private sector spending and the strength of the
residential and business real property markets, on financial activity and our operations; geopolitical
occasions, including the struggle between Russia and Ukraine, and regulatory, economic and different risks
related to our international gross sales and operations, together with with respect to domestic content
necessities relevant to initiatives with governmental funding; continued uncertainty across the
ongoing COVID-19 pandemic’s magnitude, duration and impacts on our enterprise, operations, progress,
and financial condition; actual or potential other epidemics, pandemics or world well being crises;
availability, scarcity or delays in receiving digital elements (in explicit, semiconductors), elements,
and uncooked materials from our provide chain; manufacturing and operating value will increase because of
macroeconomic conditions, together with inflation, supply chain shortages, logistics challenges, tight labor
markets, prevailing price modifications, tariffs and different components; demand for our products; disruption,
competition or pricing pressures in the markets we serve; cybersecurity incidents or different disruptions of
information know-how techniques on which we rely, or involving our merchandise; disruptions in operations at
our services or that of third parties upon which we rely; capability to retain and appeal to senior management
and different numerous and key expertise, as properly as competition for overall expertise and labor; difficulty predicting
our financial results; defects, security, warranty and legal responsibility claims, and recalls with respect to products;
availability, regulation or interference with radio spectrum utilized by sure of our merchandise; uncertainty
associated to restructuring and realignment actions and associated costs and financial savings; our ability to proceed
strategic investments for growth; our capacity to efficiently establish, execute and combine acquisitions;
volatility in served markets or impacts on business and operations as a end result of weather conditions, including
the effects of local weather change; fluctuations in international forex exchange rates; our capability to borrow or
refinance our existing indebtedness and uncertainty across the availability of liquidity enough to fulfill
our wants; threat of future impairments to goodwill and other intangible assets; failure to adjust to, or
modifications in, legal guidelines or laws, including those pertaining to anti-corruption, data privateness and security,
export and import, competition, and the setting and climate change; changes in our efficient 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 yr 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 targets aren’t an indication that these statements are necessarily 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 based mostly on requirements
for measuring progress which would possibly be still developing, internal controls and processes that continue to evolve,
and assumptions that are topic to alter sooner or later. All forward-looking statements made herein
are based on information presently 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 end result of new
information, future events or in any other case, besides as required by regulation
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