FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust continuing demand drove sturdy organic orders development: 1% on a reported
basis, 6% organically
• Revenue of $1.4 billion, up 1% on a reported foundation, up 6% organically
• Earnings per share of $0.62, adjusted earnings per share of $0.sixty six
• Adjusted EBITDA margin exceeded steerage by 160 foundation points
• Raising full-year natural income steering to a variety of 8% to 10% from 4% to
6%, and adjusted EPS to a spread of $2.50 to $2.70 from $2.40 to $2.70
Washington, D.C., August 2, 2022 – Xylem Inc. (NYSE: XYL), a number one global water expertise
company devoted to fixing the world’s most challenging water issues, right now reported second quarter
revenue of $1.four billion, surpassing earlier steering in every business section. Strong continued
world demand drove orders and backlog growth throughout the portfolio.
Second quarter adjusted earnings earlier than curiosity, tax, depreciation and amortization (EBITDA) margin
was sixteen.6 percent, better than the Company’s earlier guidance and reflecting a year-over-year
decrease of 70 foundation factors. Inflation and the impact of continuous chip shortages drove the margin
decline, exceeding the advantages of value realization and productivity financial savings. Xylem generated net
income of $112 million, or $0.62 per share, and adjusted net revenue of $120 million, or $0.sixty six per share,
which excludes the influence of restructuring, realignment and special charges.
“The team delivered very strong second quarter performance on all key metrics, and well forward of our
guidance for the quarter,” stated Patrick Decker, Xylem president and CEO. “The result reflects our
business momentum on persevering with underlying demand, disciplined operational execution, and a
reasonable easing in chip provide constraints.”
“On the energy of strong backlog and orders progress, and the team’s demonstrated success mitigating
the effects of inflation, we’re elevating our full-year guidance on revenue and earnings. This further
reinforces our longer-term growth and worth creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 natural income development to be within the range of eight to 10 %, and 3
to 5 p.c on a reported foundation. This represents a rise from the Company’s previous full-year
organic income steerage of 4 to 6 p.c, and 1 to three p.c on a reported basis. Full-year 2022
adjusted EBITDA margin is now anticipated to be in the range of 16.5 to 17.0 percent, raising the low end
of the earlier vary of sixteen.zero to 17.zero p.c. This ends in adjusted earnings per share of $2.50 to
$2.70, raising the low end from the previous vary of $2.forty to $2.70. The increased guidance displays
strong demand, gradual easing of provide chain constraints and worth realization partially offset by
inflation and international trade headwinds.
Further 2022 planning assumptions are included in Xylem’s second quarter 2022 earnings supplies
posted at www.xylem.com/investors. Excluding revenue, Xylem provides steerage only on a non-GAAP
basis because of the inherent issue in forecasting certain amounts that might be included in GAAP
earnings, corresponding to discrete tax objects, without unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure section consists of its portfolio of companies serving clean water
supply, wastewater transport and treatment, and dewatering.
• Second quarter 2022 Water Infrastructure revenue was $589 million, a 9.zero percent improve
organically compared with second quarter 2021. This sturdy development was pushed by robust value
realization, industrial dewatering demand, and wholesome exercise in our wastewater utility business
in the united states and Western Europe.
• Second quarter adjusted EBITDA margin was 21.four %, up 240 foundation points from the prior
yr. Reported operating earnings for the section was $108 million. Adjusted working revenue
for the phase, which excludes $3 million of restructuring and realignment, was $111 million, a
14.4 % improve versus the comparable period final 12 months. Reported working margin for
the segment was 18.three %, up 200 basis factors versus the prior year, and adjusted
working margin was 18.8 p.c, up a hundred and eighty foundation factors versus the prior yr. Strong value
realization, volume, and productiveness savings more than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water phase consists of its portfolio of companies in industrial, commercial building,
and residential functions.
• Second quarter 2022 Applied Water income was $429 million, a 7.0 p.c enhance
organically year-over-year. The phase delivered strong price realization and backlog
execution in industrial and residential end markets, partially offset by continued supply chain
constraints in commercial buildings within the United States.
• Second quarter adjusted EBITDA margin was 16.1 percent, down one hundred thirty basis points from the
prior yr. Reported working revenue for the segment was $61 million and adjusted operating
income, which excludes $2 million of restructuring and realignment costs, was $63 million, a 4.5
p.c decrease versus the comparable interval last yr. The phase reported operating
margin was 14.2 percent, down a hundred thirty foundation points versus the prior year interval. Adjusted
operating margin declined a hundred and twenty basis factors to 14.7 percent. Strong price realization and
productiveness savings had been greater than offset by inflation and decrease volume.
differential pressure gauge ราคา & Control Solutions
Xylem’s Measurement & Control Solutions section consists of its portfolio of companies in good
metering, community applied sciences, 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 stays constrained, the result’s
better than our expectations as a outcome of improved chip provide within the quarter, and power in our
water quality take a look at purposes.
• Second quarter adjusted EBITDA margin was 9.eight p.c, down 410 foundation points from the prior
12 months. Reported operating income for the phase was $(5) million, and adjusted working
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
productivity financial savings.
Supplemental info 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 number one international water know-how firm committed to solving crucial water and
infrastructure challenges with innovation. Our 17,000 numerous workers delivered income of $5.2
billion in 2021. We are creating a more sustainable world by enabling our prospects to optimize water
and resource management, and serving to communities in additional than a hundred and fifty international locations turn into watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press launch accommodates “forward-looking statements” within the which 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 related expressions or their negative, could, however aren’t essential to, establish
forward-looking statements. By their nature, forward-looking statements address unsure issues and
include any statements that are not historic, corresponding to statements about our strategy, financial plans,
outlook, goals, 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 regarding orders, revenues, operating margins and earnings per share progress.
Although we consider that the expectations reflected in any of our forward-looking statements are
cheap, actual outcomes may differ materially from those projected or assumed in any of our forwardlooking statements. Our future monetary condition and results of operations, as well as any forwardlooking statements, are topic to vary and to inherent risks and uncertainties, many of that are
beyond our management. Additionally, many of those risks and uncertainties are, and should proceed to be,
amplified by impacts from the warfare between Russia and Ukraine, in addition to the continued coronavirus
(“COVID-19”) pandemic and related macroeconomic conditions (including inflation). Important elements
that would trigger our actual outcomes, performance and achievements, or industry results to vary
materially from estimates or projections contained in or implied by our forward-looking statements
embody, among others, the next: the influence of general business and general financial circumstances,
together with industrial, governmental, and public and private sector spending and the power of the
residential and business real property markets, on financial exercise and our operations; geopolitical
occasions, including the war between Russia and Ukraine, and regulatory, financial and other risks
associated with our international gross sales and operations, together with with respect to domestic content material
requirements applicable to projects with governmental funding; continued uncertainty around the
ongoing COVID-19 pandemic’s magnitude, length and impacts on our enterprise, operations, growth,
and monetary situation; precise or potential different epidemics, pandemics or world health crises;
availability, shortage or delays in receiving electronic elements (in specific, semiconductors), components,
and raw materials from our supply chain; manufacturing and working value increases due to
macroeconomic circumstances, together with inflation, provide chain shortages, logistics challenges, tight labor
markets, prevailing worth changes, tariffs and other elements; demand for our products; disruption,
competition or pricing pressures in the markets we serve; cybersecurity incidents or different disruptions of
info technology systems on which we rely, or involving our products; disruptions in operations at
our amenities or that of third parties upon which we rely; ability to retain and attract senior administration
and different diverse and key expertise, in addition to competitors for general talent and labor; problem predicting
our financial results; defects, security, warranty and liability claims, and recalls with respect to merchandise;
availability, regulation or interference with radio spectrum utilized by certain of our merchandise; uncertainty
associated to restructuring and realignment actions and related costs and savings; our capacity to continue
strategic investments for progress; our capacity to successfully determine, execute and integrate acquisitions;
volatility in served markets or impacts on enterprise and operations due to climate circumstances, including
the effects of local weather change; fluctuations in overseas forex trade rates; our capability to borrow or
refinance our existing indebtedness and uncertainty across the availability of liquidity sufficient to satisfy
our wants; risk of future impairments to goodwill and different intangible property; failure to adjust to, or
changes in, laws or rules, together with those pertaining to anti-corruption, data privacy and safety,
export and import, competition, and the setting and climate change; changes in our effective tax
charges or tax expenses; authorized, 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 yr 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 release concerning our environmental and different
sustainability plans and goals usually are not an indication that these statements are necessarily materials to
traders or are required to be disclosed in our filings with the SEC. In addition, historical, present, and
forward-looking social, environmental and sustainability associated statements may be based on requirements
for measuring progress which are nonetheless developing, internal controls and processes that proceed to evolve,
and assumptions which would possibly be subject to vary in the future. All forward-looking statements made herein
are based mostly on information currently out there to us as of the date of this press release. We undertake no
obligation to publicly replace or revise any forward-looking statements, whether or not on account of new
info, future events or otherwise, besides as required by regulation
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