FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
Share
Robust continuing demand drove robust natural orders growth: 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.sixty two, adjusted earnings per share of $0.66
• Adjusted EBITDA margin exceeded guidance by one hundred sixty foundation points
• Raising full-year organic income guidance to a range 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
firm dedicated to fixing the world’s most challenging water points, at present reported second quarter
revenue of $1.four billion, surpassing earlier steering in each business section. Strong continued
global demand drove orders and backlog development across 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
decrease of 70 foundation points. Inflation and the impact of continuous chip shortages drove the margin
decline, exceeding the advantages of price realization and productivity savings. Xylem generated net
revenue of $112 million, or $0.sixty two per share, and adjusted internet revenue of $120 million, or $0.66 per share,
which excludes the impact of restructuring, realignment and particular costs.
“The team delivered very robust second quarter performance on all key metrics, and nicely ahead of our
guidance for the quarter,” stated Patrick Decker, Xylem president and CEO. “The outcome reflects our
industrial momentum on continuing underlying demand, disciplined operational execution, and a
reasonable 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 guidance on income and earnings. This additional
reinforces our longer-term progress and value creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 organic income development to be within the range of 8 to 10 p.c, and three
to 5 percent on a reported foundation. This represents an increase from the Company’s earlier full-year
natural revenue steerage of four to 6 %, and 1 to three % on a reported basis. Full-year 2022
adjusted EBITDA margin is now expected to be within the vary of 16.5 to 17.0 %, raising the low end
of the previous vary of 16.zero to 17.zero p.c. This results in adjusted earnings per share of $2.50 to
$2.70, raising the low finish from the previous range of $2.forty to $2.70. The increased steering reflects
robust demand, gradual easing of provide chain constraints and worth realization partially offset by
inflation and international 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 supplies steerage only on a non-GAAP
basis due to the inherent problem in forecasting sure amounts that would be included in GAAP
earnings, similar 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 clear water
supply, wastewater transport and remedy, and dewatering.
• Second quarter 2022 Water Infrastructure revenue was $589 million, a 9.zero % increase
organically compared with second quarter 2021. This robust progress was driven 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 percent, up 240 basis factors from the prior
12 months. Reported working income for the phase was $108 million. Adjusted operating earnings
for the phase, which excludes $3 million of restructuring and realignment, was $111 million, a
14.four percent improve versus the comparable interval last 12 months. Reported working margin for
the section was 18.three percent, up 200 foundation factors versus the prior 12 months, and adjusted
operating margin was 18.8 p.c, up a hundred and eighty basis points 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 section consists of its portfolio of businesses in industrial, industrial constructing,
and residential functions.
• Second quarter 2022 Applied Water revenue was $429 million, a 7.0 percent enhance
organically year-over-year. The phase delivered robust worth 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 %, down one hundred thirty basis factors from the
prior year. Reported working income for the segment was $61 million and adjusted operating
earnings, which excludes $2 million of restructuring and realignment costs, was $63 million, a four.5
percent lower versus the comparable period last year. The phase reported working
margin was 14.2 %, down a hundred thirty basis points versus the prior year period. Adjusted
working margin declined one hundred twenty basis points to 14.7 p.c. Strong value realization and
productiveness savings were greater than offset by inflation and lower quantity.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions phase consists of its portfolio of businesses in sensible
metering, community technologies, superior infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions income was $346 million, down 2.0
percent organically versus the prior yr. While chip supply stays constrained, the result’s
higher than our expectations due to improved chip supply in the quarter, and power in our
water high quality check purposes.
• เกจวัดแรงดันไอน้ำ adjusted EBITDA margin was 9.eight p.c, down 410 basis points from the prior
yr. Reported operating income for the segment was $(5) million, and adjusted working
revenue, which excludes $3 million of restructuring and realignment costs and $1 million of
shortages, unfavorable combine and better inflation more than offset value realization and
productivity financial savings.
Supplemental data on Xylem’s second quarter 2022 earnings and reconciliations for sure nonGAAP objects is posted at www.xylem.com/investors.
#
About Xylem
Xylem (XYL) is a leading global water know-how firm committed to fixing crucial water and
infrastructure challenges with innovation. Our 17,000 diverse workers delivered revenue of $5.2
billion in 2021. We are creating a more sustainable world by enabling our clients to optimize water
and useful resource administration, and helping communities in additional than 150 international locations turn into watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press launch contains “forward-looking statements” throughout 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 phrases “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“contemplate,” “predict,” “forecast,” “likely,” “believe,” “target,” “will,” “could,” “would,” “should,”
“potential,” “may” and related expressions or their adverse, may, but aren’t essential to, determine
forward-looking statements. By their nature, forward-looking statements handle uncertain issues and
embody any statements that aren’t historical, similar to statements about our technique, monetary plans,
outlook, aims, plans, intentions or objectives (including those associated to our social, environmental and
other sustainability goals); or handle possible or future outcomes of operations or monetary efficiency,
including 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 might differ materially from these projected or assumed in any of our forwardlooking statements. Our future financial situation and results of operations, in addition to any forwardlooking statements, are topic to change and to inherent dangers and uncertainties, many of which are
beyond our management. Additionally, many of these risks and uncertainties are, and may continue to be,
amplified by impacts from the war between Russia and Ukraine, in addition to the continuing coronavirus
(“COVID-19”) pandemic and related macroeconomic circumstances (including inflation). Important elements
that could cause our actual outcomes, efficiency and achievements, or trade outcomes 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 common financial conditions,
including industrial, governmental, and public and private sector spending and the strength of the
residential and industrial real property markets, on financial exercise and our operations; geopolitical
occasions, including the struggle between Russia and Ukraine, and regulatory, economic and different risks
related to our world sales and operations, together with with respect to home content material
necessities applicable to tasks with governmental funding; continued uncertainty across the
ongoing COVID-19 pandemic’s magnitude, duration and impacts on our enterprise, operations, growth,
and monetary condition; precise or potential different epidemics, pandemics or world well being crises;
availability, scarcity or delays in receiving electronic elements (in explicit, semiconductors), elements,
and uncooked materials from our supply chain; manufacturing and working price increases because of
macroeconomic circumstances, including inflation, provide chain shortages, logistics challenges, tight labor
markets, prevailing worth adjustments, tariffs and other components; demand for our merchandise; disruption,
competition or pricing pressures within the markets we serve; cybersecurity incidents or other disruptions of
information know-how systems on which we rely, or involving our products; disruptions in operations at
our services or that of third parties upon which we rely; capacity to retain and appeal to senior management
and different various and key talent, as properly as competition for total talent and labor; difficulty predicting
our financial results; defects, security, guarantee and liability claims, and remembers with respect to products;
availability, regulation or interference with radio spectrum utilized by sure of our merchandise; uncertainty
related to restructuring and realignment actions and related expenses and financial savings; our capability to continue
strategic investments for development; our ability to efficiently determine, execute and integrate acquisitions;
volatility in served markets or impacts on business and operations because of climate conditions, together with
the effects of local weather change; fluctuations in international currency change charges; our capacity to borrow or
refinance our current indebtedness and uncertainty across the availability of liquidity sufficient to fulfill
our needs; risk of future impairments to goodwill and other intangible assets; failure to adjust to, or
modifications in, legal guidelines or regulations, including these pertaining to anti-corruption, knowledge privacy and safety,
export and import, competitors, and the setting and local weather change; modifications in our effective tax
rates or tax bills; legal, governmental or regulatory claims, investigations or proceedings and
associated contingent liabilities; and different elements 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 in this press release relating to our environmental and other
sustainability plans and targets usually are not a sign that these statements are necessarily materials to
investors 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 requirements
for measuring progress which might be nonetheless creating, inner controls and processes that continue to evolve,
and assumptions that are subject to change in the future. All forward-looking statements made herein
are primarily based on information at present obtainable to us as of the date of this press release. We undertake no
obligation to publicly update or revise any forward-looking statements, whether on account of new
info, future occasions or otherwise, besides as required by regulation
Share