FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust continuing demand drove robust organic orders development: 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 steering by a hundred and sixty foundation points
• Raising full-year natural revenue steering 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.forty to $2.70
Washington, D.C., August 2, 2022 – Xylem Inc. (NYSE: XYL), a quantity one world water expertise
firm dedicated to fixing the world’s most challenging water issues, right now reported second quarter
income of $1.four billion, surpassing previous steerage in each enterprise segment. Strong continued
global demand drove orders and backlog growth across the portfolio.
Second quarter adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margin
was sixteen.6 p.c, higher than the Company’s previous steering and reflecting a year-over-year
lower of 70 foundation points. Inflation and the influence of continuing chip shortages drove the margin
decline, exceeding the benefits of value realization and productivity savings. Xylem generated net
income of $112 million, or $0.62 per share, and adjusted web earnings of $120 million, or $0.66 per share,
which excludes the impact of restructuring, realignment and special expenses.
“The staff delivered very robust second quarter performance on all key metrics, and properly forward of our
steering for the quarter,” stated Patrick Decker, Xylem president and CEO. “The end result displays our
business momentum on continuing underlying demand, disciplined operational execution, and a
average easing in chip provide constraints.”
“On the energy of strong backlog and orders development, and the team’s demonstrated success mitigating
the effects of inflation, we are elevating our full-year steering on income and earnings. This further
reinforces our longer-term growth and worth creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 natural income growth to be in the vary of eight to 10 %, and three
to 5 % on a reported foundation. This represents an increase from the Company’s earlier full-year
organic income steering of 4 to six percent, and 1 to three p.c on a reported foundation. Full-year 2022
adjusted EBITDA margin is now anticipated to be within the vary of 16.5 to 17.0 p.c, raising the low end
of the previous range of sixteen.0 to 17.zero p.c. This ends in adjusted earnings per share of $2.50 to
$2.70, elevating the low finish from the previous range of $2.forty to $2.70. The elevated steerage displays
robust demand, gradual easing of provide chain constraints and price realization partially offset by
inflation and foreign change headwinds.
Further 2022 planning assumptions are included in Xylem’s second quarter 2022 earnings supplies
posted at www.xylem.com/investors. Excluding income, Xylem provides guidance solely on a non-GAAP
foundation as a outcome of inherent issue in forecasting certain amounts that would be included in GAAP
earnings, such as discrete tax objects, without unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure section consists of its portfolio of businesses serving clean water
delivery, wastewater transport and remedy, and dewatering.
• Second quarter 2022 Water Infrastructure revenue was $589 million, a 9.0 p.c increase
organically in contrast with second quarter 2021. This strong growth was pushed by robust price
realization, industrial dewatering demand, and wholesome activity in our wastewater utility business
in the U.S. and Western Europe.
• Second quarter adjusted EBITDA margin was 21.4 p.c, up 240 basis points from the prior
year. Reported operating revenue 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.four % improve versus the comparable period last year. Reported operating margin for
the section was 18.3 p.c, up 200 basis factors versus the prior year, and adjusted
working margin was 18.8 percent, up a hundred and eighty basis factors versus the prior 12 months. Strong price
realization, volume, and productivity savings more 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 applications.
• Second quarter 2022 Applied Water revenue was $429 million, a 7.zero % improve
organically year-over-year. The segment delivered robust price realization and backlog
execution in industrial and residential end markets, partially offset by continued provide chain
constraints in commercial buildings within the United States.
• Second quarter adjusted EBITDA margin was 16.1 p.c, down a hundred thirty basis points from the
prior year. Reported working earnings for the segment was $61 million and adjusted operating
earnings, which excludes $2 million of restructuring and realignment costs, was $63 million, a 4.5
p.c decrease versus the comparable interval final yr. The section reported operating
margin was 14.2 percent, down one hundred thirty basis factors versus the prior year period. Adjusted
working margin declined one hundred twenty foundation factors to 14.7 percent. Strong worth realization and
productiveness financial savings had been more than offset by inflation and decrease volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions segment consists of its portfolio of companies in sensible
metering, network technologies, advanced infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions income was $346 million, down 2.0
% organically versus the prior yr. While chip provide remains constrained, the result is
higher than our expectations because of improved chip supply in the quarter, and strength in our
water quality check purposes.
• Second quarter adjusted EBITDA margin was 9.eight p.c, down 410 foundation points from the prior
yr. Reported working earnings for the phase was $(5) million, and adjusted operating
earnings, 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 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 global water technology firm dedicated to fixing important water and
infrastructure challenges with innovation. Our 17,000 numerous workers delivered revenue of $5.2
billion in 2021. We are creating a extra sustainable world by enabling our clients to optimize water
and resource administration, and serving to communities in more than one hundred fifty nations become watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press launch incorporates “forward-looking statements” inside 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 phrases “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“contemplate,” “predict,” “forecast,” “likely,” “believe,” “target,” “will,” “could,” “would,” “should,”
“potential,” “may” and comparable expressions or their unfavorable, might, but aren’t essential to, identify
forward-looking statements. By their nature, forward-looking statements handle uncertain matters and
embody any statements that are not historical, corresponding to statements about our strategy, financial plans,
outlook, goals, plans, intentions or objectives (including those related to our social, environmental and
other sustainability goals); or address potential or future outcomes of operations or financial performance,
including statements referring to orders, revenues, operating margins and earnings per share growth.
Although we believe that the expectations reflected in any of our forward-looking statements are
affordable, precise results may differ materially from these projected or assumed in any of our forwardlooking statements. pressure gauge แบบ น้ำมัน and outcomes of operations, in addition to any forwardlooking statements, are topic to vary and to inherent dangers and uncertainties, a lot of that are
past our control. Additionally, many of those risks and uncertainties are, and will continue to be,
amplified by impacts from the war between Russia and Ukraine, as nicely as the ongoing coronavirus
(“COVID-19”) pandemic and related macroeconomic conditions (including inflation). Important factors
that could cause our actual results, performance and achievements, or business 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 common financial conditions,
together with industrial, governmental, and public and private sector spending and the energy of the
residential and industrial actual property markets, on financial exercise and our operations; geopolitical
occasions, together with the warfare between Russia and Ukraine, and regulatory, economic and different dangers
associated with our world sales and operations, including with respect to home content material
necessities relevant to projects with governmental funding; continued uncertainty around the
ongoing COVID-19 pandemic’s magnitude, period and impacts on our enterprise, operations, development,
and financial situation; precise or potential different epidemics, pandemics or world well being crises;
availability, shortage or delays in receiving digital elements (in particular, semiconductors), parts,
and raw materials from our provide chain; manufacturing and operating price increases due to
macroeconomic conditions, together with inflation, supply chain shortages, logistics challenges, tight labor
markets, prevailing price changes, tariffs and other factors; demand for our merchandise; disruption,
competitors or pricing pressures in the markets we serve; cybersecurity incidents or different disruptions of
data expertise methods 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 entice senior management
and different various and key expertise, in addition to competitors for general expertise and labor; issue predicting
our monetary outcomes; defects, safety, warranty and liability claims, and recalls with respect to merchandise;
availability, regulation or interference with radio spectrum used by sure of our merchandise; uncertainty
associated to restructuring and realignment actions and associated expenses and financial savings; our capability to proceed
strategic investments for progress; our capacity to efficiently identify, execute and integrate acquisitions;
volatility in served markets or impacts on enterprise and operations due to weather situations, together with
the effects of local weather change; fluctuations in foreign forex exchange rates; our ability to borrow or
refinance our current indebtedness and uncertainty across the availability of liquidity adequate to satisfy
our needs; threat of future impairments to goodwill and other intangible assets; failure to comply with, or
adjustments in, laws or rules, including these pertaining to anti-corruption, knowledge privateness and security,
export and import, competition, and the surroundings and climate change; modifications in our efficient tax
charges or tax expenses; authorized, governmental or regulatory claims, investigations or proceedings and
associated contingent liabilities; and other elements set forth under “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 release regarding our environmental and other
sustainability plans and targets usually are not a sign that these statements are necessarily materials to
buyers 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 could also be based on requirements
for measuring progress that are still growing, inside controls and processes that proceed to evolve,
and assumptions which are subject to vary in the future. All forward-looking statements made herein
are based on information currently out there to us as of the date of this press release. We undertake no
obligation to publicly update or revise any forward-looking statements, whether or not on account of new
information, future events or otherwise, besides as required by legislation
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