FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust continuing demand drove sturdy natural orders progress: 1% on a reported
basis, 6% organically
• Revenue of $1.four 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 guidance by 160 basis factors
• Raising full-year organic revenue steerage to a variety 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 world water know-how
firm dedicated to fixing the world’s most challenging water points, right now reported second quarter
income of $1.four billion, surpassing earlier guidance in every business phase. Strong continued
world demand drove orders and backlog development across the portfolio.
Second quarter adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margin
was sixteen.6 percent, higher than the Company’s previous 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 worth realization and productiveness savings. Xylem generated internet
revenue of $112 million, or $0.62 per share, and adjusted web earnings of $120 million, or $0.sixty six per share,
which excludes the impression of restructuring, realignment and special costs.
“The group delivered very robust second quarter performance on all key metrics, and well forward of our
steering for the quarter,” said Patrick Decker, Xylem president and CEO. “The result reflects our
business momentum on continuing underlying demand, disciplined operational execution, and a
moderate easing in chip supply constraints.”
“On the power of strong backlog and orders growth, and the team’s demonstrated success mitigating
the effects of inflation, we are raising our full-year steerage on income and earnings. This additional
reinforces our longer-term progress and worth creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 organic revenue growth to be within the vary of 8 to 10 percent, and 3
to 5 % on a reported foundation. This represents a rise from the Company’s previous full-year
organic revenue steering of four to 6 percent, and 1 to three % on a reported basis. Full-year 2022
adjusted EBITDA margin is now expected to be within the vary of sixteen.5 to 17.zero percent, elevating the low end
of the earlier range of 16.0 to 17.0 percent. This leads to adjusted earnings per share of $2.50 to
$2.70, raising the low finish from the previous range of $2.40 to $2.70. The elevated guidance displays
strong demand, gradual easing of supply chain constraints and value realization partially offset by
inflation and international 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 offers steering solely on a non-GAAP
basis because of the inherent issue in forecasting certain quantities that would be included in GAAP
earnings, corresponding to discrete tax objects, without unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure phase consists of its portfolio of businesses serving clear water
supply, wastewater transport and remedy, and dewatering.
• เกจวัดแรงดันแบบแห้ง was $589 million, a 9.zero percent improve
organically compared with second quarter 2021. This strong progress was driven by strong price
realization, industrial dewatering demand, and healthy activity in our wastewater utility business
in the united states and Western Europe.
• Second quarter adjusted EBITDA margin was 21.4 %, up 240 basis points from the prior
yr. Reported operating earnings for the phase was $108 million. Adjusted operating revenue
for the phase, which excludes $3 million of restructuring and realignment, was $111 million, a
14.4 % enhance versus the comparable interval last year. Reported working margin for
the section was 18.3 %, up 200 foundation points versus the prior 12 months, and adjusted
operating margin was 18.8 p.c, up one hundred eighty foundation factors versus the prior yr. Strong price
realization, quantity, 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 applications.
• Second quarter 2022 Applied Water revenue was $429 million, a 7.0 p.c improve
organically year-over-year. The section delivered strong worth realization and backlog
execution in industrial and residential end markets, partially offset by continued provide chain
constraints in industrial buildings in the United States.
• Second quarter adjusted EBITDA margin was sixteen.1 p.c, down a hundred thirty foundation points from the
prior yr. Reported working revenue for the section was $61 million and adjusted operating
revenue, which excludes $2 million of restructuring and realignment prices, was $63 million, a 4.5
percent decrease versus the comparable interval final 12 months. The section reported working
margin was 14.2 percent, down 130 foundation points versus the prior 12 months interval. Adjusted
operating margin declined one hundred twenty foundation factors to 14.7 percent. Strong price realization and
productivity financial savings had been greater than offset by inflation and lower quantity.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions phase consists of its portfolio of companies in sensible
metering, network applied sciences, advanced infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions revenue was $346 million, down 2.0
p.c organically versus the prior year. While chip provide remains constrained, the result is
higher than our expectations because of improved chip provide within the quarter, and power in our
water quality take a look at purposes.
• Second quarter adjusted EBITDA margin was 9.8 %, down 410 foundation points from the prior
yr. Reported working income for the section was $(5) million, and adjusted operating
earnings, which excludes $3 million of restructuring and realignment prices and $1 million of
shortages, unfavorable mix and higher inflation more than offset price realization and
productivity 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 committed to fixing critical water and
infrastructure challenges with innovation. Our 17,000 numerous staff delivered income of $5.2
billion in 2021. We are making a more sustainable world by enabling our customers to optimize water
and useful resource administration, and serving to communities in more than one hundred fifty international locations turn into watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press release contains “forward-looking statements” throughout 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, but usually are not essential to, identify
forward-looking statements. By their nature, forward-looking statements address uncertain matters and
include any statements that are not historic, corresponding to statements about our technique, monetary plans,
outlook, aims, plans, intentions or targets (including these related to our social, environmental and
different sustainability goals); or handle potential or future results of operations or financial performance,
together with statements relating to orders, revenues, working margins and earnings per share development.
Although we consider that the expectations mirrored in any of our forward-looking statements are
reasonable, precise results may differ materially from those projected or assumed in any of our forwardlooking statements. Our future financial condition and outcomes of operations, as properly as any forwardlooking statements, are topic to vary and to inherent dangers and uncertainties, many of that are
past our management. Additionally, many of these dangers and uncertainties are, and should continue to be,
amplified by impacts from the warfare between Russia and Ukraine, as properly as the ongoing coronavirus
(“COVID-19”) pandemic and associated macroeconomic situations (including inflation). Important elements
that could cause our actual outcomes, efficiency and achievements, or trade outcomes to vary
materially from estimates or projections contained in or implied by our forward-looking statements
include, among others, the following: the influence of general trade and common economic circumstances,
including industrial, governmental, and public and private sector spending and the power of the
residential and business real property markets, on economic activity and our operations; geopolitical
events, together with the warfare between Russia and Ukraine, and regulatory, economic and other risks
associated with our global sales and operations, including with respect to domestic content material
necessities applicable to initiatives with governmental funding; continued uncertainty around the
ongoing COVID-19 pandemic’s magnitude, length and impacts on our business, operations, development,
and financial situation; actual or potential different epidemics, pandemics or international health crises;
availability, shortage or delays in receiving electronic parts (in particular, semiconductors), parts,
and raw materials from our provide chain; manufacturing and operating price will increase as a result of
macroeconomic circumstances, including inflation, supply chain shortages, logistics challenges, tight labor
markets, prevailing worth changes, tariffs and other components; demand for our merchandise; disruption,
competitors or pricing pressures in the markets we serve; cybersecurity incidents or different disruptions of
info know-how techniques on which we rely, or involving our merchandise; disruptions in operations at
our amenities or that of third parties upon which we rely; ability to retain and appeal to senior management
and different diverse and key expertise, in addition to competitors for total talent and labor; difficulty predicting
our financial outcomes; defects, security, guarantee and legal responsibility claims, and remembers with respect to merchandise;
availability, regulation or interference with radio spectrum utilized by sure of our merchandise; uncertainty
related to restructuring and realignment actions and related costs and financial savings; our ability to continue
strategic investments for progress; our capacity to efficiently identify, execute and combine acquisitions;
volatility in served markets or impacts on enterprise and operations as a end result of weather conditions, including
the effects of local weather change; fluctuations in international currency exchange rates; our capability to borrow or
refinance our existing indebtedness and uncertainty across the availability of liquidity enough to satisfy
our wants; threat of future impairments to goodwill and other intangible belongings; failure to comply with, or
changes in, laws or laws, including these pertaining to anti-corruption, data privacy and safety,
export and import, competition, and the environment and local weather change; changes in our efficient tax
rates or tax expenses; legal, governmental or regulatory claims, investigations or proceedings and
associated contingent liabilities; and different factors set forth underneath “Item 1A. Risk Factors” in our Annual
Report on Form 10-K for the 12 months 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 launch regarding our environmental and other
sustainability plans and objectives are not a sign that these statements are necessarily materials to
traders 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 also be based on standards
for measuring progress that are still creating, inner controls and processes that proceed to evolve,
and assumptions that are topic to alter sooner or later. All forward-looking statements made herein
are primarily based on info 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 as a result of new
information, future occasions or otherwise, except as required by regulation
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