FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust persevering with demand drove robust natural orders progress: 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.sixty two, adjusted earnings per share of $0.66
• Adjusted EBITDA margin exceeded steering by 160 foundation factors
• Raising full-year natural revenue guidance 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.forty to $2.70
Washington, D.C., August 2, 2022 – Xylem Inc. (NYSE: XYL), a leading world water know-how
company devoted to solving the world’s most challenging water points, right now reported second quarter
revenue of $1.four billion, surpassing earlier guidance in each business section. Strong continued
world demand drove orders and backlog growth across the portfolio.
Second quarter adjusted earnings earlier than curiosity, tax, depreciation and amortization (EBITDA) margin
was sixteen.6 p.c, higher than the Company’s earlier guidance and reflecting a year-over-year
decrease of 70 basis points. Inflation and the influence of continuing chip shortages drove the margin
decline, exceeding the benefits of price realization and productiveness financial savings. Xylem generated net
income 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 staff delivered very strong second quarter performance on all key metrics, and well ahead of our
guidance for the quarter,” stated Patrick Decker, Xylem president and CEO. “The outcome reflects our
business momentum on persevering with underlying demand, disciplined operational execution, and a
moderate easing in chip provide constraints.”
“On the energy of robust backlog and orders development, and the team’s demonstrated success mitigating
the effects of inflation, we’re raising our full-year guidance on income and earnings. This additional
reinforces our longer-term development and worth creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 organic revenue development to be in the vary of eight to 10 percent, and 3
to five % on a reported foundation. เกจวัดแรงดันpressuregauge represents an increase from the Company’s earlier full-year
natural income steering of four to 6 p.c, and 1 to 3 percent on a reported basis. Full-year 2022
adjusted EBITDA margin is now anticipated to be within the range of sixteen.5 to 17.zero p.c, raising the low finish
of the previous range of sixteen.0 to 17.0 p.c. This leads to adjusted earnings per share of $2.50 to
$2.70, elevating the low end from the earlier vary of $2.40 to $2.70. The increased steering displays
robust demand, gradual easing of supply 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 steering only on a non-GAAP
basis as a end result of inherent difficulty in forecasting certain amounts that would be included in GAAP
earnings, such as discrete tax objects, with out unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure phase 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 % enhance
organically compared with second quarter 2021. This sturdy growth was driven by sturdy worth
realization, industrial dewatering demand, and healthy exercise in our wastewater utility enterprise
in the us and Western Europe.
• Second quarter adjusted EBITDA margin was 21.four percent, up 240 basis points from the prior
year. Reported operating income for the phase was $108 million. Adjusted working earnings
for the segment, which excludes $3 million of restructuring and realignment, was $111 million, a
14.4 percent enhance versus the comparable period final year. Reported operating margin for
the segment was 18.3 percent, up 200 foundation factors versus the prior 12 months, and adjusted
operating margin was 18.eight percent, up a hundred and eighty basis factors versus the prior 12 months. Strong worth
realization, quantity, and productiveness financial savings greater than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water segment consists of its portfolio of companies in industrial, commercial constructing,
and residential functions.
• Second quarter 2022 Applied Water income was $429 million, a 7.0 % enhance
organically year-over-year. The section delivered sturdy price realization and backlog
execution in industrial and residential finish markets, partially offset by continued supply chain
constraints in business buildings within the United States.
• Second quarter adjusted EBITDA margin was 16.1 p.c, down a hundred thirty basis factors from the
prior year. Reported operating income for the segment was $61 million and adjusted operating
income, which excludes $2 million of restructuring and realignment prices, was $63 million, a four.5
p.c decrease versus the comparable interval final 12 months. The segment reported operating
margin was 14.2 percent, down a hundred thirty basis points versus the prior yr interval. Adjusted
operating margin declined one hundred twenty basis points to 14.7 %. Strong value realization and
productivity savings had been more than offset by inflation and decrease volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions section consists of its portfolio of companies in smart
metering, community applied sciences, superior infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions income was $346 million, down 2.zero
percent organically versus the prior 12 months. While chip supply remains constrained, the result’s
better than our expectations because of improved chip supply in the quarter, and power in our
water high quality take a look at applications.
• Second quarter adjusted EBITDA margin was 9.eight percent, down 410 basis points from the prior
year. Reported operating income for the section was $(5) million, and adjusted operating
revenue, which excludes $3 million of restructuring and realignment prices and $1 million of
shortages, unfavorable combine and better inflation greater than offset price realization and
productiveness financial savings.
Supplemental data on Xylem’s second quarter 2022 earnings and reconciliations for sure nonGAAP items is posted at www.xylem.com/investors.
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About Xylem
Xylem (XYL) is a quantity one international water expertise firm dedicated to fixing critical water and
infrastructure challenges with innovation. Our 17,000 diverse staff delivered income of $5.2
billion in 2021. We are creating a extra sustainable world by enabling our clients to optimize water
and useful resource management, and serving to communities in more than one hundred fifty countries turn out to be watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press release 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 words “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“contemplate,” “predict,” “forecast,” “likely,” “believe,” “target,” “will,” “could,” “would,” “should,”
“potential,” “may” and comparable expressions or their negative, could, but usually are not essential to, identify
forward-looking statements. By their nature, forward-looking statements handle uncertain matters and
embody any statements that aren’t historic, corresponding to statements about our technique, financial plans,
outlook, objectives, plans, intentions or targets (including those associated to our social, environmental and
different sustainability goals); or tackle attainable or future outcomes of operations or monetary efficiency,
together with statements referring 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
cheap, precise results may differ materially from these projected or assumed in any of our forwardlooking statements. Our future monetary condition and outcomes of operations, in addition to any forwardlooking statements, are topic to change and to inherent dangers and uncertainties, many of that are
past our management. Additionally, many of those dangers and uncertainties are, and should proceed to be,
amplified by impacts from the struggle between Russia and Ukraine, as properly as the ongoing coronavirus
(“COVID-19”) pandemic and associated macroeconomic situations (including inflation). Important factors
that could trigger our precise outcomes, efficiency and achievements, or industry outcomes to differ
materially from estimates or projections contained in or implied by our forward-looking statements
embrace, among others, the next: the impact of general industry and basic financial situations,
together with industrial, governmental, and public and private sector spending and the power of the
residential and industrial actual estate markets, on economic activity and our operations; geopolitical
events, together with the war between Russia and Ukraine, and regulatory, financial and other risks
related to our global sales and operations, including with respect to home content
necessities relevant to initiatives with governmental funding; continued uncertainty around the
ongoing COVID-19 pandemic’s magnitude, length and impacts on our business, operations, progress,
and monetary condition; precise or potential different epidemics, pandemics or international well being crises;
availability, shortage or delays in receiving electronic components (in explicit, semiconductors), elements,
and uncooked supplies from our supply chain; manufacturing and operating value will increase because of
macroeconomic conditions, including inflation, supply chain shortages, logistics challenges, tight labor
markets, prevailing price modifications, tariffs and other elements; demand for our products; disruption,
competition or pricing pressures within the markets we serve; cybersecurity incidents or other disruptions of
information technology methods on which we rely, or involving our merchandise; disruptions in operations at
our services or that of third parties upon which we rely; capacity to retain and attract senior administration
and other numerous and key talent, in addition to competition for total talent and labor; issue predicting
our monetary outcomes; defects, safety, guarantee and legal responsibility claims, and remembers with respect to merchandise;
availability, regulation or interference with radio spectrum used by certain of our products; uncertainty
associated to restructuring and realignment actions and related expenses and financial savings; our capacity to continue
strategic investments for development; our capability to successfully identify, execute and integrate acquisitions;
volatility in served markets or impacts on business and operations because of climate circumstances, including
the effects of climate change; fluctuations in international currency exchange rates; our ability to borrow or
refinance our present indebtedness and uncertainty around the availability of liquidity enough to fulfill
our needs; danger of future impairments to goodwill and different intangible property; failure to adjust to, or
adjustments in, legal guidelines or laws, including these pertaining to anti-corruption, information privacy and safety,
export and import, competitors, and the setting and climate change; adjustments in our efficient tax
charges or tax bills; authorized, governmental or regulatory claims, investigations or proceedings and
related contingent liabilities; and other components set forth under “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 release regarding our environmental and different
sustainability plans and goals aren’t an indication that these statements are essentially 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 related statements may be based mostly on standards
for measuring progress which might be nonetheless creating, inside controls and processes that proceed to evolve,
and assumptions which are topic to alter sooner or later. All forward-looking statements made herein
are primarily based on information presently out there 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 because of new
info, future events or in any other case, except as required by law
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