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Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust continuing demand drove strong organic orders progress: 1% on a reported
basis, 6% organically
• Revenue of $1.four billion, up 1% on a reported foundation, up 6% organically
• Earnings per share of $0.62, adjusted earnings per share of $0.66
• Adjusted EBITDA margin exceeded steerage by one hundred sixty basis points
• Raising full-year organic income steerage to a spread of 8% to 10% from 4% to
6%, and adjusted EPS to a variety of $2.50 to $2.70 from $2.forty to $2.70
Washington, D.C., August 2, 2022 – Xylem Inc. (NYSE: XYL), a number one global water expertise
company dedicated to solving the world’s most challenging water issues, today reported second quarter
income of $1.4 billion, surpassing previous steering in every business segment. Strong continued
global demand drove orders and backlog growth across the portfolio.
Second quarter adjusted earnings before curiosity, tax, depreciation and amortization (EBITDA) margin
was sixteen.6 p.c, higher than the Company’s earlier steering and reflecting a year-over-year
lower of 70 basis factors. Inflation and the impression of constant chip shortages drove the margin
decline, exceeding the benefits of price realization and productiveness financial savings. Xylem generated web
earnings of $112 million, or $0.62 per share, and adjusted internet earnings of $120 million, or $0.66 per share,
which excludes the impact of restructuring, realignment and particular costs.
“The team delivered very sturdy second quarter performance on all key metrics, and nicely forward of our
steerage for the quarter,” said Patrick Decker, Xylem president and CEO. “The result reflects our
industrial momentum on continuing underlying demand, disciplined operational execution, and a
average easing in chip provide constraints.”
“On the power of robust backlog and orders development, and the team’s demonstrated success mitigating
the effects of inflation, we are raising our full-year steering on revenue and earnings. This further
reinforces our longer-term progress and value creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 natural revenue progress to be in the vary of 8 to 10 p.c, and three
to five p.c on a reported basis. This represents an increase from the Company’s earlier full-year
natural income steerage of four to six %, and 1 to three % on a reported basis. Full-year 2022
adjusted EBITDA margin is now anticipated to be within the vary of 16.5 to 17.0 percent, raising the low finish
of the earlier range of 16.zero 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 steering displays
robust demand, gradual easing of supply chain constraints and price realization partially offset by
inflation and foreign trade headwinds.
Further 2022 planning assumptions are included in Xylem’s second quarter 2022 earnings materials
posted at www.xylem.com/investors. Excluding income, Xylem offers guidance 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 items, with out unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure segment consists of its portfolio of companies serving clean water
supply, wastewater transport and remedy, and dewatering.
• Second quarter 2022 Water Infrastructure income was $589 million, a 9.zero p.c improve
organically in contrast with second quarter 2021. This robust development was pushed by robust price
realization, industrial dewatering demand, and healthy exercise in our wastewater utility enterprise
in the united states and Western Europe.
• Second quarter adjusted EBITDA margin was 21.four %, up 240 basis factors from the prior
year. Reported operating earnings for the phase was $108 million. Adjusted operating earnings
for the section, which excludes $3 million of restructuring and realignment, was $111 million, a
14.four percent increase versus the comparable period final yr. Reported operating เกจ์วัดแรงดันแก๊ส for
the phase was 18.3 %, up 200 foundation points versus the prior yr, and adjusted
working margin was 18.eight %, up 180 foundation factors versus the prior year. Strong value
realization, volume, and productiveness savings more than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water segment consists of its portfolio of businesses in industrial, industrial building,
and residential applications.
• Second quarter 2022 Applied Water revenue was $429 million, a 7.0 p.c increase
organically year-over-year. The section delivered strong value realization and backlog
execution in industrial and residential finish markets, partially offset by continued provide chain
constraints in industrial buildings in the United States.
• Second quarter adjusted EBITDA margin was 16.1 percent, down one hundred thirty basis factors from the
prior yr. Reported operating revenue for the phase was $61 million and adjusted working
income, which excludes $2 million of restructuring and realignment costs, was $63 million, a four.5
p.c decrease versus the comparable period final yr. The segment reported operating
margin was 14.2 %, down one hundred thirty foundation factors versus the prior yr period. Adjusted
operating margin declined 120 basis points to 14.7 p.c. Strong worth realization and
productiveness financial savings were more than offset by inflation and lower quantity.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions phase consists of its portfolio of companies in good
metering, community technologies, 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 supply stays constrained, the result’s
higher than our expectations due to improved chip supply in the quarter, and energy in our
water high quality check functions.
• Second quarter adjusted EBITDA margin was 9.8 %, down 410 foundation points from the prior
year. Reported working revenue 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 higher inflation more than offset worth realization and
productivity financial savings.
Supplemental information on Xylem’s second quarter 2022 earnings and reconciliations for certain nonGAAP items is posted at www.xylem.com/investors.
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About Xylem
Xylem (XYL) is a number one global water technology company dedicated to solving critical water and
infrastructure challenges with innovation. Our 17,000 various employees delivered income of $5.2
billion in 2021. We are creating 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 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 related expressions or their negative, may, however usually are not essential to, establish
forward-looking statements. By their nature, forward-looking statements handle uncertain matters and
embody any statements that are not historical, similar to statements about our technique, monetary plans,
outlook, objectives, plans, intentions or goals (including those associated to our social, environmental and
other sustainability goals); or address attainable or future outcomes of operations or financial performance,
including statements regarding orders, revenues, operating margins and earnings per share progress.
Although we imagine that the expectations mirrored in any of our forward-looking statements are
affordable, precise outcomes may differ materially from these projected or assumed in any of our forwardlooking statements. Our future monetary condition and results of operations, in addition to any forwardlooking statements, are subject to vary and to inherent risks and uncertainties, many of which are
beyond our management. Additionally, many of those dangers and uncertainties are, and will proceed to be,
amplified by impacts from the struggle between Russia and Ukraine, as nicely as the continued coronavirus
(“COVID-19”) pandemic and related macroeconomic circumstances (including inflation). Important elements
that would cause our actual results, efficiency and achievements, or industry results to differ
materially from estimates or projections contained in or implied by our forward-looking statements
embrace, amongst others, the next: the influence of total industry and basic economic conditions,
together with industrial, governmental, and private and non-private sector spending and the power of the
residential and industrial real property markets, on economic exercise and our operations; geopolitical
events, including the war between Russia and Ukraine, and regulatory, economic and other dangers
associated with our international sales and operations, including with respect to home content material
necessities relevant to projects with governmental funding; continued uncertainty across the
ongoing COVID-19 pandemic’s magnitude, length and impacts on our enterprise, operations, progress,
and financial condition; precise or potential other epidemics, pandemics or global health crises;
availability, scarcity or delays in receiving digital elements (in particular, semiconductors), components,
and uncooked materials from our supply chain; manufacturing and working price will increase as a outcome of
macroeconomic situations, together with inflation, supply chain shortages, logistics challenges, tight labor
markets, prevailing price adjustments, tariffs and different factors; demand for our products; disruption,
competitors or pricing pressures in the markets we serve; cybersecurity incidents or other disruptions of
data know-how techniques on which we rely, or involving our products; disruptions in operations at
our amenities or that of third events upon which we rely; ability to retain and attract senior management
and other diverse and key expertise, in addition to competitors for general expertise and labor; problem predicting
our financial results; defects, safety, guarantee and legal responsibility claims, and remembers with respect to products;
availability, regulation or interference with radio spectrum used by sure of our merchandise; uncertainty
associated to restructuring and realignment actions and related charges and savings; our capacity to continue
strategic investments for growth; our ability to successfully determine, execute and combine acquisitions;
volatility in served markets or impacts on business and operations as a outcome of weather situations, including
the results of local weather change; fluctuations in foreign forex exchange rates; our capacity to borrow or
refinance our current indebtedness and uncertainty around the availability of liquidity sufficient to fulfill
our wants; risk of future impairments to goodwill and different intangible assets; failure to comply with, or
changes in, laws or regulations, including those pertaining to anti-corruption, knowledge privateness and security,
export and import, competitors, and the environment and local weather change; modifications in our effective tax
charges or tax bills; authorized, governmental or regulatory claims, investigations or proceedings and
related contingent liabilities; and different factors set forth beneath “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 other statements in this press launch regarding our environmental and different
sustainability plans and targets usually are not an indication that these statements are essentially materials to
traders or are required to be disclosed in our filings with the SEC. In addition, historic, current, and
forward-looking social, environmental and sustainability associated statements may be based on standards
for measuring progress which are still growing, inside controls and processes that continue to evolve,
and assumptions that are topic to vary 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 release. We undertake no
obligation to publicly update or revise any forward-looking statements, whether as a result of new
information, future events or in any other case, besides as required by legislation
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