FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
Share
Robust persevering with demand drove sturdy natural orders development: 1% on a reported
foundation, 6% organically
• Revenue of $1.4 billion, up 1% on a reported foundation, up 6% organically
• Earnings per share of $0.sixty two, adjusted earnings per share of $0.66
• Adjusted EBITDA margin exceeded steering by a hundred and sixty foundation points
• Raising full-year natural income 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 number one international water know-how
company dedicated to fixing the world’s most challenging water points, right now reported second quarter
income of $1.4 billion, surpassing earlier steering in every enterprise segment. Strong continued
international demand drove orders and backlog progress throughout 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
lower of 70 foundation factors. Inflation and the influence of continuous chip shortages drove the margin
decline, exceeding the advantages of price realization and productivity savings. Xylem generated web
earnings of $112 million, or $0.62 per share, and adjusted net earnings of $120 million, or $0.sixty six per share,
which excludes the impact of restructuring, realignment and particular costs.
“The group delivered very sturdy second quarter efficiency 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
commercial momentum on persevering with underlying demand, disciplined operational execution, and a
reasonable easing in chip provide constraints.”
“On the strength of robust backlog and orders progress, and the team’s demonstrated success mitigating
the results of inflation, we’re elevating our full-year steerage on revenue and earnings. This additional
reinforces our longer-term development and value creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 organic income progress to be in the range of eight to 10 percent, and three
to five p.c on a reported foundation. This represents an increase from the Company’s previous full-year
natural revenue steering of four to 6 percent, and 1 to 3 p.c on a reported foundation. Full-year 2022
adjusted EBITDA margin is now expected to be in the vary of sixteen.5 to 17.zero p.c, elevating the low finish
of the previous vary of sixteen.zero to 17.0 percent. 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 elevated guidance reflects
robust demand, gradual easing of provide chain constraints and value realization partially offset by
inflation and overseas trade headwinds.
Further 2022 planning assumptions are included in Xylem’s second quarter 2022 earnings supplies
posted at www.xylem.com/investors. Excluding revenue, Xylem offers guidance solely on a non-GAAP
foundation because of the inherent issue in forecasting sure amounts that might be included in GAAP
earnings, corresponding to discrete tax objects, with out unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure section consists of its portfolio of companies serving clear water
delivery, wastewater transport and remedy, and dewatering.
• Second quarter 2022 Water Infrastructure income was $589 million, a 9.zero % increase
organically in contrast with second quarter 2021. This robust development was pushed by strong value
realization, industrial dewatering demand, and healthy activity in our wastewater utility enterprise
in the U.S. and Western Europe.
• Second quarter adjusted EBITDA margin was 21.4 p.c, up 240 foundation points from the prior
12 months. Reported working revenue for the phase was $108 million. Adjusted operating revenue
for the segment, which excludes $3 million of restructuring and realignment, was $111 million, a
14.four p.c enhance versus the comparable interval last yr. Reported working margin for
the phase was 18.three percent, up 200 basis points versus the prior year, and adjusted
working margin was 18.eight p.c, up one hundred eighty basis points versus the prior 12 months. Strong worth
realization, quantity, and productivity financial savings more than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water phase consists of its portfolio of businesses in industrial, industrial constructing,
and residential applications.
• Second quarter 2022 Applied Water revenue was $429 million, a 7.0 p.c increase
organically year-over-year. The phase delivered strong worth realization and backlog
execution in industrial and residential finish markets, partially offset by continued supply chain
constraints in business buildings in the United States.
• Second quarter adjusted EBITDA margin was sixteen.1 %, down one hundred thirty foundation points from the
prior 12 months. Reported operating income for the section was $61 million and adjusted working
earnings, which excludes $2 million of restructuring and realignment costs, was $63 million, a four.5
percent decrease versus the comparable interval final yr. The segment reported working
margin was 14.2 p.c, down a hundred thirty foundation points versus the prior year interval. Adjusted
operating margin declined one hundred twenty basis points to 14.7 %. Strong price realization and
productivity savings had been greater than offset by inflation and decrease volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions phase consists of its portfolio of businesses in sensible
metering, network applied sciences, superior infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions revenue was $346 million, down 2.zero
percent 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 power in our
water quality check functions.
• Second quarter adjusted EBITDA margin was 9.eight percent, down 410 basis factors from the prior
year. Reported working income for the phase was $(5) million, and adjusted operating
revenue, which excludes $3 million of restructuring and realignment costs and $1 million of
shortages, unfavorable mix and higher inflation greater than offset value realization and
productivity financial savings.
Supplemental information on Xylem’s second quarter 2022 earnings and reconciliations for sure nonGAAP gadgets is posted at www.xylem.com/investors.
#
About Xylem
Xylem (XYL) is a quantity one global water expertise firm committed to solving important water and
infrastructure challenges with innovation. Our 17,000 diverse staff delivered revenue of $5.2
billion in 2021. We are making a extra sustainable world by enabling our customers to optimize water
and resource management, and serving to communities in additional than 150 nations turn into watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning 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 adverse, may, but are not necessary to, determine
forward-looking statements. By their nature, forward-looking statements handle unsure matters and
embrace any statements that are not historical, corresponding to statements about our technique, monetary plans,
outlook, goals, plans, intentions or objectives (including those related to our social, environmental and
other sustainability goals); or address possible or future outcomes of operations or financial performance,
including statements referring to orders, revenues, working margins and earnings per share growth.
Although we imagine that the expectations mirrored in any of our forward-looking statements are
reasonable, actual results could differ materially from these projected or assumed in any of our forwardlooking statements. Our future monetary situation and outcomes of operations, as well as any forwardlooking statements, are topic to vary and to inherent risks and uncertainties, a lot of that are
beyond our management. Additionally, many of these dangers and uncertainties are, and will continue to be,
amplified by impacts from the war between Russia and Ukraine, in addition to the continued coronavirus
(“COVID-19”) pandemic and related macroeconomic situations (including inflation). Important elements
that might cause our actual outcomes, efficiency and achievements, or trade results to vary
materially from estimates or projections contained in or implied by our forward-looking statements
include, amongst others, the next: the impact of total industry and basic economic situations,
including industrial, governmental, and private and non-private sector spending and the energy of the
residential and commercial actual estate markets, on economic exercise and our operations; geopolitical
occasions, including the war between Russia and Ukraine, and regulatory, economic and different dangers
related to our world sales and operations, together with with respect to domestic content material
necessities relevant to initiatives with governmental funding; continued uncertainty across the
ongoing COVID-19 pandemic’s magnitude, duration and impacts on our business, operations, development,
and financial situation; precise or potential other epidemics, pandemics or international health crises;
availability, shortage or delays in receiving digital elements (in specific, semiconductors), parts,
and uncooked supplies from our provide chain; manufacturing and working value increases because of
macroeconomic situations, together with inflation, supply chain shortages, logistics challenges, tight labor
markets, prevailing value adjustments, tariffs and other factors; demand for our products; disruption,
competitors or pricing pressures in the markets we serve; cybersecurity incidents or different disruptions of
data technology methods on which we rely, or involving our merchandise; disruptions in operations at
our facilities or that of third events upon which we rely; capacity to retain and entice senior administration
and other diverse and key expertise, as properly as competitors for total expertise and labor; problem predicting
our monetary outcomes; defects, safety, warranty and liability claims, and recollects with respect to products;
availability, regulation or interference with radio spectrum utilized by sure of our products; uncertainty
associated to restructuring and realignment actions and associated costs and savings; our capacity to continue
strategic investments for growth; our capacity to efficiently identify, execute and combine acquisitions;
volatility in served markets or impacts on business and operations because of climate circumstances, together with
the results of climate change; fluctuations in foreign currency change rates; our capacity to borrow or
refinance our current indebtedness and uncertainty across the availability of liquidity adequate to fulfill
our needs; danger of future impairments to goodwill and different intangible assets; failure to adjust to, or
modifications in, legal guidelines or regulations, together with these pertaining to anti-corruption, information privateness and safety,
export and import, competitors, and the surroundings and local weather change; changes in our effective tax
charges or tax expenses; legal, governmental or regulatory claims, investigations or proceedings and
related contingent liabilities; and other elements set forth beneath “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 on this press launch regarding our environmental and other
sustainability plans and goals usually are not a sign that these statements are essentially material to
investors or are required to be disclosed in our filings with the SEC. In addition, historical, present, and
forward-looking social, environmental and sustainability related statements could also be based on requirements
for measuring progress that are still growing, inside controls and processes that continue to evolve,
and assumptions which would possibly be topic to change sooner or later. เกจวัดแรงกด -looking statements made herein
are based on info at present available 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 because of new
information, future occasions or in any other case, besides as required by legislation
Share