Xylem Reports Second Quarter 2022 Results

FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust continuing demand drove sturdy natural orders development: 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.sixty six
• Adjusted EBITDA margin exceeded steerage by one hundred sixty foundation factors
• Raising full-year organic revenue steering to a variety 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 international water technology
company devoted to solving the world’s most difficult water issues, today reported second quarter
income of $1.4 billion, surpassing earlier steering in every enterprise phase. Strong continued
global demand drove orders and backlog development throughout the portfolio.
Second quarter adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margin
was 16.6 percent, better than the Company’s previous guidance and reflecting a year-over-year
decrease of 70 foundation points. Inflation and the impact of constant chip shortages drove the margin
decline, exceeding the advantages of worth realization and productiveness savings. Xylem generated web
revenue of $112 million, or $0.62 per share, and adjusted net earnings of $120 million, or $0.66 per share,
which excludes the impact of restructuring, realignment and particular costs.
“ เกจวัดแรงดันปั๊มลม delivered very strong second quarter performance on all key metrics, and nicely forward of our
guidance for the quarter,” stated Patrick Decker, Xylem president and CEO. “The result reflects our
industrial momentum on persevering with underlying demand, disciplined operational execution, and a
moderate easing in chip supply constraints.”
“On the energy of robust backlog and orders development, and the team’s demonstrated success mitigating
the effects of inflation, we are raising our full-year steerage on income and earnings. This further
reinforces our longer-term development and worth creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 natural revenue growth to be within the range of eight to 10 p.c, and 3
to five % on a reported foundation. This represents a rise from the Company’s earlier full-year
organic revenue steering of 4 to six p.c, and 1 to three p.c on a reported foundation. Full-year 2022
adjusted EBITDA margin is now anticipated to be within the range of 16.5 to 17.0 percent, raising the low finish
of the earlier vary of sixteen.zero to 17.zero p.c. This ends in adjusted earnings per share of $2.50 to
$2.70, raising the low finish from the earlier vary of $2.40 to $2.70. The increased steering reflects
strong demand, gradual easing of supply chain constraints and worth 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 offers guidance only on a non-GAAP
foundation as a end result of inherent issue in forecasting certain quantities that might be included in GAAP
earnings, similar 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
supply, wastewater transport and therapy, and dewatering.
• Second quarter 2022 Water Infrastructure income was $589 million, a 9.0 p.c improve
organically in contrast with second quarter 2021. This sturdy growth was pushed by robust value
realization, industrial dewatering demand, and wholesome activity in our wastewater utility business
in the us and Western Europe.
• Second quarter adjusted EBITDA margin was 21.4 %, up 240 basis points from the prior
yr. Reported operating earnings for the segment was $108 million. Adjusted working earnings
for the phase, which excludes $3 million of restructuring and realignment, was $111 million, a
14.four % increase versus the comparable interval last year. Reported working margin for
the section was 18.three %, up 200 basis factors versus the prior year, and adjusted
working margin was 18.eight %, up a hundred and eighty basis points versus the prior 12 months. Strong worth
realization, volume, and productivity financial savings greater than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water section consists of its portfolio of companies in industrial, industrial building,
and residential purposes.
• Second quarter 2022 Applied Water income was $429 million, a 7.zero p.c improve
organically year-over-year. The phase delivered sturdy price 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 p.c, down one hundred thirty foundation points from the
prior year. Reported working revenue for the phase was $61 million and adjusted operating
income, which excludes $2 million of restructuring and realignment costs, was $63 million, a four.5
% lower versus the comparable period final yr. The phase reported operating
margin was 14.2 %, down 130 foundation points versus the prior 12 months interval. Adjusted
operating margin declined one hundred twenty foundation points to 14.7 p.c. Strong value realization and
productiveness savings were more than offset by inflation and decrease volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions section consists of its portfolio of businesses in good
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 year. While chip supply remains constrained, the result’s
better than our expectations because of improved chip provide in the quarter, and energy in our
water quality test functions.
• Second quarter adjusted EBITDA margin was 9.eight %, down 410 basis points from the prior
year. Reported working revenue for the segment was $(5) million, and adjusted working
earnings, which excludes $3 million of restructuring and realignment prices and $1 million of
shortages, unfavorable mix and better inflation more than offset price realization and
productiveness financial savings.
Supplemental data on Xylem’s second quarter 2022 earnings and reconciliations for sure nonGAAP gadgets is posted at www.xylem.com/investors.
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About Xylem
Xylem (XYL) is a leading international water expertise company committed to fixing crucial water and
infrastructure challenges with innovation. Our 17,000 diverse workers delivered revenue of $5.2
billion in 2021. We are making a more sustainable world by enabling our prospects to optimize water
and useful resource management, and serving to communities in more than one hundred fifty nations become watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press release incorporates “forward-looking statements” within 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, may, however are not essential to, determine
forward-looking statements. By their nature, forward-looking statements handle unsure matters and
embody any statements that aren’t historic, such as statements about our strategy, financial plans,
outlook, goals, plans, intentions or goals (including those associated to our social, environmental and
other sustainability goals); or handle potential or future results of operations or financial performance,
including statements regarding orders, revenues, working margins and earnings per share progress.
Although we consider that the expectations reflected in any of our forward-looking statements are
cheap, actual results could differ materially from these projected or assumed in any of our forwardlooking statements. Our future financial condition and results of operations, in addition to any forwardlooking statements, are subject to change and to inherent dangers and uncertainties, many of that are
past our management. Additionally, many of those dangers and uncertainties are, and will continue to be,
amplified by impacts from the warfare between Russia and Ukraine, as properly as the ongoing coronavirus
(“COVID-19”) pandemic and related macroeconomic circumstances (including inflation). Important components
that could trigger our precise results, efficiency and achievements, or industry results to differ
materially from estimates or projections contained in or implied by our forward-looking statements
embrace, among others, the next: the influence of total industry and general economic situations,
together with industrial, governmental, and public and private sector spending and the strength of the
residential and business real property markets, on economic exercise and our operations; geopolitical
events, together with the warfare between Russia and Ukraine, and regulatory, economic and different dangers
associated with our international gross sales and operations, together with with respect to home content
requirements relevant to projects with governmental funding; continued uncertainty around the
ongoing COVID-19 pandemic’s magnitude, duration and impacts on our enterprise, operations, progress,
and monetary condition; precise or potential different epidemics, pandemics or world health crises;
availability, shortage or delays in receiving electronic components (in explicit, semiconductors), components,
and raw materials from our supply chain; manufacturing and working cost increases due to
macroeconomic circumstances, including inflation, provide chain shortages, logistics challenges, tight labor
markets, prevailing price changes, tariffs and other elements; demand for our products; disruption,
competitors or pricing pressures within the markets we serve; cybersecurity incidents or other disruptions of
information technology techniques on which we rely, or involving our merchandise; disruptions in operations at
our services or that of third events upon which we rely; capability to retain and entice senior administration
and other diverse and key talent, as properly as competition for total expertise and labor; difficulty 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
related to restructuring and realignment actions and related charges and savings; our capability to continue
strategic investments for development; our capability to successfully identify, execute and combine acquisitions;
volatility in served markets or impacts on enterprise and operations as a outcome of climate situations, together with
the consequences of climate change; fluctuations in international forex change rates; our capability to borrow or
refinance our present indebtedness and uncertainty across the availability of liquidity adequate to satisfy
our wants; danger of future impairments to goodwill and other intangible assets; failure to adjust to, or
changes in, legal guidelines or rules, including those pertaining to anti-corruption, data privateness and safety,
export and import, competitors, and the setting and local weather change; changes in our efficient tax
charges or tax expenses; legal, governmental or regulatory claims, investigations or proceedings and
associated contingent liabilities; and other factors 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 concerning our environmental and other
sustainability plans and targets aren’t a sign that these statements are necessarily material 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 could also be primarily based on standards
for measuring progress which are nonetheless creating, inside controls and processes that continue to evolve,
and assumptions which are subject to alter in the future. All forward-looking statements made herein
are primarily based on information at present obtainable 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 because of new
data, future events or otherwise, except as required by legislation
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