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
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.sixty six
• Adjusted EBITDA margin exceeded steering by a hundred and sixty foundation points
• Raising full-year natural revenue guidance to a range 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 technology
company devoted to fixing the world’s most difficult water points, today reported second quarter
revenue of $1.four billion, surpassing earlier steerage in each business section. เพรสเชอร์เกจ continued
global demand drove orders and backlog development across the portfolio.
Second quarter adjusted earnings earlier than curiosity, tax, depreciation and amortization (EBITDA) margin
was 16.6 p.c, better than the Company’s earlier steerage and reflecting a year-over-year
lower of 70 basis points. Inflation and the influence of continuing chip shortages drove the margin
decline, exceeding the advantages of worth realization and productiveness savings. Xylem generated net
income of $112 million, or $0.62 per share, and adjusted internet earnings of $120 million, or $0.66 per share,
which excludes the impression of restructuring, realignment and special expenses.
“The team delivered very robust second quarter efficiency on all key metrics, and well ahead of our
steerage for the quarter,” mentioned Patrick Decker, Xylem president and CEO. “The outcome reflects our
industrial momentum on persevering with underlying demand, disciplined operational execution, and a
reasonable easing in chip supply constraints.”
“On the strength of sturdy backlog and orders growth, and the team’s demonstrated success mitigating
the effects of inflation, we’re raising our full-year steerage on revenue and earnings. This further
reinforces our longer-term progress and worth creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 natural revenue growth to be in the range of eight to 10 percent, and 3
to five percent on a reported basis. This represents a rise from the Company’s earlier full-year
natural income steering of 4 to 6 p.c, and 1 to 3 p.c on a reported foundation. Full-year 2022
adjusted EBITDA margin is now anticipated to be in the vary of 16.5 to 17.0 p.c, elevating the low end
of the earlier range of 16.zero to 17.0 p.c. This leads to adjusted earnings per share of $2.50 to
$2.70, raising the low end from the previous range of $2.forty to $2.70. The increased guidance reflects
robust demand, gradual easing of supply chain constraints and worth 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 revenue, Xylem provides guidance solely on a non-GAAP
foundation as a end result of inherent issue in forecasting certain amounts that would be included in GAAP
earnings, such as discrete tax gadgets, without unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure section consists of its portfolio of businesses serving clear water
delivery, wastewater transport and treatment, and dewatering.
• Second quarter 2022 Water Infrastructure income was $589 million, a 9.zero % improve
organically in contrast with second quarter 2021. This strong growth was pushed by sturdy worth
realization, industrial dewatering demand, and wholesome exercise in our wastewater utility enterprise
in the united states and Western Europe.
• Second quarter adjusted EBITDA margin was 21.4 p.c, up 240 foundation points from the prior
year. Reported working pressure gauge 10 bar for the segment was $108 million. Adjusted operating income
for the phase, which excludes $3 million of restructuring and realignment, was $111 million, a
14.4 percent improve versus the comparable period final year. Reported working margin for
the section was 18.3 p.c, up 200 basis factors versus the prior year, and adjusted
working margin was 18.8 percent, up a hundred and eighty foundation factors versus the prior yr. Strong price
realization, quantity, and productivity savings greater than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water section consists of its portfolio of companies in industrial, business building,
and residential applications.
• Second quarter 2022 Applied Water income was $429 million, a 7.0 p.c increase
organically year-over-year. The section delivered strong worth realization and backlog
execution in industrial and residential end markets, partially offset by continued supply chain
constraints in commercial buildings within the United States.
• Second quarter adjusted EBITDA margin was sixteen.1 percent, down 130 foundation points from the
prior yr. Reported working earnings for the phase was $61 million and adjusted working
revenue, which excludes $2 million of restructuring and realignment prices, was $63 million, a four.5
p.c lower versus the comparable period final 12 months. The segment reported operating
margin was 14.2 p.c, down one hundred thirty basis points versus the prior yr interval. Adjusted
operating margin declined one hundred twenty foundation points to 14.7 %. Strong value realization and
productiveness financial savings were more than offset by inflation and decrease volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions segment consists of its portfolio of companies in sensible
metering, network technologies, advanced infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions revenue was $346 million, down 2.zero
% organically versus the prior year. While chip provide stays constrained, the result is
higher than our expectations as a end result of improved chip provide in the quarter, and energy in our
water quality check applications.
• Second quarter adjusted EBITDA margin was 9.eight p.c, down 410 basis points from the prior
year. Reported working revenue for the section was $(5) million, and adjusted working
income, which excludes $3 million of restructuring and realignment prices and $1 million of
shortages, unfavorable mix and better inflation more than offset worth realization and
productivity financial savings.
Supplemental data on Xylem’s second quarter 2022 earnings and reconciliations for certain nonGAAP gadgets is posted at www.xylem.com/investors.
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About Xylem
Xylem (XYL) is a leading world water technology firm committed to solving important water and
infrastructure challenges with innovation. Our 17,000 various employees delivered revenue 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 helping communities in more than 150 countries turn out to be 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 phrases “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“contemplate,” “predict,” “forecast,” “likely,” “believe,” “target,” “will,” “could,” “would,” “should,”
“potential,” “may” and similar expressions or their negative, could, however usually are not necessary to, determine
forward-looking statements. By their nature, forward-looking statements handle uncertain matters and
embody any statements that are not historic, similar to statements about our technique, financial plans,
outlook, aims, plans, intentions or goals (including these related to our social, environmental and
different sustainability goals); or tackle possible or future results of operations or monetary efficiency,
together with statements referring to orders, revenues, operating margins and earnings per share progress.
Although we believe that the expectations mirrored in any of our forward-looking statements are
cheap, precise outcomes may differ materially from those projected or assumed in any of our forwardlooking statements. Our future financial situation and outcomes of operations, in addition to any forwardlooking statements, are subject to alter and to inherent dangers and uncertainties, many of which are
beyond our management. Additionally, many of those dangers and uncertainties are, and may continue to be,
amplified by impacts from the warfare between Russia and Ukraine, as nicely as the continuing coronavirus
(“COVID-19”) pandemic and associated macroeconomic circumstances (including inflation). Important components
that might trigger 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
embody, among others, the next: the impact of overall business and basic economic situations,
including industrial, governmental, and public and private sector spending and the energy of the
residential and commercial actual property markets, on financial exercise and our operations; geopolitical
occasions, together with the struggle between Russia and Ukraine, and regulatory, financial and other dangers
related to our world sales and operations, including with respect to domestic content material
requirements relevant to tasks with governmental funding; continued uncertainty across the
ongoing COVID-19 pandemic’s magnitude, length and impacts on our business, operations, progress,
and monetary condition; actual or potential other epidemics, pandemics or world health crises;
availability, shortage or delays in receiving electronic elements (in particular, semiconductors), parts,
and raw materials from our provide chain; manufacturing and working price will increase as a end result of
macroeconomic conditions, together with inflation, supply chain shortages, logistics challenges, tight labor
markets, prevailing worth adjustments, tariffs and different factors; demand for our products; disruption,
competitors or pricing pressures in the markets we serve; cybersecurity incidents or different disruptions of
data expertise techniques 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 appeal to senior management
and different various and key talent, in addition to competition for overall talent and labor; problem predicting
our financial results; defects, safety, warranty and legal responsibility claims, and recalls with respect to products;
availability, regulation or interference with radio spectrum used by certain of our products; uncertainty
associated to restructuring and realignment actions and associated charges and savings; our capability to proceed
strategic investments for progress; our capacity to efficiently identify, execute and combine acquisitions;
volatility in served markets or impacts on business and operations as a outcome of weather circumstances, together with
the results of climate change; fluctuations in international forex trade charges; our capacity to borrow or
refinance our current indebtedness and uncertainty around the availability of liquidity adequate to fulfill
our needs; risk of future impairments to goodwill and other intangible assets; failure to comply with, or
modifications in, laws or laws, together with these pertaining to anti-corruption, information privacy and safety,
export and import, competitors, and the environment and local weather change; adjustments in our efficient tax
charges or tax expenses; legal, governmental or regulatory claims, investigations or proceedings and
associated contingent liabilities; and different components set forth beneath “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 in this press launch relating to our environmental and other
sustainability plans and objectives are not an indication that these statements are necessarily material to
buyers or are required to be disclosed in our filings with the SEC. In addition, historical, present, and
forward-looking social, environmental and sustainability associated statements may be primarily based on requirements
for measuring progress that are still creating, inner controls and processes that continue to evolve,
and assumptions which might be topic to alter sooner or later. All forward-looking statements made herein
are based on information at present available 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 on account of new
information, future occasions or otherwise, besides as required by legislation
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