FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust continuing demand drove sturdy natural 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.sixty six
• Adjusted EBITDA margin exceeded steerage by one hundred sixty basis factors
• Raising full-year organic income steering to a spread of 8% to 10% from 4% to
6%, and adjusted EPS to a range 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 dedicated to fixing the world’s most challenging water points, at present reported second quarter
revenue of $1.four billion, surpassing previous steerage in each enterprise phase. Strong continued
world demand drove orders and backlog growth across the portfolio.
Second quarter adjusted earnings earlier than interest, tax, depreciation and amortization (EBITDA) margin
was sixteen.6 percent, higher than the Company’s earlier steerage and reflecting a year-over-year
lower of 70 foundation points. Inflation and the impression of constant chip shortages drove the margin
decline, exceeding the advantages of value realization and productiveness savings. Xylem generated internet
revenue of $112 million, or $0.sixty two per share, and adjusted web earnings of $120 million, or $0.66 per share,
which excludes the impression of restructuring, realignment and special charges.
“The team delivered very sturdy second quarter efficiency on all key metrics, and well ahead of our
steering for the quarter,” stated Patrick Decker, Xylem president and CEO. “The result reflects our
business momentum on persevering with underlying demand, disciplined operational execution, and a
reasonable easing in chip provide constraints.”
“On the energy of strong backlog and orders growth, and the team’s demonstrated success mitigating
the results of inflation, we are elevating our full-year steering on income and earnings. This additional
reinforces our longer-term progress and worth creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 natural revenue development to be in the vary of 8 to 10 %, and three
to five p.c on a reported foundation. This represents a rise from the Company’s previous full-year
organic revenue guidance of 4 to 6 p.c, and 1 to 3 % on a reported foundation. Full-year 2022
adjusted EBITDA margin is now expected to be within the vary of 16.5 to 17.0 percent, raising the low finish
of the earlier vary of 16.zero to 17.0 p.c. This results in 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 elevated steerage reflects
robust demand, gradual easing of supply chain constraints and price realization partially offset by
inflation and overseas exchange 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 steerage only on a non-GAAP
basis as a end result of inherent issue in forecasting certain quantities 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 clear water
delivery, wastewater transport and remedy, and dewatering.
• Second quarter 2022 Water Infrastructure revenue was $589 million, a 9.zero percent increase
organically in contrast with second quarter 2021. ราคาเกจวัดแรงดันน้ำ was pushed by sturdy worth
realization, industrial dewatering demand, and healthy activity in our wastewater utility enterprise
in the us and Western Europe.
• Second quarter adjusted EBITDA margin was 21.four %, up 240 foundation factors 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 interval final yr. Reported operating margin for
the segment was 18.three percent, up 200 foundation factors versus the prior yr, and adjusted
working margin was 18.8 percent, up a hundred and eighty foundation factors versus the prior year. Strong worth
realization, quantity, and productivity financial savings greater than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water phase consists of its portfolio of businesses in industrial, business constructing,
and residential purposes.
• Second quarter 2022 Applied Water revenue was $429 million, a 7.zero percent increase
organically year-over-year. The segment delivered robust worth realization and backlog
execution in industrial and residential end markets, partially offset by continued supply chain
constraints in business buildings in the United States.
• Second quarter adjusted EBITDA margin was sixteen.1 percent, down a hundred thirty foundation points from the
prior yr. Reported operating revenue for the phase was $61 million and adjusted operating
earnings, which excludes $2 million of restructuring and realignment prices, was $63 million, a four.5
p.c lower versus the comparable period final yr. The phase reported working
margin was 14.2 p.c, down one hundred thirty foundation points versus the prior year interval. Adjusted
working margin declined 120 foundation points to 14.7 percent. Strong worth realization and
productivity savings had been more than offset by inflation and lower volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions phase consists of its portfolio of businesses in smart
metering, community technologies, advanced infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions revenue was $346 million, down 2.0
p.c organically versus the prior 12 months. While เกจวัดไนโตรเจนราคา remains constrained, the result is
better than our expectations because of improved chip supply in the quarter, and energy in our
water high quality test applications.
• Second quarter adjusted EBITDA margin was 9.8 percent, down 410 basis factors from the prior
12 months. Reported operating revenue for the phase was $(5) million, and adjusted operating
income, which excludes $3 million of restructuring and realignment prices and $1 million of
shortages, unfavorable combine and higher inflation greater than offset value realization and
productiveness savings.
Supplemental data 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 leading global water technology company committed to fixing crucial water and
infrastructure challenges with innovation. Our 17,000 various staff delivered revenue of $5.2
billion in 2021. We are making a extra sustainable world by enabling our prospects to optimize water
and useful resource administration, and helping communities in additional than one hundred fifty nations become watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press launch incorporates “forward-looking statements” inside 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 phrases “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“contemplate,” “predict,” “forecast,” “likely,” “believe,” “target,” “will,” “could,” “would,” “should,”
“potential,” “may” and related expressions or their unfavorable, could, however are not necessary to, establish
forward-looking statements. By their nature, forward-looking statements handle unsure matters and
embrace any statements that are not historical, such as statements about our strategy, financial plans,
outlook, aims, plans, intentions or targets (including these related to our social, environmental and
other sustainability goals); or handle possible or future outcomes of operations or financial efficiency,
together with statements regarding orders, revenues, operating margins and earnings per share progress.
Although we imagine that the expectations reflected in any of our forward-looking statements are
reasonable, precise results may differ materially from those projected or assumed in any of our forwardlooking statements. Our future monetary situation and outcomes of operations, as nicely as any forwardlooking statements, are topic to alter and to inherent dangers and uncertainties, many of that are
beyond our control. Additionally, many of those risks and uncertainties are, and should proceed to be,
amplified by impacts from the struggle between Russia and Ukraine, as well as the continued coronavirus
(“COVID-19”) pandemic and related macroeconomic circumstances (including inflation). Important factors
that could trigger our actual results, performance and achievements, or business results to vary
materially from estimates or projections contained in or implied by our forward-looking statements
embody, amongst others, the following: the impression of general business and general economic situations,
including industrial, governmental, and public and private sector spending and the energy of the
residential and business real property markets, on economic activity and our operations; geopolitical
occasions, including the struggle between Russia and Ukraine, and regulatory, economic and different dangers
associated with our world sales and operations, together with with respect to home content
requirements applicable to initiatives with governmental funding; continued uncertainty across the
ongoing COVID-19 pandemic’s magnitude, period and impacts on our enterprise, operations, growth,
and financial condition; actual or potential other epidemics, pandemics or international health crises;
availability, scarcity or delays in receiving digital elements (in particular, semiconductors), elements,
and uncooked supplies from our supply chain; manufacturing and operating cost will increase due to
macroeconomic circumstances, together with inflation, supply chain shortages, logistics challenges, tight labor
markets, prevailing worth adjustments, tariffs and different components; demand for our products; disruption,
competitors or pricing pressures in the markets we serve; cybersecurity incidents or different disruptions of
info expertise techniques on which we rely, or involving our merchandise; disruptions in operations at
our amenities or that of third events upon which we rely; capacity to retain and attract senior management
and different various and key expertise, in addition to competitors for general expertise and labor; problem predicting
our monetary results; defects, safety, warranty and legal responsibility claims, and recalls with respect to merchandise;
availability, regulation or interference with radio spectrum utilized by certain of our products; uncertainty
related to restructuring and realignment actions and related expenses and savings; our capacity to continue
strategic investments for growth; our capacity to successfully establish, execute and combine acquisitions;
volatility in served markets or impacts on enterprise and operations as a outcome of weather circumstances, including
the consequences of climate change; fluctuations in foreign currency exchange charges; our ability to borrow or
refinance our current indebtedness and uncertainty across the availability of liquidity sufficient to fulfill
our wants; threat of future impairments to goodwill and other intangible belongings; failure to comply with, or
modifications in, laws or laws, including those pertaining to anti-corruption, information privacy and security,
export and import, competition, and the surroundings and local weather change; modifications in our effective tax
rates or tax bills; authorized, governmental or regulatory claims, investigations or proceedings and
related contingent liabilities; and different 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 other statements on this press release relating to our environmental and other
sustainability plans and targets aren’t an indication that these statements are necessarily materials to
investors or are required to be disclosed in our filings with the SEC. In addition, historical, current, and
forward-looking social, environmental and sustainability associated statements may be based on requirements
for measuring progress which would possibly be nonetheless developing, internal controls and processes that proceed to evolve,
and assumptions which are subject to vary in the future. All forward-looking statements made herein
are based on data presently 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 as a outcome of new
data, future events or otherwise, except as required by regulation
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