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 organic orders progress: 1% on a reported
foundation, 6% organically
• Revenue of $1.4 billion, up 1% on a reported basis, up 6% organically
• Earnings per share of $0.sixty two, adjusted earnings per share of $0.66
• Adjusted EBITDA margin exceeded guidance by a hundred and sixty foundation factors
• Raising full-year natural income steerage to a range 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 expertise
company devoted to solving the world’s most difficult water points, today reported second quarter
revenue of $1.4 billion, surpassing previous steering in each business segment. Strong continued
global demand drove orders and backlog development throughout the portfolio.
Second quarter adjusted earnings earlier than curiosity, tax, depreciation and amortization (EBITDA) margin
was sixteen.6 p.c, better than the Company’s earlier steering and reflecting a year-over-year
lower of 70 foundation points. Inflation and the impression of continuing chip shortages drove the margin
decline, exceeding the benefits of value realization and productivity financial savings. Xylem generated internet
income of $112 million, or $0.62 per share, and adjusted internet revenue of $120 million, or $0.66 per share,
which excludes the impression of restructuring, realignment and special costs.
“The team delivered very robust second quarter performance on all key metrics, and properly ahead of our
guidance for the quarter,” stated Patrick Decker, Xylem president and CEO. “The result reflects our
industrial momentum on continuing underlying demand, disciplined operational execution, and a
moderate easing in chip provide constraints.”
“On the energy of robust backlog and orders progress, and the team’s demonstrated success mitigating
the results of inflation, we are elevating our full-year steerage on revenue and earnings. This further
reinforces our longer-term development and value creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 organic income growth to be within the range of 8 to 10 p.c, and three
to five percent on a reported foundation. This represents an increase from the Company’s earlier full-year
organic revenue steerage of 4 to 6 p.c, and 1 to 3 percent on a reported basis. Full-year 2022
adjusted EBITDA margin is now anticipated to be in the vary of 16.5 to 17.zero p.c, elevating the low finish
of the earlier range of sixteen.zero to 17.0 %. This ends in adjusted earnings per share of $2.50 to
$2.70, elevating the low end from the previous range of $2.forty to $2.70. The increased steering displays
strong demand, gradual easing of provide chain constraints and worth realization partially offset by
inflation and international trade headwinds.
Further 2022 planning assumptions are included in Xylem’s second quarter 2022 earnings materials
posted at www.xylem.com/investors. Excluding revenue, Xylem supplies steering only on a non-GAAP
foundation because of the inherent issue in forecasting sure quantities that might be included in GAAP
earnings, similar to discrete tax items, without unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure phase consists of its portfolio of businesses serving clean water
delivery, wastewater transport and remedy, and dewatering.
• Second quarter 2022 Water Infrastructure income was $589 million, a 9.zero % enhance
organically in contrast with second quarter 2021. This strong progress was pushed by strong price
realization, industrial dewatering demand, and healthy activity in our wastewater utility enterprise
in the united states and Western Europe.
• Second quarter adjusted EBITDA margin was 21.4 %, up 240 foundation points from the prior
year. Reported working earnings for the phase was $108 million. Adjusted operating revenue
for the section, which excludes $3 million of restructuring and realignment, was $111 million, a
14.four percent enhance versus the comparable period last yr. Reported working margin for
the phase was 18.3 p.c, up 200 basis factors versus the prior yr, and adjusted
working margin was 18.eight %, up one hundred eighty basis points versus the prior 12 months. Strong worth
realization, volume, and productivity savings greater than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water phase consists of its portfolio of companies in industrial, business constructing,
and residential purposes.
• Second quarter 2022 Applied Water revenue was $429 million, a 7.zero percent enhance
organically year-over-year. The phase delivered strong value realization and backlog
execution in industrial and residential end markets, partially offset by continued supply chain
constraints in business buildings within the United States.
• Second quarter adjusted EBITDA margin was 16.1 %, down 130 basis factors from the
prior yr. Reported working revenue for the segment was $61 million and adjusted working
revenue, which excludes $2 million of restructuring and realignment prices, was $63 million, a four.5
% lower versus the comparable interval last yr. The section reported operating
margin was 14.2 percent, down a hundred thirty foundation points versus the prior year period. Adjusted
working margin declined 120 basis points to 14.7 percent. Strong price realization and
productiveness financial savings have been greater than offset by inflation and lower volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions section consists of its portfolio of companies in good
metering, community applied sciences, advanced infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions revenue was $346 million, down 2.0
% organically versus the prior yr. While chip supply remains constrained, the result’s
better than our expectations because of improved chip provide in the quarter, and power in our
water high quality check functions.
• Second quarter adjusted EBITDA margin was 9.8 p.c, down 410 basis factors from the prior
12 months. Reported operating revenue for the phase was $(5) million, and adjusted working
earnings, which excludes $3 million of restructuring and realignment costs and $1 million of
shortages, unfavorable combine and higher inflation more than offset value realization and
productivity financial savings.
Supplemental info on Xylem’s second quarter 2022 earnings and reconciliations for sure nonGAAP objects is posted at www.xylem.com/investors.
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About Xylem
Xylem (XYL) is a number one international water know-how company committed to solving important water and
infrastructure challenges with innovation. Our 17,000 various employees delivered income of $5.2
billion in 2021. We are making 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” inside 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 negative, may, but usually are not essential to, establish
forward-looking statements. By their nature, forward-looking statements address unsure issues and
embrace any statements that aren’t historic, corresponding to statements about our strategy, monetary plans,
outlook, aims, plans, intentions or objectives (including those related to our social, environmental and
different sustainability goals); or tackle possible or future outcomes of operations or financial performance,
including statements regarding orders, revenues, operating margins and earnings per share growth.
Although we believe that the expectations mirrored in any of our forward-looking statements are
reasonable, actual outcomes could differ materially from these projected or assumed in any of our forwardlooking statements. เกจวัดถังแก๊ส and outcomes of operations, in addition to any forwardlooking statements, are topic to change and to inherent risks and uncertainties, a lot of which are
beyond our control. Additionally, many of those risks and uncertainties are, and may continue to be,
amplified by impacts from the struggle between Russia and Ukraine, in addition to the continuing coronavirus
(“COVID-19”) pandemic and related macroeconomic conditions (including inflation). Important components
that could cause our precise results, efficiency and achievements, or business outcomes to differ
materially from estimates or projections contained in or implied by our forward-looking statements
include, amongst others, the following: the impression of total trade and basic economic situations,
including industrial, governmental, and public and private sector spending and the power of the
residential and commercial real estate markets, on financial exercise and our operations; geopolitical
events, together with the war between Russia and Ukraine, and regulatory, financial and other risks
related to our world sales and operations, together with with respect to domestic content
requirements applicable to projects with governmental funding; continued uncertainty across the
ongoing COVID-19 pandemic’s magnitude, period and impacts on our enterprise, operations, growth,
and financial situation; precise or potential different epidemics, pandemics or global well being crises;
availability, shortage or delays in receiving electronic components (in specific, semiconductors), parts,
and uncooked supplies from our provide chain; manufacturing and working price will increase due to
macroeconomic conditions, including inflation, provide chain shortages, logistics challenges, tight labor
markets, prevailing worth modifications, tariffs and different components; demand for our merchandise; disruption,
competitors or pricing pressures in the markets we serve; cybersecurity incidents or other disruptions of
information expertise systems on which we rely, or involving our products; disruptions in operations at
our services or that of third parties upon which we rely; ability to retain and appeal to senior administration
and other various and key expertise, in addition to competitors for overall talent and labor; issue predicting
our monetary outcomes; defects, safety, guarantee and liability claims, and remembers with respect to products;
availability, regulation or interference with radio spectrum utilized by certain of our products; uncertainty
associated to restructuring and realignment actions and associated expenses and savings; our capacity to proceed
strategic investments for progress; our capability to successfully identify, execute and integrate acquisitions;
volatility in served markets or impacts on enterprise and operations because of climate situations, including
the consequences of climate change; fluctuations in international foreign money trade rates; our capability to borrow or
refinance our present indebtedness and uncertainty around the availability of liquidity enough to fulfill
our wants; danger of future impairments to goodwill and different intangible assets; failure to adjust to, or
changes in, laws or laws, together with these pertaining to anti-corruption, information privacy and safety,
export and import, competition, and the setting and local weather change; adjustments in our efficient tax
charges or tax bills; legal, governmental or regulatory claims, investigations or proceedings and
associated 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 in this press launch concerning our environmental and different
sustainability plans and targets are not an indication that these statements are essentially materials to
buyers 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 additionally be primarily based on requirements
for measuring progress that are still growing, inner controls and processes that proceed to evolve,
and assumptions which might be subject to vary sooner or later. All forward-looking statements made herein
are based mostly on information currently 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 on account of new
info, future events or otherwise, except as required by regulation
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