Xylem Reports Second Quarter 2022 Results

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Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust persevering with demand drove strong natural orders development: 1% on a reported
basis, 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 guidance by a hundred and sixty basis points
• Raising full-year natural income steering 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 global water technology
firm dedicated to solving the world’s most challenging water points, today reported second quarter
revenue of $1.4 billion, surpassing earlier steering in every business phase. Strong continued
global demand drove orders and backlog development throughout the portfolio.
Second quarter adjusted earnings earlier than interest, tax, depreciation and amortization (EBITDA) margin
was 16.6 percent, higher than the Company’s previous steering and reflecting a year-over-year
lower of 70 foundation points. Inflation and the influence of constant chip shortages drove the margin
decline, exceeding the advantages of price realization and productivity savings. Xylem generated web
revenue of $112 million, or $0.62 per share, and adjusted web earnings of $120 million, or $0.66 per share,
which excludes the influence of restructuring, realignment and special costs.
“The group delivered very sturdy second quarter efficiency on all key metrics, and nicely forward of our
steering for the quarter,” stated Patrick Decker, Xylem president and CEO. “The end result reflects our
business momentum on persevering with underlying demand, disciplined operational execution, and a
average easing in chip supply constraints.”
“On the power of robust backlog and orders development, 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 growth and value creation thesis for Xylem.”
เกจวัดแรงดันลมคือ expects full-year 2022 organic revenue progress to be within the range of 8 to 10 %, and three
to five p.c on a reported basis. This represents an increase from the Company’s earlier full-year
organic revenue steering of 4 to 6 %, 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 sixteen.5 to 17.0 percent, elevating the low finish
of the previous vary of sixteen.zero to 17.0 %. This leads to adjusted earnings per share of $2.50 to
$2.70, elevating the low finish from the previous vary of $2.forty to $2.70. The increased steerage displays
strong demand, gradual easing of supply chain constraints and price realization partially offset by
inflation and foreign trade headwinds.
Further 2022 planning assumptions are included in Xylem’s second quarter 2022 earnings materials
posted at www.xylem.com/investors. Excluding income, Xylem provides steerage solely on a non-GAAP
basis as a result of inherent difficulty in forecasting certain quantities that would be included in GAAP
earnings, such as discrete tax items, with out 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 % enhance
organically compared with second quarter 2021. This robust progress was pushed by robust worth
realization, industrial dewatering demand, and wholesome exercise in our wastewater utility business
in the U.S. and Western Europe.
• Second quarter adjusted EBITDA margin was 21.4 %, up 240 basis points from the prior
year. Reported working revenue for the phase was $108 million. Adjusted operating earnings
for the section, which excludes $3 million of restructuring and realignment, was $111 million, a
14.4 p.c improve versus the comparable period last yr. Reported operating margin for
the segment was 18.three %, up 200 foundation points versus the prior yr, and adjusted
operating margin was 18.8 percent, up a hundred and eighty foundation factors versus the prior yr. Strong price
realization, volume, and productivity savings greater than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water segment consists of its portfolio of companies in industrial, commercial constructing,
and residential applications.
• Second quarter 2022 Applied Water income was $429 million, a 7.zero % enhance
organically year-over-year. The section delivered sturdy value realization and backlog
execution in industrial and residential finish markets, partially offset by continued provide chain
constraints in commercial buildings in the United States.
• Second quarter adjusted EBITDA margin was sixteen.1 %, down 130 foundation factors from the
prior yr. Reported operating income for the segment was $61 million and adjusted operating
income, which excludes $2 million of restructuring and realignment costs, was $63 million, a 4.5
% decrease versus the comparable period last yr. The phase reported working
margin was 14.2 %, down one hundred thirty basis points versus the prior 12 months period. Adjusted
operating margin declined one hundred twenty foundation factors to 14.7 %. Strong worth realization and
productiveness savings were more than offset by inflation and decrease volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions phase consists of its portfolio of businesses in smart
metering, network applied sciences, superior infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions income was $346 million, down 2.zero
p.c organically versus the prior yr. While chip provide remains constrained, the result is
better than our expectations due to improved chip provide within the quarter, and strength in our
water high quality test applications.
• Second quarter adjusted EBITDA margin was 9.eight percent, down 410 foundation points from the prior
year. Reported working income for the phase was $(5) million, and adjusted working
revenue, which excludes $3 million of restructuring and realignment costs and $1 million of
shortages, unfavorable combine and higher inflation greater than offset price realization and
productivity financial savings.
Supplemental info 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 number one international water know-how firm committed to solving critical water and
infrastructure challenges with innovation. Our 17,000 numerous workers delivered income of $5.2
billion in 2021. We are creating a extra sustainable world by enabling our prospects to optimize water
and resource management, and serving to communities in additional than one hundred fifty countries become watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press release contains “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 phrases “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“contemplate,” “predict,” “forecast,” “likely,” “believe,” “target,” “will,” “could,” “would,” “should,”
“potential,” “may” and comparable expressions or their negative, may, however aren’t necessary to, establish
forward-looking statements. By their nature, forward-looking statements tackle unsure issues and
include any statements that are not historical, such as statements about our strategy, financial plans,
outlook, aims, plans, intentions or goals (including these associated to our social, environmental and
different sustainability goals); or handle possible or future results of operations or monetary performance,
together with statements relating to orders, revenues, operating margins and earnings per share progress.
Although we believe that the expectations reflected in any of our forward-looking statements are
cheap, precise outcomes might differ materially from these projected or assumed in any of our forwardlooking statements. Our future financial situation and results of operations, in addition to any forwardlooking statements, are topic to change and to inherent dangers and uncertainties, many of which are
beyond our control. Additionally, many of those dangers and uncertainties are, and may proceed to be,
amplified by impacts from the warfare between Russia and Ukraine, in addition to the ongoing coronavirus
(“COVID-19”) pandemic and related macroeconomic circumstances (including inflation). Important factors
that might trigger our actual results, performance and achievements, or industry outcomes to differ
materially from estimates or projections contained in or implied by our forward-looking statements
embody, amongst others, the following: the influence of total industry and common economic circumstances,
together with industrial, governmental, and private and non-private sector spending and the power of the
residential and business real estate markets, on economic exercise and our operations; geopolitical
occasions, including the war 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 relevant to projects with governmental funding; continued uncertainty across the
ongoing COVID-19 pandemic’s magnitude, duration and impacts on our business, operations, growth,
and monetary condition; actual or potential other epidemics, pandemics or global well being crises;
availability, shortage or delays in receiving digital components (in specific, semiconductors), elements,
and uncooked materials from our provide chain; manufacturing and operating cost increases due to
macroeconomic circumstances, including inflation, supply chain shortages, logistics challenges, tight labor
markets, prevailing value modifications, tariffs and other components; demand for our products; disruption,
competition or pricing pressures within the markets we serve; cybersecurity incidents or other disruptions of
data technology methods on which we rely, or involving our merchandise; disruptions in operations at
our amenities or that of third parties upon which we rely; ability to retain and attract senior management
and different numerous and key talent, in addition to competitors for general talent and labor; issue predicting
our monetary results; defects, safety, warranty and liability claims, and recalls with respect to products;
availability, regulation or interference with radio spectrum used by sure of our products; uncertainty
related to restructuring and realignment actions and associated expenses and financial savings; our capability to continue
strategic investments for development; our ability to successfully identify, execute and combine acquisitions;
volatility in served markets or impacts on business and operations because of weather situations, including
the results of local weather change; fluctuations in overseas foreign money trade rates; our capability to borrow or
refinance our current indebtedness and uncertainty around the availability of liquidity adequate to satisfy
our wants; risk of future impairments to goodwill and different intangible property; failure to adjust to, or
adjustments in, laws or rules, including those pertaining to anti-corruption, knowledge privateness and security,
export and import, competitors, and the environment and local weather change; changes in our efficient tax
rates or tax expenses; legal, governmental or regulatory claims, investigations or proceedings and
related contingent liabilities; and different elements set forth underneath “Item 1A. Risk Factors” in our Annual
Report on Form 10-K for the yr ended December 31, 2021 and in subsequent filings we make with
the Securities and Exchange Commission (“SEC”).
Forward-looking and different statements in this press release relating to our environmental and other
sustainability plans and objectives aren’t a sign that these statements are essentially materials to
traders 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 primarily based on requirements
for measuring progress which might be still growing, inner controls and processes that proceed to evolve,
and assumptions which might be topic to change in the future. All forward-looking statements made herein
are primarily based on information at present out there 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
data, future occasions or otherwise, except as required by law
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