FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust continuing demand drove robust organic orders progress: 1% on a reported
foundation, 6% organically
• Revenue of $1.four 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 steerage by one hundred sixty foundation points
• Raising full-year organic income 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 $2.40 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 challenging water issues, right now reported second quarter
revenue of $1.4 billion, surpassing previous steerage in every business section. เกจวัดแก๊สหุงต้ม continued
international demand drove orders and backlog growth across the portfolio.
Second quarter adjusted earnings earlier than curiosity, 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 basis factors. Inflation and the impression of continuous chip shortages drove the margin
decline, exceeding the benefits of worth realization and productiveness savings. Xylem generated web
income of $112 million, or $0.62 per share, and adjusted internet earnings of $120 million, or $0.66 per share,
which excludes the impact of restructuring, realignment and special expenses.
“The staff delivered very robust second quarter performance on all key metrics, and properly ahead of our
steering for the quarter,” mentioned Patrick Decker, Xylem president and CEO. “The result displays our
industrial momentum on continuing underlying demand, disciplined operational execution, and a
moderate easing in chip supply constraints.”
“On the power of robust backlog and orders progress, and the team’s demonstrated success mitigating
the results of inflation, we are raising our full-year guidance on revenue and earnings. This additional
reinforces our longer-term progress and value creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 organic revenue progress to be within the range of eight to 10 p.c, and three
to 5 % on a reported basis. This represents an increase from the Company’s earlier full-year
organic income steering of four to 6 percent, and 1 to 3 percent on a reported foundation. Full-year 2022
adjusted EBITDA margin is now expected to be within the range of 16.5 to 17.zero %, elevating the low finish
of the earlier range of sixteen.zero to 17.0 percent. This leads to adjusted earnings per share of $2.50 to
$2.70, raising the low finish from the earlier range of $2.forty to $2.70. The elevated guidance displays
strong demand, gradual easing of provide chain constraints and value 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 revenue, Xylem provides steering solely on a non-GAAP
basis as a result of inherent issue in forecasting certain amounts that would be included in GAAP
earnings, such as discrete tax objects, without unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure section consists of its portfolio of businesses serving clean water
supply, wastewater transport and therapy, and dewatering.
• Second quarter 2022 Water Infrastructure income was $589 million, a 9.zero percent improve
organically in contrast with second quarter 2021. This robust growth was pushed by sturdy price
realization, industrial dewatering demand, and healthy activity in our wastewater utility enterprise
in the U.S. and Western Europe.
• Second quarter adjusted EBITDA margin was 21.four percent, up 240 foundation points from the prior
12 months. Reported operating income for the segment was $108 million. Adjusted working revenue
for the section, which excludes $3 million of restructuring and realignment, was $111 million, a
14.four % enhance versus the comparable interval final year. Reported working margin for
the phase was 18.three %, up 200 foundation points versus the prior yr, and adjusted
operating margin was 18.eight percent, up a hundred and eighty basis points versus the prior 12 months. Strong value
realization, quantity, and productiveness savings more than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water phase consists of its portfolio of businesses in industrial, industrial building,
and residential purposes.
• Second quarter 2022 Applied Water income was $429 million, a 7.0 p.c enhance
organically year-over-year. เกจวัดความดันแก๊ส 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 sixteen.1 p.c, down 130 basis factors from the
prior yr. Reported working earnings for the section 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 year. The phase reported operating
margin was 14.2 percent, down one hundred thirty basis points versus the prior 12 months interval. Adjusted
operating margin declined a hundred and twenty foundation points to 14.7 %. Strong worth realization and
productivity savings were more than offset by inflation and decrease quantity.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions segment consists of its portfolio of companies in sensible
metering, network applied sciences, advanced infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions income was $346 million, down 2.0
p.c organically versus the prior yr. While chip supply stays constrained, the result’s
higher than our expectations as a result of improved chip supply within the quarter, and energy in our
water quality check applications.
• Second quarter adjusted EBITDA margin was 9.eight percent, down 410 basis factors from the prior
yr. Reported working income for the section was $(5) million, and adjusted operating
revenue, which excludes $3 million of restructuring and realignment prices and $1 million of
shortages, unfavorable combine and better inflation greater than offset value realization and
productiveness financial savings.
Supplemental information 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 technology company dedicated to solving crucial water and
infrastructure challenges with innovation. Our 17,000 numerous 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 serving to communities in additional than a hundred and fifty international locations turn into watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press launch contains “forward-looking statements” inside 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 comparable expressions or their adverse, may, however are not necessary to, identify
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embody any statements that are not historic, similar to statements about our strategy, financial plans,
outlook, goals, plans, intentions or goals (including these related to our social, environmental and
other sustainability goals); or handle possible or future outcomes of operations or monetary efficiency,
together with statements regarding orders, revenues, working margins and earnings per share growth.
Although we believe that the expectations mirrored in any of our forward-looking statements are
affordable, actual outcomes may differ materially from those projected or assumed in any of our forwardlooking statements. Our future monetary condition and outcomes of operations, in addition to any forwardlooking statements, are topic to change and to inherent dangers and uncertainties, many of which are
past our control. Additionally, many of these risks and uncertainties are, and will continue to be,
amplified by impacts from the war between Russia and Ukraine, in addition to the continued coronavirus
(“COVID-19”) pandemic and associated macroeconomic situations (including inflation). Important elements
that could cause our precise outcomes, efficiency and achievements, or trade outcomes to differ
materially from estimates or projections contained in or implied by our forward-looking statements
embrace, amongst others, the next: the influence of overall trade and general economic circumstances,
including industrial, governmental, and public and private sector spending and the energy of the
residential and commercial real estate markets, on financial exercise and our operations; geopolitical
occasions, together with the war between Russia and Ukraine, and regulatory, financial and different risks
related to our global sales and operations, together with with respect to domestic content
requirements relevant to initiatives with governmental funding; continued uncertainty across the
ongoing COVID-19 pandemic’s magnitude, length and impacts on our enterprise, operations, progress,
and financial situation; actual or potential other epidemics, pandemics or international well being crises;
availability, scarcity or delays in receiving electronic components (in explicit, semiconductors), elements,
and raw supplies from our supply chain; manufacturing and operating price will increase as a result of
macroeconomic circumstances, including inflation, provide chain shortages, logistics challenges, tight labor
markets, prevailing value changes, tariffs and other factors; demand for our merchandise; disruption,
competition or pricing pressures in the markets we serve; cybersecurity incidents or different disruptions of
information know-how systems on which we rely, or involving our products; disruptions in operations at
our services or that of third events upon which we rely; capability to retain and attract senior administration
and other diverse and key talent, as well as competition for overall talent and labor; problem predicting
our monetary results; defects, security, guarantee and legal responsibility claims, and recollects with respect to merchandise;
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 capability to continue
strategic investments for growth; our ability to efficiently establish, execute and integrate acquisitions;
volatility in served markets or impacts on business and operations as a outcome of weather conditions, including
the results of climate change; fluctuations in international currency trade charges; our ability to borrow or
refinance our current indebtedness and uncertainty across the availability of liquidity adequate to fulfill
our needs; risk of future impairments to goodwill and other intangible belongings; failure to comply with, or
adjustments in, laws or regulations, together with these pertaining to anti-corruption, knowledge privateness and security,
export and import, competition, and the surroundings and local weather change; modifications in our effective tax
rates or tax bills; legal, governmental or regulatory claims, investigations or proceedings and
related contingent liabilities; and different elements set forth under “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 on this press launch regarding our environmental and other
sustainability plans and targets are not a sign 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 related statements may be based on standards
for measuring progress which might be nonetheless growing, inner controls and processes that continue to evolve,
and assumptions which are subject to alter sooner or later. All forward-looking statements made herein
are based mostly on info currently available to us as of the date of this press release. We undertake no
obligation to publicly update or revise any forward-looking statements, whether on account of new
data, future events or in any other case, besides as required by law
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