FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust persevering with demand drove sturdy organic orders development: 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 $0.62, adjusted earnings per share of $0.66
• Adjusted EBITDA margin exceeded guidance by a hundred and sixty basis factors
• Raising full-year organic revenue steering to a range 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. ( เกจวัดแรงดันถังแก๊ส : XYL), a number one world water expertise
firm dedicated to solving the world’s most challenging water points, today reported second quarter
revenue of $1.four billion, surpassing earlier steerage in every enterprise segment. Strong continued
world demand drove orders and backlog growth across the portfolio.
Second quarter adjusted earnings earlier than curiosity, tax, depreciation and amortization (EBITDA) margin
was 16.6 percent, better than the Company’s earlier guidance and reflecting a year-over-year
decrease of 70 basis factors. Inflation and the influence of continuing chip shortages drove the margin
decline, exceeding the advantages of value realization and productiveness financial savings. Xylem generated internet
earnings of $112 million, or $0.62 per share, and adjusted net income of $120 million, or $0.sixty six per share,
which excludes the influence of restructuring, realignment and particular costs.
“The staff delivered very sturdy 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 reflects our
business momentum on continuing underlying demand, disciplined operational execution, and a
moderate easing in chip supply constraints.”
“On the energy of strong backlog and orders growth, and the team’s demonstrated success mitigating
the effects of inflation, we’re raising our full-year steering on income and earnings. This additional
reinforces our longer-term development and worth creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 organic revenue growth to be in the range of 8 to 10 p.c, and three
to five % on a reported basis. This represents an increase from the Company’s earlier full-year
organic income guidance of 4 to six p.c, and 1 to 3 p.c on a reported basis. Full-year 2022
adjusted EBITDA margin is now expected to be in the range of 16.5 to 17.0 percent, elevating the low finish
of the earlier range of sixteen.zero to 17.0 %. This results in adjusted earnings per share of $2.50 to
$2.70, elevating the low end from the previous range of $2.40 to $2.70. เกจวัดแรงดันดิจิตอล elevated steerage reflects
robust demand, gradual easing of supply chain constraints and worth realization partially offset by
inflation and overseas change headwinds.
Further 2022 planning assumptions are included in Xylem’s second quarter 2022 earnings supplies
posted at www.xylem.com/investors. Excluding income, Xylem offers steerage only on a non-GAAP
basis due to the inherent issue in forecasting certain amounts that would be included in GAAP
earnings, corresponding to 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 9.0 percent increase
organically compared with second quarter 2021. This strong progress was pushed by strong value
realization, industrial dewatering demand, and wholesome exercise in our wastewater utility business
in the united states and Western Europe.
• Second quarter adjusted EBITDA margin was 21.four p.c, up 240 basis points from the prior
yr. Reported working revenue for the section was $108 million. Adjusted operating revenue
for the section, which excludes $3 million of restructuring and realignment, was $111 million, a
14.4 % improve versus the comparable interval last 12 months. Reported operating margin for
the segment was 18.three p.c, up 200 foundation points versus the prior yr, and adjusted
working margin was 18.eight %, up one hundred eighty foundation factors versus the prior year. Strong value
realization, volume, and productivity financial savings more than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water segment consists of its portfolio of businesses in industrial, commercial building,
and residential purposes.
• Second quarter 2022 Applied Water revenue was $429 million, a 7.0 percent increase
organically year-over-year. The segment delivered strong price 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 p.c, down one hundred thirty basis factors from the
prior yr. Reported working earnings for the phase was $61 million and adjusted operating
revenue, which excludes $2 million of restructuring and realignment costs, was $63 million, a 4.5
percent decrease versus the comparable period final year. The segment reported working
margin was 14.2 p.c, down 130 foundation factors versus the prior yr interval. Adjusted
operating margin declined 120 foundation points to 14.7 p.c. Strong price realization and
productiveness savings were more than offset by inflation and decrease volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions section consists of its portfolio of businesses in smart
metering, community applied sciences, superior infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions income was $346 million, down 2.0
percent organically versus the prior year. While chip provide remains constrained, the result is
better than our expectations because of improved chip provide within the quarter, and power in our
water high quality test functions.
• Second quarter adjusted EBITDA margin was 9.8 percent, down 410 foundation points from the prior
yr. Reported operating revenue for the segment was $(5) million, and adjusted operating
revenue, which excludes $3 million of restructuring and realignment costs and $1 million of
shortages, unfavorable combine and better inflation greater than offset price realization and
productivity savings.
Supplemental data on Xylem’s second quarter 2022 earnings and reconciliations for sure nonGAAP gadgets is posted at www.xylem.com/investors.
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About Xylem
Xylem (XYL) is a quantity one international water expertise company dedicated to fixing crucial water and
infrastructure challenges with innovation. Our 17,000 numerous employees delivered revenue of $5.2
billion in 2021. We are creating a extra sustainable world by enabling our clients to optimize water
and resource administration, and serving to communities in additional than a hundred and fifty countries turn out to be watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press release accommodates “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 phrases “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“contemplate,” “predict,” “forecast,” “likely,” “believe,” “target,” “will,” “could,” “would,” “should,”
“potential,” “may” and similar expressions or their unfavorable, could, however aren’t essential to, identify
forward-looking statements. By their nature, forward-looking statements tackle unsure matters and
embody any statements that aren’t historical, such as statements about our strategy, financial plans,
outlook, objectives, plans, intentions or targets (including those associated to our social, environmental and
other sustainability goals); or tackle possible or future results of operations or monetary performance,
including statements regarding orders, revenues, working margins and earnings per share progress.
Although we imagine that the expectations mirrored in any of our forward-looking statements are
reasonable, precise outcomes may differ materially from those projected or assumed in any of our forwardlooking statements. Our future monetary condition and results of operations, as properly as any forwardlooking statements, are subject to change and to inherent dangers and uncertainties, many of that are
beyond our management. Additionally, many of those dangers and uncertainties are, and may continue to be,
amplified by impacts from the struggle between Russia and Ukraine, as properly as the continuing coronavirus
(“COVID-19”) pandemic and related macroeconomic conditions (including inflation). Important components
that would cause our actual results, performance and achievements, or business results to differ
materially from estimates or projections contained in or implied by our forward-looking statements
embody, among others, the next: the impression of general business and common financial conditions,
together with industrial, governmental, and public and private sector spending and the energy of the
residential and commercial actual estate markets, on economic exercise and our operations; geopolitical
occasions, including the warfare between Russia and Ukraine, and regulatory, financial and different risks
related to our global gross sales and operations, including with respect to domestic content material
requirements applicable to projects with governmental funding; continued uncertainty around the
ongoing COVID-19 pandemic’s magnitude, period and impacts on our enterprise, operations, development,
and financial situation; actual or potential other epidemics, pandemics or world well being crises;
availability, shortage or delays in receiving electronic elements (in explicit, semiconductors), elements,
and uncooked materials from our provide chain; manufacturing and working cost increases as a outcome of
macroeconomic situations, together with inflation, provide chain shortages, logistics challenges, tight labor
markets, prevailing value adjustments, tariffs and other factors; demand for our merchandise; disruption,
competition or pricing pressures in the markets we serve; cybersecurity incidents or other 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; capacity to retain and attract senior administration
and different various and key talent, in addition to competition for overall talent and labor; issue predicting
our monetary results; defects, security, guarantee and liability claims, and remembers with respect to merchandise;
availability, regulation or interference with radio spectrum utilized by sure of our merchandise; uncertainty
associated to restructuring and realignment actions and related costs and financial savings; our capacity to continue
strategic investments for growth; our ability to successfully establish, execute and combine acquisitions;
volatility in served markets or impacts on enterprise and operations as a outcome of weather conditions, together with
the consequences of climate change; fluctuations in overseas currency trade rates; our capability to borrow or
refinance our present indebtedness and uncertainty around the availability of liquidity enough to meet
our wants; threat of future impairments to goodwill and different intangible property; failure to comply with, or
adjustments in, laws or laws, including those pertaining to anti-corruption, information privacy and security,
export and import, competitors, and the environment and climate change; changes in our efficient tax
rates or tax bills; authorized, governmental or regulatory claims, investigations or proceedings and
related contingent liabilities; and other components set forth beneath “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 other statements in this press release concerning our environmental and different
sustainability plans and objectives usually are not a sign that these statements are necessarily materials to
traders or are required to be disclosed in our filings with the SEC. In addition, historic, present, and
forward-looking social, environmental and sustainability associated statements could also be based on requirements
for measuring progress which are still developing, inside controls and processes that continue to evolve,
and assumptions which may be subject to change in the future. All forward-looking statements made herein
are based mostly on data at present obtainable 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 because of new
info, future events or otherwise, besides as required by regulation
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