Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
Robust continuing demand drove robust organic orders growth: 1% on a reported
foundation, 6% organically
• Revenue of $1.4 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 guidance by 160 foundation factors
• Raising full-year organic income steerage to a spread of 8% to 10% from 4% to
6%, and adjusted EPS to a range of $2.50 to $2.70 from $2.40 to $2.70
Washington, D.C., August 2, 2022 – Xylem Inc. (NYSE: XYL), a leading global water technology
company dedicated to solving the world’s most challenging water points, right now reported second quarter
income of $1.4 billion, surpassing previous guidance in each enterprise section. Strong continued
international demand drove orders and backlog progress across the portfolio.
Second quarter adjusted earnings earlier than curiosity, tax, depreciation and amortization (EBITDA) margin
was sixteen.6 %, higher than the Company’s previous steering and reflecting a year-over-year
decrease of 70 basis factors. Inflation and the impact of continuous chip shortages drove the margin
decline, exceeding the benefits of worth realization and productiveness financial savings. Xylem generated web
income of $112 million, or $0.sixty two per share, and adjusted net revenue of $120 million, or $0.66 per share,
which excludes the influence of restructuring, realignment and particular expenses.
“The team delivered very sturdy second quarter efficiency on all key metrics, and nicely ahead of our
steerage 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 provide constraints.”
“On the energy of strong backlog and orders growth, and the team’s demonstrated success mitigating
the results of inflation, we’re raising our full-year guidance on revenue and earnings. This further
reinforces our longer-term development and value creation thesis for Xylem.”
Xylem now expects full-year 2022 natural revenue progress to be in the vary of 8 to 10 p.c, and three
to five % on a reported foundation. This represents an increase from the Company’s previous full-year
organic revenue steering of 4 to six p.c, and 1 to 3 p.c on a reported foundation. Full-year 2022
adjusted EBITDA margin is now anticipated to be in the vary of sixteen.5 to 17.0 p.c, elevating the low finish
of the earlier range of sixteen.zero to 17.0 %. This leads to adjusted earnings per share of $2.50 to
$2.70, raising the low end from the earlier range of $2.forty to $2.70. The increased steering reflects
sturdy demand, gradual easing of provide chain constraints and worth realization partially offset by
inflation and international 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 outcome of inherent issue in forecasting sure quantities that might be included in GAAP
earnings, corresponding to discrete tax items, without unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure phase consists of its portfolio of companies serving clean water
supply, wastewater transport and treatment, 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 driven by strong value
realization, industrial dewatering demand, and wholesome exercise in our wastewater utility enterprise
in the U.S. and Western Europe.
• Second quarter adjusted EBITDA margin was 21.four %, up 240 foundation points from the prior
yr. Reported operating 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
14.4 percent enhance versus the comparable interval last year. Reported working margin for
the section was 18.3 percent, up 200 basis factors versus the prior year, and adjusted
operating margin was 18.eight p.c, up a hundred and eighty foundation points versus the prior year. Strong value
realization, quantity, and productiveness savings more than offset inflation and strategic
Applied Water
Xylem’s Applied Water phase consists of its portfolio of companies in industrial, industrial constructing,
and residential purposes.
• Second quarter 2022 Applied Water income was $429 million, a 7.0 % enhance
organically year-over-year. The section delivered robust price realization and backlog
execution in industrial and residential finish markets, partially offset by continued provide chain
constraints in industrial buildings in the United States.
• Second quarter adjusted EBITDA margin was 16.1 %, down 130 basis factors from the
prior year. Reported working 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 interval final year. The phase reported operating
margin was 14.2 p.c, down 130 foundation factors versus the prior yr interval. Adjusted
working margin declined one hundred twenty basis points to 14.7 p.c. Strong price realization and
productivity savings were greater than offset by inflation and lower volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions phase consists of its portfolio of businesses in good
metering, community technologies, advanced infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions revenue was $346 million, down 2.zero
% organically versus the prior 12 months. While chip supply stays constrained, the result’s
higher than our expectations due to improved chip provide within the quarter, and power in our
water quality test functions.
• Second quarter adjusted EBITDA margin was 9.8 p.c, down 410 basis points from the prior
12 months. Reported working revenue for the section was $(5) million, and adjusted operating
income, which excludes $3 million of restructuring and realignment prices and $1 million of
shortages, unfavorable mix and higher inflation greater than offset price realization and
productiveness financial savings.
Supplemental information on Xylem’s second quarter 2022 earnings and reconciliations for certain nonGAAP objects is posted at www.xylem.com/investors.
About Xylem
Xylem (XYL) is a quantity one international water expertise company committed to fixing important water and
infrastructure challenges with innovation. Our 17,000 various workers delivered revenue of $5.2
billion in 2021. We are making a extra sustainable world by enabling our customers to optimize water
and useful resource management, and helping communities in additional than 150 international locations turn into watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press launch accommodates “forward-looking statements” throughout 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 similar expressions or their negative, may, however aren’t essential to, identify
forward-looking statements. By their nature, forward-looking statements handle unsure issues and
embody any statements that are not historical, similar to statements about our technique, monetary plans,
outlook, goals, plans, intentions or objectives (including these related to our social, environmental and
different sustainability goals); or handle attainable or future results of operations or financial efficiency,
including statements regarding orders, revenues, working margins and earnings per share development.
Although we imagine that the expectations mirrored in any of our forward-looking statements are
cheap, precise results may differ materially from these projected or assumed in any of our forwardlooking statements. Our future financial situation and outcomes of operations, as nicely as any forwardlooking statements, are subject to vary and to inherent dangers and uncertainties, lots of that are
beyond our management. Additionally, เกจวัดแรงดันน้ำมันเบนซิน of these dangers and uncertainties are, and may continue to be,
amplified by impacts from the warfare between Russia and Ukraine, in addition to the continuing coronavirus
(“COVID-19”) pandemic and related macroeconomic circumstances (including inflation). Important factors
that could trigger our precise results, efficiency 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 next: the influence of general business and general financial circumstances,
together with industrial, governmental, and public and private sector spending and the power of the
residential and business actual property markets, on financial exercise and our operations; geopolitical
occasions, including the warfare between Russia and Ukraine, and regulatory, financial and different risks
related to our world sales and operations, together with with respect to domestic content
requirements relevant to projects with governmental funding; continued uncertainty around the
ongoing COVID-19 pandemic’s magnitude, length and impacts on our business, operations, development,
and monetary condition; precise or potential other epidemics, pandemics or international well being crises;
availability, scarcity or delays in receiving electronic elements (in particular, semiconductors), elements,
and uncooked supplies from our supply chain; manufacturing and working price increases because of
macroeconomic circumstances, together with inflation, supply chain shortages, logistics challenges, tight labor
markets, prevailing value changes, tariffs and other factors; demand for our products; disruption,
competition or pricing pressures within the markets we serve; cybersecurity incidents or other disruptions of
info expertise systems on which we rely, or involving our products; disruptions in operations at
our facilities or that of third parties upon which we rely; capability to retain and attract senior administration
and different various and key expertise, as well as competition for total expertise and labor; difficulty predicting
our financial results; defects, safety, warranty and liability claims, and recollects with respect to merchandise;
availability, regulation or interference with radio spectrum used by sure of our products; uncertainty
associated to restructuring and realignment actions and associated costs and financial savings; our capacity to proceed
strategic investments for growth; our ability to efficiently determine, execute and integrate acquisitions;
volatility in served markets or impacts on business and operations due to weather circumstances, together with
the consequences of climate change; fluctuations in international forex exchange charges; our capacity to borrow or
refinance our current indebtedness and uncertainty across the availability of liquidity enough to fulfill
our needs; danger of future impairments to goodwill and different intangible property; failure to adjust to, or
adjustments in, legal guidelines or rules, including those pertaining to anti-corruption, information privateness and safety,
export and import, competitors, and the surroundings and local weather change; changes in our effective tax
charges or tax bills; authorized, governmental or regulatory claims, investigations or proceedings and
associated contingent liabilities; and different elements set forth underneath “Item 1A. Risk Factors” in our Annual
Report on Form 10-K for the 12 months 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 launch concerning our environmental and different
sustainability plans and objectives aren’t an indication that these statements are essentially materials to
investors or are required to be disclosed in our filings with the SEC. In addition, historical, present, and
forward-looking social, environmental and sustainability associated statements may be based mostly on requirements
for measuring progress which are still developing, inner controls and processes that continue to evolve,
and assumptions which are topic to change sooner or later. All forward-looking statements made herein
are based on info at present out there to us as of the date of this press release. We undertake no
obligation to publicly replace or revise any forward-looking statements, whether or not as a result of new
info, future occasions or in any other case, except as required by regulation