FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust continuing demand drove robust organic orders development: 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 steering by one hundred sixty basis factors
• Raising full-year organic income steerage to a variety 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 leading global water technology
firm dedicated to fixing the world’s most difficult water points, today reported second quarter
revenue of $1.four billion, surpassing earlier steering in every business segment. Strong continued
world demand drove orders and backlog development across the portfolio.
Second quarter adjusted earnings before curiosity, tax, depreciation and amortization (EBITDA) margin
was sixteen.6 percent, better than the Company’s previous steering and reflecting a year-over-year
decrease of 70 foundation factors. Inflation and the influence of continuous chip shortages drove the margin
decline, exceeding the benefits of price realization and productivity savings. เกจวัดความดันpressuregauge generated web
revenue of $112 million, or $0.62 per share, and adjusted net revenue of $120 million, or $0.sixty six per share,
which excludes the impression of restructuring, realignment and special costs.
“The staff delivered very robust second quarter efficiency on all key metrics, and properly forward of our
steering for the quarter,” stated Patrick Decker, Xylem president and CEO. “The outcome reflects our
business momentum on persevering with underlying demand, disciplined operational execution, and a
moderate easing in chip supply constraints.”
“On the strength of strong 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 development and worth creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 natural income growth to be in the vary of 8 to 10 percent, and 3
to 5 p.c on a reported basis. This represents an increase from the Company’s earlier full-year
organic income steering of 4 to 6 p.c, and 1 to 3 p.c on a reported foundation. Full-year 2022
adjusted EBITDA margin is now expected to be in the vary of sixteen.5 to 17.0 p.c, elevating the low end
of the earlier vary of sixteen.0 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 elevated steering displays
strong demand, gradual easing of supply chain constraints and value realization partially offset by
inflation and foreign trade 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 only on a non-GAAP
basis because of the inherent problem in forecasting sure quantities that might be included in GAAP
earnings, corresponding to discrete tax gadgets, without unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure segment consists of its portfolio of companies serving clean water
delivery, wastewater transport and therapy, and dewatering.
• Second quarter 2022 Water Infrastructure income was $589 million, a 9.zero % improve
organically in contrast with second quarter 2021. This strong progress was pushed by sturdy worth
realization, industrial dewatering demand, and wholesome activity in our wastewater utility enterprise
in the us and Western Europe.
• Second quarter adjusted EBITDA margin was 21.four percent, up 240 basis factors from the prior
12 months. Reported working revenue for the phase was $108 million. Adjusted working income
for the section, which excludes $3 million of restructuring and realignment, was $111 million, a
14.4 % improve versus the comparable interval final 12 months. Reported working margin for
the section was 18.three %, up 200 basis points versus the prior yr, and adjusted
operating margin was 18.eight %, up a hundred and eighty foundation points versus the prior year. Strong value
realization, volume, and productivity savings greater than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water section consists of its portfolio of businesses in industrial, business constructing,
and residential functions.
• Second quarter 2022 Applied Water revenue was $429 million, a 7.0 % improve
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 within the United States.
• Second quarter adjusted EBITDA margin was 16.1 p.c, down one hundred thirty basis points from the
prior year. Reported working income for the segment was $61 million and adjusted operating
revenue, which excludes $2 million of restructuring and realignment costs, was $63 million, a 4.5
percent lower versus the comparable interval last year. The segment reported operating
margin was 14.2 %, down 130 foundation points versus the prior 12 months interval. Adjusted
working margin declined 120 foundation points to 14.7 p.c. Strong value realization and
productiveness savings were greater than offset by inflation and lower volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions segment consists of its portfolio of businesses in good
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 year. While chip provide stays constrained, the result’s
better than our expectations due to improved chip provide in the quarter, and strength in our
water quality test applications.
• Second quarter adjusted EBITDA margin was 9.8 p.c, down 410 foundation factors 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 mix and higher inflation greater than offset price realization and
productivity 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 quantity one world water technology firm committed to fixing important water and
infrastructure challenges with innovation. Our 17,000 numerous employees delivered income of $5.2
billion in 2021. We are making a more sustainable world by enabling our prospects to optimize water
and useful resource management, and helping communities in more than 150 nations turn into watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press launch incorporates “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 negative, could, however aren’t essential to, establish
forward-looking statements. By their nature, forward-looking statements handle unsure matters and
embrace any statements that are not historical, such as statements about our technique, financial plans,
outlook, aims, plans, intentions or goals (including those associated to our social, environmental and
different sustainability goals); or tackle potential or future outcomes of operations or monetary performance,
together with statements referring to 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 might differ materially from these projected or assumed in any of our forwardlooking statements. Our future monetary condition and results of operations, in addition to any forwardlooking statements, are topic to change and to inherent dangers and uncertainties, a lot of which are
past our control. Additionally, many of these dangers and uncertainties are, and will proceed to be,
amplified by impacts from the struggle between Russia and Ukraine, in addition to the continued coronavirus
(“COVID-19”) pandemic and associated macroeconomic situations (including inflation). Important elements
that might trigger our actual results, performance and achievements, or business outcomes to vary
materially from estimates or projections contained in or implied by our forward-looking statements
include, among others, the following: the impression of total industry and basic economic circumstances,
including industrial, governmental, and public and private sector spending and the energy of the
residential and commercial real property markets, on financial activity and our operations; geopolitical
events, including the warfare between Russia and Ukraine, and regulatory, economic and different dangers
associated with our world gross sales and operations, together with with respect to home content
requirements relevant to initiatives with governmental funding; continued uncertainty across the
ongoing COVID-19 pandemic’s magnitude, length and impacts on our business, operations, growth,
and financial condition; precise or potential other epidemics, pandemics or world well being crises;
availability, scarcity or delays in receiving digital components (in explicit, semiconductors), components,
and raw supplies from our supply chain; manufacturing and operating cost increases as a result of
macroeconomic situations, together with inflation, supply chain shortages, logistics challenges, tight labor
markets, prevailing price modifications, tariffs and different components; demand for our products; disruption,
competitors or pricing pressures in the markets we serve; cybersecurity incidents or different disruptions of
information expertise systems on which we rely, or involving our merchandise; disruptions in operations at
our facilities or that of third parties upon which we rely; capacity to retain and appeal to senior management
and other various and key expertise, in addition to competitors for general talent and labor; problem predicting
our financial results; defects, safety, warranty and liability claims, and recalls with respect to products;
availability, regulation or interference with radio spectrum used by certain of our products; uncertainty
associated to restructuring and realignment actions and related charges and financial savings; our ability to proceed
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 climate situations, together with
the consequences of local weather change; fluctuations in international forex exchange charges; our ability to borrow or
refinance our current 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 adjust to, or
modifications in, laws or rules, together with those pertaining to anti-corruption, data privacy and security,
export and import, competition, and the surroundings and local weather change; changes in our efficient tax
charges or tax bills; legal, governmental or regulatory claims, investigations or proceedings and
associated contingent liabilities; and different components set forth under “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 other statements on this press launch concerning our environmental and different
sustainability plans and goals usually are not an indication that these statements are necessarily materials to
buyers 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 could also be based on requirements
for measuring progress which would possibly be still creating, internal controls and processes that proceed to evolve,
and assumptions which are topic to alter sooner or later. All forward-looking statements made herein
are primarily based on information currently available 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 because of new
data, future events or in any other case, except as required by law
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