FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust continuing demand drove strong organic orders progress: 1% on a reported
foundation, 6% organically
• Revenue of $1.four billion, up 1% on a reported foundation, up 6% organically
• Earnings per share of $0.sixty two, adjusted earnings per share of $0.sixty six
• Adjusted EBITDA margin exceeded guidance by a hundred and sixty basis factors
• Raising full-year organic income steerage to a spread 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 number one world water technology
company devoted to fixing the world’s most challenging water issues, at present reported second quarter
income of $1.4 billion, surpassing earlier steerage in every business section. Strong continued
international demand drove orders and backlog progress throughout the portfolio.
Second quarter adjusted earnings before curiosity, tax, depreciation and amortization (EBITDA) margin
was sixteen.6 p.c, higher than the Company’s earlier steering and reflecting a year-over-year
lower of 70 foundation factors. Inflation and the influence of continuous chip shortages drove the margin
decline, exceeding the benefits of price realization and productivity financial savings. Xylem generated net
income of $112 million, or $0.sixty two per share, and adjusted net revenue of $120 million, or $0.sixty six per share,
which excludes the influence of restructuring, realignment and special expenses.
“ เกจวัดแรงดัน4บาร์ delivered very strong second quarter efficiency on all key metrics, and nicely forward of our
steerage for the quarter,” said Patrick Decker, Xylem president and CEO. “The outcome displays our
commercial momentum on continuing underlying demand, disciplined operational execution, and a
moderate easing in chip supply constraints.”
“On the strength 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 income and earnings. This further
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 3
to 5 p.c on a reported basis. This represents an increase from the Company’s previous full-year
natural income guidance of four to six %, and 1 to three % on a reported foundation. Full-year 2022
adjusted EBITDA margin is now anticipated to be within the range of sixteen.5 to 17.zero p.c, elevating the low finish
of the earlier vary of 16.0 to 17.zero percent. This leads to 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 guidance reflects
robust demand, gradual easing of provide chain constraints and worth realization partially offset by
inflation and foreign exchange headwinds.
Further 2022 planning assumptions are included in Xylem’s second quarter 2022 earnings materials
posted at www.xylem.com/investors. Excluding income, Xylem offers guidance solely on a non-GAAP
foundation as a outcome of inherent difficulty in forecasting sure quantities that may be included in GAAP
earnings, similar to discrete tax gadgets, with out unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure phase consists of its portfolio of businesses serving clean water
supply, wastewater transport and therapy, and dewatering.
• Second quarter 2022 Water Infrastructure revenue was $589 million, a 9.zero p.c increase
organically compared with second quarter 2021. This strong growth was pushed by sturdy price
realization, industrial dewatering demand, and healthy activity in our wastewater utility business
in the U.S. and Western Europe.
• Second quarter adjusted EBITDA margin was 21.four p.c, up 240 foundation factors from the prior
yr. Reported working income for the phase was $108 million. Adjusted working income
for the segment, which excludes $3 million of restructuring and realignment, was $111 million, a
14.four % improve versus the comparable interval last yr. Reported working margin for
the segment was 18.3 percent, up 200 basis points versus the prior year, and adjusted
working margin was 18.8 %, up a hundred and eighty basis points versus the prior year. Strong worth
realization, quantity, 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, commercial constructing,
and residential purposes.
• Second quarter 2022 Applied Water income was $429 million, a 7.zero p.c increase
organically year-over-year. The phase delivered strong worth realization and backlog
execution in industrial and residential end markets, partially offset by continued provide chain
constraints in business buildings in the United States.
• Second quarter adjusted EBITDA margin was sixteen.1 p.c, down 130 foundation points from the
prior 12 months. Reported working income for the phase was $61 million and adjusted operating
revenue, which excludes $2 million of restructuring and realignment costs, was $63 million, a four.5
% decrease versus the comparable period last year. The segment reported working
margin was 14.2 p.c, down one hundred thirty foundation factors versus the prior 12 months interval. Adjusted
working margin declined 120 foundation factors to 14.7 percent. Strong price realization and
productivity savings have been more than offset by inflation and decrease volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions segment consists of its portfolio of companies in good
metering, community technologies, superior infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions revenue was $346 million, down 2.zero
p.c organically versus the prior year. While chip supply stays constrained, the result is
higher than our expectations due to improved chip supply in the quarter, and energy in our
water high quality test applications.
• Second quarter adjusted EBITDA margin was 9.8 percent, down 410 foundation factors from the prior
year. Reported operating income for the section was $(5) million, and adjusted operating
income, which excludes $3 million of restructuring and realignment costs and $1 million of
shortages, unfavorable combine and higher inflation greater than offset worth realization and
productivity 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 leading world water know-how company dedicated to fixing important water and
infrastructure challenges with innovation. Our 17,000 diverse workers delivered revenue of $5.2
billion in 2021. We are making a more sustainable world by enabling our customers to optimize water
and useful resource administration, and serving to communities in additional than 150 countries turn out to be watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press release incorporates “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 words “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“contemplate,” “predict,” “forecast,” “likely,” “believe,” “target,” “will,” “could,” “would,” “should,”
“potential,” “may” and related expressions or their unfavorable, might, however usually are not essential to, identify
forward-looking statements. By their nature, forward-looking statements handle unsure matters and
embody any statements that aren’t historical, corresponding to statements about our technique, financial plans,
outlook, objectives, plans, intentions or objectives (including those related to our social, environmental and
other sustainability goals); or tackle potential or future results of operations or monetary performance,
together with statements referring to orders, revenues, operating margins and earnings per share development.
Although we imagine that the expectations reflected in any of our forward-looking statements are
reasonable, precise results may differ materially from these projected or assumed in any of our forwardlooking statements. Our future monetary situation and results of operations, in addition to any forwardlooking statements, are subject to alter 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, as properly as the ongoing coronavirus
(“COVID-19”) pandemic and related macroeconomic situations (including inflation). Important elements
that would trigger our actual results, efficiency and achievements, or business outcomes to vary
materially from estimates or projections contained in or implied by our forward-looking statements
embrace, amongst others, the next: the influence of general industry and common financial situations,
including industrial, governmental, and private and non-private sector spending and the strength of the
residential and commercial real property markets, on financial exercise and our operations; geopolitical
events, together with the war between Russia and Ukraine, and regulatory, economic and other risks
associated with our international sales and operations, including with respect to home content
requirements relevant to initiatives with governmental funding; continued uncertainty around the
ongoing COVID-19 pandemic’s magnitude, duration and impacts on our business, operations, development,
and financial situation; precise or potential other epidemics, pandemics or global health crises;
availability, shortage or delays in receiving electronic components (in particular, semiconductors), elements,
and uncooked supplies from our supply chain; manufacturing and working value increases as a result of
macroeconomic situations, including inflation, provide chain shortages, logistics challenges, tight labor
markets, prevailing price changes, tariffs and other elements; demand for our merchandise; disruption,
competition or pricing pressures in the markets we serve; cybersecurity incidents or other disruptions of
data technology systems on which we rely, or involving our merchandise; disruptions in operations at
our amenities or that of third events upon which we rely; ability to retain and attract senior administration
and different numerous and key talent, in addition to competition for overall expertise and labor; difficulty predicting
our financial outcomes; defects, safety, guarantee and liability claims, and recollects with respect to products;
availability, regulation or interference with radio spectrum used by certain of our merchandise; uncertainty
associated to restructuring and realignment actions and associated costs and savings; our capacity to continue
strategic investments for progress; our capacity to successfully determine, execute and integrate acquisitions;
volatility in served markets or impacts on business and operations as a end result of weather circumstances, together with
the results of local weather change; fluctuations in international foreign money change charges; our ability to borrow or
refinance our existing indebtedness and uncertainty around the availability of liquidity sufficient to meet
our wants; threat of future impairments to goodwill and different intangible belongings; failure to comply with, or
modifications in, laws or rules, together with those pertaining to anti-corruption, data privacy and safety,
export and import, competitors, 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
related contingent liabilities; and other 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 release concerning our environmental and different
sustainability plans and objectives are not a sign that these statements are necessarily material 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 related statements may be based mostly on requirements
for measuring progress which are still developing, internal controls and processes that continue to evolve,
and assumptions that are subject to change in the future. All forward-looking statements made herein
are primarily based on info currently available 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
data, future occasions or otherwise, besides as required by legislation
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