Xylem Reports Second Quarter 2022 Results

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Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust continuing demand drove sturdy natural orders development: 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 $0.62, adjusted earnings per share of $0.sixty six
• Adjusted EBITDA margin exceeded guidance by 160 foundation factors
• Raising full-year natural revenue steering 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 quantity one world water expertise
firm dedicated to solving the world’s most challenging water issues, today reported second quarter
income of $1.four billion, surpassing previous guidance in each business section. Strong continued
global demand drove orders and backlog development across the portfolio.
Second quarter adjusted earnings earlier than curiosity, tax, depreciation and amortization (EBITDA) margin
was 16.6 percent, higher than the Company’s previous steering and reflecting a year-over-year
decrease of 70 basis points. Inflation and the impression of constant chip shortages drove the margin
decline, exceeding the advantages of value realization and productiveness savings. Xylem generated internet
income of $112 million, or $0.sixty two per share, and adjusted internet income of $120 million, or $0.66 per share,
which excludes the impact of restructuring, realignment and special costs.
“The group delivered very sturdy second quarter performance on all key metrics, and properly forward of our
steerage for the quarter,” stated Patrick Decker, Xylem president and CEO. “The result displays our
industrial 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 development, and the team’s demonstrated success mitigating
the results of inflation, we are raising our full-year steerage on income and earnings. This further
reinforces our longer-term development and worth creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 natural income progress to be in the range of eight to 10 %, and three
to 5 p.c on a reported basis. This represents an increase from the Company’s previous full-year
organic income steering of 4 to six percent, and 1 to three p.c on a reported foundation. Full-year 2022
adjusted EBITDA margin is now expected to be in the range of 16.5 to 17.zero percent, raising the low finish
of the previous range of sixteen.0 to 17.0 percent. This results in adjusted earnings per share of $2.50 to
$2.70, elevating the low finish from the previous range of $2.forty to $2.70. The elevated steering displays
strong demand, gradual easing of supply chain constraints and worth realization partially offset by
inflation and overseas trade 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 steering solely on a non-GAAP
foundation as a outcome of inherent difficulty in forecasting certain quantities 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 phase consists of its portfolio of companies serving clear water
delivery, wastewater transport and remedy, and dewatering.
• Second quarter 2022 Water Infrastructure income was $589 million, a 9.zero percent increase
organically in contrast with second quarter 2021. This robust progress was pushed by robust value
realization, industrial dewatering demand, and healthy exercise in our wastewater utility business
in the united states and Western Europe.
• Second quarter adjusted EBITDA margin was 21.4 p.c, up 240 foundation factors from the prior
yr. Reported operating income for the phase was $108 million. Adjusted working revenue
for the phase, which excludes $3 million of restructuring and realignment, was $111 million, a
14.four p.c enhance versus the comparable period final yr. Reported operating margin for
the section was 18.three %, up 200 foundation points versus the prior 12 months, and adjusted
working margin was 18.8 %, up 180 foundation factors versus the prior 12 months. Strong worth
realization, volume, and productivity financial savings greater than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water segment consists of its portfolio of businesses in industrial, industrial building,
and residential functions.
• Second quarter 2022 Applied Water income was $429 million, a 7.0 p.c enhance
organically year-over-year. The phase delivered sturdy worth realization and backlog
execution in industrial and residential end markets, partially offset by continued provide chain
constraints in commercial buildings in the United States.
• Second quarter adjusted EBITDA margin was sixteen.1 %, down one hundred thirty foundation points from the
prior year. Reported operating income for the phase was $61 million and adjusted operating
revenue, which excludes $2 million of restructuring and realignment prices, was $63 million, a four.5
% decrease versus the comparable interval final year. The phase reported working
margin was 14.2 p.c, down 130 foundation factors versus the prior 12 months interval. Adjusted
operating margin declined one hundred twenty basis points to 14.7 percent. Strong price realization and
productiveness savings have been greater than offset by inflation and lower quantity.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions section consists of its portfolio of companies in good
metering, community technologies, advanced infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions income was $346 million, down 2.zero
percent organically versus the prior yr. While chip supply remains constrained, the result is
better than our expectations as a result of improved chip provide in the quarter, and strength in our
water quality test purposes.
• Second quarter adjusted EBITDA margin was 9.8 percent, down 410 foundation 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 costs and $1 million of
shortages, unfavorable mix and higher inflation more than offset price realization and
productiveness financial 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 number one global water expertise company committed to solving critical water and
infrastructure challenges with innovation. Our 17,000 diverse staff delivered revenue of $5.2
billion in 2021. We are making a more sustainable world by enabling our clients to optimize water
and useful resource management, and helping communities in more than 150 nations turn out to be watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press release contains “forward-looking statements” throughout the that 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 negative, might, but aren’t necessary to, determine
forward-looking statements. By their nature, forward-looking statements address uncertain matters and
embrace any statements that are not historic, such as statements about our strategy, financial plans,
outlook, aims, plans, intentions or goals (including those related to our social, environmental and
different sustainability goals); or handle potential or future results of operations or monetary performance,
including statements referring to orders, revenues, working margins and earnings per share development.
Although we believe that the expectations reflected 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 situation and results of operations, as properly as any forwardlooking statements, are subject to alter and to inherent risks and uncertainties, lots of that are
beyond our control. Additionally, many of these risks and uncertainties are, and may continue to be,
amplified by impacts from the warfare between Russia and Ukraine, in addition to the ongoing coronavirus
(“COVID-19”) pandemic and associated macroeconomic situations (including inflation). Important factors
that would trigger our precise outcomes, 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 following: the influence of general industry and common financial conditions,
together with industrial, governmental, and public and private sector spending and the power of the
residential and industrial real property markets, on financial exercise and our operations; geopolitical
events, including the struggle between Russia and Ukraine, and regulatory, economic and different risks
associated with our global sales and operations, together with with respect to domestic content
requirements relevant to tasks with governmental funding; continued uncertainty around the
ongoing COVID-19 pandemic’s magnitude, period and impacts on our enterprise, operations, progress,
and financial condition; actual or potential other epidemics, pandemics or global health crises;
availability, shortage or delays in receiving digital parts (in particular, semiconductors), components,
and raw supplies from our supply chain; manufacturing and working cost increases because of
macroeconomic situations, including inflation, provide chain shortages, logistics challenges, tight labor
markets, prevailing value adjustments, tariffs and different components; demand for our products; disruption,
competition or pricing pressures in the markets we serve; cybersecurity incidents or other disruptions of
information expertise systems on which we rely, or involving our products; disruptions in operations at
our amenities or that of third events upon which we rely; ability to retain and entice senior management
and other diverse and key expertise, in addition to competitors for total expertise and labor; difficulty predicting
our monetary results; defects, safety, guarantee and legal responsibility claims, and recollects with respect to merchandise;
availability, regulation or interference with radio spectrum used by certain of our products; uncertainty
related to restructuring and realignment actions and related costs and savings; our ability to proceed
strategic investments for development; our capacity to efficiently identify, execute and combine acquisitions;
volatility in served markets or impacts on enterprise and operations because of weather situations, together with
the effects of local weather change; fluctuations in overseas currency trade charges; our ability to borrow or
refinance our present indebtedness and uncertainty across the availability of liquidity adequate to fulfill
our needs; danger of future impairments to goodwill and other intangible property; failure to adjust to, or
modifications in, laws or rules, together with those pertaining to anti-corruption, knowledge privateness and safety,
export and import, competitors, and the surroundings and climate change; changes in our efficient 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 12 months 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 launch regarding our environmental and other
sustainability plans and targets usually 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 หลักการทำงานของเกจ์วัดแก๊ส , historical, current, and
forward-looking social, environmental and sustainability associated statements could additionally be based mostly on standards
for measuring progress which may be nonetheless developing, inside controls and processes that continue to evolve,
and assumptions which might be topic to change sooner or later. All forward-looking statements made herein
are based mostly on information at present 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 on account of new
data, future events or otherwise, besides as required by legislation
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