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 $1.4 billion, up 1% on a reported foundation, up 6% organically
• Earnings per share of $0.sixty two, adjusted earnings per share of $0.66
• Adjusted EBITDA margin exceeded steerage by a hundred and sixty basis factors
• Raising full-year organic revenue guidance to a range 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 number one world water expertise
firm dedicated to fixing the world’s most difficult water issues, at present reported second quarter
revenue of $1.4 billion, surpassing previous guidance in every business phase. Strong continued
world demand drove orders and backlog progress across the portfolio.
Second quarter adjusted earnings before curiosity, tax, depreciation and amortization (EBITDA) margin
was sixteen.6 p.c, better than the Company’s earlier steerage and reflecting a year-over-year
decrease of 70 basis points. Inflation and the impression of continuing chip shortages drove the margin
decline, exceeding the advantages of price realization and productiveness financial savings. Xylem generated web
revenue of $112 million, or $0.sixty two per share, and adjusted net earnings of $120 million, or $0.66 per share,
which excludes the influence of restructuring, realignment and particular expenses.
“The staff delivered very robust second quarter efficiency on all key metrics, and well ahead of our
steering for the quarter,” stated Patrick Decker, Xylem president and CEO. “The outcome reflects our
industrial momentum on persevering with underlying demand, disciplined operational execution, and a
average easing in chip provide constraints.”
“On the strength of robust backlog and orders development, and the team’s demonstrated success mitigating
the results of inflation, we are elevating our full-year guidance on income and earnings. This additional
reinforces our longer-term progress and value creation thesis for Xylem.”
เกรดวัดแรงดัน expects full-year 2022 natural revenue development to be within the range of eight to 10 percent, and three
to five percent on a reported basis. This represents an increase from the Company’s previous full-year
natural revenue steerage of four to six %, and 1 to 3 % on a reported foundation. Full-year 2022
adjusted EBITDA margin is now expected to be within the range of 16.5 to 17.0 p.c, elevating the low end
of the previous range of 16.0 to 17.0 percent. This leads to adjusted earnings per share of $2.50 to
$2.70, elevating the low end from the earlier vary of $2.forty to $2.70. The elevated guidance displays
strong demand, gradual easing of supply chain constraints and price realization partially offset by
inflation and overseas 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 provides steering solely on a non-GAAP
foundation because of the inherent problem in forecasting certain amounts that might be included in GAAP
earnings, such as discrete tax items, with out unreasonable effort.
เกจวัดแรงดันปั๊มลม consists of its portfolio of businesses serving clear water
delivery, wastewater transport and treatment, and dewatering.
• Second quarter 2022 Water Infrastructure revenue was $589 million, a 9.0 p.c improve
organically in contrast with second quarter 2021. This strong progress was driven by sturdy value
realization, industrial dewatering demand, and healthy exercise in our wastewater utility enterprise
in the united states and Western Europe.
• Second quarter adjusted EBITDA margin was 21.four p.c, up 240 basis points from the prior
12 months. Reported operating income for the segment was $108 million. Adjusted working earnings
for the section, which excludes $3 million of restructuring and realignment, was $111 million, a
14.four percent increase versus the comparable interval last 12 months. Reported operating margin for
the segment was 18.3 %, up 200 basis factors versus the prior 12 months, and adjusted
operating margin was 18.eight percent, up a hundred and eighty basis points versus the prior 12 months. Strong worth
realization, quantity, and productiveness savings more than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water section consists of its portfolio of businesses in industrial, industrial constructing,
and residential purposes.
• Second quarter 2022 Applied Water income was $429 million, a 7.0 percent increase
organically year-over-year. The segment delivered sturdy worth realization and backlog
execution in industrial and residential finish markets, partially offset by continued provide chain
constraints in business buildings in the United States.
• Second quarter adjusted EBITDA margin was sixteen.1 %, down 130 basis factors from the
prior 12 months. Reported working income for the segment was $61 million and adjusted working
income, which excludes $2 million of restructuring and realignment costs, was $63 million, a four.5
p.c decrease versus the comparable period last yr. The phase reported working
margin was 14.2 percent, down a hundred thirty basis factors versus the prior year period. Adjusted
operating margin declined a hundred and twenty basis factors to 14.7 p.c. Strong price realization and
productivity financial savings have been more than offset by inflation and lower quantity.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions section consists of its portfolio of businesses in sensible
metering, network applied sciences, superior infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions income was $346 million, down 2.zero
% organically versus the prior year. While chip supply stays constrained, the result’s
higher than our expectations due to improved chip supply in the quarter, and energy in our
water high quality test functions.
• Second quarter adjusted EBITDA margin was 9.eight p.c, down 410 foundation factors from the prior
yr. Reported operating earnings for the section was $(5) million, and adjusted working
revenue, which excludes $3 million of restructuring and realignment prices and $1 million of
shortages, unfavorable mix and better inflation more than offset value realization and
productivity savings.
Supplemental info on Xylem’s second quarter 2022 earnings and reconciliations for certain nonGAAP objects is posted at www.xylem.com/investors.
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About Xylem
Xylem (XYL) is a number one global water know-how firm committed to solving crucial water and
infrastructure challenges with innovation. Our 17,000 numerous workers delivered income of $5.2
billion in 2021. We are making a more sustainable world by enabling our prospects to optimize water
and resource administration, and serving to communities in additional than a hundred and fifty international locations turn into watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press release contains “forward-looking statements” inside 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 comparable expressions or their unfavorable, might, but aren’t necessary to, identify
forward-looking statements. By their nature, forward-looking statements tackle unsure issues and
embrace any statements that aren’t historical, such as statements about our strategy, financial plans,
outlook, goals, plans, intentions or goals (including those related to our social, environmental and
other sustainability goals); or handle possible or future outcomes of operations or monetary efficiency,
together with statements regarding orders, revenues, working margins and earnings per share development.
Although we imagine that the expectations reflected in any of our forward-looking statements are
cheap, actual outcomes could differ materially from these projected or assumed in any of our forwardlooking statements. Our future financial condition and results of operations, as properly as any forwardlooking statements, are topic to change and to inherent risks and uncertainties, many of which are
beyond our management. Additionally, many of these dangers and uncertainties are, and will continue to be,
amplified by impacts from the struggle between Russia and Ukraine, as well as the continuing coronavirus
(“COVID-19”) pandemic and related macroeconomic situations (including inflation). Important components
that could trigger our precise results, efficiency and achievements, or industry results to vary
materially from estimates or projections contained in or implied by our forward-looking statements
embody, amongst others, the following: the impact of overall trade and general financial conditions,
including industrial, governmental, and public and private sector spending and the strength of the
residential and commercial actual property markets, on financial activity and our operations; geopolitical
occasions, including the struggle between Russia and Ukraine, and regulatory, economic and different risks
related to our international sales and operations, together with with respect to home content material
requirements relevant to projects with governmental funding; continued uncertainty around the
ongoing COVID-19 pandemic’s magnitude, length and impacts on our business, operations, progress,
and financial condition; actual or potential other epidemics, pandemics or world well being crises;
availability, shortage or delays in receiving digital parts (in particular, semiconductors), parts,
and uncooked supplies from our supply chain; manufacturing and working cost will increase as a outcome of
macroeconomic conditions, including inflation, supply chain shortages, logistics challenges, tight labor
markets, prevailing worth changes, tariffs and different factors; 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 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 various and key expertise, as properly as competitors for general talent and labor; difficulty predicting
our monetary results; defects, safety, warranty and liability claims, and recollects with respect to products;
availability, regulation or interference with radio spectrum used by certain of our merchandise; uncertainty
related to restructuring and realignment actions and related expenses and savings; our ability to proceed
strategic investments for progress; our capability to successfully establish, execute and integrate acquisitions;
volatility in served markets or impacts on enterprise and operations because of weather situations, together with
the results of climate change; fluctuations in overseas forex trade rates; our ability to borrow or
refinance our current indebtedness and uncertainty around the availability of liquidity enough to fulfill
our wants; danger of future impairments to goodwill and other intangible assets; failure to comply with, or
changes in, laws or regulations, together with those pertaining to anti-corruption, data privateness and safety,
export and import, competition, and the surroundings and local weather change; adjustments in our efficient tax
charges or tax bills; legal, governmental or regulatory claims, investigations or proceedings and
associated contingent liabilities; and different elements set forth beneath “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 regarding our environmental and different
sustainability plans and targets aren’t an indication 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 associated statements could also be based mostly on requirements
for measuring progress that are nonetheless growing, inner controls and processes that proceed to evolve,
and assumptions that are subject to alter in the future. All forward-looking statements made herein
are primarily based on data 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
info, future events or in any other case, besides as required by law
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