FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust persevering with demand drove robust natural orders progress: 1% on a reported
basis, 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 $0.66
• Adjusted EBITDA margin exceeded steering by one hundred sixty basis factors
• Raising full-year organic income guidance 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.forty to $2.70
Washington, D.C., August 2, 2022 – Xylem Inc. (NYSE: XYL), a leading international water expertise
firm devoted to solving the world’s most challenging water points, right now reported second quarter
income of $1.4 billion, surpassing previous guidance in every enterprise segment. Strong continued
international demand drove orders and backlog growth across the portfolio.
Second quarter adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margin
was sixteen.6 %, better than the Company’s previous guidance and reflecting a year-over-year
lower of 70 basis factors. Inflation and the influence of continuing chip shortages drove the margin
decline, exceeding the advantages of value realization and productivity savings. Xylem generated web
earnings of $112 million, or $0.62 per share, and adjusted web revenue of $120 million, or $0.66 per share,
which excludes the influence of restructuring, realignment and special expenses.
“The staff delivered very strong second quarter performance on all key metrics, and properly forward of our
steerage for the quarter,” stated Patrick Decker, Xylem president and CEO. “The outcome displays our
industrial momentum on persevering with underlying demand, disciplined operational execution, and a
average easing in chip supply constraints.”
“On the strength of sturdy backlog and orders growth, and the team’s demonstrated success mitigating
the results of inflation, we are raising our full-year guidance on revenue and earnings. This additional
reinforces our longer-term progress and worth creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 natural income progress to be within the range of eight to 10 %, and 3
to 5 p.c on a reported foundation. This represents a rise from the Company’s previous full-year
natural revenue guidance of four to six p.c, and 1 to 3 % on a reported basis. Full-year 2022
adjusted EBITDA margin is now expected to be in the range of 16.5 to 17.0 p.c, raising the low end
of the previous vary of 16.zero to 17.zero p.c. This leads to adjusted earnings per share of $2.50 to
$2.70, elevating the low finish from the earlier range of $2.forty to $2.70. The increased steerage reflects
robust demand, gradual easing of supply chain constraints and price 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 revenue, Xylem provides guidance only on a non-GAAP
foundation due to the inherent difficulty in forecasting certain amounts that would be included in GAAP
earnings, corresponding to 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 revenue was $589 million, a 9.zero % improve
organically in contrast with second quarter 2021. This robust progress was pushed by robust worth
realization, industrial dewatering demand, and wholesome exercise in our wastewater utility enterprise
in the us and Western Europe.
• Second quarter adjusted EBITDA margin was 21.4 p.c, up 240 foundation factors from the prior
yr. Reported operating earnings for the section was $108 million. Adjusted operating earnings
for the section, which excludes $3 million of restructuring and realignment, was $111 million, a
14.four p.c enhance versus the comparable period last year. Reported working margin for
the phase was 18.3 p.c, up 200 basis points versus the prior year, and adjusted
working margin was 18.eight %, up a hundred and eighty foundation points versus the prior year. Strong worth
realization, volume, and productivity savings more than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water phase consists of its portfolio of businesses in industrial, business building,
and residential functions.
• Second quarter 2022 Applied Water revenue was $429 million, a 7.zero p.c improve
organically year-over-year. The section delivered strong price 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 one hundred thirty basis points from the
prior 12 months. Reported working earnings for the phase was $61 million and adjusted working
income, which excludes $2 million of restructuring and realignment prices, was $63 million, a 4.5
percent decrease versus the comparable interval last year. The section reported working
margin was 14.2 percent, down a hundred thirty basis points versus the prior 12 months interval. Adjusted
working margin declined one hundred twenty foundation factors to 14.7 %. Strong value realization and
productivity savings were greater than offset by inflation and decrease volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions section consists of its portfolio of businesses in smart
metering, network technologies, superior infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions income was $346 million, down 2.zero
p.c organically versus the prior 12 months. While เกจวัดแรงดันลมราคา provide remains constrained, the result’s
better than our expectations as a outcome of improved chip provide within the quarter, and strength in our
water quality check functions.
• Second quarter adjusted EBITDA margin was 9.eight %, down 410 foundation points from the prior
year. Reported working income for the phase 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 more than offset value realization and
productivity financial savings.
Supplemental data on Xylem’s second quarter 2022 earnings and reconciliations for sure nonGAAP items is posted at www.xylem.com/investors.
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About Xylem
Xylem (XYL) is a leading international water know-how firm committed to fixing critical water and
infrastructure challenges with innovation. Our 17,000 diverse employees delivered income of $5.2
billion in 2021. We are making a extra sustainable world by enabling our clients to optimize water
and resource administration, and helping communities in additional than a hundred and fifty nations become watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press launch contains “forward-looking statements” inside 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 comparable expressions or their adverse, may, however usually are not essential to, identify
forward-looking statements. By their nature, forward-looking statements handle unsure issues and
embrace any statements that are not historic, such as statements about our strategy, monetary plans,
outlook, aims, plans, intentions or goals (including these associated to our social, environmental and
different sustainability goals); or handle attainable or future outcomes of operations or financial efficiency,
together with statements relating to orders, revenues, operating margins and earnings per share growth.
Although we believe that the expectations reflected in any of our forward-looking statements are
cheap, precise results could differ materially from those projected or assumed in any of our forwardlooking statements. Our future financial situation and outcomes of operations, in addition to any forwardlooking statements, are topic to change and to inherent risks and uncertainties, many of which are
past our management. Additionally, many of those risks and uncertainties are, and may proceed to be,
amplified by impacts from the war between Russia and Ukraine, in addition to the continuing coronavirus
(“COVID-19”) pandemic and associated macroeconomic situations (including inflation). Important factors
that might cause our actual outcomes, performance and achievements, or industry outcomes to differ
materially from estimates or projections contained in or implied by our forward-looking statements
include, amongst others, the following: the impression of general business and general economic circumstances,
together with industrial, governmental, and public and private sector spending and the strength of the
residential and industrial real property markets, on economic exercise and our operations; geopolitical
events, together with the war between Russia and Ukraine, and regulatory, financial and other dangers
related to our world sales and operations, including with respect to home content
necessities applicable to initiatives with governmental funding; continued uncertainty across the
ongoing COVID-19 pandemic’s magnitude, period and impacts on our enterprise, operations, development,
and financial situation; precise or potential different epidemics, pandemics or international well being crises;
availability, scarcity or delays in receiving electronic elements (in explicit, semiconductors), parts,
and raw supplies from our supply chain; manufacturing and working cost will increase because of
macroeconomic situations, including inflation, supply chain shortages, logistics challenges, tight labor
markets, prevailing worth modifications, tariffs and different factors; demand for our products; disruption,
competition or pricing pressures within the markets we serve; cybersecurity incidents or different disruptions of
information know-how techniques on which we rely, or involving our products; disruptions in operations at
our amenities or that of third parties upon which we rely; capability to retain and entice senior administration
and different diverse and key expertise, as well as competitors for total talent and labor; difficulty predicting
our monetary outcomes; defects, security, guarantee and liability claims, and remembers 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 costs and financial savings; our ability to continue
strategic investments for progress; our capacity to efficiently determine, execute and combine acquisitions;
volatility in served markets or impacts on enterprise and operations due to weather situations, including
the effects of climate change; fluctuations in international currency exchange rates; our ability to borrow or
refinance our present indebtedness and uncertainty across the availability of liquidity sufficient to fulfill
our needs; threat of future impairments to goodwill and other intangible property; failure to adjust to, or
modifications in, legal guidelines or laws, including those pertaining to anti-corruption, data privacy and security,
export and import, competition, and the surroundings and climate change; modifications in our efficient tax
rates or tax expenses; legal, governmental or regulatory claims, investigations or proceedings and
related 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 in this press release concerning our environmental and different
sustainability plans and targets usually are not a sign that these statements are essentially material to
buyers or are required to be disclosed in our filings with the SEC. In addition, historical, current, and
forward-looking social, environmental and sustainability related statements could also be based on standards
for measuring progress which are still growing, inside controls and processes that continue to evolve,
and assumptions which are topic to change in the future. All forward-looking statements made herein
are based on data presently obtainable 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 otherwise, except as required by legislation
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