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 persevering with demand drove robust natural orders development: 1% on a reported
foundation, 6% organically
• Revenue of $1.four billion, up 1% on a reported basis, up 6% organically
• Earnings per share of $0.62, adjusted earnings per share of $0.sixty six
• Adjusted EBITDA margin exceeded steerage by 160 foundation factors
• Raising full-year organic revenue guidance 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 leading global water know-how
firm devoted to solving the world’s most difficult water points, today reported second quarter
revenue of $1.4 billion, surpassing earlier guidance in every enterprise segment. Strong continued
global demand drove orders and backlog progress throughout the portfolio.
Second quarter adjusted earnings before curiosity, tax, depreciation and amortization (EBITDA) margin
was sixteen.6 percent, better than the Company’s earlier steering and reflecting a year-over-year
decrease of 70 foundation points. Inflation and the impact of constant chip shortages drove the margin
decline, exceeding the advantages of value realization and productivity savings. Xylem generated internet
revenue of $112 million, or $0.62 per share, and adjusted internet revenue of $120 million, or $0.sixty six per share,
which excludes the impression of restructuring, realignment and special charges.
“The team delivered very sturdy second quarter performance on all key metrics, and well forward of our
steering for the quarter,” stated Patrick Decker, Xylem president and CEO. “The outcome reflects our
commercial momentum on continuing underlying demand, disciplined operational execution, and a
moderate easing in chip provide constraints.”
“On the energy of robust backlog and orders progress, and the team’s demonstrated success mitigating
the effects of inflation, we’re raising our full-year steering 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 development to be within the vary of 8 to 10 percent, and 3
to 5 % on a reported foundation. เกจวัดแรงดัน4บาร์ represents a rise from the Company’s earlier full-year
organic revenue guidance of four to six %, and 1 to 3 percent on a reported foundation. Full-year 2022
adjusted EBITDA margin is now expected to be within the vary of 16.5 to 17.zero %, raising the low finish
of the previous range of sixteen.0 to 17.zero p.c. This results in adjusted earnings per share of $2.50 to
$2.70, raising the low finish from the earlier vary of $2.40 to $2.70. The increased steering displays
robust 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 materials
posted at www.xylem.com/investors. Excluding income, Xylem offers steering only on a non-GAAP
basis because of the inherent issue in forecasting certain amounts that might be included in GAAP
earnings, similar to discrete tax objects, without unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure section consists of its portfolio of businesses serving clean water
supply, wastewater transport and remedy, and dewatering.
• Second quarter 2022 Water Infrastructure income was $589 million, a 9.zero p.c increase
organically compared with second quarter 2021. This sturdy progress was driven by robust price
realization, industrial dewatering demand, and healthy activity 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 factors from the prior
year. Reported working earnings for the section was $108 million. Adjusted operating revenue
for the phase, which excludes $3 million of restructuring and realignment, was $111 million, a
14.4 % enhance versus the comparable interval last yr. 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 p.c, up one hundred eighty basis factors versus the prior yr. Strong worth
realization, volume, and productivity savings greater than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water segment consists of its portfolio of businesses in industrial, commercial constructing,
and residential applications.
• Second quarter 2022 Applied Water revenue was $429 million, a 7.0 p.c improve
organically year-over-year. The section delivered robust value realization and backlog
execution in industrial and residential end markets, partially offset by continued provide chain
constraints in commercial buildings within the United States.
• Second quarter adjusted EBITDA margin was 16.1 %, down one hundred thirty basis points from the
prior 12 months. Reported operating income for the phase was $61 million and adjusted working
earnings, which excludes $2 million of restructuring and realignment prices, was $63 million, a four.5
p.c lower versus the comparable period last 12 months. The segment reported operating
margin was 14.2 percent, down 130 foundation factors versus the prior yr period. Adjusted
working margin declined 120 foundation factors to 14.7 %. Strong price realization and
productiveness financial savings have been more than offset by inflation and decrease quantity.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions section consists of its portfolio of businesses in smart
metering, community technologies, 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 yr. While chip provide remains constrained, the result’s
better than our expectations due to improved chip provide in the quarter, and power in our
water high quality check purposes.
• Second quarter adjusted EBITDA margin was 9.8 %, down 410 basis points from the prior
12 months. Reported working earnings for the segment 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 worth realization and
productivity financial savings.
Supplemental data 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 international water technology company committed to solving important water and
infrastructure challenges with innovation. Our 17,000 various employees delivered income of $5.2
billion in 2021. We are creating a extra sustainable world by enabling our prospects to optimize water
and resource management, and helping communities in additional than one hundred fifty countries turn out to be watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press release accommodates “forward-looking statements” within 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 similar expressions or their unfavorable, might, however aren’t necessary to, determine
forward-looking statements. By their nature, forward-looking statements handle unsure issues and
embrace any statements that are not historical, corresponding to statements about our technique, monetary plans,
outlook, objectives, plans, intentions or goals (including those associated to our social, environmental and
different sustainability goals); or address possible or future outcomes of operations or financial performance,
together with statements referring to orders, revenues, operating margins and earnings per share development.
Although we consider that the expectations mirrored in any of our forward-looking statements are
cheap, precise results could differ materially from these projected or assumed in any of our forwardlooking statements. Our future financial condition and outcomes of operations, as properly as any forwardlooking statements, are subject to change and to inherent dangers and uncertainties, many of which are
past our control. Additionally, many of these risks and uncertainties are, and may continue to be,
amplified by impacts from the struggle between Russia and Ukraine, in addition to the continuing coronavirus
(“COVID-19”) pandemic and related macroeconomic situations (including inflation). Important components
that might cause our precise results, efficiency and achievements, or business results to vary
materially from estimates or projections contained in or implied by our forward-looking statements
embody, among others, the following: the impression of total business and basic economic circumstances,
including industrial, governmental, and public and private sector spending and the power of the
residential and industrial actual property markets, on economic activity and our operations; geopolitical
events, together with the struggle between Russia and Ukraine, and regulatory, financial and other risks
related to our international sales and operations, including with respect to home content
necessities applicable to projects with governmental funding; continued uncertainty across the
ongoing COVID-19 pandemic’s magnitude, period and impacts on our enterprise, operations, development,
and monetary condition; precise or potential different epidemics, pandemics or global health crises;
availability, scarcity or delays in receiving electronic parts (in explicit, semiconductors), parts,
and uncooked supplies from our provide chain; manufacturing and operating price increases as a end result of
macroeconomic circumstances, including inflation, supply chain shortages, logistics challenges, tight labor
markets, prevailing worth adjustments, tariffs and other factors; demand for our merchandise; disruption,
competition or pricing pressures within the markets we serve; cybersecurity incidents or different disruptions of
info technology systems on which we rely, or involving our merchandise; disruptions in operations at
our facilities or that of third parties upon which we rely; capability to retain and entice senior management
and other diverse and key expertise, as properly as competitors for total talent and labor; problem predicting
our monetary results; defects, security, warranty and legal responsibility claims, and recalls with respect to products;
availability, regulation or interference with radio spectrum utilized by sure of our products; uncertainty
associated to restructuring and realignment actions and related charges and savings; our ability to proceed
strategic investments for development; our ability to successfully identify, execute and integrate acquisitions;
volatility in served markets or impacts on enterprise and operations as a result of climate conditions, including
the results of climate change; fluctuations in overseas foreign money exchange charges; our capacity to borrow or
refinance our existing indebtedness and uncertainty across the availability of liquidity sufficient to meet
our needs; risk of future impairments to goodwill and different intangible belongings; failure to comply with, or
adjustments in, legal guidelines or regulations, together with these pertaining to anti-corruption, data privateness and security,
export and import, competition, and the environment and local weather change; changes in our effective 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 year 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 concerning our environmental and other
sustainability plans and targets are not a sign that these statements are necessarily material to
traders 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 could also be primarily based on requirements
for measuring progress that are nonetheless creating, inside controls and processes that proceed to evolve,
and assumptions which are topic to change in the future. All forward-looking statements made herein
are based on data presently 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 as a result of new
info, future occasions or in any other case, besides as required by regulation
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