Xylem Reports Second Quarter 2022 Results


Xylem Reports Second Quarter 2022 Results

by Brenna ShumbamhiniAugust 2, 2022


Robust continuing demand drove robust organic orders growth: 1% on a reported

basis, 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 steering by 160 basis factors

• Raising full-year organic revenue steering 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 international water know-how

firm dedicated to solving the world’s most difficult water issues, at present reported second quarter

income of $1.four billion, surpassing earlier steering in every enterprise 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 p.c, better than the Company’s previous steerage and reflecting a year-over-year

decrease of 70 foundation factors. Inflation and the impact of constant chip shortages drove the margin

decline, exceeding the advantages of worth realization and productiveness savings. Xylem generated web

revenue of $112 million, or $0.62 per share, and adjusted internet income of $120 million, or $0.sixty six per share,
which excludes the impression of restructuring, realignment and special expenses.
“The team delivered very sturdy second quarter performance on all key metrics, and properly forward of our

steerage for the quarter,” mentioned Patrick Decker, Xylem president and CEO. “The result reflects our

commercial momentum on persevering with underlying demand, disciplined operational execution, and a

moderate easing in chip supply constraints.”

“On the power of robust backlog and orders progress, and the team’s demonstrated success mitigating

the consequences of inflation, we are raising our full-year steerage on revenue and earnings. This further

reinforces our longer-term progress and value creation thesis for Xylem.”


Xylem now expects full-year 2022 organic revenue development to be within the vary of 8 to 10 p.c, and three

to 5 p.c on a reported foundation. เพรสเชอร์เกจวัดแรงดันน้ำ represents an increase from the Company’s previous full-year

natural revenue guidance of four to 6 percent, and 1 to three percent on a reported foundation. Full-year 2022

adjusted EBITDA margin is now anticipated to be in the vary of sixteen.5 to 17.0 %, elevating the low finish

of the earlier vary of sixteen.zero to 17.0 p.c. This leads to adjusted earnings per share of $2.50 to

$2.70, raising the low end from the previous vary of $2.40 to $2.70. The increased guidance reflects

robust demand, gradual easing of provide chain constraints and worth 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 provides steering solely on a non-GAAP

foundation as a result of inherent difficulty in forecasting sure quantities that would be included in GAAP

earnings, similar to discrete tax items, without unreasonable effort.
Second Quarter Segment Results

Water Infrastructure

Xylem’s Water Infrastructure segment consists of its portfolio of businesses serving clear water

supply, wastewater transport and therapy, and dewatering.
• Second quarter 2022 Water Infrastructure revenue was $589 million, a 9.zero % increase

organically in contrast with second quarter 2021. This robust progress was pushed by strong worth

realization, industrial dewatering demand, and healthy exercise in our wastewater utility business

in the U.S. and Western Europe.
• Second quarter adjusted EBITDA margin was 21.four %, up 240 foundation points from the prior

12 months. Reported operating revenue for the phase was $108 million. Adjusted operating income

for the section, which excludes $3 million of restructuring and realignment, was $111 million, a

14.four % improve versus the comparable interval last 12 months. Reported operating margin for

the phase was 18.three p.c, up 200 basis points versus the prior year, and adjusted

operating margin was 18.8 percent, up a hundred and eighty basis points versus the prior 12 months. Strong price

realization, volume, and productiveness financial savings more than offset inflation and strategic

Applied Water

Xylem’s Applied Water phase consists of its portfolio of companies in industrial, business building,
and residential purposes.
• Second quarter 2022 Applied Water revenue was $429 million, a 7.zero percent enhance

organically year-over-year. The phase delivered sturdy worth realization and backlog

execution in industrial and residential finish markets, partially offset by continued supply chain

constraints in commercial buildings within the United States.
• Second quarter adjusted EBITDA margin was 16.1 %, down a hundred thirty foundation factors from the

prior yr. Reported operating earnings for the phase was $61 million and adjusted operating

revenue, which excludes $2 million of restructuring and realignment costs, was $63 million, a 4.5

% lower versus the comparable period last yr. The phase reported working

margin was 14.2 %, down a hundred thirty foundation points versus the prior year period. Adjusted

working margin declined a hundred and twenty basis points to 14.7 percent. Strong worth realization and

productiveness savings were greater than offset by inflation and decrease quantity.
Measurement & Control Solutions

Xylem’s Measurement & Control Solutions phase consists of its portfolio of businesses in smart

metering, network applied sciences, 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 12 months. While chip supply remains constrained, the result’s

better than our expectations as a outcome of improved chip supply within the quarter, and power in our

water quality check applications.
• Second quarter adjusted EBITDA margin was 9.8 %, down 410 foundation factors from the prior

year. Reported working revenue for the phase was $(5) million, and adjusted operating

income, which excludes $3 million of restructuring and realignment prices and $1 million of

shortages, unfavorable mix and higher inflation more than offset price realization and

productivity savings.
Supplemental info on Xylem’s second quarter 2022 earnings and reconciliations for certain nonGAAP gadgets is posted at www.xylem.com/investors.

About Xylem

Xylem (XYL) is a leading international water expertise company dedicated to solving crucial water and

infrastructure challenges with innovation. Our 17,000 diverse workers delivered income of $5.2

billion in 2021. We are creating a more sustainable world by enabling our customers to optimize water

and useful resource administration, and helping communities in additional than one hundred fifty nations turn into watersecure. Join us at www.xylem.com.
Forward-Looking Statements

This press release contains “forward-looking statements” inside the meaning 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 aren’t essential to, identify

forward-looking statements. By their nature, forward-looking statements address unsure matters and

embody any statements that aren’t historical, corresponding to statements about our strategy, monetary plans,
outlook, aims, plans, intentions or goals (including those related to our social, environmental and

different sustainability goals); or handle potential or future outcomes of operations or monetary performance,
together with statements relating to orders, revenues, working margins and earnings per share growth.
Although we consider that the expectations mirrored in any of our forward-looking statements are

affordable, precise outcomes may differ materially from those projected or assumed in any of our forwardlooking statements. Our future monetary situation and outcomes of operations, as properly as any forwardlooking statements, are topic to change and to inherent dangers and uncertainties, lots of that are

beyond our management. Additionally, many of these dangers and uncertainties are, and will continue to be,
amplified by impacts from the warfare between Russia and Ukraine, as nicely as the continued coronavirus

(“COVID-19”) pandemic and associated macroeconomic conditions (including inflation). Important components

that might cause our precise 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 impact of general trade and basic financial situations,
together with industrial, governmental, and public and private sector spending and the power of the

residential and business real property markets, on economic activity and our operations; geopolitical

events, including the struggle between Russia and Ukraine, and regulatory, financial and other dangers

associated with our world gross sales and operations, together with 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 business, operations, progress,
and financial condition; precise or potential other epidemics, pandemics or global health crises;
availability, shortage or delays in receiving digital elements (in specific, semiconductors), elements,
and uncooked materials from our provide chain; manufacturing and working value will increase due to

macroeconomic conditions, including inflation, supply chain shortages, logistics challenges, tight labor

markets, prevailing worth modifications, tariffs and different factors; demand for our merchandise; disruption,
competition or pricing pressures in the markets we serve; cybersecurity incidents or other disruptions of

info expertise methods on which we rely, or involving our merchandise; disruptions in operations at

our amenities or that of third events upon which we rely; capacity to retain and appeal to senior management

and different numerous and key expertise, in addition to competitors for total expertise and labor; issue predicting

our monetary results; defects, safety, guarantee and legal responsibility claims, and recalls with respect to merchandise;
availability, regulation or interference with radio spectrum utilized by certain of our products; uncertainty

associated to restructuring and realignment actions and related charges and savings; our capability to continue

strategic investments for growth; our capacity to successfully identify, execute and integrate acquisitions;
volatility in served markets or impacts on business and operations as a end result of climate situations, including

the effects of local weather change; fluctuations in foreign foreign money trade charges; our capacity to borrow or

refinance our present indebtedness and uncertainty around the availability of liquidity enough to meet

our wants; risk of future impairments to goodwill and different intangible assets; failure to adjust to, or

adjustments in, legal guidelines or regulations, including these pertaining to anti-corruption, information privateness and safety,
export and import, competition, and the surroundings and climate change; modifications in our efficient tax

rates or tax bills; authorized, governmental or regulatory claims, investigations or proceedings and

associated contingent liabilities; and other elements set forth beneath “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 different statements in this press release regarding our environmental and different

sustainability plans and objectives aren’t an indication that these statements are essentially materials to

buyers or are required to be disclosed in our filings with the SEC. In addition, historic, current, and

forward-looking social, environmental and sustainability related statements could additionally be primarily based on standards

for measuring progress which are still developing, inside controls and processes that continue to evolve,
and assumptions which may be topic to change in the future. All forward-looking statements made herein

are based mostly on data currently out there to us as of the date of this press launch. We undertake no

obligation to publicly update or revise any forward-looking statements, whether because of new

information, future events or otherwise, except as required by law


Leave a Comment