Xylem Reports Second Quarter 2022 Results

FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust continuing demand drove strong natural orders development: 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 a hundred and sixty basis points
• Raising full-year organic income steering to a spread 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 international water know-how
company dedicated to solving the world’s most difficult water issues, at present reported second quarter
income of $1.four billion, surpassing earlier guidance in each enterprise phase. Strong continued
international demand drove orders and backlog growth across the portfolio.
Second quarter adjusted earnings earlier than curiosity, tax, depreciation and amortization (EBITDA) margin
was 16.6 p.c, higher than the Company’s earlier steerage and reflecting a year-over-year
decrease of 70 basis factors. Inflation and the impression of continuous chip shortages drove the margin
decline, exceeding the benefits of value realization and productiveness savings. Xylem generated net
income of $112 million, or $0.sixty two per share, and adjusted internet earnings of $120 million, or $0.66 per share,
which excludes the impact of restructuring, realignment and particular expenses.
เครื่องมือตรวจวัดความดันเลือดเรียกว่า delivered very strong second quarter performance on all key metrics, and well ahead of our
guidance for the quarter,” mentioned Patrick Decker, Xylem president and CEO. “The result reflects our
industrial momentum on persevering with underlying demand, disciplined operational execution, and a
average easing in chip provide constraints.”
“On the power of sturdy backlog and orders growth, and the team’s demonstrated success mitigating
the results of inflation, we are elevating our full-year steering on income and earnings. This further
reinforces our longer-term progress and worth creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 natural income progress to be in the vary of eight to 10 percent, and three
to five % on a reported basis. This represents a rise from the Company’s previous full-year
organic income steerage of 4 to 6 percent, and 1 to 3 p.c on a reported foundation. Full-year 2022
adjusted EBITDA margin is now anticipated to be within the range of sixteen.5 to 17.zero p.c, raising the low end
of the previous vary of 16.zero to 17.zero percent. This leads to adjusted earnings per share of $2.50 to
$2.70, elevating the low finish from the previous range of $2.40 to $2.70. The elevated steering reflects
sturdy demand, gradual easing of provide 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 supplies
posted at www.xylem.com/investors. Excluding income, Xylem supplies steerage solely on a non-GAAP
foundation due to the inherent problem in forecasting certain amounts that may be included in GAAP
earnings, such as discrete tax gadgets, without unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure phase consists of its portfolio of businesses serving clean water
delivery, wastewater transport and therapy, and dewatering.
• Second quarter 2022 Water Infrastructure income was $589 million, a 9.zero p.c improve
organically in contrast with second quarter 2021. This robust growth was pushed by strong value
realization, industrial dewatering demand, and wholesome activity in our wastewater utility enterprise
in the united states and Western Europe.
• Second quarter adjusted EBITDA margin was 21.4 %, up 240 basis points from the prior
year. Reported working revenue for the segment was $108 million. Adjusted working revenue
for the section, which excludes $3 million of restructuring and realignment, was $111 million, a
14.four p.c improve versus the comparable period final year. Reported operating margin for
the segment was 18.three percent, up 200 foundation factors versus the prior 12 months, and adjusted
working margin was 18.eight p.c, up a hundred and eighty foundation points versus the prior year. Strong value
realization, quantity, and productiveness financial savings greater than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water section consists of its portfolio of businesses in industrial, commercial building,
and residential functions.
• Second quarter 2022 Applied Water income was $429 million, a 7.0 % improve
organically year-over-year. The section delivered robust worth realization and backlog
execution in industrial and residential end markets, partially offset by continued supply chain
constraints in industrial buildings in the United States.
• Second quarter adjusted EBITDA margin was 16.1 p.c, down 130 basis factors from the
prior year. Reported working revenue for the phase was $61 million and adjusted operating
income, which excludes $2 million of restructuring and realignment costs, was $63 million, a 4.5
p.c decrease versus the comparable period last yr. The phase reported operating
margin was 14.2 p.c, down a hundred thirty foundation points versus the prior year period. Adjusted
operating margin declined a hundred and twenty basis factors to 14.7 p.c. Strong worth realization and
productiveness 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 good
metering, community technologies, advanced infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions income was $346 million, down 2.0
percent organically versus the prior 12 months. While chip supply stays constrained, the result is
higher than our expectations as a end result of improved chip provide in the quarter, and energy in our
water high quality take a look at functions.
• Second quarter adjusted EBITDA margin was 9.eight p.c, down 410 basis factors from the prior
yr. Reported working earnings for the section was $(5) million, and adjusted operating
earnings, 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
productiveness financial savings.
Supplemental info 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 number one international water know-how firm committed to solving critical water and
infrastructure challenges with innovation. Our 17,000 diverse workers delivered income of $5.2
billion in 2021. We are making a more sustainable world by enabling our customers to optimize water
and useful resource administration, and serving to communities in additional than a hundred and fifty nations turn into watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press release incorporates “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 phrases “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“contemplate,” “predict,” “forecast,” “likely,” “believe,” “target,” “will,” “could,” “would,” “should,”
“potential,” “may” and comparable expressions or their negative, might, however usually are not necessary to, establish
forward-looking statements. By their nature, forward-looking statements tackle uncertain issues and
include any statements that aren’t historic, similar to statements about our strategy, monetary plans,
outlook, aims, plans, intentions or goals (including these related to our social, environmental and
different sustainability goals); or tackle possible or future outcomes of operations or financial performance,
together with statements relating to orders, revenues, working margins and earnings per share growth.
Although we imagine that the expectations reflected in any of our forward-looking statements are
cheap, actual outcomes might differ materially from these projected or assumed in any of our forwardlooking statements. Our future financial situation and results of operations, as nicely as any forwardlooking statements, are subject to alter and to inherent dangers and uncertainties, lots of which are
past our control. Additionally, many of these risks and uncertainties are, and will continue to be,
amplified by impacts from the warfare between Russia and Ukraine, as nicely as the ongoing coronavirus
(“COVID-19”) pandemic and related macroeconomic circumstances (including inflation). Important elements
that could cause our actual outcomes, efficiency and achievements, or industry outcomes to differ
materially from estimates or projections contained in or implied by our forward-looking statements
embrace, among others, the next: the impact of total industry and common financial conditions,
including industrial, governmental, and public and private sector spending and the energy of the
residential and commercial real property markets, on economic activity 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
requirements relevant to tasks with governmental funding; continued uncertainty across the
ongoing COVID-19 pandemic’s magnitude, duration and impacts on our enterprise, operations, development,
and monetary condition; precise or potential different epidemics, pandemics or international health crises;
availability, shortage or delays in receiving electronic components (in explicit, semiconductors), components,
and uncooked materials from our provide chain; manufacturing and working value increases as a outcome of
macroeconomic conditions, including inflation, supply chain shortages, logistics challenges, tight labor
markets, prevailing value changes, tariffs and other factors; demand for our merchandise; disruption,
competition or pricing pressures within the markets we serve; cybersecurity incidents or different disruptions of
information know-how methods on which we rely, or involving our merchandise; disruptions in operations at
our services or that of third parties upon which we rely; capability to retain and appeal to senior administration
and other various and key expertise, as properly as competitors for general expertise and labor; problem predicting
our monetary outcomes; defects, security, warranty and liability claims, and recollects with respect to merchandise;
availability, regulation or interference with radio spectrum utilized by sure of our products; uncertainty
associated to restructuring and realignment actions and associated expenses and financial savings; our capability to proceed
strategic investments for growth; our capacity to successfully establish, execute and integrate acquisitions;
volatility in served markets or impacts on business and operations because of climate circumstances, including
the results of local weather change; fluctuations in international currency trade rates; our capability to borrow or
refinance our present indebtedness and uncertainty around the availability of liquidity enough to meet
our wants; threat of future impairments to goodwill and other intangible assets; failure to comply with, or
changes in, legal guidelines or regulations, together with these pertaining to anti-corruption, knowledge privacy and safety,
export and import, competitors, and the environment and climate change; adjustments in our effective tax
rates or tax expenses; legal, governmental or regulatory claims, investigations or proceedings and
related contingent liabilities; and different components 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 launch concerning our environmental and different
sustainability plans and targets usually are not a sign that these statements are essentially materials to
investors or are required to be disclosed in our filings with the SEC. In addition, historic, present, and
forward-looking social, environmental and sustainability related statements may be primarily based on requirements
for measuring progress that are nonetheless creating, inner controls and processes that continue to evolve,
and assumptions that are subject to alter in the future. All forward-looking statements made herein
are based mostly on info at present out there 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 as a outcome of new
info, future occasions or in any other case, besides as required by regulation
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