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 continuing demand drove sturdy organic orders growth: 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 $0.66
• Adjusted EBITDA margin exceeded steering by one hundred sixty foundation points
• Raising full-year organic income guidance 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 leading global water technology
firm devoted to fixing the world’s most difficult water issues, right now reported second quarter
income of $1.4 billion, surpassing previous steerage in each enterprise section. Strong continued
world demand drove orders and backlog development throughout the portfolio.
Second quarter adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margin
was sixteen.6 percent, higher than the Company’s previous steerage and reflecting a year-over-year
decrease of 70 basis factors. Inflation and the impact of continuous chip shortages drove the margin
decline, exceeding the advantages of worth realization and productivity savings. pressure gauge 0 10 bar ราคา generated internet
revenue of $112 million, or $0.62 per share, and adjusted internet earnings of $120 million, or $0.sixty six per share,
which excludes the influence of restructuring, realignment and particular costs.
“The group delivered very strong second quarter performance on all key metrics, and nicely forward of our
guidance for the quarter,” said Patrick Decker, Xylem president and CEO. “The outcome displays our
commercial momentum on continuing underlying demand, disciplined operational execution, and a
average easing in chip provide constraints.”
“On the strength of strong backlog and orders growth, and the team’s demonstrated success mitigating
the results of inflation, we are raising our full-year steering on income and earnings. This additional
reinforces our longer-term development and value creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 organic revenue progress to be in the range of 8 to 10 percent, and 3
to 5 % on a reported basis. This represents an increase from the Company’s previous full-year
organic income steerage of 4 to 6 percent, and 1 to three % on a reported basis. Full-year 2022
adjusted EBITDA margin is now expected to be within the range of 16.5 to 17.0 percent, raising the low finish
of the previous range of sixteen.zero to 17.0 percent. This results in adjusted earnings per share of $2.50 to
$2.70, elevating the low end from the previous range of $2.forty to $2.70. The increased steering reflects
robust demand, gradual easing of supply chain constraints and value realization partially offset by
inflation and international 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 steerage solely on a non-GAAP
foundation due to the inherent difficulty in forecasting certain amounts that might be included in GAAP
earnings, corresponding to discrete tax items, with out unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure phase consists of its portfolio of businesses serving clear water
supply, wastewater transport and therapy, and dewatering.
• Second quarter 2022 Water Infrastructure income was $589 million, a 9.0 percent enhance
organically compared with second quarter 2021. This strong progress was pushed by robust price
realization, industrial dewatering demand, and wholesome exercise in our wastewater utility business
in the U.S. and Western Europe.
• Second quarter adjusted EBITDA margin was 21.4 percent, up 240 foundation factors from the prior
yr. Reported working revenue for the segment was $108 million. Adjusted working earnings
for the segment, which excludes $3 million of restructuring and realignment, was $111 million, a
14.4 % enhance versus the comparable interval last year. Reported operating margin for
the segment was 18.three %, up 200 foundation points versus the prior 12 months, and adjusted
working margin was 18.8 %, up 180 foundation factors versus the prior 12 months. Strong value
realization, quantity, and productivity financial savings greater than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water segment consists of its portfolio of businesses in industrial, industrial 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 sturdy value realization and backlog
execution in industrial and residential finish markets, partially offset by continued supply chain
constraints in industrial buildings within the United States.
• Second quarter adjusted EBITDA margin was 16.1 %, down a hundred thirty foundation points from the
prior 12 months. Reported working revenue for the section was $61 million and adjusted working
revenue, which excludes $2 million of restructuring and realignment costs, was $63 million, a 4.5
percent decrease versus the comparable interval final yr. The phase reported working
margin was 14.2 p.c, down a hundred thirty foundation factors versus the prior 12 months interval. Adjusted
operating margin declined one hundred twenty basis points to 14.7 percent. Strong value realization and
productiveness savings had been more than offset by inflation and decrease volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions section consists of its portfolio of companies in sensible
metering, community applied sciences, 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 year. While chip provide stays constrained, the result is
better than our expectations due to improved chip provide within the quarter, and power in our
water high quality test functions.
• Second quarter adjusted EBITDA margin was 9.8 percent, down 410 basis points from the prior
year. Reported operating earnings for the phase was $(5) million, and adjusted working
income, which excludes $3 million of restructuring and realignment prices and $1 million of
shortages, unfavorable mix and better inflation greater than offset price realization and
productivity financial savings.
Supplemental data on Xylem’s second quarter 2022 earnings and reconciliations for sure nonGAAP objects is posted at www.xylem.com/investors.
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About Xylem
Xylem (XYL) is a leading global water technology firm committed to solving crucial water and
infrastructure challenges with innovation. Our 17,000 diverse workers delivered revenue of $5.2
billion in 2021. We are creating a more sustainable world by enabling our prospects 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 launch contains “forward-looking statements” throughout 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 similar expressions or their adverse, could, however usually are not necessary to, establish
forward-looking statements. By their nature, forward-looking statements address unsure matters and
include any statements that aren’t historic, corresponding to statements about our strategy, financial plans,
outlook, aims, plans, intentions or objectives (including those associated to our social, environmental and
different sustainability goals); or address attainable or future outcomes of operations or monetary performance,
together with statements regarding orders, revenues, working margins and earnings per share progress.
Although we imagine that the expectations reflected in any of our forward-looking statements are
reasonable, actual outcomes could differ materially from these projected or assumed in any of our forwardlooking statements. Our future monetary situation and outcomes of operations, in addition to any forwardlooking statements, are topic to alter and to inherent risks and uncertainties, many of that are
beyond our management. Additionally, many of these dangers and uncertainties are, and should proceed to be,
amplified by impacts from the warfare between Russia and Ukraine, as well as the continuing coronavirus
(“COVID-19”) pandemic and associated macroeconomic situations (including inflation). Important components
that would trigger 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, among others, the next: the impact of total trade and general economic situations,
including industrial, governmental, and private and non-private sector spending and the energy of the
residential and industrial real property markets, on economic activity and our operations; geopolitical
occasions, together with the struggle between Russia and Ukraine, and regulatory, financial and other risks
associated with our world gross sales and operations, including with respect to domestic content
requirements relevant to projects with governmental funding; continued uncertainty across the
ongoing COVID-19 pandemic’s magnitude, duration and impacts on our enterprise, operations, growth,
and financial condition; precise or potential other epidemics, pandemics or world health crises;
availability, scarcity or delays in receiving electronic parts (in explicit, semiconductors), parts,
and uncooked materials from our provide chain; manufacturing and working value increases due to
macroeconomic circumstances, together with inflation, provide chain shortages, logistics challenges, tight labor
markets, prevailing worth adjustments, tariffs and other components; demand for our merchandise; disruption,
competition or pricing pressures in the markets we serve; cybersecurity incidents or other disruptions of
data technology systems on which we rely, or involving our merchandise; disruptions in operations at
our amenities or that of third parties upon which we rely; capacity to retain and appeal to senior management
and other diverse and key expertise, in addition to competition for total expertise and labor; problem predicting
our monetary results; defects, safety, guarantee and legal responsibility claims, and remembers with respect to merchandise;
availability, regulation or interference with radio spectrum utilized by certain of our products; uncertainty
related to restructuring and realignment actions and related charges and financial savings; our ability to proceed
strategic investments for growth; our ability to efficiently identify, 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 forex exchange rates; our ability to borrow or
refinance our current indebtedness and uncertainty across the availability of liquidity sufficient to fulfill
our wants; threat of future impairments to goodwill and different intangible assets; failure to adjust to, or
changes in, legal guidelines or rules, including these pertaining to anti-corruption, information privateness and security,
export and import, competition, and the setting and local weather change; adjustments in our effective tax
charges or tax bills; authorized, 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 year 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 release relating to our environmental and other
sustainability plans and objectives aren’t a sign that these statements are essentially 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 additionally be based on standards
for measuring progress which are nonetheless growing, inner controls and processes that continue to evolve,
and assumptions which are topic to vary in the future. All forward-looking statements made herein
are primarily based on data currently obtainable to us as of the date of this press launch. We undertake no
obligation to publicly update or revise any forward-looking statements, whether or not as a outcome of new
info, future events or otherwise, except as required by legislation
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