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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 growth: 1% on a reported
foundation, 6% organically
• Revenue of $1.4 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 160 foundation factors
• Raising full-year natural revenue steerage to a range of 8% to 10% from 4% to
6%, and adjusted EPS to a variety of $2.50 to $2.70 from $2.40 to $2.70
Washington, D.C., August 2, 2022 – Xylem Inc. (NYSE: XYL), a leading international water expertise
company devoted to fixing the world’s most challenging water issues, today reported second quarter
income of $1.four billion, surpassing earlier steerage in every business phase. Strong continued
global demand drove orders and backlog growth throughout the portfolio.
Second quarter adjusted earnings earlier than curiosity, tax, depreciation and amortization (EBITDA) margin
was sixteen.6 %, higher than the Company’s earlier steerage and reflecting a year-over-year
decrease of 70 foundation points. Inflation and the impression of continuous chip shortages drove the margin
decline, exceeding the benefits of price realization and productivity financial savings. Xylem generated internet
earnings of $112 million, or $0.62 per share, and adjusted internet income of $120 million, or $0.sixty six per share,
which excludes the impact of restructuring, realignment and special costs.
“The staff delivered very robust second quarter efficiency 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 continuing underlying demand, disciplined operational execution, and a
average easing in chip supply constraints.”
“On the energy of sturdy backlog and orders progress, and the team’s demonstrated success mitigating
the results of inflation, we are elevating our full-year guidance on income and earnings. This additional
reinforces our longer-term growth and value creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 natural revenue development to be in the range of eight to 10 %, and three
to 5 percent on a reported basis. This represents a rise from the Company’s previous full-year
natural revenue steering of four to six %, and 1 to 3 % on a reported foundation. Full-year 2022
adjusted EBITDA margin is now expected to be within the range of 16.5 to 17.0 percent, elevating the low finish
of the previous vary of 16.zero to 17.0 %. This ends in adjusted earnings per share of $2.50 to
$2.70, elevating the low end from the earlier vary of $2.40 to $2.70. The elevated steering reflects
strong demand, gradual easing of supply chain constraints and worth realization partially offset by
inflation and international 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 provides steerage solely on a non-GAAP
foundation because of the inherent issue in forecasting certain amounts that would be included in GAAP
earnings, such as discrete tax objects, without unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure segment consists of its portfolio of businesses serving clear water
delivery, wastewater transport and therapy, and dewatering.
• Second quarter 2022 Water Infrastructure income was $589 million, a 9.zero percent improve
organically in contrast with second quarter 2021. This sturdy development was driven by strong value
realization, industrial dewatering demand, and wholesome exercise in our wastewater utility business
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 segment was $108 million. Adjusted working income
for the segment, which excludes $3 million of restructuring and realignment, was $111 million, a
14.four % enhance versus the comparable interval final year. Reported operating margin for
the section was 18.3 percent, up 200 basis points versus the prior yr, and adjusted
working margin was 18.eight percent, up a hundred and eighty basis factors versus the prior 12 months. Strong worth
realization, quantity, and productiveness savings more than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water section consists of its portfolio of businesses in industrial, business building,
and residential purposes.
• Second quarter 2022 Applied Water income was $429 million, a 7.0 p.c increase
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 business buildings in the United States.
• Second quarter adjusted EBITDA margin was sixteen.1 percent, down 130 foundation factors from the
prior yr. Reported operating earnings for the phase was $61 million and adjusted operating
earnings, which excludes $2 million of restructuring and realignment prices, was $63 million, a 4.5
p.c decrease versus the comparable period final 12 months. The phase reported operating
margin was 14.2 p.c, down a hundred thirty basis factors versus the prior year period. Adjusted
operating margin declined 120 foundation points to 14.7 percent. Strong price realization and
productivity savings were more than offset by inflation and lower quantity.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions segment consists of its portfolio of companies in sensible
metering, network applied sciences, 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 remains constrained, the result’s
higher than our expectations as a end result of improved chip provide in the quarter, and strength in our
water quality check applications.
• Second quarter adjusted EBITDA margin was 9.8 p.c, down 410 basis factors from the prior
12 months. Reported working earnings for the segment was $(5) million, and adjusted operating
revenue, which excludes $3 million of restructuring and realignment prices and $1 million of
shortages, unfavorable combine and higher inflation more than offset worth realization and
productivity savings.
Supplemental info 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 quantity one international water technology firm dedicated to solving critical water and
infrastructure challenges with innovation. Our 17,000 numerous employees delivered revenue of $5.2
billion in 2021. We are creating a extra sustainable world by enabling our customers to optimize water
and useful resource administration, and helping communities in more than 150 nations become watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the that 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 unfavorable, might, however usually are not necessary to, identify
forward-looking statements. By their nature, forward-looking statements tackle unsure matters and
embody any statements that aren’t historical, corresponding to statements about our technique, financial plans,
outlook, objectives, plans, intentions or objectives (including those related to our social, environmental and
other sustainability goals); or handle attainable or future results of operations or monetary performance,
including statements relating to orders, revenues, operating margins and earnings per share progress.
Although we imagine that the expectations reflected in any of our forward-looking statements are
reasonable, precise results may differ materially from these projected or assumed in any of our forwardlooking statements. Our future monetary situation and outcomes of operations, as properly as any forwardlooking statements, are subject to vary and to inherent dangers and uncertainties, lots of that are
past our control. Additionally, many of those risks and uncertainties are, and will proceed to be,
amplified by impacts from the war between Russia and Ukraine, as well as the ongoing coronavirus
(“COVID-19”) pandemic and related macroeconomic circumstances (including inflation). Important elements
that could 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 following: the influence of overall trade and general economic situations,
including 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, economic and other dangers
related to our global gross sales and operations, together with with respect to home content
requirements relevant to tasks with governmental funding; continued uncertainty around the
ongoing COVID-19 pandemic’s magnitude, duration and impacts on our enterprise, operations, growth,
and monetary condition; actual or potential other epidemics, pandemics or global health crises;
availability, scarcity or delays in receiving electronic parts (in particular, semiconductors), parts,
and raw supplies from our supply chain; manufacturing and working price increases as a result of
macroeconomic situations, together with inflation, provide chain shortages, logistics challenges, tight labor
markets, prevailing worth adjustments, tariffs and different components; demand for our merchandise; disruption,
competition or pricing pressures in the markets we serve; cybersecurity incidents or different disruptions of
info know-how methods on which we rely, or involving our products; disruptions in operations at
our amenities or that of third events upon which we rely; ability to retain and attract senior management
and different diverse and key talent, in addition to competition for overall talent and labor; difficulty predicting
our monetary outcomes; defects, safety, warranty and liability claims, and recalls with respect to products;
availability, regulation or interference with radio spectrum utilized by certain of our merchandise; uncertainty
associated to restructuring and realignment actions and related costs and financial savings; our capacity to proceed
strategic investments for growth; our ability to successfully establish, execute and combine acquisitions;
volatility in served markets or impacts on enterprise and operations because of weather conditions, including
the results of local weather change; fluctuations in overseas currency trade rates; our capability to borrow or
refinance our present indebtedness and uncertainty across the availability of liquidity adequate to satisfy
our wants; risk of future impairments to goodwill and other intangible property; failure to adjust to, or
changes in, legal guidelines or laws, including these pertaining to anti-corruption, data privateness and safety,
export and import, competition, 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 other 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 an indication 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 associated statements could also be primarily based on requirements
for measuring progress which may be still developing, inner controls and processes that proceed to evolve,
and assumptions which are subject to alter in the future. All forward-looking statements made herein
are primarily based on information at present obtainable to us as of the date of this press release. pressure gauge ลม undertake no
obligation to publicly replace or revise any forward-looking statements, whether because of new
information, future events or in any other case, besides as required by regulation
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