Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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.”
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 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 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 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
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
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
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and raw supplies from our supply chain; manufacturing and working price increases as a result of
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Report on Form 10-K for the year ended December 31, 2021 and in subsequent filings we make with
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