Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
Robust continuing demand drove sturdy organic orders development: 1% on a reported
foundation, 6% organically
• Revenue of $1.4 billion, up 1% on a reported foundation, up 6% organically
• Earnings per share of $0.62, adjusted earnings per share of $0.66
• Adjusted EBITDA margin exceeded steerage by 160 basis factors
• Raising full-year organic revenue 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 $2.40 to $2.70
Washington, D.C., August 2, 2022 – Xylem Inc. (NYSE: XYL), a number one global water technology
company devoted to fixing the world’s most difficult water issues, right now reported second quarter
income of $1.4 billion, surpassing previous steerage in every enterprise phase. Strong continued
global demand drove orders and backlog development throughout the portfolio.
Second quarter adjusted earnings earlier than interest, tax, depreciation and amortization (EBITDA) margin
was 16.6 p.c, better than the Company’s previous guidance and reflecting a year-over-year
lower of 70 foundation factors. เครื่องมือวัดpressure and the influence of continuous chip shortages drove the margin
decline, exceeding the advantages of value realization and productiveness financial savings. Xylem generated web
earnings of $112 million, or $0.62 per share, and adjusted web earnings of $120 million, or $0.sixty six per share,
which excludes the impression of restructuring, realignment and special charges.
“The team delivered very robust second quarter efficiency on all key metrics, and well ahead of our
steering for the quarter,” mentioned Patrick Decker, Xylem president and CEO. “The outcome reflects our
commercial momentum on persevering with underlying demand, disciplined operational execution, and a
moderate easing in chip provide constraints.”
“On the power of robust backlog and orders growth, and the team’s demonstrated success mitigating
the results of inflation, we’re elevating our full-year guidance on income and earnings. This further
reinforces our longer-term development and worth creation thesis for Xylem.”
Xylem now expects full-year 2022 organic income progress to be in the vary of eight to 10 %, and 3
to 5 percent on a reported foundation. This represents a rise from the Company’s earlier full-year
organic revenue steering of 4 to 6 %, and 1 to 3 p.c on a reported foundation. Full-year 2022
adjusted EBITDA margin is now expected to be within the vary of sixteen.5 to percent, elevating the low end
of the earlier vary of to p.c. This results in adjusted earnings per share of $2.50 to
$2.70, elevating the low finish from the previous vary of $2.40 to $2.70. The elevated guidance reflects
sturdy demand, gradual easing of supply 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 materials
posted at Excluding income, Xylem supplies guidance only on a non-GAAP
basis due to the inherent problem in forecasting certain amounts that might be included in GAAP
earnings, such as discrete tax items, with out unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure section consists of its portfolio of businesses serving clean water
delivery, wastewater transport and treatment, and dewatering.
• Second quarter 2022 Water Infrastructure income was $589 million, a 9.0 % enhance
organically compared with second quarter 2021. This robust development was pushed by strong price
realization, industrial dewatering demand, and wholesome activity in our wastewater utility enterprise
in the U.S. and Western Europe.
• Second quarter adjusted EBITDA margin was 21.4 percent, up 240 basis factors from the prior
12 months. Reported operating revenue for the phase was $108 million. Adjusted working revenue
for the phase, which excludes $3 million of restructuring and realignment, was $111 million, a
14.4 p.c improve versus the comparable period final year. Reported working margin for
the section was 18.3 p.c, up 200 basis points versus the prior year, and adjusted
working margin was 18.8 percent, up one hundred eighty foundation factors versus the prior year. Strong value
realization, quantity, and productivity savings greater than offset inflation and strategic
Applied Water
Xylem’s Applied Water section consists of its portfolio of companies in industrial, industrial building,
and residential functions.
• Second quarter 2022 Applied Water revenue was $429 million, a % enhance
organically year-over-year. The phase delivered sturdy value realization and backlog
execution in industrial and residential finish markets, partially offset by continued supply chain
constraints in commercial buildings in the United States.
• Second quarter adjusted EBITDA margin was 16.1 %, down a hundred thirty foundation points from the
prior yr. Reported operating revenue for the segment was $61 million and adjusted working
earnings, which excludes $2 million of restructuring and realignment prices, was $63 million, a four.5
percent lower versus the comparable interval last year. The segment reported working
margin was 14.2 percent, down 130 basis factors versus the prior yr period. Adjusted
working margin declined one hundred twenty basis factors to 14.7 percent. Strong value realization and
productivity financial savings were 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, superior infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions revenue was $346 million, down
% organically versus the prior 12 months. While chip provide remains constrained, the result’s
higher than our expectations as a outcome of improved chip supply in the quarter, and strength in our
water quality check purposes.
• Second quarter adjusted EBITDA margin was 9.eight p.c, down 410 basis points from the prior
yr. Reported working income for the phase was $(5) million, and adjusted working
revenue, which excludes $3 million of restructuring and realignment costs 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 number one world water know-how firm committed to solving crucial water and
infrastructure challenges with innovation. Our 17,000 numerous staff delivered income 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 serving to communities in additional than 150 nations turn into watersecure. Join us at
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Report on Form 10-K for the yr ended December 31, 2021 and in subsequent filings we make with
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