PRESSUREGAUGE TH LOGO.png

FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
Share
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.”
Outlook
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 17.zero percent, elevating the low end
of the earlier vary of sixteen.zero to 17.zero 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 www.xylem.com/investors. 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
investments.
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 7.zero % 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 2.zero
% 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 www.xylem.com/investors.
#
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 www.xylem.com.
Forward-Looking Statements
This press launch accommodates “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 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, could, but usually are not essential to, identify
forward-looking statements. By their nature, forward-looking statements handle unsure matters and
embrace any statements that are not historic, corresponding to statements about our technique, monetary plans,
outlook, aims, plans, intentions or targets (including those related to our social, environmental and
other sustainability goals); or address attainable or future results of operations or financial performance,
together with statements referring to orders, revenues, working margins and earnings per share development.
Although we imagine that the expectations mirrored 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 financial situation and results of operations, in addition to any forwardlooking statements, are topic to vary and to inherent risks and uncertainties, a lot of that are
beyond our control. Additionally, many of these risks and uncertainties are, and should proceed to be,
amplified by impacts from the struggle between Russia and Ukraine, as properly as the ongoing coronavirus
(“COVID-19”) pandemic and associated macroeconomic conditions (including inflation). Important elements
that could cause our actual results, performance and achievements, or trade outcomes to differ
materially from estimates or projections contained in or implied by our forward-looking statements
include, among others, the following: the impression of general business and general economic conditions,
including industrial, governmental, and private and non-private sector spending and the strength of the
residential and business actual property markets, on financial activity and our operations; geopolitical
occasions, together with the struggle between Russia and Ukraine, and regulatory, financial and other risks
related to our global gross sales and operations, together with with respect to domestic content material
requirements applicable to projects with governmental funding; continued uncertainty around the
ongoing COVID-19 pandemic’s magnitude, period and impacts on our enterprise, operations, growth,
and financial condition; precise or potential other epidemics, pandemics or global health crises;
availability, scarcity or delays in receiving digital elements (in explicit, semiconductors), parts,
and raw materials from our provide chain; manufacturing and working value increases because of
macroeconomic circumstances, together with inflation, provide chain shortages, logistics challenges, tight labor
markets, prevailing worth changes, tariffs and different factors; demand for our products; disruption,
competition or pricing pressures within the markets we serve; cybersecurity incidents or other disruptions of
info expertise techniques 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 entice senior administration
and other various and key expertise, in addition to competitors for overall expertise and labor; problem predicting
our monetary results; defects, safety, guarantee and legal responsibility claims, and recalls with respect to products;
availability, regulation or interference with radio spectrum utilized by certain of our products; uncertainty
related to restructuring and realignment actions and associated costs and savings; our capacity to proceed
strategic investments for growth; our capacity to efficiently establish, execute and combine acquisitions;
volatility in served markets or impacts on business and operations due to weather situations, including
the results of local weather change; fluctuations in international forex change rates; our capacity to borrow or
refinance our present indebtedness and uncertainty around the availability of liquidity adequate to fulfill
our needs; threat of future impairments to goodwill and different intangible belongings; failure to adjust to, or
changes in, legal guidelines or rules, together with those pertaining to anti-corruption, information privacy and security,
export and import, competitors, and the setting and climate change; changes in our efficient tax
charges or tax bills; authorized, governmental or regulatory claims, investigations or proceedings and
related contingent liabilities; and different factors set forth under “Item 1A. Risk Factors” in our Annual
Report on Form 10-K for the yr 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 concerning our environmental and other
sustainability plans and objectives aren’t an indication that these statements are necessarily materials to
investors or are required to be disclosed in our filings with the SEC. In addition, historic, current, and
forward-looking social, environmental and sustainability related statements may be based on requirements
for measuring progress which would possibly be nonetheless growing, inside controls and processes that continue to evolve,
and assumptions that are topic to vary sooner or later. All forward-looking statements made herein
are based mostly on data at present 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 because of new
info, future occasions or otherwise, besides as required by legislation
Share