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 persevering with demand drove robust natural orders development: 1% on a reported
basis, 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.sixty six
• Adjusted EBITDA margin exceeded guidance by 160 basis points
• Raising full-year natural income guidance to a variety of 8% to 10% from 4% to
6%, and adjusted EPS to a range of $2.50 to $2.70 from $2.40 to $2.70
Washington, D.C., August 2, 2022 – Xylem Inc. (NYSE: XYL), a leading global water expertise
firm devoted to fixing the world’s most challenging water points, at present reported second quarter
revenue of $1.four billion, surpassing earlier steering in every business phase. Strong continued
international demand drove orders and backlog development across the portfolio.
Second quarter adjusted earnings before curiosity, tax, depreciation and amortization (EBITDA) margin
was sixteen.6 percent, higher than the Company’s previous steerage and reflecting a year-over-year
lower of 70 basis factors. Inflation and the impression of continuous chip shortages drove the margin
decline, exceeding the advantages of worth realization and productiveness savings. Xylem generated internet
income 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 particular expenses.
“The group delivered very strong second quarter efficiency on all key metrics, and properly forward of our
guidance for the quarter,” said Patrick Decker, Xylem president and CEO. “The end result displays our
commercial momentum on persevering with underlying demand, disciplined operational execution, and a
moderate easing in chip provide constraints.”
“On the strength of sturdy backlog and orders growth, and the team’s demonstrated success mitigating
the consequences of inflation, we are elevating our full-year guidance on revenue and earnings. This additional
reinforces our longer-term growth and worth creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 natural income growth to be in the vary of eight to 10 %, and three
to five % on a reported basis. This represents an increase from the Company’s previous full-year
natural income steering of 4 to six p.c, and 1 to three % on a reported foundation. Full-year 2022
adjusted EBITDA margin is now expected to be in the vary of sixteen.5 to 17.zero p.c, elevating the low end
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 finish from the earlier range of $2.forty to $2.70. The elevated steerage displays
robust demand, gradual easing of supply chain constraints and price realization partially offset by
inflation and international change 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 guidance solely on a non-GAAP
basis as a outcome of inherent difficulty in forecasting certain amounts that might be included in GAAP
earnings, such as discrete tax gadgets, with out unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure section consists of its portfolio of companies serving clear water
delivery, wastewater transport and therapy, and dewatering.
• Second quarter 2022 Water Infrastructure income was $589 million, a 9.0 p.c increase
organically compared with second quarter 2021. This sturdy development was driven by strong worth
realization, industrial dewatering demand, and wholesome activity in our wastewater utility enterprise
in the us and Western Europe.
• Second quarter adjusted EBITDA margin was 21.4 p.c, up 240 foundation factors from the prior
year. Reported working earnings for the section was $108 million. Adjusted working income
for the phase, which excludes $3 million of restructuring and realignment, was $111 million, a
14.four percent enhance versus the comparable period final yr. Reported operating margin for
the section was 18.3 p.c, up 200 foundation points versus the prior year, and adjusted
operating margin was 18.8 percent, up a hundred and eighty basis factors versus the prior yr. Strong price
realization, volume, and productiveness financial savings more than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water phase consists of its portfolio of businesses in industrial, industrial constructing,
and residential purposes.
• Second quarter 2022 Applied Water income was $429 million, a 7.zero p.c improve
organically year-over-year. The segment delivered strong worth realization and backlog
execution in industrial and residential finish markets, partially offset by continued provide chain
constraints in commercial buildings within the United States.
• Second quarter adjusted EBITDA margin was 16.1 %, down a hundred thirty foundation points from the
prior year. Reported operating earnings for the segment was $61 million and adjusted working
revenue, which excludes $2 million of restructuring and realignment prices, was $63 million, a four.5
p.c lower versus the comparable period last 12 months. The section reported operating
margin was 14.2 %, down a hundred thirty foundation points versus the prior year interval. Adjusted
working margin declined a hundred and twenty basis points to 14.7 p.c. Strong worth realization and
productivity financial savings had been more than offset by inflation and decrease volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions phase consists of its portfolio of companies in sensible
metering, community applied sciences, superior infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions income was $346 million, down 2.zero
p.c organically versus the prior year. While chip provide stays constrained, the result is
higher than our expectations as a result of improved chip provide in the quarter, and strength in our
water quality take a look at purposes.
• Second quarter adjusted EBITDA margin was 9.eight percent, down 410 basis points from the prior
12 months. Reported working income for the section 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 more than offset price realization and
productiveness savings.
Supplemental information on Xylem’s second quarter 2022 earnings and reconciliations for sure nonGAAP items is posted at www.xylem.com/investors.
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About Xylem
Xylem (XYL) is a number one international water know-how firm dedicated to solving crucial water and
infrastructure challenges with innovation. Our 17,000 various 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 management, and serving to communities in additional than 150 international locations become watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the which 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 adverse, may, however 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 historical, such as statements about our strategy, monetary plans,
outlook, aims, plans, intentions or goals (including those related to our social, environmental and
different sustainability goals); or tackle possible or future results of operations or monetary efficiency,
including statements regarding orders, revenues, operating margins and earnings per share progress.
Although we imagine that the expectations reflected in any of our forward-looking statements are
affordable, actual results might differ materially from these projected or assumed in any of our forwardlooking statements. Our future financial situation and outcomes of operations, in addition to any forwardlooking statements, are subject to alter and to inherent risks and uncertainties, many of which are
past our control. Additionally, เกจวัดแรงดันเชื้อเพลิง of those risks and uncertainties are, and should continue to be,
amplified by impacts from the warfare between Russia and Ukraine, as properly as the continued coronavirus
(“COVID-19”) pandemic and associated macroeconomic conditions (including inflation). Important components
that could cause our actual results, efficiency and achievements, or business results to differ
materially from estimates or projections contained in or implied by our forward-looking statements
embrace, amongst others, the next: the impression of general industry and common economic situations,
including industrial, governmental, and private and non-private sector spending and the power of the
residential and commercial real estate markets, on economic exercise and our operations; geopolitical
events, including the struggle between Russia and Ukraine, and regulatory, financial and different dangers
related to our global gross sales and operations, including with respect to domestic content material
requirements relevant to tasks with governmental funding; continued uncertainty around the
ongoing COVID-19 pandemic’s magnitude, duration and impacts on our enterprise, operations, progress,
and financial condition; actual or potential different epidemics, pandemics or global well being crises;
availability, scarcity or delays in receiving digital components (in particular, semiconductors), elements,
and raw materials from our supply chain; manufacturing and operating value increases because of
macroeconomic situations, including inflation, provide chain shortages, logistics challenges, tight labor
markets, prevailing price 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
data expertise techniques on which we rely, or involving our products; disruptions in operations at
our amenities or that of third events upon which we rely; capacity to retain and attract senior management
and different diverse and key talent, as properly as competition for overall talent and labor; problem predicting
our monetary outcomes; defects, safety, guarantee and legal responsibility claims, and remembers with respect to merchandise;
availability, regulation or interference with radio spectrum used by certain of our products; uncertainty
associated to restructuring and realignment actions and related expenses and savings; our capability to continue
strategic investments for growth; our ability to efficiently establish, execute and combine acquisitions;
volatility in served markets or impacts on enterprise and operations because of climate circumstances, including
the effects of local weather change; fluctuations in overseas currency exchange charges; our ability to borrow or
refinance our current indebtedness and uncertainty across the availability of liquidity adequate to meet
our needs; danger of future impairments to goodwill and different intangible assets; failure to comply with, or
adjustments in, laws or rules, together with those pertaining to anti-corruption, knowledge privateness and security,
export and import, competitors, and the setting and local weather change; changes in our effective tax
rates or tax expenses; legal, governmental or regulatory claims, investigations or proceedings and
related contingent liabilities; and other components set forth beneath “Item 1A. Risk Factors” in our Annual
Report on Form 10-K for the 12 months ended December 31, 2021 and in subsequent filings we make with
the Securities and Exchange Commission (“SEC”).
Forward-looking and different statements on this press launch regarding our environmental and different
sustainability plans and goals are not 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, present, and
forward-looking social, environmental and sustainability related statements may be based on requirements
for measuring progress which are still 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 based mostly on info at present available to us as of the date of this press launch. We undertake no
obligation to publicly replace or revise any forward-looking statements, whether or not on account of new
data, future occasions or otherwise, besides as required by law
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