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 continuing demand drove robust organic orders growth: 1% on a reported
basis, 6% organically
• Revenue of $1.4 billion, up 1% on a reported basis, up 6% organically
• Earnings per share of $0.sixty two, adjusted earnings per share of $0.66
• Adjusted EBITDA margin exceeded steerage by 160 basis factors
• Raising full-year natural income steerage to a range 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 quantity one global water technology
company devoted to solving the world’s most challenging water points, today reported second quarter
revenue of $1.four billion, surpassing previous guidance in every business segment. Strong continued
international demand drove orders and backlog growth throughout the portfolio.
Second quarter adjusted earnings before curiosity, tax, depreciation and amortization (EBITDA) margin
was sixteen.6 p.c, better than the Company’s earlier guidance and reflecting a year-over-year
lower of 70 basis points. Inflation and the impact of continuing chip shortages drove the margin
decline, exceeding the advantages of price realization and productivity savings. pressure gauge ยี่ห้อ tk generated net
earnings of $112 million, or $0.sixty two per share, and adjusted web revenue of $120 million, or $0.66 per share,
which excludes the impression of restructuring, realignment and particular costs.
“The staff delivered very strong second quarter performance on all key metrics, and nicely forward of our
guidance for the quarter,” stated Patrick Decker, Xylem president and CEO. “The result displays our
commercial momentum on continuing underlying demand, disciplined operational execution, and a
reasonable easing in chip supply constraints.”
“On the energy of strong backlog and orders development, and the team’s demonstrated success mitigating
the results of inflation, we are raising our full-year steerage on revenue and earnings. This further
reinforces our longer-term progress and worth creation thesis for Xylem.”
Outlook
Xylem now expects full-year 2022 natural revenue progress to be in the vary of eight to 10 percent, and 3
to 5 p.c on a reported foundation. This represents an increase from the Company’s previous full-year
organic revenue steerage of 4 to 6 percent, and 1 to 3 percent on a reported foundation. Full-year 2022
adjusted EBITDA margin is now anticipated to be in the range of sixteen.5 to 17.0 percent, raising the low end
of the previous vary of 16.0 to 17.zero p.c. This leads to adjusted earnings per share of $2.50 to
$2.70, elevating the low finish from the previous range of $2.forty to $2.70. The increased steering displays
strong demand, gradual easing of provide chain constraints and worth realization partially offset by
inflation and overseas change headwinds.
Further 2022 planning assumptions are included in Xylem’s second quarter 2022 earnings materials
posted at www.xylem.com/investors. Excluding revenue, Xylem provides guidance solely on a non-GAAP
basis as a outcome of inherent problem in forecasting sure quantities that might be included in GAAP
earnings, corresponding to discrete tax objects, with out unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure phase consists of its portfolio of businesses serving clean water
supply, wastewater transport and therapy, and dewatering.
• Second quarter 2022 Water Infrastructure income was $589 million, a 9.zero % increase
organically in contrast with second quarter 2021. This strong development was pushed by strong worth
realization, industrial dewatering demand, and healthy exercise in our wastewater utility enterprise
in the U.S. and Western Europe.
• Second quarter adjusted EBITDA margin was 21.four percent, up 240 basis points from the prior
year. Reported operating revenue for the section was $108 million. Adjusted operating income
for the segment, which excludes $3 million of restructuring and realignment, was $111 million, a
14.4 percent enhance versus the comparable period final yr. Reported operating margin for
the segment was 18.3 %, up 200 basis factors versus the prior yr, and adjusted
working margin was 18.eight percent, up one hundred eighty basis factors versus the prior 12 months. Strong worth
realization, quantity, and productivity financial savings more than offset inflation and strategic
investments.
Applied Water
Xylem’s Applied Water phase consists of its portfolio of businesses in industrial, commercial constructing,
and residential purposes.
• Second quarter 2022 Applied Water income was $429 million, a 7.0 p.c 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 industrial buildings within the United States.
• Second quarter adjusted EBITDA margin was 16.1 %, down a hundred thirty foundation points 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 last 12 months. The section reported working
margin was 14.2 p.c, down one hundred thirty basis points versus the prior 12 months interval. Adjusted
operating margin declined 120 foundation points to 14.7 p.c. Strong value realization and
productiveness financial savings were greater than offset by inflation and decrease quantity.
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
p.c organically versus the prior year. While chip supply stays constrained, the result’s
higher than our expectations as a result of improved chip supply within the quarter, and power in our
water quality take a look at purposes.
• Second quarter adjusted EBITDA margin was 9.8 %, down 410 foundation points from the prior
yr. Reported working earnings for the phase was $(5) million, and adjusted operating
earnings, which excludes $3 million of restructuring and realignment prices and $1 million of
shortages, unfavorable mix and higher inflation more than offset value realization and
productivity savings.
Supplemental data on Xylem’s second quarter 2022 earnings and reconciliations for certain nonGAAP gadgets is posted at www.xylem.com/investors.
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About Xylem
Xylem (XYL) is a number one global water expertise firm committed to fixing critical water and
infrastructure challenges with innovation. Our 17,000 numerous 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 administration, and helping communities in more than 150 international locations turn out to be watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press launch incorporates “forward-looking statements” throughout 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 words “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“contemplate,” “predict,” “forecast,” “likely,” “believe,” “target,” “will,” “could,” “would,” “should,”
“potential,” “may” and similar expressions or their unfavorable, might, however aren’t necessary to, determine
forward-looking statements. By their nature, forward-looking statements handle uncertain matters and
embrace any statements that aren’t historic, corresponding to statements about our technique, monetary plans,
outlook, goals, plans, intentions or objectives (including those associated to our social, environmental and
different sustainability goals); or address potential or future outcomes of operations or financial performance,
together with statements regarding orders, revenues, working margins and earnings per share development.
Although we believe that the expectations mirrored in any of our forward-looking statements are
affordable, precise outcomes may differ materially from those projected or assumed in any of our forwardlooking statements. Our future monetary condition and results of operations, as well as any forwardlooking statements, are subject to change and to inherent risks and uncertainties, lots of which are
past our management. Additionally, many of these dangers and uncertainties are, and may continue to be,
amplified by impacts from the war between Russia and Ukraine, in addition to the ongoing coronavirus
(“COVID-19”) pandemic and related macroeconomic conditions (including inflation). Important elements
that could cause our precise outcomes, performance and achievements, or business outcomes to differ
materially from estimates or projections contained in or implied by our forward-looking statements
embody, amongst others, the next: the influence of general industry and general financial circumstances,
together with industrial, governmental, and private and non-private sector spending and the strength of the
residential and commercial actual property markets, on financial activity and our operations; geopolitical
events, together with the struggle between Russia and Ukraine, and regulatory, economic and other dangers
associated with our global sales and operations, including with respect to home content
requirements applicable to tasks with governmental funding; continued uncertainty across the
ongoing COVID-19 pandemic’s magnitude, length and impacts on our business, operations, growth,
and financial situation; actual or potential different epidemics, pandemics or world well being crises;
availability, shortage or delays in receiving digital parts (in particular, semiconductors), components,
and raw supplies from our provide chain; manufacturing and operating value will increase due to
macroeconomic situations, including inflation, provide chain shortages, logistics challenges, tight labor
markets, prevailing worth changes, tariffs and other elements; demand for our merchandise; disruption,
competition or pricing pressures in the markets we serve; cybersecurity incidents or different disruptions of
info expertise systems on which we rely, or involving our products; disruptions in operations at
our amenities or that of third parties upon which we rely; capability to retain and entice senior administration
and different various and key expertise, in addition to competition for general expertise and labor; issue predicting
our monetary results; defects, security, warranty and legal responsibility claims, and remembers with respect to products;
availability, regulation or interference with radio spectrum used by certain of our merchandise; uncertainty
associated to restructuring and realignment actions and associated charges and savings; our capability to continue
strategic investments for growth; our capacity to efficiently identify, execute and combine acquisitions;
volatility in served markets or impacts on business and operations because of weather conditions, together with
the effects of local weather change; fluctuations in overseas forex trade rates; our ability to borrow or
refinance our present indebtedness and uncertainty around the availability of liquidity sufficient to fulfill
our needs; risk of future impairments to goodwill and different intangible assets; failure to adjust to, or
adjustments in, laws or regulations, together with those pertaining to anti-corruption, knowledge privateness and safety,
export and import, competitors, and the setting and climate change; modifications in our effective tax
charges or tax expenses; authorized, governmental or regulatory claims, investigations or proceedings and
associated contingent liabilities; and other factors set forth underneath “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 different statements in this press launch regarding our environmental and other
sustainability plans and goals are not an indication that these statements are essentially materials to
buyers or are required to be disclosed in our filings with the SEC. In addition, historic, current, and
forward-looking social, environmental and sustainability associated statements could additionally be based mostly on standards
for measuring progress which are nonetheless developing, internal controls and processes that proceed to evolve,
and assumptions which may be subject to vary sooner or later. All forward-looking statements made herein
are based on data currently available to us as of the date of this press release. We undertake no
obligation to publicly replace or revise any forward-looking statements, whether as a outcome of new
data, future occasions or otherwise, except as required by law
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