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Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
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Robust continuing demand drove strong natural orders progress: 1% on a reported
basis, 6% organically
• Revenue of $1.four billion, up 1% on a reported foundation, up 6% organically
• Earnings per share of $0.62, adjusted earnings per share of $0.sixty six
• Adjusted EBITDA margin exceeded guidance by a hundred and sixty foundation factors
• Raising full-year organic revenue steering to a variety 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 world water technology
firm dedicated to fixing the world’s most challenging water issues, right now reported second quarter
income of $1.four billion, surpassing previous guidance in each enterprise segment. Strong continued
world demand drove orders and backlog progress throughout the portfolio.
Second quarter adjusted earnings earlier than interest, tax, depreciation and amortization (EBITDA) margin
was sixteen.6 p.c, higher than the Company’s earlier steering and reflecting a year-over-year
decrease of 70 foundation points. Inflation and the impact of constant chip shortages drove the margin
decline, exceeding the advantages of price realization and productivity savings. Xylem generated net
revenue of $112 million, or $0.sixty two per share, and adjusted web earnings of $120 million, or $0.sixty six per share,
which excludes the impact of restructuring, realignment and particular costs.
“The team delivered very strong second quarter performance on all key metrics, and properly ahead of our
guidance 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
reasonable easing in chip provide constraints.”
“On the strength of sturdy backlog and orders development, and the team’s demonstrated success mitigating
the consequences of inflation, we’re raising our full-year steerage on revenue and earnings. This additional
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 8 to 10 %, and 3
to 5 p.c on a reported basis. This represents a rise from the Company’s earlier full-year
natural income guidance of four to six p.c, and 1 to three % on a reported foundation. Full-year 2022
adjusted EBITDA margin is now anticipated to be within the range of sixteen.5 to 17.zero p.c, elevating the low end
of the earlier vary of sixteen.zero to 17.0 p.c. This leads to adjusted earnings per share of $2.50 to
$2.70, raising the low finish from the earlier vary of $2.40 to $2.70. The increased guidance displays
sturdy 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 supplies
posted at www.xylem.com/investors. Excluding revenue, Xylem supplies guidance solely on a non-GAAP
basis due to the inherent problem in forecasting sure amounts that would be included in GAAP
earnings, corresponding to discrete tax gadgets, with out unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure section consists of its portfolio of businesses serving clean water
supply, wastewater transport and treatment, and dewatering.
• Second quarter 2022 Water Infrastructure income was $589 million, a 9.zero p.c improve
organically compared 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 united states and Western Europe.
pressure gauge ยี่ห้อ tk adjusted EBITDA margin was 21.four %, up 240 foundation points from the prior
year. Reported working income for the section was $108 million. Adjusted working income
for the section, which excludes $3 million of restructuring and realignment, was $111 million, a
14.four p.c improve versus the comparable interval final 12 months. Reported working margin for
the phase was 18.3 percent, up 200 basis points versus the prior yr, and adjusted
operating margin was 18.eight p.c, up 180 basis points 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 section consists of its portfolio of businesses in industrial, business constructing,
and residential purposes.
• Second quarter 2022 Applied Water revenue was $429 million, a 7.zero p.c increase
organically year-over-year. The segment delivered robust price realization and backlog
execution in industrial and residential finish markets, partially offset by continued provide chain
constraints in industrial buildings within the United States.
• Second quarter adjusted EBITDA margin was sixteen.1 p.c, down one hundred thirty foundation factors from the
prior year. Reported operating earnings for the segment was $61 million and adjusted working
income, which excludes $2 million of restructuring and realignment costs, was $63 million, a four.5
% decrease versus the comparable period final year. The phase reported working
margin was 14.2 percent, down a hundred thirty foundation factors versus the prior 12 months interval. Adjusted
working margin declined a hundred and twenty basis points to 14.7 %. Strong value realization and
productiveness financial savings were more than offset by inflation and decrease volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions phase consists of its portfolio of companies in smart
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 yr. While chip supply remains constrained, the result is
better than our expectations because of improved chip provide in the quarter, and energy in our
water quality check applications.
• Second quarter adjusted EBITDA margin was 9.eight percent, down 410 basis factors from the prior
12 months. Reported working earnings for the section was $(5) million, and adjusted working
revenue, which excludes $3 million of restructuring and realignment prices and $1 million of
shortages, unfavorable mix and better inflation greater than offset value realization and
productiveness financial savings.
Supplemental info 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 leading international water technology company committed to fixing crucial water and
infrastructure challenges with innovation. Our 17,000 numerous employees delivered income of $5.2
billion in 2021. We are creating a extra sustainable world by enabling our prospects to optimize water
and useful resource administration, and helping communities in additional than one hundred fifty countries turn out to be watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press launch accommodates “forward-looking statements” within 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 related expressions or their unfavorable, may, however are not essential to, determine
forward-looking statements. By their nature, forward-looking statements handle uncertain matters and
include any statements that aren’t historical, similar to statements about our technique, financial plans,
outlook, goals, plans, intentions or objectives (including these related to our social, environmental and
different sustainability goals); or handle attainable or future results of operations or financial efficiency,
including statements regarding orders, revenues, operating margins and earnings per share progress.
Although we consider that the expectations mirrored in any of our forward-looking statements are
cheap, precise outcomes may differ materially from these projected or assumed in any of our forwardlooking statements. Our future financial condition and outcomes of operations, as properly as any forwardlooking statements, are topic to change and to inherent dangers and uncertainties, many of that are
beyond our management. Additionally, many of those dangers and uncertainties are, and should proceed to be,
amplified by impacts from the warfare between Russia and Ukraine, as properly as the ongoing coronavirus
(“COVID-19”) pandemic and associated macroeconomic situations (including inflation). Important factors
that could trigger our actual results, efficiency and achievements, or industry results to differ
materially from estimates or projections contained in or implied by our forward-looking statements
embody, amongst others, the next: the impact of overall industry and basic financial conditions,
together with industrial, governmental, and public and private sector spending and the strength of the
residential and business actual estate markets, on financial activity and our operations; geopolitical
events, including the war between Russia and Ukraine, and regulatory, economic and different risks
associated with our world gross sales and operations, including with respect to home content
requirements relevant to tasks with governmental funding; continued uncertainty across the
ongoing COVID-19 pandemic’s magnitude, period and impacts on our business, operations, development,
and monetary condition; actual or potential other epidemics, pandemics or world health crises;
availability, shortage or delays in receiving electronic components (in specific, semiconductors), parts,
and uncooked materials from our supply chain; manufacturing and operating value increases due to
macroeconomic conditions, including inflation, provide chain shortages, logistics challenges, tight labor
markets, prevailing value modifications, tariffs and other components; demand for our merchandise; disruption,
competitors or pricing pressures in the markets we serve; cybersecurity incidents or other disruptions of
data expertise systems on which we rely, or involving our merchandise; disruptions in operations at
our facilities or that of third events upon which we rely; ability to retain and attract senior administration
and other diverse and key expertise, in addition to competition for total talent and labor; issue predicting
our monetary outcomes; defects, security, warranty and legal responsibility claims, and remembers with respect to products;
availability, regulation or interference with radio spectrum used by sure of our merchandise; uncertainty
associated to restructuring and realignment actions and associated costs and financial savings; our capability to continue
strategic investments for progress; our ability to successfully establish, execute and combine acquisitions;
volatility in served markets or impacts on business and operations due to weather circumstances, together with
the consequences of climate change; fluctuations in international foreign money change charges; our capacity to borrow or
refinance our existing indebtedness and uncertainty around the availability of liquidity enough to meet
our wants; risk of future impairments to goodwill and different intangible assets; failure to comply with, or
adjustments in, legal guidelines or regulations, including those pertaining to anti-corruption, data privateness and security,
export and import, competitors, and the setting and climate change; adjustments in our efficient tax
rates or tax bills; legal, governmental or regulatory claims, investigations or proceedings and
associated contingent liabilities; and different factors set forth underneath “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 in this press launch relating to our environmental and other
sustainability plans and goals usually are not a sign that these statements are necessarily materials to
investors or are required to be disclosed in our filings with the SEC. In addition, historical, present, and
forward-looking social, environmental and sustainability related statements may be primarily based on standards
for measuring progress that are still developing, inner controls and processes that proceed to evolve,
and assumptions which might be subject to change sooner or later. All forward-looking statements made herein
are based mostly on information presently obtainable to us as of the date of this press release. We undertake no
obligation to publicly update or revise any forward-looking statements, whether as a outcome of new
info, future events or otherwise, except as required by legislation
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