Xylem Reports Second Quarter 2022 Results

Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
Robust persevering with demand drove robust organic orders progress: 1% on a reported
foundation, 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 $0.66
• Adjusted EBITDA margin exceeded steering by 160 basis factors
• Raising full-year natural income 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.forty to $2.70
Washington, D.C., August 2, 2022 – Xylem Inc. (NYSE: XYL), a leading international water expertise
firm devoted to solving the world’s most difficult water issues, at present reported second quarter
income of $1.four billion, surpassing earlier guidance in each business phase. Strong continued
global demand drove orders and backlog progress throughout the portfolio.
Second quarter adjusted earnings before curiosity, tax, depreciation and amortization (EBITDA) margin
was sixteen.6 %, better than the Company’s previous guidance and reflecting a year-over-year
decrease of 70 foundation factors. Inflation and the influence of continuous chip shortages drove the margin
decline, exceeding the benefits of price realization and productivity savings. Xylem generated internet
income of $112 million, or $0.sixty two per share, and adjusted web income of $120 million, or $0.66 per share,
which excludes the influence of restructuring, realignment and particular charges.
“The staff delivered very robust second quarter performance on all key metrics, and nicely ahead of our
guidance for the quarter,” said Patrick Decker, Xylem president and CEO. “The result displays our
business momentum on persevering with underlying demand, disciplined operational execution, and a
moderate easing in chip provide constraints.”
“On the strength of robust backlog and orders growth, and the team’s demonstrated success mitigating
the results of inflation, we are elevating our full-year guidance on revenue and earnings. เพรสเชอร์เกจน้ำ
reinforces our longer-term progress and value creation thesis for Xylem.”
Xylem now expects full-year 2022 natural income development to be in the vary of 8 to 10 p.c, and 3
to 5 p.c on a reported foundation. This represents an increase from the Company’s earlier full-year
natural income guidance of 4 to 6 percent, and 1 to 3 p.c on a reported basis. Full-year 2022
adjusted EBITDA margin is now expected to be in the range of 16.5 to 17.zero %, raising the low finish
of the earlier range of 16.zero to 17.zero percent. This ends in adjusted earnings per share of $2.50 to
$2.70, elevating the low end from the previous vary of $2.40 to $2.70. The increased steering reflects
robust demand, gradual easing of provide chain constraints and value realization partially offset by
inflation and overseas trade 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 steerage only on a non-GAAP
foundation due to the inherent difficulty in forecasting sure quantities that might be included in GAAP
earnings, corresponding to discrete tax objects, without unreasonable effort.
Second Quarter Segment Results
Water Infrastructure
Xylem’s Water Infrastructure segment consists of its portfolio of businesses serving clear water
delivery, wastewater transport and therapy, and dewatering.
• Second quarter 2022 Water Infrastructure revenue was $589 million, a 9.0 percent enhance
organically compared with second quarter 2021. This strong progress was pushed by strong value
realization, industrial dewatering demand, and wholesome exercise in our wastewater utility enterprise
in the us and Western Europe.
• Second quarter adjusted EBITDA margin was 21.4 percent, up 240 basis points from the prior
yr. Reported operating income for the segment was $108 million. Adjusted working earnings
for the phase, which excludes $3 million of restructuring and realignment, was $111 million, a
14.four p.c improve versus the comparable period final year. Reported operating margin for
the section was 18.3 %, up 200 foundation points versus the prior yr, and adjusted
operating margin was 18.8 percent, up 180 basis factors versus the prior yr. Strong value
realization, volume, and productiveness financial savings greater than offset inflation and strategic
Applied Water
Xylem’s Applied Water segment consists of its portfolio of companies in industrial, commercial constructing,
and residential purposes.
• Second quarter 2022 Applied Water revenue was $429 million, a 7.zero % improve
organically year-over-year. The phase delivered sturdy price realization and backlog
execution in industrial and residential end markets, partially offset by continued provide chain
constraints in business buildings within the United States.
• Second quarter adjusted EBITDA margin was 16.1 percent, down one hundred thirty foundation factors from the
prior 12 months. Reported working earnings for the phase was $61 million and adjusted operating
earnings, which excludes $2 million of restructuring and realignment costs, was $63 million, a 4.5
% lower versus the comparable period final yr. The phase reported working
margin was 14.2 %, down 130 foundation points versus the prior yr period. Adjusted
working margin declined a hundred and twenty foundation points to 14.7 percent. Strong worth realization and
productivity financial savings have been more than offset by inflation and lower quantity.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions section consists of its portfolio of companies in good
metering, community applied sciences, superior infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions revenue was $346 million, down 2.0
% organically versus the prior yr. While chip supply stays constrained, the result is
higher than our expectations because of improved chip provide in the quarter, and energy in our
water high quality check applications.
• Second quarter adjusted EBITDA margin was 9.eight percent, down 410 foundation factors from the prior
yr. Reported operating earnings for the segment was $(5) million, and adjusted operating
income, which excludes $3 million of restructuring and realignment costs and $1 million of
shortages, unfavorable combine and better inflation greater than offset price realization and
productiveness savings.
Supplemental info on Xylem’s second quarter 2022 earnings and reconciliations for certain nonGAAP gadgets is posted at www.xylem.com/investors.
About Xylem
Xylem (XYL) is a leading world water know-how firm dedicated to solving critical 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 customers to optimize water
and useful resource administration, and serving to communities in more than one hundred fifty nations become watersecure. Join us at www.xylem.com.
Forward-Looking Statements
This press launch incorporates “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 words “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“contemplate,” “predict,” “forecast,” “likely,” “believe,” “target,” “will,” “could,” “would,” “should,”
“potential,” “may” and similar expressions or their adverse, may, however aren’t necessary to, establish
forward-looking statements. By their nature, forward-looking statements handle uncertain issues and
include any statements that are not historic, corresponding to statements about our strategy, monetary plans,
outlook, objectives, plans, intentions or objectives (including these related to our social, environmental and
other sustainability goals); or handle potential or future results of operations or financial performance,
including statements referring to orders, revenues, operating margins and earnings per share growth.
Although we consider that the expectations mirrored in any of our forward-looking statements are
reasonable, precise outcomes could differ materially from those projected or assumed in any of our forwardlooking statements. Our future monetary condition and results of operations, as properly as any forwardlooking statements, are topic to vary and to inherent dangers and uncertainties, many of which are
beyond our control. Additionally, many of these dangers and uncertainties are, and will proceed to be,
amplified by impacts from the war between Russia and Ukraine, as nicely as the ongoing coronavirus
(“COVID-19”) pandemic and associated macroeconomic conditions (including inflation). Important factors
that might trigger our precise outcomes, efficiency and achievements, or trade results to differ
materially from estimates or projections contained in or implied by our forward-looking statements
embrace, among others, the following: the influence of total trade and general economic circumstances,
including industrial, governmental, and private and non-private sector spending and the energy of the
residential and industrial actual property markets, on financial exercise and our operations; geopolitical
events, including the struggle between Russia and Ukraine, and regulatory, economic and different risks
associated with our world sales and operations, together with with respect to domestic content
requirements applicable to projects with governmental funding; continued uncertainty around the
ongoing COVID-19 pandemic’s magnitude, length and impacts on our enterprise, operations, growth,
and monetary situation; actual or potential different epidemics, pandemics or global health crises;
availability, scarcity or delays in receiving electronic parts (in particular, semiconductors), parts,
and uncooked supplies from our supply chain; manufacturing and working cost increases due to
macroeconomic conditions, together with inflation, provide chain shortages, logistics challenges, tight labor
markets, prevailing value adjustments, tariffs and different components; demand for our merchandise; disruption,
competitors or pricing pressures within the markets we serve; cybersecurity incidents or other disruptions of
info expertise methods on which we rely, or involving our products; disruptions in operations at
our services or that of third events upon which we rely; ability to retain and attract senior management
and different various and key expertise, as properly as competition for total expertise and labor; problem predicting
our financial outcomes; defects, security, warranty and liability claims, and recalls with respect to products;
availability, regulation or interference with radio spectrum utilized by certain of our merchandise; uncertainty
related to restructuring and realignment actions and related costs and financial savings; our capacity to continue
strategic investments for progress; our capacity to successfully identify, execute and integrate acquisitions;
volatility in served markets or impacts on enterprise and operations because of climate situations, together with
the effects of climate change; fluctuations in international forex trade rates; our ability to borrow or
refinance our present indebtedness and uncertainty across the availability of liquidity enough to meet
our needs; danger of future impairments to goodwill and other intangible assets; failure to comply with, or
modifications in, legal guidelines or rules, including those pertaining to anti-corruption, information privateness and security,
export and import, competitors, and the surroundings and local weather change; modifications in our effective tax
rates or tax bills; authorized, governmental or regulatory claims, investigations or proceedings and
associated contingent liabilities; and other components set forth underneath “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 other statements on this press release relating to our environmental and other
sustainability plans and objectives aren’t an indication that these statements are essentially materials to
buyers or are required to be disclosed in our filings with the SEC. In addition, historical, current, and
forward-looking social, environmental and sustainability related statements may be based mostly on requirements
for measuring progress which are nonetheless growing, internal controls and processes that proceed to evolve,
and assumptions which are topic to change sooner or later. All forward-looking statements made herein
are primarily based on info currently out there to us as of the date of this press launch. We undertake no
obligation to publicly update or revise any forward-looking statements, whether as a end result of new
information, future occasions or otherwise, besides as required by law

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