Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
Robust persevering with demand drove strong natural 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 steering by 160 basis factors
• Raising full-year organic revenue steerage 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.forty to $2.70
Washington, D.C., August 2, 2022 – Xylem Inc. (NYSE: XYL), a number one world water know-how
company dedicated to fixing the world’s most challenging water issues, right now reported second quarter
income of $1.4 billion, surpassing earlier steering in each enterprise section. Strong continued
world demand drove orders and backlog progress throughout the portfolio.
Second quarter adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margin
was 16.6 p.c, higher than the Company’s earlier steering 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 productiveness financial savings. Xylem generated internet
income of $112 million, or $0.62 per share, and adjusted net revenue of $120 million, or $0.66 per share,
which excludes the impression of restructuring, realignment and particular charges.
“The staff delivered very robust second quarter performance on all key metrics, and well forward of our
steering for the quarter,” mentioned Patrick Decker, Xylem president and CEO. “The result reflects our
industrial momentum on continuing underlying demand, disciplined operational execution, and a
reasonable easing in chip supply constraints.”
“On the power of strong backlog and orders growth, and the team’s demonstrated success mitigating
the effects of inflation, we’re raising our full-year steering on income and earnings. This further
reinforces our longer-term growth and worth creation thesis for Xylem.”
Xylem now expects full-year 2022 organic income progress to be in the range of 8 to 10 p.c, and three
to five % on a reported foundation. This represents an increase from the Company’s previous full-year
natural income steering of four to 6 %, and 1 to 3 % on a reported foundation. Full-year 2022
adjusted EBITDA margin is now expected to be in the vary of 16.5 to 17.0 %, elevating the low finish
of the earlier range of to 17.0 p.c. This results in adjusted earnings per share of $2.50 to
$2.70, raising the low finish from the earlier vary of $2.forty to $2.70. The elevated steerage displays
sturdy demand, gradual easing of supply chain constraints and worth realization partially offset by
inflation and international trade headwinds.
Further 2022 planning assumptions are included in Xylem’s second quarter 2022 earnings materials
posted at Excluding income, Xylem provides steerage only on a non-GAAP
foundation as a result of inherent problem in forecasting sure amounts that would be included in GAAP
earnings, similar to 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 therapy, and dewatering.
• Second quarter 2022 Water Infrastructure income was $589 million, a 9.0 % improve
organically in contrast with second quarter 2021. This robust growth was driven by sturdy value
realization, industrial dewatering demand, and healthy activity in our wastewater utility enterprise
in the united states and Western Europe.
• Second quarter adjusted EBITDA margin was 21.4 %, up 240 basis factors from the prior
yr. Reported working income for the section was $108 million. Adjusted operating earnings
for the section, which excludes $3 million of restructuring and realignment, was $111 million, a
14.4 % enhance versus the comparable period last 12 months. Reported working margin for
the segment was 18.three percent, up 200 basis factors versus the prior year, and adjusted
operating margin was 18.eight p.c, up a hundred and eighty foundation points versus the prior year. Strong worth
realization, quantity, and productiveness financial savings more than offset inflation and strategic
Applied เกจ์วัดแรงดันน้ำมันเครื่อง s Applied Water segment consists of its portfolio of businesses in industrial, industrial building,
and residential applications.
• Second quarter 2022 Applied Water revenue was $429 million, a % enhance
organically year-over-year. The section delivered strong worth realization and backlog
execution in industrial and residential end markets, partially offset by continued supply chain
constraints in industrial buildings in the United States.
• Second quarter adjusted EBITDA margin was sixteen.1 percent, down one hundred thirty basis factors from the
prior 12 months. Reported working income for the section was $61 million and adjusted working
revenue, which excludes $2 million of restructuring and realignment prices, was $63 million, a 4.5
percent lower versus the comparable period last 12 months. The section reported operating
margin was 14.2 percent, down a hundred thirty basis points versus the prior year interval. Adjusted
working margin declined 120 basis points to 14.7 %. Strong price realization and
productivity financial savings had been more than offset by inflation and lower volume.
Measurement & Control Solutions
Xylem’s Measurement & Control Solutions section consists of its portfolio of companies in smart
metering, community applied sciences, superior infrastructure analytics and analytic instrumentation.
• Second quarter 2022 Measurement & Control Solutions income was $346 million, down
p.c organically versus the prior yr. While chip supply remains constrained, the result is
higher than our expectations because of improved chip supply within the quarter, and power in our
water quality check functions.
• Second quarter adjusted EBITDA margin was 9.8 %, down 410 basis points from the prior
yr. Reported operating income for the phase was $(5) million, and adjusted operating
earnings, 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
productivity savings.
Supplemental information on Xylem’s second quarter 2022 earnings and reconciliations for sure nonGAAP items is posted at
About Xylem
Xylem (XYL) is a number one international water know-how firm dedicated to solving critical water and
infrastructure challenges with innovation. Our 17,000 numerous employees delivered revenue of $5.2
billion in 2021. We are making a extra sustainable world by enabling our prospects to optimize water
and resource management, and helping communities in additional than one hundred fifty nations turn into watersecure. Join us at
Forward-Looking Statements
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ongoing COVID-19 pandemic’s magnitude, duration and impacts on our business, operations, growth,
and financial condition; actual or potential different epidemics, pandemics or global well being crises;
availability, scarcity or delays in receiving electronic components (in particular, semiconductors), elements,
and uncooked materials from our supply chain; manufacturing and working cost increases as a result of
macroeconomic conditions, together with inflation, provide chain shortages, logistics challenges, tight labor
markets, prevailing value modifications, tariffs and other elements; demand for our merchandise; disruption,
competitors or pricing pressures within the markets we serve; cybersecurity incidents or other disruptions of
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and different numerous and key talent, in addition to competitors for total expertise and labor; problem predicting
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volatility in served markets or impacts on business and operations because of weather circumstances, together with
the effects of local weather change; fluctuations in overseas foreign money exchange charges; our ability to borrow or
refinance our present indebtedness and uncertainty across the availability of liquidity sufficient to fulfill
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changes in, legal guidelines or rules, including these pertaining to anti-corruption, information privateness and security,
export and import, competition, and the environment and local weather change; adjustments in our effective tax
charges or tax expenses; legal, 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 12 months ended December 31, 2021 and in subsequent filings we make with
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