PRESSURE DIGITAL W LOGO.png

FEATUREDMINING
Xylem Reports Second Quarter 2022 Results
by Brenna ShumbamhiniAugust 2, 2022
Share
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.”
Outlook
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 sixteen.zero 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 www.xylem.com/investors. 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
investments.
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 7.zero % 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 2.zero
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 www.xylem.com/investors.
#
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 www.xylem.com.
Forward-Looking Statements
This press launch incorporates “forward-looking statements” within 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 comparable expressions or their negative, could, but are not essential to, identify
forward-looking statements. By their nature, forward-looking statements tackle uncertain matters and
include any statements that aren’t historic, similar to statements about our technique, financial plans,
outlook, objectives, plans, intentions or targets (including those associated to our social, environmental and
different sustainability goals); or handle potential or future results of operations or financial performance,
together with statements regarding orders, revenues, operating margins and earnings per share progress.
Although we imagine that the expectations mirrored in any of our forward-looking statements are
reasonable, actual outcomes could differ materially from these projected or assumed in any of our forwardlooking statements. Our future monetary condition and outcomes of operations, as well as any forwardlooking statements, are topic to vary and to inherent risks and uncertainties, many of that are
past our management. Additionally, many of those 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 would trigger our precise outcomes, performance and achievements, or trade outcomes to vary
materially from estimates or projections contained in or implied by our forward-looking statements
embrace, among others, the following: the impression of overall industry and common financial situations,
together with industrial, governmental, and public and private sector spending and the power of the
residential and commercial actual estate markets, on financial activity and our operations; geopolitical
events, together with the warfare between Russia and Ukraine, and regulatory, financial and different risks
related to our international gross sales and operations, including with respect to home content material
necessities relevant to tasks with governmental funding; continued uncertainty around the
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
data know-how methods on which we rely, or involving our products; disruptions in operations at
our services or that of third parties upon which we rely; capacity to retain and entice senior administration
and different numerous and key talent, in addition to competitors for total expertise and labor; problem predicting
our monetary results; defects, security, guarantee and liability claims, and recalls with respect to products;
availability, regulation or interference with radio spectrum utilized by certain of our products; uncertainty
related to restructuring and realignment actions and related charges and savings; our capability to proceed
strategic investments for development; our capacity to successfully establish, execute and combine acquisitions;
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
our needs; threat of future impairments to goodwill and different intangible belongings; failure to adjust to, or
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
the Securities and Exchange Commission (“SEC”).
Forward-looking and other statements in this press release concerning our environmental and different
sustainability plans and objectives usually are not a sign that these statements are essentially material to
traders or are required to be disclosed in our filings with the SEC. In addition, historic, present, and
forward-looking social, environmental and sustainability associated statements may be based on standards
for measuring progress that are nonetheless developing, inside 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 data currently available to us as of the date of this press launch. We undertake no
obligation to publicly update or revise any forward-looking statements, whether or not because of new
information, future occasions or otherwise, except as required by legislation
Share