Press Release

Xylem Reports Fourth Quarter and Full-Year 2022 Earnings

February 7, 2023
  • Fourth quarter revenue grew 14%, up 20% organically
  • Fourth quarter earnings per share of $0.82, up 32%; adjusted earnings per share of $0.92, up 46%
  • Full-year revenue grew 6%, up 11% organically
  • Full-year earnings per share of $1.96, down 17%; adjusted earnings per share of $2.85, up 14%
  • Provides 2023 organic revenue growth guidance range of 4% to 6% and adjusted earnings per share range of $3.00 to $3.25

WASHINGTON--(BUSINESS WIRE)--Feb. 7, 2023-- Xylem Inc. (NYSE: XYL), a leading global water technology company dedicated to solving the world’s most challenging water issues, today reported fourth quarter revenue of $1.5 billion, and full-year 2022 revenue of $5.5 billion, surpassing prior guidance, with strong commercial and operational execution. While fourth quarter orders were down 9 percent on a reported basis and down 3 percent organically, the Company grew backlog 14 percent organically on resilient underlying demand. On January 23, Xylem announced it had agreed to acquire Evoqua in a $7.5 billion, all-stock transaction, creating a transformative platform to address intensifying water challenges, globally.

Fourth quarter earnings exceeded Xylem’s previous guidance. Net income was $149 million, or $0.82 per share. Net income margin increased 140 basis points to 9.9 percent. These results included increased restructuring and realignment costs and higher taxes during the quarter. Adjusted net income was $168 million, or $0.92 per share, which excludes the impacts of restructuring, realignment and special charges. Fourth quarter adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margin was 18.7 percent, reflecting a year-over-year increase of 250 basis points. Strong price realization offset inflation and, coupled with productivity savings and higher volume, drove the margin expansion, exceeding the impact of strategic investments.

For the full year, net income was $355 million, or $1.96 per share. Net income margin decreased 180 basis points to 6.4 percent. These results were mainly driven by a previously announced, one-time non-cash pension plan settlement. Adjusted net income was $516 million, or $2.85 per share, which excludes the impacts of restructuring, realignment and special charges. Full-year adjusted EBITDA margin was 17.0 percent, reflecting a year-over-year decrease of 10 basis points. Inflation, strategic investments and the impact of chip shortages in the first half exceeded the benefits of price realization and productivity savings. The Company generated $596 million of operating cash flow, representing a 168 percent conversion, and $388 million of free cash flow, representing an 80 percent conversion of net income excluding the non-cash impairment charges and non-cash pension plan settlement.

“The team drove fourth quarter results well above expectations, with very strong performance across all business segments and regions,” said Patrick Decker, Xylem president and CEO. “Resilient demand and strong backlog execution delivered robust double-digit revenue growth with significant margin expansion. That out-performance in the fourth quarter and throughout 2022 has fueled healthy momentum coming into 2023.”

“Our customer focus and operational discipline are building on a foundation of resilient underlying demand for the value of Xylem’s offering in our largest end-markets,” continued Decker. “As trends driving water investment continue to intensify, we are confident about delivering full-year 2023 growth in the mid-single digits, with significant margin expansion, tracking solidly toward Xylem’s longer-term growth milestones. Of course, we’re very excited about the transformative agreement we have announced to acquire Evoqua. The combination will be positioned to have greater impact in addressing the world’s water challenges and create even more value for shareholders. Until the transaction closes, however, we remain focused on delivering our commitments to our stakeholders, as we plan for a smooth integration.”

Xylem announced that its Board of Directors declared a first quarter dividend in the amount of $0.33 per share, an increase of 10 percent. The dividend is payable on March 22, 2023, to shareholders of record as of February 22, 2023.

Full-year 2023 Outlook

Xylem’s full-year and first quarter 2023 guidance does not reflect the planned acquisition of Evoqua, which was announced on January 23, 2023, and is expected to close mid-year 2023. Additional information about the proposed transaction is available at www.xylem.com/investors.

Xylem forecasts full-year 2023 revenue in the range of $5.70 to $5.80 billion, up 3 to 5 percent on a reported basis and up 4 to 6 percent on an organic basis.

Full-year 2023 adjusted EBITDA margin is expected to be in the range of 17.5 to 18.0 percent, an increase of 50 to 100 basis points. This results in adjusted earnings per share of $3.00 to $3.25, which represents an increase of 5 to 14 percent from Xylem’s 2022 adjusted results. Full-year free cash flow conversion to net income is expected to be 100 percent.

Further 2023 planning assumptions are included in Xylem’s fourth quarter 2022 earnings materials posted at www.xylem.com/investors. Excluding revenue, Xylem provides guidance only on a non-GAAP basis due to the inherent difficulty in forecasting certain amounts that would be included in GAAP earnings, such as discrete tax items, without unreasonable effort.

Fourth Quarter Segment Results

Water Infrastructure

Xylem’s Water Infrastructure segment consists of its portfolio of businesses serving clean water delivery, wastewater transport and treatment, and dewatering.

  • Fourth quarter 2022 revenue was $668 million, a 7 percent increase, 15 percent organically, compared with fourth quarter 2021. This strong growth was driven by price realization, robust utilities and industrials demand in the US and Western Europe, and dewatering demand in Emerging Markets.
  • Fourth quarter reported operating income for the segment was $132 million, an 8 percent increase versus the comparable period last year. Adjusted operating income for the segment, which excludes $4 million of restructuring and realignment costs, was $136 million, a 10 percent increase versus the comparable period last year. Reported operating margin for the segment was 19.8 percent, up 20 basis points versus the prior year, and adjusted operating margin was 20.4 percent, up 50 basis points versus the prior year. Adjusted EBITDA margin was 22.5 percent, up 80 basis points from the prior year. Favorable price realization net of inflation and higher volume more than offset strategic investments.

Applied Water

Xylem’s Applied Water segment consists of its portfolio of businesses in industrial, commercial building, and residential applications.

  • Fourth quarter 2022 revenue was $455 million, a 12 percent increase, 17 percent organically, year-over-year. The robust growth was driven by strong price realization across all end-markets and regions.
  • Fourth quarter reported operating income for the segment was $61 million, a 22 percent increase versus comparable period last year, and adjusted operating income, which excludes $9 million of restructuring and realignment costs, was $70 million, a 35 percent increase versus the comparable period last year. The segment reported operating margin was 13.4 percent, up 110 basis points versus the prior year period. Adjusted operating margin increased 260 basis points over the prior year period to 15.4 percent. Adjusted EBITDA margin was 16.5 percent, up 270 basis points from the prior year. Margin expansion was driven by strong price realization, more than offsetting inflation, coupled with productivity savings.

Measurement & Control Solutions

Xylem’s Measurement & Control Solutions segment consists of its portfolio of businesses in smart metering, network technologies, advanced infrastructure analytics, and analytic instrumentation.

  • Fourth quarter 2022 revenue was $383 million, up 30 percent, 35 percent organically, versus the prior year. The robust growth is driven by improved chip supply compared to prior year, as well as strength in our water quality test and pipeline assessment applications.
  • Fourth quarter reported operating income for the segment was $19 million, compared to $17 million loss in the comparable period last year, and adjusted operating income, which excludes $3 million of restructuring and realignment costs and $1 million of special charges, was $23 million, compared to $15 million loss in comparable period last year. The segment reported operating margin was 5.0 percent, up 1080 basis points versus the prior year period. Adjusted operating margin of 6.0 percent increased 1110 basis points over the prior year period. Adjusted EBITDA margin was 15.1 percent, up 800 basis points from the prior year. Strong price realization offset inflation and, coupled with productivity savings and higher volume, drove the margin expansion, exceeding the impact of strategic investments.

Supplemental information on Xylem’s fourth quarter 2022 earnings and reconciliations for certain non-GAAP items is posted at www.xylem.com/investors.

About Xylem

Xylem (XYL) is a leading global water technology company committed to solving critical water and infrastructure challenges with innovation. Our more than 17,000 diverse employees delivered revenue of $5.5 billion in 2022. We are creating a more sustainable world by enabling our customers to optimize water and resource management, and helping communities in more than 150 countries become water-secure. Join us at www.xylem.com.

Forward-Looking Statements

This press release contains “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 similar expressions or their negative, may, but are not necessary to, identify forward-looking statements. By their nature, forward-looking statements address uncertain matters and include any statements that are not historical, such as statements about our strategy, financial plans, outlook, objectives, plans, intentions or goals (including those related to our social, environmental and other sustainability goals); or address possible or future results of operations or financial performance, including statements relating to orders, revenues, operating margins and earnings per share growth.

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control. Additionally, many of these risks and uncertainties are, and may continue to be, amplified by impacts from the global economic and geopolitical climate, including as a result of the war between Russia and Ukraine, the coronavirus (“COVID-19”) pandemic, and macroeconomic conditions, including inflation. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in or implied by our forward-looking statements include, among others, the following: the impact of overall industry and general economic conditions, including industrial, governmental, and public and private sector spending, inflation, interest rates and related monetary policy by governments in response to inflation, and the strength of the residential and commercial real estate markets, on economic activity and our operations; geopolitical events, including the war between Russia and Ukraine, and regulatory, economic, foreign exchange and other risks associated with our global sales, supply chain and operations, including with respect to domestic content requirements applicable to projects with governmental funding; continued uncertainty around the ongoing impacts of the COVID-19 pandemic on the macroeconomy and our business, operations, growth, and financial condition; actual or potential outbreaks of other epidemics, pandemics or global health crises; manufacturing and operating cost increases due to macroeconomic conditions, including inflation, tight labor markets, prevailing price levels, exchange rates, tariffs and trade protection measures, energy supply, supply chain shortages, logistics challenges, and other factors; demand for our products; competition, including disruption, failure to commercialize innovative technologies, or pricing pressures in the markets we serve; cybersecurity incidents or other disruptions of information technology systems on which we rely, or involving our products; availability, shortage or delays in receiving products, parts, including electronic components (in particular, semiconductors), raw materials and energy from our supply chain; disruptions in operations at our facilities or that of third parties upon which we rely; ability to retain and attract senior management and other diverse and key talent, as well as competition for overall talent and labor; defects, security, warranty and liability claims, and recalls with respect to products; uncertainty related to restructuring and realignment actions and related costs and savings; our ability to continue strategic investments for growth; our ability to successfully identify, execute, consummate and integrate acquisitions; availability, regulation or interference with radio spectrum used by certain of our products; volatility in served markets or impacts on business and operations due to weather conditions, including the effects of climate change and related mitigation efforts by governmental or regulatory authorities; our ability to achieve our sustainability-related commitments; fluctuations in foreign currency exchange rates; difficulty predicting our financial results; risk of future impairments to goodwill and other intangible assets; changes in our effective tax rates or tax expenses; risks related to our pension and other defined benefit plans; our ability to borrow or refinance our existing indebtedness, and uncertainty around the availability of liquidity sufficient to meet our needs; failure to comply with, or changes in, laws or regulations, including those pertaining to anti-corruption, trade, data privacy and security, our products, competition, and the environment and climate change; legal, governmental or regulatory claims, investigations or proceedings and associated contingent liabilities; infringement or expiration of our intellectual property rights or claims that we have infringed the rights of others; and other factors set forth under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021 ("2021 Annual Report") and in subsequent filings we make with the Securities and Exchange Commission (“SEC”).

Additionally, risks and uncertainties relating to our plans to acquire Evoqua could cause our actual results to differ, perhaps materially, from those indicated by these forward-looking statements, including: the risk that the conditions to the closing of the transaction are not satisfied, including the risk that required approvals of the transaction from the shareholders of Xylem or stockholders of Evoqua or from regulators are not obtained; litigation relating to the transaction; uncertainties as to the timing of the consummation of the transaction and the ability of each party to consummate the transaction; risks that the proposed transaction disrupts the current plans or operations of Xylem or Evoqua; the ability of Xylem and Evoqua to retain and hire key personnel; competitive responses to the proposed transaction; unexpected costs, charges or expenses resulting from the transaction; potential adverse reactions or changes to relationships with customers, suppliers, distributors and other business partners resulting from the announcement or completion of the transaction; the combined company’s ability to achieve the synergies expected from the transaction, as well as delays, challenges and expenses associated with integrating the combined company’s existing businesses.

Forward-looking and other statements in this press release regarding our environmental and other sustainability plans and goals are not an indication that these statements are necessarily material to investors 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 on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. All forward-looking statements made herein are based on information currently available to us as of the date of this Report. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

XYLEM INC. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS (Unaudited)

(In Millions, except per share data)

 

Year Ended December 31,

2022

 

2021

 

2020

Revenue

$

5,522

 

$

5,195

 

$

4,876

 

Cost of revenue

 

3,438

 

 

3,220

 

 

3,046

 

Gross profit

 

2,084

 

 

1,975

 

 

1,830

 

Selling, general and administrative expenses

 

1,227

 

 

1,179

 

 

1,143

 

Research and development expenses

 

206

 

 

204

 

 

187

 

Restructuring and asset impairment charges

 

29

 

 

7

 

 

75

 

Goodwill impairment charge

 

 

 

 

 

58

 

Operating income

 

622

 

 

585

 

 

367

 

Interest expense

 

50

 

 

76

 

 

77

 

U.K. pension settlement expense

 

140

 

 

 

 

 

Other non-operating income (expense), net

 

7

 

 

 

 

(5

)

Gain on sale of businesses

 

1

 

 

2

 

 

 

Income before taxes

 

440

 

 

511

 

 

285

 

Income tax expense

 

85

 

 

84

 

 

31

 

Net income

$

355

 

$

427

 

$

254

 

Earnings per share:

 

 

 

 

 

Basic

$

1.97

 

$

2.37

 

$

1.41

 

Diluted

$

1.96

 

$

2.35

 

$

1.40

 

Weighted average number of shares:

 

 

 

 

 

Basic

 

180.2

 

 

180.2

 

 

180.1

 

Diluted

 

181.0

 

 

181.5

 

 

181.1

 

XYLEM INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (Unaudited)

(In Millions, except per share amounts)

 

December 31,

2022

 

2021

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

944

 

 

$

1,349

 

Receivables, less allowances for discounts, returns and credit losses of $50 and $44 in 2022 and 2021, respectively

 

1,096

 

 

 

953

 

Inventories

 

799

 

 

 

700

 

Prepaid and other current assets

 

173

 

 

 

158

 

Total current assets

 

3,012

 

 

 

3,160

 

Property, plant and equipment, net

 

630

 

 

 

644

 

Goodwill

 

2,719

 

 

 

2,792

 

Other intangible assets, net

 

930

 

 

 

1,016

 

Other non-current assets

 

661

 

 

 

664

 

Total assets

$

7,952

 

 

$

8,276

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

723

 

 

$

639

 

Accrued and other current liabilities

 

867

 

 

 

752

 

Total current liabilities

 

1,590

 

 

 

1,391

 

Long-term debt, net

 

1,880

 

 

 

2,440

 

Accrued post-retirement benefits

 

286

 

 

 

438

 

Deferred income tax liabilities

 

222

 

 

 

287

 

Other non-current accrued liabilities

 

471

 

 

 

494

 

Total liabilities

 

4,449

 

 

 

5,050

 

 

 

 

 

Stockholders’ equity:

 

 

 

Common stock — par value $0.01 per share:

 

 

 

Authorized 750.0 shares, issued 196.0 and 195.6 shares in 2022 and 2021, respectively

 

2

 

 

 

2

 

Capital in excess of par value

 

2,134

 

 

 

2,089

 

Retained earnings

 

2,292

 

 

 

2,154

 

Treasury stock – at cost 15.8 shares and 15.2 shares in 2022 and 2021, respectively

 

(708

)

 

 

(656

)

Accumulated other comprehensive loss

 

(226

)

 

 

(371

)

Total stockholders’ equity

 

3,494

 

 

 

3,218

 

Non-controlling interest

 

9

 

 

 

8

 

Total equity

 

3,503

 

 

 

3,226

 

Total liabilities and stockholders’ equity

$

7,952

 

 

$

8,276

 

XYLEM INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Millions) (Unaudited)

 

Year Ended December 31,

2022

 

2021

 

2020

Operating Activities

 

 

 

 

 

Net income

$

355

 

 

$

427

 

 

$

254

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Depreciation

 

111

 

 

 

118

 

 

 

117

 

Amortization

 

125

 

 

 

127

 

 

 

134

 

Deferred income taxes

 

(64

)

 

 

10

 

 

 

(31

)

Share-based compensation

 

37

 

 

 

33

 

 

 

26

 

Restructuring and asset impairment charges

 

29

 

 

 

7

 

 

 

75

 

Goodwill impairment charge

 

 

 

 

 

 

 

58

 

U.K. pension settlement expense

 

140

 

 

 

 

 

 

 

Gain from sale of businesses

 

(1

)

 

 

(2

)

 

 

 

Other, net

 

(4

)

 

 

8

 

 

 

46

 

Payments for restructuring

 

(11

)

 

 

(25

)

 

 

(36

)

Contributions to post-retirement benefit plans

 

(19

)

 

 

(29

)

 

 

(27

)

Changes in assets and liabilities (net of acquisitions):

 

 

 

 

 

Changes in receivables

 

(192

)

 

 

(70

)

 

 

109

 

Changes in inventories

 

(147

)

 

 

(167

)

 

 

(5

)

Changes in accounts payable

 

117

 

 

 

81

 

 

 

(39

)

Changes in accrued liabilities

 

57

 

 

 

7

 

 

 

101

 

Changes in accrued taxes

 

57

 

 

 

(9

)

 

 

20

 

Net changes in other assets and liabilities

 

6

 

 

 

22

 

 

 

22

 

Net Cash — Operating activities

 

596

 

 

 

538

 

 

 

824

 

Investing Activities

 

 

 

 

 

Capital expenditures

 

(208

)

 

 

(208

)

 

 

(183

)

Proceeds from sale of businesses

 

1

 

 

 

10

 

 

 

 

Cash received from investments

 

8

 

 

 

3

 

 

 

200

 

Cash paid for investments

 

(11

)

 

 

 

 

 

(200

)

Cash received from cross-currency swaps

 

28

 

 

 

14

 

 

 

12

 

Settlement of currency forward agreement

 

(10

)

 

 

 

 

 

 

Other, net

 

1

 

 

 

(2

)

 

 

2

 

Net Cash — Investing activities

 

(191

)

 

 

(183

)

 

 

(169

)

Financing Activities

 

 

 

 

 

Short-term debt issued, net

 

 

 

 

 

 

 

359

 

Short-term debt repaid, net

 

 

 

 

 

 

 

(640

)

Long-term debt issued, net

 

 

 

 

 

 

 

985

 

Long-term debt repaid, net

 

(527

)

 

 

(600

)

 

 

 

Repurchase of common stock

 

(52

)

 

 

(68

)

 

 

(61

)

Proceeds from exercise of employee stock options

 

8

 

 

 

19

 

 

 

20

 

Dividends paid

 

(217

)

 

 

(203

)

 

 

(188

)

Other, net

 

(2

)

 

 

(3

)

 

 

(2

)

Net Cash — Financing activities

 

(790

)

 

 

(855

)

 

 

473

 

Effect of exchange rate changes on cash

 

(20

)

 

 

(26

)

 

 

23

 

Net change in cash and cash equivalents

 

(405

)

 

 

(526

)

 

 

1,151

 

Cash and cash equivalents at beginning of year

 

1,349

 

 

 

1,875

 

 

 

724

 

Cash and cash equivalents at end of year

$

944

 

 

$

1,349

 

 

$

1,875

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

Cash paid during the year for:

 

 

 

 

 

Interest

$

76

 

 

$

99

 

 

$

77

 

Income taxes (net of refunds received)

$

91

 

 

$

83

 

 

$

41

 

Xylem Inc. Non-GAAP Measures
 
  
Management reviews key performance indicators including revenue, gross margins, segment operating income and margins, orders growth, working capital and backlog, among others. In addition, we consider certain non-GAAP (or "adjusted") measures to be useful to management and investors evaluating our operating performance for the periods presented, and to provide a tool for evaluating our ongoing operations, liquidity and management of assets. This information can assist investors in assessing our financial performance and measures our ability to generate capital for deployment among competing strategic alternatives and initiatives, including but not limited to, dividends, acquisitions, share repurchases and debt repayment. Excluding revenue, Xylem provides guidance only on a non-GAAP basis due to the inherent difficulty in forecasting certain amounts that would be included in GAAP earnings, such as discrete tax items, without unreasonable effort. These adjusted metrics are consistent with how management views our business and are used to make financial, operating and planning decisions. These metrics, however, are not measures of financial performance under GAAP and should not be considered a substitute for revenue, operating income, net income, earnings per share (basic and diluted) or net cash from operating activities as determined in accordance with GAAP. We consider the following items to represent the non-GAAP measures we consider to be key performance indicators, as well as the related reconciling items to the most directly comparable measure calculated and presented in accordance with GAAP. The non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
 
“Organic revenue" and "Organic orders” defined as revenue and orders, respectively, excluding the impact of fluctuations in foreign currency translation and contributions from acquisitions and divestitures. Divestitures include sales or discontinuance of insignificant portions of our business that did not meet the criteria for classification as a discontinued operation. The period-over-period change resulting from foreign currency translation impacts is determined by translating current period and prior period activity using the same currency conversion rate.
 
“Constant currency” defined as financial results adjusted for foreign currency translation impacts by translating current period and prior period activity using the same currency conversion rate. This approach is used for countries whose functional currency is not the U.S. dollar.
 
“EBITDA” defined as earnings before interest, taxes, depreciation and amortization expense. “Adjusted EBITDA” and "Adjusted Segment EBITDA" reflect the adjustments to EBITDA and segment EBITDA, respectively, to exclude share-based compensation charges, restructuring and realignment costs, gain or loss from sale of businesses and special charges.
 
"Adjusted EBITDA Margin" and "Adjusted Segment EBITDA Margin" defined as adjusted EBITDA and adjusted segment EBITDA divided by total revenue and segment revenue, respectively.
 
"Adjusted Operating Income", "Adjusted Segment Operating Income", "Adjusted Net Income" and “Adjusted EPS” defined as operating income, segment operating income, net income and earnings per share, adjusted to exclude restructuring and realignment costs, gain or loss from sale of businesses, special charges and tax-related special items, as applicable.
 
"Adjusted Operating Margin" and "Adjusted Segment Operating Margin" defined as adjusted operating income and adjusted segment operating income divided by total revenue and segment revenue, respectively.
 
“Free Cash Flow” defined as net cash from operating activities, as reported in the Statement of Cash Flows, less capital expenditures, and "Free Cash Flow Conversion" defined as Free Cash Flows divided by net income, excluding the gain on sale of businesses and other significant non-cash impacts, such as non-cash impairment charges and significant deferred tax items. Our definitions of "free cash flow" and "free cash flow conversion" do not consider certain non-discretionary cash payments, such as debt.
 
“Realignment costs” defined as costs not included in restructuring costs that are incurred as part of actions taken to reposition our business, including items such as professional fees, severance, relocation, travel, facility set-up and other costs.
 
“Special charges" defined as costs incurred by the Company, such as acquisition and integration related costs, non-cash impairment charges and both operating and non-operating adjustments for costs related to the UK pension plan buyout.
 
“Tax-related special items" defined as tax items, such as tax return versus tax provision adjustments, tax exam impacts, tax law change impacts, excess tax benefits/losses and other discrete tax adjustments.
Xylem Inc. Non-GAAP Reconciliation
Reported vs. Organic & Constant Currency Orders ($ Millions)
 

(As Reported - GAAP)

 

(As Adjusted - Organic)

 

Constant

Currency

 

 

(A)

 

(B)

 

 

 

(C)

 

(D)

 

(E) = B+C+D

 

(F) = E/A

 

(G) = (E - C) / A

 

 

 

 

Change

 

% Change

 

Acquisitions /

Divestitures

 

 

 

Change

 

% Change

 

 

Orders

 

Orders

 

2022 v. 2021

 

2022 v. 2021

 

 

FX Impact

 

Adj. 2022 v. 2021

 

Adj. 2022 v. 2021

 

 

2022

2021

Year Ended December 31
Xylem Inc.

6,257

6,300

(43

)

-1

%

18

279

254

 

4

%

4

%

Water Infrastructure

2,607

2,471

136

 

6

%

0

166

302

 

12

%

12

%

Applied Water

1,794

1,860

(66

)

-4

%

0

68

2

 

0

%

0

%

Measurement & Control Solutions

1,856

1,969

(113

)

-6

%

18

45

(50

)

-3

%

-3

%

 
Quarter Ended December 31
Xylem Inc.

1,439

1,584

(145

)

-9

%

0

90

(55

)

-3

%

-3

%

Water Infrastructure

622

598

24

 

4

%

0

53

77

 

13

%

13

%

Applied Water

400

451

(51

)

-11

%

0

23

(28

)

-6

%

-6

%

Measurement & Control Solutions

417

535

(118

)

-22

%

0

14

(104

)

-19

%

-19

%

 
Quarter Ended September 30
Xylem Inc.

1,419

1,518

(99

)

-7

%

7

82

(10

)

-1

%

-1

%

Water Infrastructure

594

623

(29

)

-5

%

0

47

18

 

3

%

3

%

Applied Water

409

446

(37

)

-8

%

0

20

(17

)

-4

%

-4

%

Measurement & Control Solutions

416

449

(33

)

-7

%

7

15

(11

)

-2

%

-4

%

 
Quarter Ended June 30
Xylem Inc.

1,684

1,660

24

 

1

%

5

67

96

 

6

%

5

%

Water Infrastructure

731

639

92

 

14

%

0

42

134

 

21

%

21

%

Applied Water

480

486

(6

)

-1

%

0

15

9

 

2

%

2

%

Measurement & Control Solutions

473

535

(62

)

-12

%

5

10

(47

)

-9

%

-10

%

 
Quarter Ended March 31
Xylem Inc.

1,715

1,538

177

 

12

%

6

40

223

 

14

%

14

%

Water Infrastructure

660

611

49

 

8

%

0

24

73

 

12

%

12

%

Applied Water

505

477

28

 

6

%

0

10

38

 

8

%

8

%

Measurement & Control Solutions

550

450

100

 

22

%

6

6

112

 

25

%

24

%

Xylem Inc. Non-GAAP Reconciliation
Reported vs. Organic & Constant Currency Revenue ($ Millions)
 

(As Reported - GAAP)

 

(As Adjusted - Organic)

 

Constant

Currency

 

 

(A)

 

(B)

 

 

 

(C)

 

(D)

 

(E) = B+C+D

 

(F) = E/A

 

(G) = (E - C) / A

 

 

 

 

Change

 

% Change

 

Acquisitions /

Divestitures

 

 

 

Change

 

% Change

 

 

Revenue

 

Revenue

 

2022 v. 2021

 

2022 v. 2021

 

 

FX Impact

 

Adj. 2022 v. 2021

 

Adj. 2022 v. 2021

 

 

2022

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31
Xylem Inc.

5,522

5,195

327

 

6

%

9

259

595

 

11

%

11

%

Water Infrastructure

2,364

2,247

117

 

5

%

0

149

266

 

12

%

12

%

Applied Water

1,767

1,613

154

 

10

%

0

66

220

 

14

%

14

%

Measurement & Control Solutions

1,391

1,335

56

 

4

%

9

44

109

 

8

%

7

%

 
Quarter Ended December 31
Xylem Inc.

1,506

1,323

183

 

14

%

0

86

269

 

20

%

20

%

Water Infrastructure

668

622

46

 

7

%

0

50

96

 

15

%

15

%

Applied Water

455

406

49

 

12

%

0

22

71

 

17

%

17

%

Measurement & Control Solutions

383

295

88

 

30

%

0

14

102

 

35

%

35

%

 
Quarter Ended September 30
Xylem Inc.

1,380

1,265

115

 

9

%

4

80

199

 

16

%

15

%

Water Infrastructure

574

547

27

 

5

%

0

46

73

 

13

%

13

%

Applied Water

458

400

58

 

15

%

0

21

79

 

20

%

20

%

Measurement & Control Solutions

348

318

30

 

9

%

4

13

47

 

15

%

14

%

 
Quarter Ended June 30
Xylem Inc.

1,364

1,351

13

 

1

%

3

60

76

 

6

%

5

%

Water Infrastructure

589

569

20

 

4

%

0

34

54

 

9

%

9

%

Applied Water

429

414

15

 

4

%

0

15

30

 

7

%

7

%

Measurement & Control Solutions

346

368

(22

)

-6

%

3

11

(8

)

-2

%

-3

%

 
Quarter Ended March 31
Xylem Inc.

1,272

1,256

16

 

1

%

2

33

51

 

4

%

4

%

Water Infrastructure

533

509

24

 

5

%

0

19

43

 

8

%

8

%

Applied Water

425

393

32

 

8

%

0

8

40

 

10

%

10

%

Measurement & Control Solutions

314

354

(40

)

-11

%

2

6

(32

)

-9

%

-10

%

Xylem Inc. Non-GAAP Reconciliation
Adjusted Operating Income ($ Millions)
 
 

Q1

 

Q2

 

Q3

 

Q4

 

YTD

2022

 

2021

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

Total Revenue
• Total Xylem

1,272

 

1,256

 

1,364

 

1,351

 

1,380

 

1,265

 

1,506

 

1,323

 

5,522

 

5,195

 

• Water Infrastructure

533

 

509

 

589

 

569

 

574

 

547

 

668

 

622

 

2,364

 

2,247

 

• Applied Water

425

 

393

 

429

 

414

 

458

 

400

 

455

 

406

 

1,767

 

1,613

 

• Measurement & Control Solutions

314

 

354

 

346

 

368

 

348

 

318

 

383

 

295

 

1,391

 

1,335

 

 
Operating Income (Loss)
• Total Xylem

111

 

133

 

146

 

160

 

168

 

152

 

197

 

140

 

622

 

585

 

• Water Infrastructure

74

 

71

 

108

 

93

 

104

 

101

 

132

 

122

 

418

 

387

 

• Applied Water

59

 

66

 

61

 

64

 

77

 

60

 

61

 

50

 

258

 

240

 

• Measurement & Control Solutions

(10

)

9

 

(5

)

13

 

(2

)

7

 

19

 

(17

)

2

 

12

 

• Total Segments

123

 

146

 

164

 

170

 

179

 

168

 

212

 

155

 

678

 

639

 

 
Operating Margin
• Total Xylem

8.7

%

10.6

%

10.7

%

11.8

%

12.2

%

12.0

%

13.1

%

10.6

%

11.3

%

11.3

%

• Water Infrastructure

13.9

%

13.9

%

18.3

%

16.3

%

18.1

%

18.5

%

19.8

%

19.6

%

17.7

%

17.2

%

• Applied Water

13.9

%

16.8

%

14.2

%

15.5

%

16.8

%

15.0

%

13.4

%

12.3

%

14.6

%

14.9

%

• Measurement & Control Solutions

(3.2

%)

2.5

%

(1.4

%)

3.5

%

(0.6

%)

2.2

%

5.0

%

(5.8

%)

0.1

%

0.9

%

• Total Segments

9.7

%

11.6

%

12.0

%

12.6

%

13.0

%

13.3

%

14.1

%

11.7

%

12.3

%

12.3

%

 
Special Charges
• Total Xylem

1

 

2

 

1

 

-

 

13

 

1

 

1

 

1

 

16

 

4

 

• Water Infrastructure

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

• Applied Water

-

 

1

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

1

 

• Measurement & Control Solutions

-

 

-

 

1

 

-

 

12

 

-

 

1

 

-

 

14

 

-

 

• Total Segments

-

 

1

 

1

 

-

 

12

 

-

 

1

 

-

 

14

 

1

 

 
Restructuring & Realignment Costs
• Total Xylem

4

 

8

 

8

 

6

 

6

 

2

 

16

 

6

 

34

 

22

 

• Water Infrastructure

1

 

5

 

3

 

4

 

3

 

1

 

4

 

2

 

11

 

12

 

• Applied Water

1

 

1

 

2

 

2

 

1

 

2

 

9

 

2

 

13

 

7

 

• Measurement & Control Solutions

2

 

2

 

3

 

0

 

2

 

(1

)

3

 

2

 

10

 

3

 

• Total Segments

4

 

8

 

8

 

6

 

6

 

2

 

16

 

6

 

34

 

22

 

 
Adjusted Operating Income (Loss)
• Total Xylem

116

 

143

 

155

 

166

 

187

 

155

 

214

 

147

 

672

 

611

 

• Water Infrastructure

75

 

76

 

111

 

97

 

107

 

102

 

136

 

124

 

429

 

399

 

• Applied Water

60

 

68

 

63

 

66

 

78

 

62

 

70

 

52

 

271

 

248

 

• Measurement & Control Solutions

(8

)

11

 

(1

)

13

 

12

 

6

 

23

 

(15

)

26

 

15

 

• Total Segments

127

 

155

 

173

 

176

 

197

 

170

 

229

 

161

 

726

 

662

 

 
Adjusted Operating Margin
• Total Xylem

9.1

%

11.4

%

11.4

%

12.3

%

13.6

%

12.3

%

14.2

%

11.1

%

12.2

%

11.8

%

• Water Infrastructure

14.1

%

14.9

%

18.8

%

17.0

%

18.6

%

18.6

%

20.4

%

19.9

%

18.1

%

17.8

%

• Applied Water

14.1

%

17.3

%

14.7

%

15.9

%

17.0

%

15.5

%

15.4

%

12.8

%

15.3

%

15.4

%

• Measurement & Control Solutions

(2.5

%)

3.1

%

(0.3

%)

3.5

%

3.4

%

1.9

%

6.0

%

(5.1

%)

1.9

%

1.1

%

• Total Segments

10.0

%

12.3

%

12.7

%

13.0

%

14.3

%

13.4

%

15.2

%

12.2

%

13.1

%

12.7

%

 
Xylem Inc. Non-GAAP Reconciliation
Adjusted Diluted EPS
($ Millions, except per share amounts)
 
Q4 2022 Q4 2021
As Reported Adjustments Adjusted As Reported Adjustments Adjusted
Total Revenue

1,506

1,506

1,323

-

1,323

Operating Income

197

17

a

214

140

7

a

147

Operating Margin

13.1%

-

14.2%

10.6%

-

11.1%

Interest Expense

(13)

-

(13)

(13)

-

(13)

Other Non-Operating Income (Expense)

5

-

5

(1)

3

b

2

UK Pension Buyout Settlement

-

-

-

-

-

-

Gain/(Loss) From Sale of Business

-

-

-

-

-

-

Income before Taxes

189

17

206

126

10

136

Provision for Income Taxes

(40)

2

c

(38)

(13)

(8)

c

(21)

Net Income Attributable to Xylem

149

19

168

113

2

115

Diluted Shares

181.3

181.3

181.6

181.6

Diluted EPS

$0.82

$0.10

$0.92

$0.62

$0.01

$0.63

 
Year-over-year currency translation impact on current year diluted EPS

($0.08)

($0.01)

($0.09)

Diluted EPS at Constant Currency

$0.90

$0.11

$1.01

 
 
 
Q4 YTD 2022 Q4 YTD 2021
As Reported Adjustments Adjusted As Reported Adjustments Adjusted
Total Revenue

5,522

5,522

5,195

-

5,195

Operating Income

622

50

a

672

585

26

a

611

Operating Margin

11.3%

-

12.2%

11.3%

-

11.8%

Interest Expense

(50)

-

(50)

(76)

-

(76)

Other Non-Operating Income (Expense)

7

4

b

11

-

8

b

8

UK Pension Buyout Settlement

(140)

140

b

-

-

-

-

Gain/(Loss) From Sale of Business

1

(1)

-

2

(2)

-

Income before Taxes

440

193

633

511

32

543

Provision for Income Taxes

(85)

(32)

c

(117)

(84)

(7)

c

(91)

Net Income Attributable to Xylem

355

161

516

427

25

452

Diluted Shares

181.0

181.0

181.5

181.5

Diluted EPS

$1.96

$0.89

$2.85

$2.35

$0.14

$2.49

 
Year-over-year currency translation impact on current year diluted EPS

($0.17)

($0.17)

($0.34)

Diluted EPS at Constant Currency

$2.13

$1.06

$3.19

 
a Quarter-to-date: Restructuring & realignment costs of $16 million in 2022 and $6 million in 2021, as well as special charges of $1 million in 2022 (asset impairment charge) and $1 million in 2021 for UK pension plan charges.
Year-to-date: Restructuring & realignment costs of $34 million in 2022 and $22 million in 2021, as well as special charges of $16 million in 2022 ($2 million UK pension plan charges and $14 million of asset impairment charges) and $4 million ($1 million of intangible asset impairment charges and $3 million of other charges) in 2021.
b Quarter-to-date: Special non-operating charges consist of $3 million in 2021 for costs related to the UK pension plan.
Year-to-date: Special non-operating charges consist of $144 million in 2022 related to the UK pension plan charges and buyout settlement and $8 million in 2021 for costs related to the UK pension plan.
c Quarter-to-date: Net tax impact on restructuring & realignment costs of $3 million in 2022 and $1 million in 2021; net tax impact on special charges of $1 million in 2021; and $5 million in 2022 of a positive impact from tax related special charges and $6 million in 2021 of negative impact from tax related special benefits to GAAP tax, respectively.
Year-to-date: Net tax impact on restructuring & realignment costs of $7 million in 2022 and $5 million in 2021; $26 million net tax impact on special charges in 2022 and $2 million 2021; and $1 million of positive impact from tax related special charges to GAAP tax in 2022.
Xylem Inc. Non-GAAP Reconciliation
Net Cash - Operating Activities vs. Free Cash Flow ($ Millions)
 

Q1

 

Q2

 

Q3

 

Q4

 

Year-to-Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

 

2022

 

2021

 
Net Cash - Operating Activities

($81

)

($26

)

$113

 

$232

 

$202

 

$112

 

$362

 

$220

 

$596

 

$538

 

 
Capital Expenditures - PP&E

(31

)

(22

)

(30

)

(25

)

(37

)

(33

)

(41

)

(62

)

(139

)

(142

)

Capital Expenditures - Software

(18

)

(17

)

(16

)

(16

)

(16

)

(14

)

(19

)

(19

)

(69

)

(66

)

Capital Expenditures

(49

)

(39

)

(46

)

(41

)

(53

)

(47

)

(60

)

(81

)

(208

)

(208

)

 
Free Cash Flow

($130

)

($65

)

$67

 

$191

 

$149

 

$65

 

$302

 

$139

 

$388

 

$330

 

 
Net Income

$82

 

$87

 

$112

 

$113

 

$12

 

$114

 

$149

 

$113

 

$355

 

$427

 

-

 

-

 

Gain/(Loss) from sale of business

1

 

-

 

-

 

2

 

-

 

-

 

-

 

-

 

1

 

2

 

 
Restructuring & Realignment Charges - non-cash impairment

-

 

(1

)

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(1

)

 
U.K. pension buyout settlement - non-cash release from AOCI

-

 

-

 

-

 

-

 

(140

)

-

 

-

 

-

 

(140

)

-

 

 
U.K. pension buyout settlement - non-cash tax release from AOCI

-

 

-

 

-

 

-

 

23

 

-

 

-

 

-

 

23

 

-

 

 
Special Charges - non-cash impairment

-

 

(1

)

(1

)

-

 

(12

)

-

 

(1

)

-

 

(14

)

(1

)

 
Net Income, excluding gain on sale of businesses, non-cash impairment charges and non-cash pension buyout settlement

$81

 

$89

 

$113

 

$111

 

$141

 

$114

 

$150

 

$113

 

$485

 

$427

 

 
Operating Cash Flow Conversion

-99

%

-30

%

101

%

205

%

1683

%

98

%

243

%

195

%

168

%

126

%

 
Free Cash Flow Conversion

-160

%

-73

%

59

%

172

%

106

%

57

%

201

%

123

%

80

%

77

%

Xylem Inc. Non-GAAP Reconciliation
EBITDA and Adjusted EBITDA by Quarter ($ Millions)
 
 

2022

Q1 Q2 Q3 Q4 Total
 
Net Income

82

 

112

 

12

 

149

 

355

 

Net Income margin

6.4

%

8.2

%

0.9

%

9.9

%

6.4

%

Depreciation

28

 

28

 

27

 

28

 

111

 

Amortization

30

 

32

 

31

 

32

 

125

 

Interest Expense (Income), net

11

 

10

 

7

 

6

 

34

 

Income Tax Expense

16

 

24

 

5

 

40

 

85

 

EBITDA

167

 

206

 

82

 

255

 

710

 

Share-based Compensation

9

 

9

 

10

 

9

 

37

 

Restructuring & Realignment

4

 

8

 

6

 

16

 

34

 

U.K. Pension Settlement

-

 

-

 

140

 

-

 

140

 

Special Charges

2

 

3

 

14

 

1

 

20

 

Loss/(Gain) from sale of business

(1

)

-

 

-

 

-

 

(1

)

Adjusted EBITDA

181

 

226

 

252

 

281

 

940

 

Revenue

1,272

 

1,364

 

1,380

 

1,506

 

5,522

 

Adjusted EBITDA Margin

14.2

%

16.6

%

18.3

%

18.7

%

17.0

%

 

2021

Q1 Q2 Q3 Q4 Total
 
Net Income

87

 

113

 

114

 

113

 

427

 

Net Income margin

6.9

%

8.4

%

9.0

%

8.5

%

8.2

%

Depreciation

30

 

29

 

31

 

28

 

118

 

Amortization

32

 

33

 

31

 

31

 

127

 

Interest Expense (Income), net

19

 

19

 

20

 

11

 

69

 

Income Tax Expense

27

 

25

 

19

 

13

 

84

 

EBITDA

195

 

219

 

215

 

196

 

825

 

Share-based Compensation

9

 

8

 

8

 

8

 

33

 

Restructuring & Realignment

8

 

6

 

2

 

6

 

22

 

Special Charges

3

 

3

 

2

 

4

 

12

 

Loss/(Gain) from sale of business

-

 

(2

)

-

 

-

 

(2

)

Adjusted EBITDA

215

 

234

 

227

 

214

 

890

 

Revenue

1,256

 

1,351

 

1,265

 

1,323

 

5,195

 

Adjusted EBITDA Margin

17.1

%

17.3

%

17.9

%

16.2

%

17.1

%

Xylem Inc. Non-GAAP Reconciliation
EBITDA and Adjusted EBITDA by Quarter ($ Millions)
Water Infrastructure
 

2022

Q1 Q2 Q3 Q4 Total
 
Operating Income

74

 

108

 

104

 

132

 

418

 

Loss/(Gain) from sale of business

-

 

-

 

-

 

-

 

-

-

 

Depreciation

11

 

11

 

11

 

11

 

44

 

Amortization

2

 

3

 

1

 

3

 

9

 

Other non-operating expense, excluding interest income

(4

)

1

 

-

 

(1

)

(4

)

EBITDA

83

 

123

 

116

 

145

 

467

 

Share-based Compensation

1

 

-

 

-

 

1

 

2

 

Restructuring & Realignment

1

 

3

 

3

 

4

 

11

 

Special Charges

-

 

-

 

-

 

-

 

-

-

 

Loss/(Gain) from sale of business

-

 

-

 

-

 

-

 

-

-

 

Adjusted EBITDA

85

 

126

 

119

 

150

 

480

 

Revenue

533

 

589

 

574

 

668

 

2,364

 

Adjusted EBITDA Margin

15.9

%

21.4

%

20.7

%

22.5

%

20.3

%

 

2021

Q1 Q2 Q3 Q4 Total
 
Operating Income

71

 

93

 

101

 

122

 

387

 

Loss/(Gain) from sale of business

-

 

-

 

-

 

-

 

Depreciation

11

 

11

 

11

 

10

 

43

 

Amortization

2

 

2

 

1

 

3

 

8

 

Other non-operating expense, excluding interest income

(2

)

(2

)

1

 

(2

)

(5

)

EBITDA

82

 

104

 

114

 

133

 

433

 

Share-based Compensation

1

 

-

 

1

 

-

 

2

 

Restructuring & Realignment

5

 

4

 

1

 

2

 

12

 

Special Charges

-

 

-

 

-

 

-

 

-

 

Loss/(Gain) from sale of business

-

 

-

 

-

 

-

 

-

 

Adjusted EBITDA

88

 

108

 

116

 

135

 

447

 

Revenue

509

 

569

 

547

 

622

 

2,247

 

Adjusted EBITDA Margin

17.3

%

19.0

%

21.2

%

21.7

%

19.9

%

Xylem Inc. Non-GAAP Reconciliation
EBITDA and Adjusted EBITDA by Quarter ($ Millions)
Applied Water
 

2022

Q1 Q2 Q3 Q4 Total
 
Operating Income

59

 

61

 

77

 

61

 

258

 

Loss/(Gain) from sale of business

-

 

-

 

-

 

-

 

-

 

Depreciation

5

 

4

 

4

 

4

 

17

 

Amortization

-

 

1

 

-

 

1

 

2

 

Other non-operating expense, excluding interest income

(1

)

-

 

(1

)

-

 

(2

)

EBITDA

63

 

66

 

80

 

66

 

275

 

Share-based Compensation

1

 

1

 

2

 

0

 

4

 

Restructuring & Realignment

1

 

2

 

1

 

9

 

13

 

Special Charges

-

 

-

 

-

 

-

 

-

 

Loss/(Gain) from sale of business

-

 

-

 

-

 

-

 

-

 

Adjusted EBITDA

65

 

69

 

83

 

75

 

292

 

Revenue

425

 

429

 

458

 

455

 

1,767

 

Adjusted EBITDA Margin

15.3

%

16.1

%

18.1

%

16.5

%

16.5

%

 

2021

Q1 Q2 Q3 Q4 Total
 
Operating Income

66

 

64

 

60

 

50

 

240

 

Loss/(Gain) from sale of business

-

 

2

 

-

 

-

 

2

 

Depreciation

5

 

5

 

5

 

5

 

20

 

Amortization

1

 

1

 

-

 

-

 

2

 

Other non-operating expense, excluding interest income

-

 

(1

)

-

 

(2

)

(3

)

EBITDA

72

 

71

 

65

 

53

 

261

 

Share-based Compensation

1

 

1

 

1

 

1

 

4

 

Restructuring & Realignment

1

 

2

 

2

 

2

 

7

 

Special Charges

1

 

-

 

-

 

-

 

1

 

Loss/(Gain) from sale of business

-

 

(2

)

-

 

-

 

(2

)

Adjusted EBITDA

75

 

72

 

68

 

56

 

271

 

Revenue

393

 

414

 

400

 

406

 

1,613

 

Adjusted EBITDA Margin

19.1

%

17.4

%

17.0

%

13.8

%

16.8

%

Xylem Inc. Non-GAAP Reconciliation
EBITDA and Adjusted EBITDA by Quarter ($ Millions)
Measurement & Control Solutions
 

2022

Q1 Q2 Q3 Q4 Total
 
Operating Income

(10

)

(5

)

(2

)

19

 

2

 

Loss/(Gain) from sale of business

1

 

-

 

-

 

-

 

1

 

Depreciation

9

 

8

 

8

 

8

 

33

 

Amortization

25

 

26

 

27

 

26

 

104

 

Other non-operating expense, excluding interest income

-

 

(1

)

(1

)

-

 

(2

)

EBITDA

25

 

28

 

32

 

53

 

138

 

Share-based Compensation

1

 

2

 

2

 

1

 

6

 

Restructuring & Realignment

2

 

3

 

2

 

3

 

10

 

Special Charges

-

 

1

 

12

 

1

 

14

 

Loss/(Gain) from sale of business

(1

)

-

 

-

 

-

 

(1

)

Adjusted EBITDA

27

 

34

 

48

 

58

 

167

 

Revenue

314

 

346

 

348

 

383

 

1,391

 

Adjusted EBITDA Margin

8.6

%

9.8

%

13.8

%

15.1

%

12.0

%

 

2021

Q1 Q2 Q3 Q4 Total
 
Operating Income

9

 

13

 

7

 

(17

)

12

 

Loss/(Gain) from sale of business

-

 

-

 

-

 

-

 

-

 

Depreciation

9

 

10

 

11

 

8

 

38

 

Amortization

27

 

27

 

27

 

26

 

107

 

Other non-operating expense, excluding interest income

(1

)

(1

)

-

 

-

 

(2

)

EBITDA

44

 

49

 

45

 

17

 

155

 

Share-based Compensation

1

 

2

 

1

 

2

 

6

 

Restructuring & Realignment

2

 

-

 

(1

)

2

 

3

 

Special Charges

-

 

-

 

-

 

-

 

-

 

Loss/(Gain) from sale of business

-

 

-

 

-

 

-

 

-

 

Adjusted EBITDA

47

 

51

 

45

 

21

 

164

 

Revenue

354

 

368

 

318

 

295

 

1,335

 

Adjusted EBITDA Margin

13.3

%

13.9

%

14.2

%

7.1

%

12.3

%

 

Media
Houston Spencer +1 (914) 323-5723
houston.spencer@xylem.com

Investors
Andrea van der Berg +1 (914) 260-8612
andrea.vanderberg@xylem.com

Source: Xylem Inc.