Xylem, Inc. (XYL) Q1 2022 Earnings Call Transcript

For the period ending March 31, 2022

May 4, 2022 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Welcome to the Xylem First Quarter 2022 Earnings Conference Call. [Operator Instructions].

I would now like to turn the call over to Matt Latino, Head of Investor Relations. Please go ahead.

Matthew Latino

Thank you, Ashley. Good morning, everyone, and welcome to Xylem's First Quarter 2022 Earnings Conference Call. With me today are Chief Executive Officer, Patrick Decker; and Chief Financial Officer, Sandy Rowland. They will provide their perspective on Xylem's first quarter 2022 results and discuss the second quarter and full year outlook. Following our prepared remarks, we will address questions related to the information covered on the call. [Operator Instructions].

As a reminder, this call and our webcast are accompanied by a slide presentation available in the Investors section of our website at www.xylem.com. A replay of today's call will be available until midnight on May 11. Please note that replay number is 1-800-934-5153 or 1-402-220-1182.

Please turn to Slide 2. We will make some forward-looking statements on today's call, including references to future events or developments that we anticipate will or may occur in the future. These statements are subject to future risks and uncertainties, such as those factors described in Xylem's most recent annual report on Form 10-K and in subsequent reports filed with the SEC. Please note that the company undertakes no obligation to update any forward-looking statements publicly to reflect subsequent events or circumstances and actual events or results could differ materially from those anticipated.

We have provided you with a number of -- with a summary of our key performance metrics, including both GAAP and non-GAAP metrics in the appendix. For purposes of today's call, all references will be on an adjusted basis unless otherwise indicated, and non-GAAP financials have been reconciled for you and are also included in the appendix section of the presentation.

Now please turn to Slide 3, and I will turn the call over to our CEO, Patrick Decker.

Patrick Decker

Thanks, Matt, and good morning, everyone. The team came into 2022 with strong momentum, and they've taken full advantage of robust underlying demand around the world to deliver our first quarter operational results above expectations.

Revenues grew 4% organically, surpassing our guidance. Despite ongoing chip shortages constraining our utilities business, supply is slowly improving, which is reflected in quarter sequential revenue growth and EBITDA margin expansion in our metrology business.