Xylem Inc (XYL)

Xylem reported third-quarter 2026 revenue of $2.2 billion on 27 October, down 3 percent, while orders rose 7 percent to $2.3 billion 1.

The company now expects 2026 revenue of about $8.95 billion and adjusted earnings per share of $5.40 to $5.45, down from a prior range of $5.55 to $5.70 1.

Xylem said project timing and more cautious spending weighed on revenue, while strong order activity showed the business was resilient 1.

Organic orders were up 10 percent, and one outlet read the book-to-bill ratio of 106 percent as a sign that demand was deferred, not lost 81.

The same day Xylem said it intends to sell Applied Water International and Specialty Flow Control, and from 1 January 2027 to run three segments instead of four 1.

The 8-K says the company keeps sole discretion over whether and when to sell, to whom and at what value 2.

A second open item is the $1.46 billion Cornell Pump and Roper Pump purchase, which the company expects to close in the fourth quarter of 2026 37.

Xylem describes itself as a global water technology company that designs, makes and services engineered products, mainly for the water sector 4.

A turning point came in 2023, when Xylem completed its acquisition of Evoqua Water Technologies in an all-stock deal valued at about $7.5 billion 64.

Evoqua added water treatment solutions and services, and the combined company had $7.3 billion in pro forma revenue 6.

WaterWorld noted that the deal was first announced in January 2023 11.

Xylem's four segments in 2025 were Water Infrastructure, Applied Water, Measurement and Control Solutions and Water Solutions and Services 4.

Annual revenue then rose from $7,364 million in 2023 to $8,562 million in 2024 and $9,035 million in 2025 4.

Part of the cost was integration: restructuring costs were $72 million in 2023 and $55 million in 2024, largely tied to Evoqua 4.

On 10 December 2024 Xylem raised its stake in Global Omnium Idrica, a digital water company, to 61.0 percent by paying $154 million for 35.9 percent 4.

In 2025 revenue grew 5.5 percent to $9,035 million, with organic growth of $419 million 4.

The 10-K says 2025 growth was organic in every segment and in most major regions 4.

Operating margin rose to 13.5 percent in 2025 from 11.8 percent in 2024 4.

That year Xylem bought EnviroMix, a maker of mixing and process control products, for $106 million, and sold its Evoqua Magneto business for $61 million 4.

On 27 September 2025 Xylem signed an agreement to sell its international metering business, and it completed that sale on 26 May 2026 43.

Water Infrastructure

Water Infrastructure makes the pumps and treatment equipment that collect water from a source, treat it, deliver it to users and then return treated wastewater to the environment 4.

It earned $2,636 million in 2025, under brands such as Flygt, Leopold and Wedeco 4.

In the third quarter its revenue fell 1.7 percent, as treatment slipped on timing in western Europe and softness in China 3.

Applied Water

Applied Water sells pumps, valves, heat exchangers and controls for buildings and industry, mostly through distributors, under brands such as Bell & Gossett, Goulds Water Technology and Lowara 4.

Its 2025 revenue was $1,849 million, and in the third quarter revenue rose 7.2 percent, helped by data center projects 43.

Measurement and Control Solutions

This segment makes smart meters, the FlexNet communication network that reads them remotely, and instruments that measure water quality, under brands such as Sensus, YSI and WTW 4.

Xylem Vue is its software platform for water utilities, and the segment earned $2,086 million in 2025 4.

In the third quarter smart metering lost $16 million of organic revenue on lower electric meter volume in the U.S. 3.

Water Solutions and Services

Water Solutions and Services offers outsourced water services, rental and mobile dewatering pumps, and treatment systems for industry, under brands such as Godwin, Grindex and Mar Cor Services 4.

It earned $2,464 million in 2025, and on 2 September 2026 Xylem bought WaterFleet, a mobile water and wastewater utility services provider, for $217 million 43.

Plants, people and rivals

Xylem has about 400 locations in more than 50 countries, and its largest listed site is Emmaboda, Sweden, at 1,197,000 square feet 4.

It employed about 22,000 people at the end of 2025, and 58 percent of 2025 revenue came from the United States 4.

Matthew Pine has been chief executive since 2024, and Andrea van der Berg was offered the chief finance officer role from 1 September 2026 410.

The annual report names no single rival: Water Infrastructure competes with a large number of businesses, and no one of them competes across all its markets 4.

Pressures on the business

Xylem received $43 million of refunds of tariffs a court found unlawful in the first nine months of 2026, which lowered its costs 3.

Total debt stood at $2,895 million at 30 September 2026, up from $1,942 million at the end of 2025 3.

The umbrella, in words

The annual report lists Xylem's brands by segment, among them Flygt, Sensus, Bell & Gossett and Godwin 4.

Its subsidiaries exhibit lists companies such as Evoqua Water Technologies Corp. in Delaware, EnviroMix, Inc. and Aanderaa Data Instruments AS in Norway 9.

Xylem owns 61.0 percent of Global Omnium Idrica, a digital water company, after its December 2024 step-up 4.

Its properties total about 15 million square feet, of which more than 300 locations are leased 4.

For 2026 the company expects revenue of about $8.95 billion, an adjusted EBITDA margin of about 23.2 percent and adjusted earnings per share of $5.40 to $5.45 1.

It expects free cash flow of about 10.2 percent of revenue 1.

From 1 January 2027 the businesses will be Treatment and Services, led by Rodney Aulick, Flow Solutions, led by Joe Johnston, and Measurement and Analytics, led by Meredith Emmerich 1.

Hayati Yarkadas will lead the planned sales, and his employment is expected to end on the earlier of 31 March 2028 or the closing of the last sale 2.

The Cornell Pump and Roper Pump deal is expected to close in the fourth quarter of 2026, and Xylem said the businesses should bring more than $260 million of 2026 revenue 37.

To pay for it, Xylem sold three series of senior notes of $500 million each, due in 2029, 2032 and 2037 5.

The company says $105 million may still be repurchased under its $1.5 billion share buyback program approved on 25 February 2026 3.