A global leader in water technology solutions providing essential infrastructure for clean water, stormwater management, and building water systems to residential, commercial, and municipal clients.
Xylem offers compelling value through consistent revenue growth in a secular tailwind driven by global water scarcity and aging infrastructure requiring modernization. The company's expanding footprint in residential smart devices provides recurring revenue opportunities while municipal contracts offer stable, long-term cash flows with high barriers to entry for competitors.",
Investors should be cautious regarding the significant goodwill of $8.33B which could impair earnings if integration costs from acquisitions exceed expectations or if market valuations compress. Additionally, heavy investment in research and development of $226M combined with depreciation of $267M indicates capital intensity that may pressure margins if demand growth slows.",
Xylem Inc. is a global leader in water technology solutions serving residential, commercial, municipal, and industrial markets worldwide. The company specializes in water treatment, stormwater management, and building water systems through its diverse portfolio of brands and products. Operating primarily in the United States, Europe, and Asia-Pacific, Xylem addresses critical challenges in water scarcity, quality, and infrastructure resilience.
The company demonstrated robust financial performance with revenue growing from $5.52B in 2022 to $9.04B in 2025, reflecting a compound annual growth rate of approximately 16%. Net income scaled impressively from $355M to $950M over the same period, driven by operational leverage and successful expansion into high-growth smart water markets.",
The global water technology industry is experiencing sustained expansion as municipalities and industrial sectors face increasing pressure to upgrade aging infrastructure and meet stricter environmental regulations. Market leaders are gaining share by integrating IoT capabilities into traditional hardware, transforming one-time sales into long-term service revenue models that improve overall industry profitability.",
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $5.52B | $7.36B | $8.56B | $9.04B |
| Cost of Revenue | $3.44B | $4.65B | $5.35B | $5.56B |
| Gross Profit | $2.08B | $2.72B | $3.21B | $3.48B |
| Operating Expenses | $1.46B | $2.06B | $2.20B | $2.25B |
| Operating Income | $622.0M | $652.0M | $1.01B | $1.22B |
| R&D | $206.0M | $232.0M | $230.0M | $226.0M |
| G&A | $1.23B | $1.76B | $1.91B | $1.92B |
| Stock-Based Comp | $37.0M | $60.0M | $56.0M | $53.0M |
| D&A | $236.0M | $436.0M | $562.0M | $575.0M |
| Depreciation | $111.0M | $193.0M | $258.0M | $267.0M |
| Amortization | $125.0M | $243.0M | $304.0M | $308.0M |
| Other OpEx | $29.0M | $76.0M | $62.0M | $103.0M |
| Non-Operating Income | $-182.0M | $-17.0M | $78.0M | $-42.0M |
| Interest Expense | $50.0M | $49.0M | — | — |
| Pre-Tax Income | $440.0M | $635.0M | $1.09B | $1.18B |
| Income Tax | $85.0M | $26.0M | $197.0M | $231.0M |
| Continuing Ops | $355.0M | $609.0M | $890.0M | $950.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $355.0M | $609.0M | $890.0M | $950.0M |
| Minority Interest | $0 | $0 | $0 | $-7.0M |
| Net to Common | $355.0M | $609.0M | $890.0M | $957.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $3.01B | $3.88B | $4.10B | $4.64B |
| Cash & Equivalents | $944.0M | $1.02B | $1.12B | $1.48B |
| Accounts Receivable | $1.10B | $1.62B | $1.67B | $1.76B |
| Inventory | $799.0M | $1.02B | $996.0M | $983.0M |
| Prepaid Expenses | $173.0M | $230.0M | $236.0M | $244.0M |
| Other Current Assets | $0 | $0 | $77.0M | $176.0M |
| Long-Term Assets | $4.94B | $12.23B | $12.39B | $12.99B |
| PP&E (Net) | $630.0M | $1.17B | $1.15B | $1.16B |
| Intangibles | $930.0M | $2.53B | $2.38B | $2.27B |
| Goodwill | $2.72B | $7.59B | $7.98B | $8.33B |
| Operating Leases | $310.0M | $348.0M | $309.0M | $391.0M |
| Other LT Assets | $351.0M | $595.0M | $575.0M | $839.0M |
| Total Assets | $7.95B | $16.11B | $16.49B | $17.63B |
| Current Liabilities | $1.59B | $2.21B | $2.34B | $2.86B |
| Accounts Payable | $723.0M | $968.0M | $1.01B | $1.01B |
| Current Leases | $69.0M | $84.0M | $82.0M | $87.0M |
| Taxes Payable | $186.0M | $170.0M | $201.0M | $207.0M |
| Other Current Liab | $-255.0M | $-238.0M | $-224.0M | $312.0M |
| Long-Term Liabilities | $2.86B | $3.73B | $3.27B | $3.03B |
| Long-Term Debt | $1.88B | $2.27B | $1.98B | $1.41B |
| LT Operating Leases | $249.0M | $272.0M | $242.0M | $321.0M |
| Other LT Liab | $730.0M | $1.19B | $1.05B | $1.30B |
| Total Liabilities | $4.45B | $5.94B | $5.61B | $5.88B |
| Shareholders' Equity | $3.50B | $10.18B | $10.88B | $11.75B |
| Retained Earnings | $2.29B | $2.60B | $3.14B | $3.71B |
| AOCI | $-226.0M | $-269.0M | $-435.0M | $-220.0M |
| Treasury Stock | $708.0M | $733.0M | $753.0M | $768.0M |
| Total L&E | $7.95B | $16.11B | $16.49B | $17.63B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $355.0M | $609.0M | $890.0M | $950.0M |
| Non-Cash Adjustments | $-323.0M | $199.0M | $71.0M | $286.0M |
| Working Capital Changes | $564.0M | $29.0M | $302.0M | $5.0M |
| Cash from Operations | $596.0M | $837.0M | $1.26B | $1.24B |
| Cash from Investing | $-191.0M | $-628.0M | $-482.0M | $-471.0M |
| Debt Repayments | $527.0M | $160.0M | $17.0M | $82.0M |
| Share Buybacks | $52.0M | $25.0M | $20.0M | $15.0M |
| Dividends Paid | $217.0M | $299.0M | $350.0M | $391.0M |
| Cash from Financing | $-790.0M | $-157.0M | $-615.0M | $-501.0M |
| FX Effect | $-20.0M | $23.0M | $-53.0M | $90.0M |
| Net Change in Cash | $-405.0M | $75.0M | $102.0M | $358.0M |
| Beginning Cash | $1.35B | $944.0M | $1.02B | $1.12B |
| Ending Cash | $944.0M | $1.02B | $1.12B | $1.48B |
Xylem derives revenue from three primary segments: Residential Water Management (smart devices like the Wiser system), Commercial Water Solutions (industrial filtration and treatment for manufacturing plants), and Municipal Water & Stormwater (critical infrastructure for cities including leak detection and pump stations).
Regulatory changes regarding water treatment standards that could increase compliance costs, currency exchange rate fluctuations impacting international operations given the company's heavy foreign revenue exposure, and potential supply chain disruptions affecting component availability for manufacturing.",
Strong brand portfolio with high switching costs in municipal contracts, a robust global distribution network enabling rapid deployment in over 100 countries, and proprietary smart sensor technology that creates recurring revenue streams from connected water devices.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.