stockrowWhat it does
Xylem is a global water technology company founded in 2011 and headquartered in Washington, D.C. Matthew Pine is President and Chief Executive Officer. It designs, manufactures and services engineered equipment, digital tools and services used across the water cycle.
Its offerings help customers move water from sources, treat drinking water, measure its use, collect and test wastewater, treat wastewater, and return it to the environment. The company also supplies equipment and services for water-related work beyond municipal utilities, including buildings, industrial sites, farms, mines, power plants and commercial customers.
Its Water Infrastructure business sells pumps, filtration, disinfection and biological-treatment equipment for water and wastewater systems. Applied Water supplies pumps, valves, heat exchangers, controls and dispensing systems for buildings and industrial uses. Measurement and Control Solutions provides smart meters, communications networks, sensors, analytical instruments, software and managed services for water, electricity and natural-gas networks. Water Solutions and Services provides treatment systems, maintenance, outsourced operations, mobile dewatering, rentals, emergency response and other field services.
Digital products are embedded across the portfolio. Its FlexNet communications network connects metering points, while Xylem Vue provides software analytics, remote monitoring and data management for water utilities. The company employs 22,000 people worldwide.
How it makes money
Xylem earns revenue from product sales, service work and longer-duration customer arrangements. Product revenue was $7.5 billion in FY2025, or 82.7% of revenue, while service revenue was $1.6 billion, or 17.3%. Products include pumps, treatment equipment, meters, sensors, communications devices, software and related systems. Services include preventive maintenance, mobile and emergency response, equipment rental, outsourced operations and maintenance, and digitally enabled water-management work.
FY2025 revenue was $9.0 billion; it was reported on 27 October 2026 that Q3 2026 revenue was $2.2 billion and non-GAAP EPS was $1.44.
The company reports four operating segments. Water Infrastructure generated $2.6 billion in FY2025 and serves transport and treatment applications. Water Solutions and Services generated $2.5 billion, combining capital systems with service activities. Measurement and Control Solutions generated $2.1 billion from metering, communications, analytics and controls. Applied Water generated $1.8 billion from building and industrial-water applications.
The company sells through a mix of direct sales teams, distributors, channel partners and service branches. Applied Water makes most sales through independent distributors; Measurement and Control Solutions uses distributors and dedicated partners as well as direct sales. Water Infrastructure reaches customers through direct and indirect channels and service capabilities.
Installed equipment can produce parts, replacement and service revenue. The company had $4,615 million of backlog at December 31, 2025 and anticipated that approximately 60% would become 2026 revenue. In Q3 2026, it announced an intended divestiture of Applied Water International and Specialty Flow Control, its beverage and marine business, and a move from four segments to three beginning in 2027.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Product | $7.5 billion | 82.7% | 5.31% |
| Service | $1.6 billion | 17.3% | 6.54% |
Customers and how it sells
Xylem serves water and wastewater utilities, engineering, procurement and construction firms, contractors, industrial facilities, farms, mines, power plants, residential customers and commercial-property customers. Industrial end markets include food and beverage, pharmaceutical, chemical processing, life sciences, microelectronics and power generation. It also sells to original equipment manufacturers and agricultural customers.
No individual customer accounted for more than 5% of consolidated revenue in 2025, 2024 or 2023. The company said 80.0% of its customers buy from one division. It reaches customers through direct sales, independent distributors, dedicated channel partners, service branches, rental fleets and external partners. Large utilities and government programs can be served through direct sales and key-account management.
The United States generated $5.2 billion in FY2025, or 57.7% of revenue. Europe generated $1.8 billion, or 20.4%; Asia Pacific generated $1.2 billion, or 13.5%; and other geographies generated $766.0 million, or 8.48%. The company has direct sales forces and independent channel partners serving customers in approximately 150 countries.
In Q3 2026, the company said U.S. utility capital-expenditure exposure was less than 10.0% of revenue. It also said China represented 2.00% of revenue before the planned divestiture.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| United States | $5.2 billion | 57.7% | 7.14% |
| Europe | $1.8 billion | 20.4% | 5.39% |
| Asia Pacific | $1.2 billion | 13.5% | −4.16% |
| Other | $766.0 million | 8.48% | 12.5% |
Suppliers and costs
Xylem has manufacturing and assembly facilities in Europe, North America, Latin America, Asia and the Middle East. It relies on third-party suppliers, contract manufacturers, commodity markets and logistics providers for materials, parts and components.
Key inputs include motors, fabricated parts, castings, magnets, bearings, seals, batteries, printed circuit boards, semiconductors, steel, brass, nickel, copper, aluminum, rare earth minerals and plastics. Certain key components come from sole-source suppliers, single-source suppliers or a limited group of suppliers. For many products, however, alternate sources already exist or may be readily available.
Costs can move with commodity prices, energy, freight, logistics, labor, foreign exchange, tariffs and customs duties. The company seeks to manage costs through fixed-price supplier contracts, blanket and scheduled purchase orders, a global procurement initiative, operational improvements and pricing. It may acquire inventory ahead of constraints or make longer-term pricing commitments to improve supply priority, pricing and availability.
The company said it had built roughly one year of rare-earth supply through safety stock and was targeting roughly six months of chip and wafer supply as a buffer.
- Revenue$9.0B
- Cost of revenue−$5.6B
- Research and development−$226.0M
- Selling, general and administrative−$1.9B
- Other operating costs−$103.0M
- Operating income$1.2B
Competitive position
Xylem competes in fragmented water-equipment, technology and services markets. No one business competes across every Water Infrastructure market it serves. Competition varies by application, including transport and dewatering, treatment, building systems, industrial water, smart metering, communications, analytics, software, outsourced water operations and specialty dewatering.
The company identifies the main competitive factors as performance, quality, reliability, price, life-cycle cost, energy efficiency, delivery, security, application expertise, brand reputation, distribution effectiveness, innovation and customer experience. It also faces new or non-traditional competitors, including large technology firms.
Its competitive resources include brands, a global installed base, direct and indirect distribution, service capabilities, application expertise, research and development, communications technology, analytics software and service branches. In Measurement and Control Solutions, its FlexNet network uses two-way communications, frequently on licensed U.S. spectrum, to connect smart points and support metering services. In Water Solutions and Services, the company uses service branches and a rental fleet.
No individual competitor is named in the available information.
Our reading: The installed base and resulting parts, replacement and service activity are a durable source of customer connection because equipment remains deployed across the water cycle. [item1]
Our reading: Distribution, service branches and application expertise are meaningful but application-specific protections, since the company competes on price, delivery and other operating factors as well. [item1, item1a]
Our reading: The communications network, software and analytical capabilities can differentiate metering and utility offerings, but technology and cybersecurity competition remain relevant. [item1, item1a]
Growth opportunities
The company sizes the global water-industry addressable market, excluding operating expenditure for labor, energy and chemicals, at approximately $800 billion. It identifies water scarcity, aging infrastructure, water quality, resilience, affordability, regulation, energy efficiency and digitalization as demand drivers. The company said approximately $1.50 trillion is needed over the next decade in the United States to maintain poor water-infrastructure ratings.
Water Infrastructure demand is linked to transport efficiency, contaminants, regulation and treatment needs. Measurement and Control Solutions is tied to advanced metering, leak detection, remote monitoring and efforts to reduce inaccurate meter readings, theft and water losses. Water Solutions and Services is linked to process-water systems, recycle and reuse, outsourcing, mobile dewatering and emergency response.
The company is pursuing industrial opportunities including data centers, semiconductor fabrication and battery recycling. It said digital water-replenishment work with Amazon that began in Mexico is being commercialized globally, and it has expanded into data-center treatment work. It also said it secured a new customer among the world’s leading semiconductor manufacturers for ultra-pure-water treatment at a U.S. fabrication facility.
In Q3 2026, data-center orders in Applied Water were up over 200% from the prior year quarter. The company expects data centers to exit at 2% of revenue on a run-rate basis. It also booked an $850.0 million outsourced-water contract to be delivered over 20 years; it expects about 75.0% of that contract value to be services.
The company expects electric-metering refresh activity over the next two to three years and water refresh activity as the decade ends and 2030 begins.
- $5.2BFY2021
- $5.5BFY2022
- $7.4BFY2023
- $8.6BFY2024
- $9.0BFY2025
- $9.0BFY2026 guidance
Structural risks
- Economic conditions, industrial and construction activity, public-sector funding, commercial financing and customer confidence can affect demand for products and services.
- Global operations face geopolitical, trade, tariff, foreign-exchange, regulatory, labor, logistics and supply-chain risks. The company has manufacturing, suppliers and distribution channels outside the United States.
- Commodity, parts, energy, freight, logistics and labor costs can fluctuate. Tariffs and other trade measures may raise costs that pricing or productivity actions do not fully offset.
- Supply interruptions affecting semiconductors, rare earths, other key inputs, suppliers, contract manufacturers or logistics providers could delay backlog execution, new orders or customer deliveries.
- Cybersecurity incidents, failures of information technology or connected products, and disruption at third parties could interrupt operations, expose data or intellectual property, affect customers’ critical infrastructure and lead to claims, costs or reputational harm.
- Water and wastewater operations can involve system failures, spills, emerging contaminants, hazardous materials and environmental compliance. Large multi-year projects also carry delay, cost-overrun, scope-change, subcontractor and performance risks.
Bottom line
Our reading
Our reading: Xylem is a water-focused industrial technology and services business spanning equipment, metering, software and outsourced operations, with more product revenue than service revenue and a material service component. [item1, product.product.share.fy2025, product.service.share.fy2025]
Our reading: Its exposure rests on municipal and industrial water needs, while growth depends partly on the timing of meter purchases and large capital-project conversion. [item1, call_prepared, call_qa]
Our reading: The global operating and supply footprint broadens its markets but also leaves the business exposed to tariffs, input availability, cybersecurity and project-execution risks. [item1, item1a]