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1. Company Snapshot

1.a. Company Description

Xylem Inc., together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions for the water and wastewater applications in the United States, Europe, the Asia Pacific, and internationally.It operates through three segments: Water Infrastructure, Applied Water, and Measurement & Control Solutions.The Water Infrastructure segment offers various products, including water, storm water, and wastewater pumps; controls and systems; filtration, disinfection, and biological treatment equipment; and mobile dewatering equipment under the Flygt, Godwin, Wedeco, Sanitaire, Leopold, Wedeco, and Xylem Vue brand names for the transportation and treatment of water.


The Applied Water segment provides pumps, valves, heat exchangers, controls, and dispensing equipment systems under the Goulds Water Technology, Bell & Gossett, A-C Fire Pump, Standard Xchange, Lowara, Jabsco, Xylem Vue and Flojet brand names for residential and commercial building services, and industrial water applications.The Measurement & Control Solutions segment provides smart meters, networked communication devices, and measurement and control technologies, as well as critical infrastructure technologies.It also offers software and services, including cloud-based analytics, remote monitoring and data management, leak detection, condition assessment, asset management, and pressure monitoring solutions, as well as testing equipment and managed services.


This segment sells its products under the Pure, Sensus, Smith Blair, WTW, Xylem Vue, and YSI brand names.The company markets and sells its products through a network of direct sales force, resellers, distributors, and value-added solution providers.Xylem Inc.


was formerly known as ITT WCO, Inc.and changed its name to Xylem Inc.in May 2011.


The company.was incorporated in 2011 and is headquartered in Rye Brook, New York.

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1.b. Last Insights on XYL

Xylem Inc.'s recent performance was driven by robust Q2 earnings, with a 16% EPS growth, and revenue beat, driven by strong demand across all business segments. The company's 80/20 transformation is delivering tangible margin gains, with further upside from the Evoqua integration and PFAS funding pipeline. Secular water scarcity, aging infrastructure, and PFAS treatment themes ensure durable demand. The company's growth in smart metering, infrastructure projects, and acquisitions fuels momentum, despite rising costs and global headwinds. Xylem's Q2 revenue was up 6%, with total revenue of $2.3 billion.

1.c. Company Highlights

2. Xylem's Strong Q3 2025 Earnings: A Closer Look

Xylem reported a robust third quarter in 2025, with revenue growth of 7% driven by strong performance in Measurement and Control Solutions (MCS) and Water Solutions and Services (WSS). The company's EBITDA margin expanded 200 basis points year-over-year, reaching 23%, and EPS grew 23% to $1.37, beating analyst estimates of $1.23. The strong financial performance was fueled by disciplined execution, commercial and operational momentum, and the benefits of ongoing simplification efforts.

Publication Date: Oct -30

📋 Highlights
  • Revenue Growth:: Total revenue increased 7% YoY, with Measurement and Control Solutions (MCS) and Water Solutions and Services (WSS) driving double-digit growth.
  • EBITDA Margin Expansion:: Achieved a record quarterly EBITDA margin of over 23%, up 200 basis points YoY, with full-year guidance raised to 22–22.3%.
  • MCS Segment Performance:: MCS orders grew 11% organically, revenue rose 11%, and EBITDA margin improved 60 basis points to 21.8%, backed by a $1.5B backlog.
  • Full-Year Guidance:: Revenue target raised to $9B (5–6% total growth), with EBITDA margin expansion of 140–170 bps and EPS growth of 23% in Q3.
  • China Restructuring:: Workforce reduced by 40% in China due to double-digit macroeconomic declines; backlog normalization and $125M sale of international metering business expected in 2026.

Segment Performance

The MCS segment was a standout, with 11% organic growth in orders and revenue, driven by strong demand for AMI solutions. The backlog remains healthy at $1.5 billion, and the segment's EBITDA margin expanded 60 basis points year-over-year to 21.8%. As Bill Grogan noted, "The strength in MCS is broad-based in energy and water meters." The WSS segment also performed well, with revenue growth driven by strong demand for water infrastructure and treatment solutions.

Guidance and Outlook

Xylem raised its full-year guidance for revenue, margin, and EPS, expecting revenue to reach $9 billion, representing 5-6% total growth, and EBITDA margin to expand to 22-22.3%. The company is also expecting double-digit growth in MCS in 2026, driven by continued demand for AMI solutions. Analysts estimate revenue growth of 4.6% next year, which is slightly lower than the company's long-term framework of high single-digit growth.

Valuation

Xylem's current valuation multiples are 39.68x P/E, 3.32x P/B, and 4.27x P/S, with an EV/EBITDA multiple of 21.49. The dividend yield is 1.02%, and the free cash flow yield is 2.37%. The Net Debt / EBITDA ratio is 0.44x, indicating a healthy balance sheet. These metrics suggest that the market is pricing in a certain level of growth and profitability, but the company's strong track record and guidance suggest that it may be able to continue to deliver on its commitments.

3. NewsRoom

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Xylem Inc. $XYL Shares Purchased by Fisher Asset Management LLC

Dec -03

Source: defenseworld.net

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Boston Family Office LLC Purchases 3,197 Shares of Xylem Inc. $XYL

Dec -01

Source: defenseworld.net

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Reviewing Xylem (NYSE:XYL) and Montrose Environmental Group (NYSE:MEG)

Nov -30

Source: defenseworld.net

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3 Stocks to Consider From the Growing Waste Removal Services Market

Nov -24

Source: zacks.com

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Bank Julius Baer & Co. Ltd Zurich Sells 330,535 Shares of Xylem Inc. $XYL

Nov -21

Source: defenseworld.net

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Launching World's First Commercial Subsea Desalination Plant, Flocean adds Xylem as Strategic Investor and Extends Series A Funding

Nov -18

Source: businesswire.com

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Xylem Inc. Declares Fourth Quarter Dividend of 40 Cents per Share

Nov -14

Source: businesswire.com

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Buy 5 Business Services Sector Stocks to Boost Your Portfolio Stability

Nov -11

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.14%)

6. Segments

Water Infrastructure (Excl. Measurement & Control Solutions)

Expected Growth: 6.2%

Growing demand for efficient water management, increasing investments in wastewater treatment infrastructure, and Xylem’s innovative product portfolio drive growth in the water and wastewater transportation, treatment, and drainage segment.

Applied Water

Expected Growth: 7.4%

Xylem Inc. growth driven by its focus on water infrastructure, wastewater treatment, and industrial process optimization, positioning it for growth in the water and wastewater treatment market, with increasing demand for efficient and sustainable solutions.

Water Solutions & Services

Expected Growth: 6.5%

Growing need for efficient water management and infrastructure development, increasing adoption of digital solutions, and stringent regulations drive growth in Xylem’s Water Solutions & Services segment.

Measurement & Control Solutions

Expected Growth: 4.4%

Xylem's solutions address growing concerns around water scarcity, driven by increasing urbanization and water quality regulations, enabling the company to leverage its expertise in measurement, control, and treatment to drive growth.

7. Detailed Products

Water Infrastructure

Xylem's water infrastructure products provide solutions for water and wastewater transportation, treatment, and management.

Wastewater Transport

Xylem's wastewater transport products provide solutions for wastewater collection, treatment, and disposal.

Dewatering

Xylem's dewatering products provide solutions for water removal and management in construction, mining, and industrial applications.

Industrial Process

Xylem's industrial process products provide solutions for water and wastewater treatment, and fluid handling in industrial applications.

Commercial Building Services

Xylem's commercial building services provide solutions for water and energy efficiency, and HVAC systems in commercial buildings.

Residential and Commercial Water

Xylem's residential and commercial water products provide solutions for water treatment, pumping, and dispensing in residential and commercial applications.

8. Xylem Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Xylem Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the increasing competition in the water and wastewater treatment industry.

Bargaining Power Of Customers

Xylem Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often critical to its customers' operations, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Xylem Inc. relies on a network of suppliers for raw materials and components. While the company has some bargaining power due to its size, suppliers may still have some leverage due to the specialized nature of some components.

Threat Of New Entrants

The water and wastewater treatment industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to compete with established players like Xylem Inc.

Intensity Of Rivalry

The water and wastewater treatment industry is highly competitive, with several established players competing for market share. Xylem Inc. faces intense competition from companies like SUEZ, American Water, and Evoqua Water Technologies.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 19.03%
Debt Cost 3.95%
Equity Weight 80.97%
Equity Cost 9.32%
WACC 8.30%
Leverage 23.51%

11. Quality Control: Xylem Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
AMETEK

A-Score: 5.4/10

Value: 1.7

Growth: 6.1

Quality: 8.1

Yield: 1.0

Momentum: 6.0

Volatility: 9.3

1-Year Total Return ->

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Xylem

A-Score: 5.2/10

Value: 1.8

Growth: 5.7

Quality: 6.7

Yield: 2.0

Momentum: 6.0

Volatility: 9.0

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Howmet Aerospace

A-Score: 5.1/10

Value: 0.0

Growth: 6.8

Quality: 6.7

Yield: 0.0

Momentum: 9.5

Volatility: 7.7

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Roper Technologies

A-Score: 5.0/10

Value: 2.6

Growth: 5.7

Quality: 7.4

Yield: 1.0

Momentum: 3.0

Volatility: 10.0

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Otis

A-Score: 4.9/10

Value: 4.4

Growth: 4.4

Quality: 5.7

Yield: 3.0

Momentum: 3.0

Volatility: 9.0

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Ingersoll Rand

A-Score: 4.3/10

Value: 1.8

Growth: 7.6

Quality: 6.6

Yield: 0.0

Momentum: 2.5

Volatility: 7.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

139.01$

Current Price

139.01$

Potential

-0.00%

Expected Cash-Flows