Xylem Inc. (XYL)

Xylem Inc. is a global water technology company with 2025 revenues of $9.0 billion and approximately 22,000 employees. It designs, manufactures and services engineered products and solutions, primarily for the water sector, addressing water scarcity, resilience, quality and affordability across the water cycle. That cycle runs from the delivery, treatment, measurement and use of drinking water to the collection, testing, analysis and treatment of wastewater and its return to the environment. Its core applications include transport and dewatering, process water and wastewater treatment, analytics, smart metering, digital software solutions and services. The company estimates the global water industry's addressable market at about $800 billion, excluding labor, energy and chemical operating costs.

Xylem reports four segments. Water Infrastructure ($2.6 billion of 2025 revenue) covers transport and treatment, with water and wastewater pumps and filtration, disinfection and biological treatment equipment under brands such as Flygt, Wedeco, Leopold and Wallace & Tiernan. Applied Water ($1.8 billion) serves building solutions and industrial water with pumps, valves, heat exchangers, controls and dispensing equipment under brands such as Bell & Gossett, Goulds Water Technology, Lowara and Jabsco. Measurement and Control Solutions ($2.1 billion) offers smart meters, network communication devices including the FlexNet network, data analytics, test instruments, sensors, software and managed services under brands such as Sensus, WTW, YSI and Xylem Vue. Water Solutions and Services ($2.5 billion) provides maintenance and rapid response services, outsourced and digitally enabled solutions, process and wastewater treatment systems, remediation, odor and corrosion control, reverse osmosis and deionization, and dewatering equipment sales and rental.

Customers include water and wastewater utilities, engineering, procurement and construction firms and contractors, and industrial users such as food and beverage, pharmaceutical, life sciences, microelectronics, chemical, power, mining, marine and agricultural customers. Residential and commercial property owners are also served. Xylem sells in approximately 150 countries through direct sales forces and independent channel partners. Applied Water sells mostly through indirect channels, while Measurement and Control Solutions relies heavily on distributors in North America and direct sales to large utilities. By region, the United States accounted for 58% of 2025 revenue, Western Europe 20%, Emerging Markets 14% and Other 8%. No customer exceeded 5% of revenue, and backlog was $4.6 billion at year-end 2025, with about 60% expected to be recognized in 2026.

Xylem has manufacturing and assembly facilities in Europe, North America, Latin America, Asia and the Middle East. It buys parts and raw materials such as motors, castings, magnets, bearings, seals, batteries, printed circuit boards and semiconductors, as well as steel, brass, nickel, copper, aluminum, rare earth minerals and plastics. It relies on third-party suppliers and contract manufacturers, and is exposed to price volatility and tariffs. The company faces competition from a large number of businesses in a fragmented industry, with no single competitor spanning all of its markets. It competes on performance, quality, innovation, application expertise, brand reputation, energy efficiency, distribution and its installed base. Operations see modest seasonality tied to customer capital spending and weather.