XYL
Xylem Inc.137.60
-0.65-0.47%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Q&A colors 80/20 acceleration, capex shift
Q&A unpacked the doubled 80/20 headwind for 2026, blaming product/customer portfolio reviews, inventory bleeds, and customer handoffs after a year of organizational redesign. Management touted transformation proof points: 74% employee engagement crushing the 37% industrial average, plus 500bps better on-time delivery. Capital priorities sharpened—M&A funnel maturing toward $1B yearly deployments, opportunistic buybacks ramping at 0.2x leverage. China orders cratered 70% in Q4 from price wars and weak demand; headcount slashed 40% to target tech-differentiated wins. MCS mid-single-digit growth rests on 5-10 delayed projects booking H1, with digital up 30%+. Team engagement crushes peers. Investors watch 80/20 inflection and 2027 Investor Day.
Key Stats
Market Cap
33.50BP/E (TTM)
35.46Basic EPS (TTM)
3.88Dividend Yield
0.01%Recent Filings
10-K
FY2025 results
Xylem posted FY2025 revenue of $9.0B, up 5.5% y/y with 4.9% organic growth across all segments, while U.S. (58% of sales) and Western Europe accelerated. Q4 momentum shone in Measurement & Control (11.5% revenue growth, led by North America energy) and Water Solutions (5.2% uptick via North America rentals), yet backlog dipped 9% to $4.6B. Margins expanded to 17.8% adjusted operating (from 16.0%), fueled by productivity and pricing—Q4 likely sustained the surge. Free cash flow hit $910M; dividends rose 11%; $182M remains for buybacks. Backlog signals steady 2026 revenue (60%+ conversion). Supply chain volatility threatens quarterly flows.
8-K
Xylem launches $1.5B buyback
8-K
Xylem's strong Q4, FY results
Xylem capped 2025 with Q4 revenue of $2.4B, up 6% reported and 4% organically, and adjusted EPS of $1.42, up 20% on productivity and price gains that lifted adjusted EBITDA margin to 23.2%. Full-year revenue hit $9.0B, up 6% reported and 5% organically, with adjusted EPS at $5.08, up 19%. Orders grew too. Momentum strong into 2026.
8-K
Q3 beat, guidance raised
Xylem reported Q3 revenue of $2.3B, up 8% reported and 7% organic, with adjusted EPS surging 23% to $1.37 on record 23.2% adjusted EBITDA margin from productivity and pricing. All segments grew, led by double-digit gains in Measurement & Control and Water Solutions. Raised full-year guidance to ~$9.0B revenue and $5.03-$5.08 adjusted EPS. Margins expanded sharply.
10-Q
Q3 FY2025 results
Xylem posted Q3 revenue of $2,268M, up 7.8% y/y from $2,104M, with organic growth across all segments led by double-digit gains in Measurement & Control and Water Solutions. Gross margin expanded to 38.9% (up 160bp y/y), operating income hit $334M (up 19.3% y/y, 14.7% margin), and diluted EPS rose 4.5% y/y to $0.93, reconciling to 244.1M shares. Cash swelled to $1,191M while debt fell to $1,962M with $1B revolver availability; free cash flow tallied $450M YTD (derived). Acquired EnviroMix in July for $106M cash, recognizing $76M goodwill and $34M intangibles (10-year life). Strong margins persist. Backlog conversion lags orders.
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