Xylem Inc.
Xylem Inc., together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions for utility, industrial, and residential and commercial building services settings worldwide. It operates through Water Infrastructure; Applied Water; Measurement and Control Solutions; and Water Solutions and Services segments. The company offers water, wastewater, and storm water pumps and controls and systems; filtration, disinfection, and biological treatment equipment under the Flygt, Ionpure, Leopold, Neptune Benson, Sanitare, Wallace & Tiernan, and Wedeco brands; and pumps, valves, heat exchangers, controls, and dispensing equipment used for water and focuses on the residential, commercial and industrial markets under the Rule, Bell & Gossett, Flojet, Goulds Water Technology, Jabsco, and Lowara brands. It also provides smart meters, network communication devices, data analytics, test instruments, controls, sensor devices, software and managed services, critical infrastructure services, cloud-based analytics, and remote monitoring and data management under the Ebro, Sensus, Sentec, Smith Blair, WTW, YSI, and Xylem Vue brands. In addition, the company offers preventative maintenance services, rapid response mobile services, digitally enabled/outsourced solutions, process and wastewater treatment systems, environmental remediation, odor and corrosion control, filtration, reverse osmosis, continuous deionization, and mobile dewatering equipment and rental services; and municipal services comprising odor and corrosion control services, as well as condition assessment and asset management, and pressure monitoring solutions under the Grindex, Mar Cor, and Godwin brands. Xylem Inc. was formerly known as ITT WCO, Inc. and changed its name to Xylem Inc. in July 2011. The company was incorporated in 2011 and is headquartered in Washington, District Of Columbia.
What does it do?
Xylem makes the equipment that moves, cleans, and measures water. Think about the pumps at your local water treatment plant, the sensors in underground pipes that detect leaks, or the systems that filter drinking water for a city — Xylem likely built some of that. They sell to municipal governments, factories, and large buildings worldwide. In short, if water needs to go somewhere or be made safe, Xylem probably has a product for it.
Clean water infrastructure is aging badly across the US and Europe, and governments are finally spending serious money to fix it — the US Bipartisan Infrastructure Law alone earmarked $55 billion for water. Xylem sits directly in the path of that spending wave. On top of that, growing water scarcity globally means demand for smarter, more efficient water management isn't going away.
How does it make money?
Xylem generates revenue across four business segments. Water Infrastructure (pumps, treatment systems for utilities) and Applied Water (pumps for buildings and industry) are the traditional hardware businesses. Measurement and Control Solutions sells smart meters and leak-detection technology — essentially the 'digital brain' of a water network. The newest and fastest-growing segment, Water Solutions and Services, provides managed services and long-term contracts, which means more predictable, recurring revenue. Total revenue hit $9.0 billion in the latest year, up from $8.6 billion the prior year.
Why do investors care?
The growth story here is a combination of unavoidable government spending and a smart pivot toward software and services. Xylem acquired Evoqua Water Technologies in 2023 for about $7.5 billion, dramatically expanding its services and treatment capabilities. If Xylem can successfully integrate Evoqua and grow its recurring service contracts, margins (the percentage of revenue it keeps as profit) should improve meaningfully over time. The key risk is that the integration goes smoothly and infrastructure spending actually flows through to orders.
Deep Dive
MemberA full investor briefing on Xylem Inc. — history, leadership, risks, and outlook.