Xylem Inc. (XYL) Stock Analysis

Xylem Inc. posted $9.0 billion in 2025 revenues, with 58% from U.S. customers and 20% from Western Europe, serving utilities, industrial facilities, and municipalities in approximately 150 countries with approximately 22,000 employees. The company's four segments — Water Infrastructure ($2.636 billion), Applied Water ($1.849 billion), Measurement and Control Solutions ($2.086 billion), and Water Solutions and Services ($2.464 billion) — address water transport, treatment, metering, and outsourced services. Total backlog was $4,615 million at December 31, 2025, with approximately 60% expected to convert to revenue in 2026.

Xylem generates revenue through equipment sales, long-term service contracts, rental, and software subscriptions. Water Infrastructure sells water and wastewater pumps and filtration and disinfection equipment under the Flygt, Wallace & Tiernan, and Wedeco brands to utility and industrial customers through direct and indirect channels. Applied Water addresses building solutions and industrial water markets under the Bell & Gossett and Goulds Water Technology brands, primarily through independent distributors. Measurement and Control Solutions earns revenue from smart meters under the Sensus brand, analytical instruments under WTW and YSI, and cloud-based analytics through Xylem Vue; the North America smart metering sector is described in the 10-K as the fastest growing sector of the global meter industry. Water Solutions and Services provides outsourced water and wastewater treatment, mobile dewatering rental under the Godwin brand, and emergency response services across industrial and municipal customers.