Short answer
Xylem Inc. (XYL) filed its fiscal 2025 10-K annual report with the SEC on Feb 25, 2026. It reported revenue of $9.0B (+5.5% year over year) and net income of $957M.
- Top risk flagged: Tariff legal risk: U.S. Supreme Court (Feb 20, 2026) affirmed Federal Circuit ruling that IEEPA-based tariffs exceed presidential authority, but other tariffs remain in place with uncertain scope and durability
FY2025 key financial metrics · XBRL
- Revenue
- $9.0B
- +5.5% YoY
- Net income
- $957M
- +7.5% YoY
- Operating margin
- 13.5%
- +1.8 pp YoY
- Gross margin
- 38.5%
- +0.9 pp YoY
- EPS (diluted)
- $3.92
- +7.4% YoY
- ROE
- 8.3%
- −0.0 pp YoY
- Operating cash flow
- $1.2B
- −1.7% YoY
Source: XBRL data from the Xylem Inc. (XYL) FY2025 10-K on SEC EDGAR. USD.
Xylem Inc. FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Global water technology company; designs, manufactures, and services engineered products across the full water cycle for utility and industrial customers
- 2025 revenue $9.0B vs $8.6B in 2024 vs $7.4B in 2023; ~22,000 employees with ~$4,615M backlog (down from $5,070M in 2024)
- Strategic pivot to 80/20 principle across all pillars: customer centricity, profitable growth, operational excellence, signaling portfolio simplification and margin focus
- U.S. revenue $5.2B (58% of total), up from $4.9B in 2024; Water Solutions and Services segment at $2.5B reflects continued integration of 2023 Evoqua acquisition
- Addressable market estimated at ~$800B total; 40% projected gap between global water supply and demand by 2030 underpins long-term demand thesis
Management Discussion & Analysis
- Revenue $9,035M in 2025, up $473M (+5.5% YoY); organic growth $419M (+4.9%), with emerging markets declining
- Operating margin 13.5% vs 11.8%; adjusted operating margin 17.8% vs 16.0%; adjusted EBITDA margin 22.2% vs 20.6%
- Best segment: Water Infrastructure adjusted op margin 22.1% vs 17.8%; worst: Measurement & Control Solutions adjusted op margin 16.9% vs 17.5%
- Operating cash flow $1,241M (down 2%); capex $331M; free cash flow $910M (down 3%); dividends per share up 11%
- 2026 guidance: total revenue growth 1%-3%, organic 2%-4%; key risks include tariffs, emerging market softness, and restructuring execution ($80M-$120M savings targeted)
Risk Factors
- Tariff legal risk: U.S. Supreme Court (Feb 20, 2026) affirmed Federal Circuit ruling that IEEPA-based tariffs exceed presidential authority, but other tariffs remain in place with uncertain scope and durability
- Geopolitical supply exposure: China-Taiwan tensions threaten supply of semiconductors, lithium batteries, carbide seals, and rare earth elements critical to digitally-enabled pumps, controllers, and smart meters
- Supply chain concentration: Key components sourced from sole- or single-source suppliers; significant direct/indirect supplier base in China, Taiwan, Mexico, and Europe with no disclosed alternatives
- Competitive disruption: Large technology firms entering water tech markets, potentially commercializing AI faster than Xylem to drive efficiencies or create superior products
- Goodwill impairment risk: Goodwill and indefinite-lived intangible assets totaling ~$9B on balance sheet as of Dec 31, 2025, vulnerable to rising cost of capital or failed acquisition integration
Generated from the filing text; verify against the original. How to read a 10-K
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