Xylem Inc. (XYL) FY2025 10-K Annual Report
Xylem Inc. (XYL) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 25, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Xylem Inc. FY2025 10-K Analysis
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
Xylem Inc. FY2025 Key Financial MetricsXBRL
Revenue
$9.0B
▲ +5.5% YoY
Net Income
$957M
▲ +7.5% YoY
Gross Margin
38.5%
▲ +95bp YoY
Operating Margin
13.5%
▲ +175bp YoY
Net Margin
10.6%
▲ +20bp YoY
ROE
8.3%
▼ -3bp YoY
Total Assets
$17.6B
▲ +6.9% YoY
EPS (Diluted)
$3.92
▲ +7.4% YoY
Operating Cash Flow
$1.2B
▼ -1.7% YoY
Source: XBRL data from Xylem Inc. FY2025 10-K filing on SEC EDGAR. All figures in USD.
Other Xylem Inc. Annual Reports
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