A Business at a Glance
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Xylem Inc.
XYL
$29.2B
Mkt Cap
$119.75
+2.46%
Xylem Inc. (XYL) has a current P/E ratio of 30.5, compared to its historical median P/E of 34.5. The stock is currently considered Fair based on its historical valuation range.
Xylem Inc. (XYL) has a 5-year average return on invested capital (ROIC) of 8.4%. This is below average and may indicate limited pricing power.
Xylem Inc. (XYL) has a market capitalization of $31.2B. It is classified as a large-cap stock.
Yes, Xylem Inc. (XYL) pays a dividend with a trailing twelve-month yield of 1.28%. The company also returns capital through share buybacks, with a buyback yield of 1.81%.
Based on historical P/E analysis, Xylem Inc. (XYL) appears fair. The current P/E of 30.5 is 12% below its historical median of 34.5. The estimated fair value CAGR (P/E method) is 8.1%.
Xylem Inc. (XYL) operates in the Pumps & Pumping Equipment industry, within the Industrials sector.
Xylem Inc. (XYL) reported annual revenue of $9.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
Xylem is a leading global water technology company with 2025 revenues of $9.0 billion and approximately 22,000 employees that designs, manufactures and services engineered products and solutions across critical water applications. The company operates through four reportable segments—Water Infrastructure, Applied Water, Measurement and Control Solutions, and Water Solutions and Services—addressing customer needs across the full water cycle from delivery and treatment of drinking water to collection, testing and treatment of wastewater. Xylem's business model combines capital equipment sales, recurring parts and service revenue from a substantial installed base, and high-margin software and digital solutions, with distribution through direct sales forces and independent channel partners across approximately 150 countries. The company differentiates through market-leading brands with over 100-year histories, a global installed base generating steady aftermarket revenue, innovative product and service offerings, and application expertise that utilities and industrial customers increasingly require. Key end-markets include water and wastewater utilities, industrial facilities, data centers, farms, mines and power plants, with particular strength in North America and developed markets, though facing headwinds in China's utility sector.
【Margin expansion with selective growth】 Management expects continued margin expansion in 2026 driven by productivity gains, pricing realization, and volume leverage, with EBITDA margin guidance of 22.9%-23.3% representing 70-110 basis points of expansion versus 2025. The company anticipates resilient demand in its largest end-markets, particularly in municipal utilities and data centers, supported by strong backlog conversion and continued benefits from its operating model transformation and simplification efforts. Revenue growth is expected to be modest at 1%-3% reported and 2%-4% organic, reflecting an outsized 2% headwind from accelerated 80/20 portfolio and customer simplification actions that the company views as a one-year elevation to improve long-term earnings quality. Management remains focused on disciplined execution, leveraging reduced organizational complexity to stay close to customers, and progressing toward a $1 billion annual M&A target while maintaining a strong financial position for capital deployment.
| Metric | Target | Period |
|---|---|---|
| Revenue | $9.1 billion–$9.2 billion | FY2026 |
| Organic Revenue Growth | 2%–4% | FY2026 |
| EBITDA Margin | 22.9%–23.3% | FY2026 |
| EPS | $5.35–$5.60 | FY2026 |
Revenue (FY2026): “The growth outlook by segment translates into 2026 full year revenue of $9.1 billion-$9.2 billion, resulting in revenue growth of 1%-3% and organic revenue growth of 2%-4%.”
Organic Revenue Growth (FY2026): “The growth outlook by segment translates into 2026 full year revenue of $9.1 billion-$9.2 billion, resulting in revenue growth of 1%-3% and organic revenue growth of 2%-4%.”
EBITDA Margin (FY2026): “EBITDA margin is expected to be 22.9%-23.3%. This represents 70 - 110 basis points of expansion versus the prior year, driven by productivity, volume, and price offsetting inflation, with productivity continuing to benefit from our simplification efforts.”
EPS (FY2026): “Despite the benefit from share repurchases, we've chosen to keep our EPS range unchanged at $5.35-$5.60, reflecting a prudent approach to guidance in an uncertain macro environment and not a change to our outlook for the year.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 9.1B | 9.0B | 8.6B | 7.4B | 5.5B | 5.2B |
| Net Income | 981M | 957M | 890M | 609M | 355M | 427M |
| EPS | $3.86 | $3.92 | $3.65 | $2.79 | $1.96 | $2.35 |
| Free Cash Flow | 966M | 910M | 942M | 566M | 388M | 330M |
| ROIC | 8.2% | 6.8% | 5.2% | 7.7% | 11.1% | 11.1% |
| Gross Margin | 38.6% | 38.5% | 37.5% | 36.9% | 37.7% | 38.0% |
| Debt/Equity | 0.18 | 0.21 | 0.22 | 0.26 | 0.62 | 0.86 |
| Dividends/Share | $1.53 | $1.60 | $1.44 | $1.32 | $1.20 | $1.12 |
| Operating Income | 1.2B | 1.2B | 1.0B | 652M | 622M | 585M |
| Operating Margin | 13.6% | 13.5% | 11.8% | 8.9% | 11.3% | 11.3% |
| ROE | 8.9% | 8.7% | 8.6% | 8.9% | 10.6% | 13.8% |
| Shares Outstanding | 260M | 244M | 244M | 218M | 181M | 182M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 3.9B | 3.7B | 3.8B | 4.7B | 5.2B | 5.2B | 4.9B | 5.2B | 5.5B | 7.4B | 8.6B | 9.0B | 9.1B |
| Gross Margin | 38.6% | 38.4% | 38.8% | 39.2% | 38.9% | 39.0% | 37.5% | 38.0% | 37.7% | 36.9% | 37.5% | 38.5% | 38.6% |
| R&D | 104M | 95M | 110M | 181M | 189M | 191M | 187M | 204M | 206M | 232M | 230M | 226M | 226M |
| SG&A | 920M | 854M | 914M | 1.1B | 1.2B | 1.2B | 1.1B | 1.2B | 1.2B | 1.8B | 1.9B | 1.9B | 1.9B |
| EBIT | 463M | 449M | 408M | 552M | 654M | 486M | 367M | 585M | 622M | 652M | 1.0B | 1.2B | 1.2B |
| Op. Margin | 11.8% | 12.3% | 10.8% | 11.7% | 12.6% | 9.3% | 7.5% | 11.3% | 11.3% | 8.9% | 11.8% | 13.5% | 13.6% |
| Net Income | 337M | 340M | 260M | 331M | 549M | 401M | 254M | 427M | 355M | 609M | 890M | 957M | 981M |
| Net Margin | 8.6% | 9.3% | 6.9% | 7.0% | 10.5% | 7.6% | 5.2% | 8.2% | 6.4% | 8.3% | 10.4% | 10.6% | 10.8% |
| Non-Recurring | 37M | 15M | 30M | 10M | 20M | 202M | 112M | 8.0M | 16M | 75M | 16M | 72M | 109M |
| Returns on Capital | |||||||||||||
| ROIC | 13.0% | 14.0% | 9.0% | 7.8% | 11.9% | 9.4% | 7.3% | 11.1% | 11.1% | 7.7% | 5.2% | 6.8% | 8.2% |
| ROE | 15.4% | 16.1% | 12.2% | 14.1% | 20.8% | 14.0% | 8.6% | 13.8% | 10.6% | 8.9% | 8.6% | 8.7% | 8.9% |
| ROA | 7.0% | 7.2% | 4.7% | 5.0% | 7.8% | 5.4% | 3.1% | 5.0% | 4.4% | 5.1% | 5.5% | 5.6% | 5.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 416M | 464M | 497M | 686M | 586M | 839M | 824M | 538M | 596M | 837M | 1.3B | 1.2B | 1.3B |
| Free Cash Flow | 297M | 347M | 373M | 516M | 349M | 613M | 641M | 330M | 388M | 566M | 942M | 910M | 966M |
| Owner Earnings | 256M | 316M | 328M | 431M | 295M | 553M | 547M | 260M | 323M | 341M | 645M | 613M | 690M |
| CapEx | 119M | 117M | 124M | 170M | 237M | 226M | 183M | 208M | 208M | 271M | 321M | 331M | 350M |
| Maint. CapEx | 142M | 133M | 151M | 234M | 261M | 257M | 251M | 245M | 236M | 436M | 562M | 575M | 572M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 142M | 133M | 151M | 234M | 261M | 257M | 251M | 245M | 236M | 436M | 562M | 575M | 572M |
| CapEx/OCF | 28.6% | 25.2% | 24.9% | 24.8% | 40.4% | 26.9% | 22.2% | 38.7% | 34.9% | 32.4% | 25.4% | 26.7% | 26.6% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 94M | 102M | 112M | 130M | 152M | 174M | 188M | 203M | 217M | 299M | 350M | 391M | 399M |
| Dividend Yield | 1.6% | 1.8% | 1.6% | 1.4% | 1.3% | 1.3% | 1.4% | 1.0% | 1.3% | 1.4% | 1.1% | 1.2% | 1.3% |
| Share Buybacks | 134M | 179M | 4.0M | 25M | 59M | 40M | 61M | 68M | 52M | 25M | 20M | 15M | 565M |
| Buyback Yield | 2.2% | 3.0% | 0.0% | 0.2% | 0.5% | 0.3% | 0.4% | 0.3% | 0.3% | 0.1% | 0.1% | 0.0% | 1.8% |
| Stock-Based Comp | 18M | 15M | 18M | 21M | 30M | 29M | 26M | 33M | 37M | 60M | 56M | 53M | 54M |
| Debt Repayment | 0 | 0 | 608M | 0 | 120M | 0 | 0 | 600M | 527M | 160M | 17M | 82M | 82M |
| Balance Sheet | |||||||||||||
| Net Debt | 621M | 594M | 2.1B | 1.8B | 2.0B | 1.8B | 1.5B | 1.4B | 1.2B | 1.6B | 1.2B | 905M | 1.1B |
| Cash & Equiv. | 663M | 680M | 308M | 414M | 296M | 724M | 1.9B | 1.3B | 944M | 1.0B | 1.1B | 1.5B | 808M |
| Long-Term Debt | 1.2B | 1.2B | 2.1B | 2.2B | 2.1B | 2.0B | 2.5B | 2.4B | 1.9B | 2.3B | 2.0B | 1.4B | 1.4B |
| Debt/Equity | 0.60 | 0.61 | 1.08 | 0.88 | 0.83 | 0.87 | 1.13 | 0.86 | 0.62 | 0.26 | 0.22 | 0.21 | 0.18 |
| Interest Coverage | 8.6 | 8.2 | 5.8 | 6.7 | 8.0 | 7.3 | 4.8 | 7.7 | 12.4 | 13.3 | 22.9 | 42.2 | 618.0 |
| Equity | 2.1B | 2.1B | 2.2B | 2.5B | 2.8B | 3.0B | 3.0B | 3.2B | 3.5B | 10.2B | 10.6B | 11.5B | 11.0B |
| Total Assets | 4.8B | 4.7B | 6.5B | 6.9B | 7.2B | 7.7B | 8.8B | 8.3B | 8.0B | 16.1B | 16.5B | 17.6B | 17.0B |
| Total Liabilities | 2.7B | 2.6B | 4.3B | 4.3B | 4.4B | 4.7B | 5.8B | 5.0B | 4.4B | 5.9B | 5.6B | 5.9B | 5.7B |
| Intangibles | 470M | 435M | 1.2B | 1.2B | 1.2B | 1.2B | 1.1B | 1.0B | 930M | 2.5B | 2.4B | 2.3B | 2.2B |
| Retained Earnings | 648M | 885M | 1.0B | 1.2B | 1.6B | 1.9B | 1.9B | 2.2B | 2.3B | 2.6B | 3.1B | 3.7B | 3.8B |
| Working Capital | 1.2B | 1.2B | 601M | 971M | 705M | 949M | 1.6B | 1.8B | 1.4B | 1.7B | 1.8B | 1.8B | 1.3B |
| Current Assets | 2.1B | 2.0B | 1.8B | 2.1B | 2.1B | 2.5B | 3.5B | 3.2B | 3.0B | 3.9B | 4.1B | 4.6B | 4.0B |
| Current Liabilities | 903M | 823M | 1.2B | 1.1B | 1.4B | 1.5B | 2.0B | 1.4B | 1.6B | 2.2B | 2.3B | 2.9B | 2.8B |
| Per Share Data | |||||||||||||
| EPS | 1.83 | 1.87 | 1.45 | 1.83 | 3.03 | 2.21 | 1.40 | 2.35 | 1.96 | 2.79 | 3.65 | 3.92 | 3.86 |
| Owner EPS | 1.39 | 1.74 | 1.83 | 2.38 | 1.63 | 3.05 | 3.01 | 1.43 | 1.78 | 1.56 | 2.65 | 2.51 | 2.65 |
| Book Value | 11.55 | 11.46 | 12.21 | 13.84 | 15.28 | 16.30 | 16.36 | 17.71 | 19.29 | 46.57 | 43.64 | 47.02 | 42.15 |
| Cash Flow/Share | 2.26 | 2.55 | 2.77 | 3.79 | 3.23 | 4.62 | 4.54 | 2.96 | 3.29 | 3.83 | 5.18 | 5.08 | 5.97 |
| Dividends/Share | 0.51 | 0.56 | 0.62 | 0.72 | 0.84 | 0.96 | 1.04 | 1.12 | 1.20 | 1.32 | 1.44 | 1.60 | 1.53 |
| Shares Out. | 184.2M | 181.8M | 179.3M | 180.9M | 181.2M | 181.4M | 181.4M | 181.7M | 181.1M | 218.3M | 243.8M | 244.1M | 260.3M |
| Valuation | |||||||||||||
| P/E Ratio | 18.5 | 17.4 | 30.8 | 33.8 | 19.7 | 33.1 | 67.4 | 48.3 | 53.4 | 39.9 | 31.7 | 35.3 | 31.0 |
| P/FCF | 21.0 | 17.1 | 21.5 | 21.7 | 31.1 | 21.7 | 26.7 | 62.5 | 48.9 | 42.9 | 30.0 | 37.1 | 32.3 |
| EV/EBIT | 13.5 | 13.2 | 24.7 | 22.7 | 19.6 | 29.7 | 46.5 | 34.8 | 30.5 | 37.7 | 27.8 | 27.2 | 26.1 |
| Price/Book | 2.9 | 2.8 | 3.7 | 4.5 | 3.9 | 4.5 | 5.8 | 6.4 | 5.4 | 2.4 | 2.7 | 2.9 | 2.8 |
| Price/Sales | 1.5 | 1.5 | 1.9 | 2.0 | 2.3 | 2.5 | 2.7 | 3.9 | 2.9 | 3.0 | 3.6 | 3.5 | 3.4 |
| FCF Yield | 4.8% | 5.9% | 4.7% | 4.6% | 3.2% | 4.6% | 3.7% | 1.6% | 2.0% | 2.3% | 3.3% | 2.7% | 3.1% |
| Market Cap | 6.2B | 5.9B | 8.0B | 11.2B | 10.8B | 13.3B | 17.1B | 20.6B | 19.0B | 24.3B | 28.2B | 33.8B | 31.2B |
| Avg. Price | 31.75 | 30.94 | 39.93 | 51.02 | 66.10 | 71.21 | 73.77 | 110.57 | 89.63 | 99.94 | 126.70 | 130.69 | 119.75 |
| Year-End Price | 33.79 | 32.56 | 44.65 | 61.81 | 59.84 | 73.16 | 94.38 | 113.45 | 104.76 | 111.36 | 115.75 | 138.33 | 119.75 |
Xylem Inc. passes 5 of 9 quality checks, suggesting mixed fundamentals.
Xylem Inc. trades at 30.5x trailing earnings, compared to its 15-year median P/E of 34.5x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 32.0x vs a median of 30.5x. The company's 5-year average ROIC is 8.4% with a gross margin of 37.7%. Total shareholder yield (dividends + buybacks) is 3.1%. At current prices, the estimated annualized return to fair value is +0.9%.
Xylem Inc. (XYL) has a net profit margin of 10.6%. This is a healthy margin.
Xylem Inc. (XYL) generated $910 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Xylem Inc. (XYL) has a debt-to-equity ratio of 0.21. This indicates a conservatively financed balance sheet.
Xylem Inc. (XYL) reported earnings per share (EPS) of $3.92 in its most recent fiscal year.
Xylem Inc. (XYL) has a return on equity (ROE) of 8.7%. This indicates moderate shareholder returns.
Xylem Inc. (XYL) has a 5-year average gross margin of 37.7%. This indicates decent pricing power.
The Ledger Terminal provides 17 years of financial data for Xylem Inc. (XYL), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Xylem Inc. (XYL) has a book value per share of $47.02, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued margin expansion in 2026 driven by productivity gains, pricing realization, and volume leverage, with EBITDA margin guidance of 22.9%-23.3% representing 70-110 basis points of expansion versus 2025. The company anticipates resilient demand in its largest end-markets, particularly in municipal utilities and data centers, supported by strong backlog conversion and continued benefits from its operating model transformation and simplification efforts. Revenue growth is expected to be modest at 1%-3% reported and 2%-4% organic, reflecting an outsized 2% headwind from accelerated 80/20 portfolio and customer simplification actions that the company views as a one-year elevation to improve long-term earnings quality. Management remains focused on disciplined execution, leveraging reduced organizational complexity to stay close to customers, and progressing toward a $1 billion annual M&A target while maintaining a strong financial position for capital deployment.
Based on recent SEC filings and earnings calls, Xylem Inc. (XYL) has provided the following forward guidance: Revenue: $9.1 billion–$9.2 billion (FY2026); Organic Revenue Growth: 2%–4% (FY2026); EBITDA Margin: 22.9%–23.3% (FY2026); EPS: $5.35–$5.60 (FY2026).