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XYL · Xylem

15 filings

10-K

XYL 10-K Annual Reports

Xylem - 15 annual reports

Filing record · 2016–202610-K1110-Q338-K102

2025
Xylem Annual Report, Year Ended Dec 31, 2025
Xylem Inc. (NYSE: XYL) reported 2025 revenue of $9.04 billion, up 5.5% from $8.56 billion in 2024, with organic growth of $419 million and favorable foreign currency impacts of $71 million. Operating income rose 21.2% to $1.22 billion, with operating margin of 13.5% versus 11.8% in 2024. Net income attributable to Xylem was $957 million, or $3.92 per diluted share, compared with $890 million, or $3.65 per diluted share, in 2024. Adjusted net income was $1.24 billion, or $5.08 per diluted share, up 19.0% from $4.27 in 2024. Adjusted operating margin expanded to 17.8% from 16.0%, driven by productivity savings and price realization, partially offset by inflation. Orders grew 2.0% to $8.90 billion, but total backlog declined 9.0% to $4.62 billion at December 31, 2025 from $5.07 billion a year earlier. Management expects about 60% of year-end backlog to convert to revenue in 2026. Cash flow was steady: operating cash flow was $1.24 billion, down 2%, and free cash flow was $910 million, down 3%. The company ended 2025 with approximately $2.5 billion of available liquidity, comprising $1.5 billion of cash and $1 billion of undrawn credit facilities. For 2026, Xylem guides to total revenue growth of 1% to 3% and organic revenue growth of 2% to 4%. The filing also highlights ongoing risks, including tariffs and trade actions, supply chain constraints involving semiconductors and rare earths, cybersecurity exposure, and a pending Swedish tax assessment that the company continues to contest. Goodwill and indefinite-lived intangibles totaled roughly $9 billion, and the auditor identified goodwill impairment testing for one Water Solutions and Services reporting unit as a critical audit matter. No impairment was recognized in 2025.
Feb 25, 2026
2024
Xylem Annual Report, Year Ended Dec 31, 2024
Xylem Inc. (NYSE: XYL) reported 2024 revenue of $8,562 million, up $1,198 million, or 16.3%, from $7,364 million in 2023, with organic revenue growth of $424 million and acquisitions contributing $786 million at constant currency. Operating income rose to $1,009 million (11.8% operating margin) from $652 million, and net income increased to $890 million, or $3.65 per diluted share. Adjusted net income was $1,041 million, or $4.27 per diluted share. Net cash from operating activities was $1,263 million and free cash flow was $942 million, compared with $566 million in 2023 by the filing's own reconciliation. Growth was led by Water Infrastructure and Water Solutions and Services and Measurement and Control Solutions, while Applied Water declined organically. Total backlog was $5,070 million at December 31, 2024, versus $5,088 million a year earlier, and orders reached $8,730 million. Gross margin improved to 37.5% from 36.9%, and the company cited productivity savings and price realization as offsets to inflation. Looking ahead, management guides to total revenue growth of up to 2% in 2025 and organic revenue growth of 3% to 4%. In January 2025 management committed to a workforce restructuring plan, with expected 2025 restructuring and realignment charges of $90 million to $110 million and incremental savings of $75 million to $95 million. The company ended 2024 with about $2.1 billion of liquidity, including $1.1 billion of cash, and its securities are rated investment grade.
Mar 3, 2025
2023
Xylem Annual Report, Year Ended Dec 31, 2023
Xylem Inc. (XYL) reported 2023 revenue of $7.364 billion, up $1.842 billion, or 33.4%, from $5.522 billion in 2022, driven largely by the May 24, 2023 acquisition of Evoqua Water Technologies Corp. Acquisitions contributed $1.177 billion of the revenue increase, while organic revenue grew $690 million, or 12.5%. Net income rose to $609 million, or $2.79 per diluted share, from $355 million, or $1.96 per diluted share. Adjusted operating margin expanded to 14.6% from 13.5%, and adjusted EPS was $3.78 versus $3.15. Reported operating margin declined to 8.9% from 11.3% because of higher special charges, acquired intangible amortization and restructuring costs tied largely to the Evoqua integration. Cash flow and balance sheet changes were significant. Net cash from operating activities was $837 million and free cash flow was $599 million. Total assets rose to $16.112 billion from $7.952 billion, with goodwill at $7.587 billion and other intangible assets at $2.529 billion. Total debt was $2.284 billion. The company reported $1 billion of cash and cash equivalents and $1 billion of undrawn availability under its 2023 revolving credit facility. Total backlog was $5.088 billion at year-end, up 41.1%, with about 55% expected to convert to revenue in 2024 per Item 1, while the MD&A states more than 50%. For 2024, management guides total revenue growth of 14% to 15% and organic revenue growth of 3% to 5%, with Applied Water expected to decline in the low-single digits organically and Measurement and Control Solutions expected to grow in the low-double digits. Effective January 1, 2024, the company will reorganize into a new Water Solutions and Services segment combining Integrated Solutions and Services, dewatering and assessment services. Key risks cited include tariffs and inflation, supply chain constraints, Buy America domestic content requirements, cybersecurity, and goodwill impairment exposure.
Feb 28, 2024
2022
Xylem Annual Report, Year Ended Dec 31, 2022
Xylem Inc. (NYSE: XYL) reported 2022 revenue of $5.52 billion, up 6.3% from $5.20 billion in 2021 (11.3% on a constant currency basis), with organic revenue growth of $595 million across all end markets and geographies. Net income fell to $355 million, or $1.96 per diluted share, from $427 million, largely due to a $140 million U.K. pension settlement expense recorded in the third quarter of 2022. On an adjusted basis, net income was $516 million, or $2.85 per diluted share, up 14.5% from 2021. Operating income rose to $622 million (operating margin 11.3%), and adjusted operating margin expanded 40 basis points to 12.2%, driven by price realization and productivity, partially offset by cost inflation. Operating cash flow was $596 million and free cash flow was $388 million. The company ended 2022 with total backlog of $3.605 billion, up from $3.240 billion, and orders of $6.257 billion, down 0.7% as reported but up 4.0% organically. Total debt was $1.88 billion and available liquidity was approximately $1.7 billion, consisting of $944 million of cash and $800 million of available credit facilities. Xylem declared a first-quarter 2023 dividend of $0.33 per share. Management guided 2023 total revenue growth of 3% to 5% and organic revenue growth of 4% to 6%. The filing is dominated by the pending all-stock acquisition of Evoqua Water Technologies, announced January 23, 2023, at an implied enterprise value of approximately $7.5 billion. Evoqua shareholders would receive 0.480 Xylem shares per Evoqua share, with Xylem holders owning about 75% of the combined company. The transaction is expected to close in mid-2023, subject to shareholder and regulatory approvals. Key risks disclosed include exposure to Buy America domestic content rules for federally funded projects, supply chain constraints for semiconductors, foreign currency translation, and a pending Swedish tax assessment of approximately $76 million.
Feb 24, 2023
2021
Xylem Annual Report, Year Ended Dec 31, 2021
Xylem Inc. (NYSE: XYL) reported 2021 revenue of $5.195 billion, up $319 million, or 6.5%, from $4.876 billion in 2020, with constant-currency revenue growth of 4.0%. Operating income rose $218 million, or 59.4%, to $585 million, and operating margin improved to 11.3% from 7.5%. Net income was $427 million, or $2.35 per diluted share, versus $254 million, or $1.40, in 2020. On an adjusted basis, which excludes restructuring, special charges and other items, net income was $452 million, or $2.49 per diluted share, up 20.9% from 2020. Adjusted operating margin was 11.8%, compared with 10.8% in 2020. Cash generation weakened. Net cash provided by operating activities fell to $538 million from $824 million, and free cash flow declined to $330 million from $641 million, which the filing describes as down 49%. The company attributes the decline mainly to higher working capital, including increased safety stock to mitigate supply chain volatility. Orders rose 25.2% to $6.300 billion, and total backlog reached $3.240 billion, up 52.6%, with about 60% expected to convert to revenue in 2022. Management guides to 2022 total revenue growth of 1% to 3% and organic growth of 3% to 5%. The balance sheet remained solid, with cash of $1.349 billion, total debt of $2.440 billion, and available liquidity of approximately $2.1 billion. The company repaid $600 million of Senior Notes in 2021 and paid dividends of $203 million. Key risks disclosed include ongoing semiconductor and component shortages, inflation, tariffs, Buy America domestic content requirements under the Infrastructure Investment and Jobs Act, and COVID-19 uncertainty. The company also noted a Swedish tax assessment of approximately $80 million, which it is appealing and for which it has recorded no unrecognized tax benefit.
Feb 25, 2022
2020
Xylem Annual Report, Year Ended Dec 31, 2020
Xylem Inc. reported 2020 revenue of $4,876 million, a decrease of $373 million, or 7.1%, from $5,249 million in 2019, driven by an organic decline across all end markets and segments as the COVID-19 pandemic reduced volumes, particularly in the U.S., the Middle East and India. Operating income fell to $367 million (operating margin of 7.5%) from $486 million, and net income was $254 million, or $1.40 per diluted share, versus $401 million, or $2.21, in 2019. The decline reflected a $58 million goodwill impairment related to the Advanced Infrastructure Analytics reporting unit within Measurement & Control Solutions, along with lower volumes and cost inflation. Adjusted earnings per share were $2.06, against $3.02 in 2019, per the filing's non-GAAP reconciliation. Net cash from operating activities was $824 million and free cash flow was $641 million. Balance sheet liquidity improved during the year. Xylem issued $1 billion of Green Bond senior notes in June 2020, and cash and cash equivalents rose to $1,875 million from $724 million, while total debt increased to $3,084 million from $2,316 million. The company stated it had available liquidity of approximately $2.7 billion, consisting of $1.9 billion of cash and $800 million of available credit facilities. Backlog grew to $2,124 million from $1,801 million, and orders declined 5.7% to $5,033 million. For 2021, management anticipates total revenue growth of 6% to 8%, with organic growth of 3% to 5%, and expects restructuring and realignment costs of $50 million to $60 million. The company also declared a quarterly dividend of $0.28 per share, and total dividends per share were $1.04 in 2020, up from $0.96 in 2019.
Feb 26, 2021
2019
Xylem Annual Report, Year Ended Dec 31, 2019
Xylem Inc. (NYSE: XYL) reported 2019 revenue of $5.249 billion, up $42 million, or 0.8%, from $5.207 billion in 2018; on a constant currency basis revenue grew 3.2%, driven by organic revenue growth of $188 million, or 3.6%, while foreign currency translation reduced revenue by $124 million, or 2.4%. Net income attributable to Xylem fell to $401 million, or $2.21 per diluted share, from $549 million, or $3.03 per diluted share, in 2018, as operating income declined 25.7% to $486 million. The decline reflects a $148 million goodwill impairment charge related to the Advanced Infrastructure Analytics (AIA) reporting unit, and increased special charges of $147 million, consisting entirely of non-cash impairment charges. Adjusted net income rose to $547 million, or $3.02 per diluted share, up 4.8% from 2018, and adjusted operating margin edged up to 13.9% from 13.7%. Cash from operating activities increased to $839 million from $586 million, and free cash flow excluding Sensus acquisition-related costs was $613 million, up 75% from 2018. Orders were $5.339 billion, down 1.8%, with organic orders up 0.9%. Total backlog was $1.801 billion at December 31, 2019, up 6.6% from $1.689 billion, with approximately 60% expected to be recognized as revenue in 2020. Total debt was $2.316 billion, and cash and cash equivalents rose to $724 million. Management guides to total revenue growth of approximately 1% in 2020, with organic growth of 1% to 3%, and expects restructuring and realignment costs of $35 million to $45 million in 2020. The company operates three segments: Water Infrastructure ($2.177 billion revenue), Applied Water ($1.541 billion), and Measurement & Control Solutions ($1.531 billion). Measurement & Control Solutions posted an operating loss of $67 million in 2019 due to the impairment charges, compared with operating income of $118 million in 2018. The Board declared a first-quarter 2020 dividend of $0.26 per share.
Feb 28, 2020
2018
Xylem Annual Report, Year Ended Dec 31, 2018
Xylem Inc. (NYSE: XYL) reported 2018 revenue of $5.2 billion (up 10.6% from $4,707 million in 2017), with organic revenue growth of $390 million, or 8.3%, driven by growth across all end markets and geographies. Operating income rose 18.5% to $654 million, with operating margin of 12.6% versus 11.7%. Net income attributable to Xylem was $549 million, or $3.03 per diluted share, compared with $331 million in 2017. Adjusted earnings per share were $2.88, up 20.6% from 2017, and the 6.1% effective tax rate was lowered by an intercompany asset sale, a reduction in the Transition Tax and the lower U.S. federal rate. Cash from operations fell to $586 million from $686 million, mainly due to higher inventory and receivables. Free cash flow excluding Sensus acquisition costs was $350 million, down 35.7% from 2017. Orders rose 11.7% to $5,437 million, and backlog ended the year at $1,689 million, up 11.6%. Total debt was $2,308 million, and the company acquired Pure Technologies Ltd. for about $420 million net of cash received. Management guides to 2019 total revenue growth of 2% to 4% and organic growth of 4% to 6%. Investors should note the company's three segments (Water Infrastructure, Applied Water and Measurement & Control Solutions), the $363 million remaining under the share repurchase authorization, and the goodwill concentration in the AIA business within Measurement & Control Solutions, whose fair value exceeded carrying value by less than 10%.
Feb 22, 2019
2017
Xylem Annual Report, Year Ended Dec 31, 2017
Xylem Inc. (NYSE: XYL) reported 2017 revenue of $4,707 million, up $936 million or 24.8% from $3,771 million in 2016, driven mainly by $790 million of revenue from acquisitions (principally Sensus, acquired October 31, 2016) and organic growth of $122 million. Operating income rose to $556 million (operating margin 11.8%, up 100 basis points), and net income attributable to Xylem was $331 million, or $1.83 per diluted share. On an adjusted basis, adjusted net income was $433 million, or $2.40 per diluted share, up 19% from 2016. Operating cash flow was $686 million and free cash flow excluding Sensus acquisition related costs was $544 million, up 40.9% from 2016. Total orders were $4,868 million, up 27.3% (6.8% on an organic basis), and total backlog was $1,513 million at December 31, 2017, up from $1,292 million; the company expects over 60% of that backlog to be recognized as revenue in 2018. Management guided to 2018 total revenue growth of 8% to 10%, including roughly 2% from the Pure Technologies acquisition announced and completed January 31, 2018, with organic growth of 4% to 6%. Total debt was $2,200 million at year-end, down from $2,368 million, and the company recorded a provisional net tax expense of $46 million related to the Tax Cuts and Jobs Act, which lifted the effective tax rate to 29.2%. The filing also reports total outstanding indebtedness of $2,200 million and goodwill plus indefinite-lived intangibles of approximately $3 billion, which the company notes could be subject to impairment. Management states that its business is not dependent on any single customer and that no customer accounted for more than 10% of 2017 revenue. The board declared a first-quarter 2018 dividend of $0.21 per share, up from $0.18 per quarter in 2017.
Feb 23, 2018
2016
Xylem Annual Report, Year Ended Dec 31, 2016
Xylem Inc. reported 2016 revenue of $3.77 billion, up 3.2% from $3.65 billion in 2015 (5.3% on a constant currency basis), driven by $163 million of acquisition revenue, including the Sensus acquisition completed October 31, 2016 for approximately $1.7 billion in cash. Operating income declined 9.6% to $406 million, with operating margin falling to 10.8% from 12.3%, primarily due to $53 million of Sensus acquisition related costs and higher restructuring and realignment costs. Excluding these items, adjusted operating income rose 8.7% to $511 million, with adjusted operating margin of 13.6%. Net income fell 23.5% to $260 million, or $1.45 per diluted share, versus $1.87 in 2015; adjusted earnings per share were $2.03. The balance sheet changed materially with the acquisition. Total debt rose to $2.37 billion from $1.27 billion, cash fell to $308 million from $680 million, and total assets increased to $6.47 billion from $4.66 billion, with goodwill of $2.63 billion. Operating cash flow was $497 million and free cash flow, excluding Sensus acquisition related costs, was $386 million. Orders grew 3.0% to $3.82 billion (0.3% organic), and backlog rose to $1.08 billion from $716 million, with Sensus contributing $385 million. Dividends declared per share rose to $0.6196 from $0.5632. For 2017, management expects total revenue growth of 20% to 22%, with organic revenue growth in the low-single-digits and the remainder from Sensus. The company also expects approximately $30 million of Sensus integration, restructuring and realignment costs in 2017. Management reported that its internal control over financial reporting was effective as of December 31, 2016, excluding Sensus, and Deloitte & Touche LLP issued an unqualified opinion.
Feb 23, 2017
2015
Xylem Annual Report, Year Ended Dec 31, 2015
Xylem Inc. reported 2015 revenue of $3.65 billion, down from $3.92 billion in 2014, with the decline driven mainly by foreign currency translation of $313 million. On a constant currency basis, revenue grew 1.3%, supported by organic growth in emerging markets, particularly China and India, as well as in the United States and western Europe. Operating income was $449 million, versus $463 million in 2014, while operating margin rose to 12.3% from 11.8%, reflecting lower restructuring and realignment costs and continuous improvement savings. Net income was $340 million, or $1.87 per diluted share, compared with $1.83 in 2014. Adjusted EPS was $1.85, down from $1.97. Cash generation was solid, with net cash from operating activities of $464 million and free cash flow of $347 million. The company repurchased $175 million of shares in 2015 and raised its dividend, with dividends declared per share of $0.5632 for the year and a first-quarter 2016 declaration of $0.1549 per share. Total debt was $1.27 billion at year-end, including $600 million of 3.55% senior notes due September 2016, which the company classified as long-term based on its intent to refinance. The Credit Facility of $600 million was undrawn at December 31, 2015. Management anticipates low-to-mid single-digit organic revenue growth in 2016. Backlog was $716 million at year-end 2015, with approximately 81% expected to convert to revenue in 2016. Orders were $3.71 billion, up 0.5% organically. Risks highlighted in the filing include foreign currency exposure (59% of revenue generated outside the United States), weakness in oil and gas-related dewatering demand, and goodwill and intangible assets of approximately $2 billion.
Feb 26, 2016
2014
Xylem Annual Report, Year Ended Dec 31, 2014
Xylem Inc. reported 2014 revenue of $3,916 million, up 2.1% from $3,837 million in 2013 (3.3% on a constant currency basis), with operating income rising 27.5% to $463 million and net income of $337 million, or $1.83 per diluted share ($1.97 adjusted). Growth was driven by industrial and public utility end markets and emerging markets, most notably China, while Europe was flat organically and Japan and Australia declined. Operating margin improved to 11.8% from 9.5%, reflecting lean six sigma, global sourcing, restructuring savings, and the absence of $24 million in 2013 special charges, partially offset by cost inflation and unfavorable sales mix. Orders reached $4,021 million, up 2.8% (3.9% constant currency), and backlog rose to $740 million from $707 million. Cash generation was solid, with operating cash flow of $416 million and free cash flow of $297 million. The company repurchased $130 million of shares under its $250 million program and increased dividends by 10.0%. Total debt was $1,288 million, and the $600 million revolving credit facility remained undrawn. For 2015, management expects organic revenue growth of low single digits, with a negative foreign exchange impact of high single digits driven by a weaker Euro. The filing also discloses a voluntary contact with the SEC and the Department of Justice in late January 2015 regarding an internal investigation into Xylem South Korea, which concerns a Korea Fair Trade Commission bid-rigging decision and possible Foreign Corrupt Practices Act issues. The company said it could not reasonably estimate any potential liability, but believes these matters will not have a material adverse effect.
Feb 26, 2015
2013
Xylem Annual Report, Year Ended Dec 31, 2013
Xylem Inc. (NYSE: XYL) reported 2013 revenue of $3.84 billion (up 1.2% from $3.79 billion in 2012), with organic revenue declining 1.0% and acquisitions adding $82 million. Operating income fell to $363 million from $443 million, an 18.1% decline, driven by higher SG&A, restructuring charges, special charges and geographic mix, partly offset by cost reductions and price realization. Net income was $228 million, or $1.22 per diluted share, versus $297 million, or $1.59, in 2012. On an adjusted basis, which excludes restructuring, realignment and special charges, net income was $311 million, or $1.67 per diluted share. Orders rose 3.4% on a constant currency basis to $3.91 billion, and backlog grew to $707 million from $647 million. Cash generation was weaker, with net cash from operating activities of $324 million and free cash flow of $198 million, compared with $396 million and $312 million in 2012. Management cited higher working capital use, particularly receivables in Europe. The company ended 2013 with $533 million in cash and $1,241 million of total debt, including $600 million of 3.55% notes due 2016 and $600 million of 4.875% notes due 2021. Its $600 million revolving credit facility was undrawn at year end. Capital returns continued, with $73 million of share repurchases and $87 million of dividends paid, and the quarterly dividend was raised 10% to $0.128 per share for 2014. Management expects a slow recovery in developed markets, modestly higher growth in emerging markets, and a continued weak mining market. The company is executing an organizational redesign into regional structures and expects $30 to $35 million of restructuring costs and $10 to $15 million of realignment costs in 2014. Investors should note that Analytics goodwill, $439 million, had fair value only about 18% above carrying value at year end, creating potential future impairment risk.
Feb 27, 2014
2012
Xylem Annual Report, Year Ended Dec 31, 2012
Xylem Inc. (XYL), a water equipment and services provider spun off from ITT Corporation on October 31, 2011, reported 2012 revenue of $3,791 million, down 0.3% from $3,803 million in 2011, though revenue grew 2.5% on a constant currency basis, driven by acquisitions and emerging-market strength. Operating income rose 12.2% to $443 million, largely reflecting reduced separation costs, while net income was $297 million, or $1.59 per diluted share ($1.77 adjusted). Free cash flow was $312 million and net cash from operating activities was $396 million. Orders were $3,782 million, and backlog was $647 million at December 31, 2012, with more than 90% expected to convert to revenue in 2013. The company operates two segments: Water Infrastructure (revenue $2,425 million before eliminations, operating income $342 million) and Applied Water (revenue $1,424 million, operating income $170 million). Approximately 63% of 2012 revenue came from outside the United States. Management projects low-single-digit revenue growth for 2013 and plans restructuring and realignment actions, primarily in Europe, with expected costs of roughly $60 to $70 million in 2013. Total debt was $1,205 million at year-end, and the company announced the acquisition of PIMS Group in the United Kingdom in February 2013 for approximately $57 million. The company paid quarterly dividends of $0.1012 per share in 2012 and declared $0.1164 per share in the first quarter of 2013. Its $600 million credit facility and €120 million R&D facility with the European Investment Bank were both undrawn at year-end, and the Company was in compliance with all covenants on its Senior Notes.
Feb 25, 2013
2011
Xylem Annual Report, Year Ended Dec 31, 2011
Xylem Inc. (XYL) filed its first annual report on Form 10-K following its October 31, 2011 spin-off from ITT Corporation, in which ITT shareholders received one share of Xylem common stock for each ITT share held. The company reported 2011 revenue of $3,803 million, up from $3,202 million in 2010, with net income of $279 million, or $1.50 per diluted share. Excluding $87 million of separation costs, operating income was $482 million, and adjusted net income was $358 million. Revenue growth was driven by acquisitions (YSI, Godwin, Nova), organic growth of 7.1%, and favorable currency translation. Order growth was 18.8% to $3,847 million, with backlog of $651 million at December 31, 2011. The company operates two segments: Water Infrastructure, which generated $2,416 million of 2011 revenue, and Applied Water, which generated $1,444 million. Operating income for Water Infrastructure was $343 million and for Applied Water was $160 million, while Corporate and other absorbed $108 million of costs. Approximately 64% of 2011 revenue was generated outside the United States. Total debt rose to $1,206 million following the September 2011 issuance of $1.2 billion in senior notes, the proceeds of which funded a net cash transfer to ITT. Cash and cash equivalents were $318 million at year-end, and the company has a $600 million Four Year Competitive Advance and Revolving Credit Facility, with no borrowings outstanding at December 31, 2011. The filing also highlights risks typical of a newly independent company, including reliance on the IRS ruling and tax-free treatment of the spin-off, indemnification obligations to ITT and Exelis, and the requirement to comply with Section 404 of Sarbanes-Oxley beginning with the 2012 annual report. The company declared a first-quarter 2012 dividend of $0.1012 per share and paid $19 million in dividends during 2011.
Feb 28, 2012