Xylem Due Diligence

Run due diligence on Xylem: check compliance and get alerts when suppliers change.

United States · xylem.com · 23 vendors

Xylem Inc. is a global water technology provider that designs, manufactures, and services engineered products and solutions for water and wastewater utilities, industrial, commercial, agricultural, and residential settings. The company focuses on solving critical water and infrastructure challenges by optimizing water and resource management across the entire water cycle.

Resilience scores

Technology vendors

Services catalogue

1 service in catalogue across 1 category; runs on 23 sub-vendors.

Insights

Last updated 2026-09-13 · revision 12

23 direct vendors, 239 subvendors

Direct vendors by controlling owner country (sample)

Subvendors by controlling owner country (sample)

Compliance

10 in-scope frameworks identified; showing 3.

CPRA — Evidence found

Evidence: https://www.xylem.com/en-us/resources/policies/privacy/, https://www.xylem.com/en-us/support/do-not-sell-or-share-my-personal-information/

ISO 27001 (source) — Evidence found

Evidence: https://www.xylem.com/en-us/about-xylem/cybersecurity/, https://www.xylem.com/en-us/about-xylem/cybersecurity/xylems-approach-to-product-security/

Cyber Resilience Act (source) — No public evidence

Evidence: https://www.xylem.com/en-us/about-xylem/cybersecurity/, https://www.xylem.com/en-us/about-xylem/cybersecurity/xylems-approach-to-product-security/

Financials

Three-year financials

Financial Resilience Score: 8/10

Xylem demonstrates strong financial resilience underpinned by scale leadership in the global water technology market (~$9.0B revenue, ~150 countries, 8,300+ patents) and diversified, non-cyclical demand drivers including aging U.S. water infrastructure, water scarcity, PFAS regulation, data center water needs, and smart metering rollouts. The company generates significant recurring revenue (~17% from services alone) supported by a large installed base and a $4.6B backlog representing ~51% of annual revenue. Margin expansion has been robust, with adjusted operating margin rising 180 bp to 17.8% in 2025 and adjusted EBITDA margin reaching 22.2%. Cash generation is strong at $1.24B operating cash flow and $910M free cash flow in 2025. The balance sheet is conservatively structured with $1.5B cash, $1B undrawn revolver (~$2.5B total liquidity), $1.9B of laddered fixed-rate senior notes, investment-grade ratings, and very low leverage (debt/equity ~0.17x; net debt/adjusted EBITDA ~0.25x). Key risks include high goodwill/intangible concentration (~60% of assets, largely from Evoqua, with ~$2.5B in one WSS reporting unit flagged as a Critical Audit Matter), tariff and FX exposure (~42% non-U.S. revenue), ongoing restructuring drag, softness in emerging markets, a 9% YoY backlog decline, and unresolved Swedish tax litigation (~$91M exposure). Overall, the combination of category leadership, structural demand, strong cash flow, low leverage, and diversified customer base (no customer >5% of revenue) supports a high resilience score.

Key strengths: Scale leadership in global water technology market with ~$9.0B revenue and 8,300+ patents, Diversified non-cyclical demand from municipal utilities, water scarcity, PFAS regulation, and smart metering, Strong balance sheet with ~$2.5B liquidity, low leverage (debt/equity ~0.17x), and investment-grade ratings, Robust cash generation: $1.24B operating cash flow and $910M free cash flow in 2025, Adjusted operating margin expanded 180 bp to 17.8% in 2025, $4.6B backlog (~51% of revenue) with ~60% expected to convert in 2026, No customer >5% of revenue; broad geographic and end-market diversification, Growing recurring services revenue (17% of total, $1.56B)

Risk factors: Goodwill/intangibles ~60% of assets, concentrated in WSS reporting unit (Critical Audit Matter), Tariff and trade exposure with 42% non-U.S. revenue and manufacturing in China, Mexico, Taiwan, Foreign currency translation risk (EUR, SEK, CAD, PLN, GBP, AUD), Restructuring/realignment charges of $133M in 2025 with ongoing transformation, Emerging markets organic revenue decline in 2025, Backlog declined 9% YoY at end of 2025, Swedish tax litigation exposure of ~SEK 837M (~$91M), Sensus smart-meter business dependent on FCC-licensed 900 MHz spectrum, 5-year TSR ($149) has lagged S&P 500 ($196) and S&P 500 Industrials ($189)

Revenue by geography

Revenue by product/service

Workforce by country

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