Xylem Inc.XYL
Xylem Inc. Segments Disclosure
Segment and Geographic Data
Our business has four reportable segments: Water Infrastructure, Applied Water, Measurement and Control Solutions and Water Solutions and Services. The Water Infrastructure segment focuses on the transportation and treatment of water, offering a range of products including water, wastewater and storm water pumps, controls and systems; and treatment equipment: filtration and separation, disinfection, wastewater solutions for municipal and industrial applications. The Applied Water segment serves many of the primary uses of water and focuses on the residential, commercial and industrial markets. The Applied Water segment's major products include pumps, valves, heat exchangers, controls and dispensing equipment. The Measurement and Control Solutions segment focuses on developing advanced technology solutions that enable intelligent use and conservation of critical water and energy resources as well as analytical instrumentation used in the testing of water. The Measurement and Control Solutions segment's major products include smart metering, networked communications, measurement and control technologies, critical infrastructure technologies, software and services including cloud-based analytics, and remote monitoring and data management. The Water Solutions and Services segment provides tailored services and solutions, in collaboration with customers and backed by life‑cycle services, including on‑demand water, outsourced water, recycle/reuse, specialty dewatering and emergency response service alternatives to improve operational reliability, performance and environmental compliance. Key offerings within this segment also include equipment systems for industrial needs (influent water, boiler feed water, ultrahigh purity, process water, wastewater treatment, and recycle/reuse), full-scale outsourcing of operations and maintenance, and municipal services, including odor and corrosion control services, as well as leak detection, condition assessment and asset management and pressure monitoring solutions.
Corporate and other consists of corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs, as well as charges related to certain matters that are managed at a corporate level and are not included in the business segments in evaluating performance or allocating resources. The accounting policies of each segment are the same as those described in the summary of significant accounting policies (see Note 1, "Summary of Significant Accounting Policies").
The chief operating decision maker (“CODM”) for the Company is our President and Chief Executive Officer. The CODM uses segment operating income/(loss) as a primary factor in allocating resources to the segments. The CODM considers budget-to-actual variances on a quarterly basis for the profit measure to assess segment performance. Disaggregated asset information by segment is not provided to the CODM for review, therefore, such information is not presented.
The following tables contain financial information provided to the CODM for each reportable segment:
| (in millions) | Water Infrastructure | Applied Water | Measurement and Control Solutions | Water Solutions and Services | Total | ||||||||||||||||||||||||
| Balance for year ended December 31, 2025 | |||||||||||||||||||||||||||||
| Revenue | $ | 2,636 | $ | 1,849 | $ | 2,086 | $ | 2,464 | $ | 9,035 | |||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||
| Adjusted cost of revenue (a) | 1,440 | 1,180 | 1,285 | 1,578 | |||||||||||||||||||||||||
| Adjusted operating expenses (a) | 613 | 329 | 448 | 464 | |||||||||||||||||||||||||
| Other segment items (b) | 121 | 28 | 109 | 120 | |||||||||||||||||||||||||
| Segment operating income | $ | 462 | $ | 312 | $ | 244 | $ | 302 | $ | 1,320 | |||||||||||||||||||
| Reconciliation of segment operating income | |||||||||||||||||||||||||||||
| Corporate and other loss | (97) | ||||||||||||||||||||||||||||
| Interest expense | (29) | ||||||||||||||||||||||||||||
| Other non-operating income, net | 18 | ||||||||||||||||||||||||||||
| Loss on sale of businesses | (31) | ||||||||||||||||||||||||||||
| Income before income taxes | $ | 1,181 | |||||||||||||||||||||||||||
| (in millions) | Water Infrastructure | Applied Water | Measurement and Control Solutions | Water Solutions and Services | Total | ||||||||||||||||||||||||
| Balance for year ended December 31, 2024 | |||||||||||||||||||||||||||||
| Revenue | $ | 2,555 | $ | 1,793 | $ | 1,871 | $ | 2,343 | $ | 8,562 | |||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||
| Adjusted cost of revenue (a) | 1,460 | 1,162 | 1,128 | 1,521 | |||||||||||||||||||||||||
| Adjusted operating expenses (a) | 640 | 345 | 416 | 454 | |||||||||||||||||||||||||
| Other segment items (b) | 99 | 15 | 80 | 149 | |||||||||||||||||||||||||
| Segment operating income | $ | 356 | $ | 271 | $ | 247 | $ | 219 | $ | 1,093 | |||||||||||||||||||
| Reconciliation of segment operating income | |||||||||||||||||||||||||||||
| Corporate and other loss | (84) | ||||||||||||||||||||||||||||
| Interest expense | (44) | ||||||||||||||||||||||||||||
| Gain on remeasurement of previously held equity interest | 152 | ||||||||||||||||||||||||||||
| Other non-operating income, net | 16 | ||||||||||||||||||||||||||||
| Loss on sale of businesses | (46) | ||||||||||||||||||||||||||||
| Income before income taxes | $ | 1,087 | |||||||||||||||||||||||||||
| (in millions) | Water Infrastructure | Applied Water | Measurement and Control Solutions | Water Solutions and Services | Total | ||||||||||||||||||||||||
| Balance for year ended December 31, 2023 | |||||||||||||||||||||||||||||
| Revenue | $ | 2,215 | $ | 1,853 | $ | 1,612 | $ | 1,684 | $ | 7,364 | |||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||
| Adjusted cost of revenue (a) | 1,277 | 1,195 | 990 | 1,093 | |||||||||||||||||||||||||
| Adjusted operating expenses (a) | 570 | 334 | 409 | 345 | |||||||||||||||||||||||||
| Other segment items (b) | 93 | 14 | 80 | 114 | |||||||||||||||||||||||||
| Segment operating income | $ | 275 | $ | 310 | $ | 133 | $ | 132 | $ | 850 | |||||||||||||||||||
| Reconciliation of segment operating income | |||||||||||||||||||||||||||||
| Corporate and other loss | (198) | ||||||||||||||||||||||||||||
| Interest expense | (49) | ||||||||||||||||||||||||||||
| Other non-operating income, net | 33 | ||||||||||||||||||||||||||||
| Loss on sale of businesses | (1) | ||||||||||||||||||||||||||||
| Income before income taxes | $ | 635 | |||||||||||||||||||||||||||
(a)Adjusted costs of revenue and adjusted operating expenses represent segment-level information that are regularly provided to the CODM. These balances represent costs of revenue and operating expenses, respectively, adjusted to exclude purchase accounting intangible amortization, restructuring and realignment expenses, and special charges.
(b)Other segment items for each segment represents purchase accounting intangible amortization, restructuring and realignment expenses, and special charges, which are excluded from the above significant expense categories regularly provided to the CODM in line with our adjusted measures as outlined in Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Annual Report on Form 10-K.
| Year Ended December 31, | |||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Depreciation and amortization: | |||||||||||||||||
| Water Infrastructure | $ | 98 | $ | 122 | $ | 89 | |||||||||||
| Applied Water | 33 | 28 | 28 | ||||||||||||||
| Measurement and Control Solutions | 168 | 132 | 124 | ||||||||||||||
| Water Solutions and Services | 267 | 267 | 184 | ||||||||||||||
| Corporate and other | 9 | 13 | 11 | ||||||||||||||
| Total | $ | 575 | $ | 562 | $ | 436 | |||||||||||
| Capital expenditures: | |||||||||||||||||
| Water Infrastructure | $ | 38 | $ | 36 | $ | 36 | |||||||||||
| Applied Water | 34 | 22 | 32 | ||||||||||||||
| Measurement and Control Solutions | 76 | 71 | 62 | ||||||||||||||
| Water Solutions and Services | 123 | 148 | 106 | ||||||||||||||
Centralized support facilities (a) | 33 | 20 | 20 | ||||||||||||||
| Corporate and other | 27 | 24 | 15 | ||||||||||||||
| Total | $ | 331 | $ | 321 | $ | 271 | |||||||||||
(a) Represents capital expenditures incurred by the centralized support facilities that are not allocated to the segments.
Geographical Information
Revenue is attributed to countries based upon the location of the customer. Property, Plant & Equipment is attributed to countries based upon the location of the assets:
| Revenue | |||||||||||||||||
| Year Ended December 31, | |||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
United States | $ | 5,209 | $ | 4,862 | $ | 3,956 | |||||||||||
Western Europe | 1,839 | 1,745 | 1,655 | ||||||||||||||
Emerging Markets | 1,221 | 1,274 | 1,182 | ||||||||||||||
Other | 766 | 681 | 571 | ||||||||||||||
| Total | $ | 9,035 | $ | 8,562 | $ | 7,364 | |||||||||||
| Property, Plant & Equipment | |||||||||||||||||
| December 31, | |||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| United States | $ | 719 | $ | 732 | $ | 725 | |||||||||||
| Western Europe | 245 | 258 | 268 | ||||||||||||||
| Emerging Markets | 167 | 132 | 141 | ||||||||||||||
| Other | 28 | 30 | 35 | ||||||||||||||
| Total | $ | 1,159 | $ | 1,152 | $ | 1,169 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.