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Here are 1-3 brief analogies to describe Xylem (XYL):

• Caterpillar for water infrastructure: Like Caterpillar provides heavy equipment and solutions for construction and mining, Xylem provides essential pumps, valves, and systems for moving, treating, and analyzing water infrastructure globally.

• Johnson Controls for water management: Similar to how Johnson Controls offers building technology and management solutions (HVAC, security), Xylem provides technology and services for comprehensive water management and treatment systems.

• Honeywell for water systems and solutions: Much like Honeywell offers industrial automation, control systems, and performance materials across various sectors, Xylem specializes in advanced technology and solutions for water and wastewater applications.

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• Pumps and Pumping Systems: A diverse range of submersible, centrifugal, and other pumps along with integrated systems for water transport and fluid management across various applications.
• Water and Wastewater Treatment Solutions: Advanced technologies including filtration, disinfection, biological treatment, and chemical dosing for purifying water and treating wastewater.
• Measurement and Analytical Instrumentation: Sensors, meters, and monitoring equipment designed for precise analysis of water quality, flow, and other critical parameters in water systems.
• Digital Solutions and Services: Software platforms, data analytics, and smart technologies for optimizing water infrastructure, improving operational efficiency, and reducing water loss.

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Xylem (XYL) primarily sells its water technology solutions to other companies and governmental entities (Business-to-Business and Business-to-Government), rather than directly to individual consumers. Due to the highly fragmented and diverse nature of its customer base, which spans thousands of utilities, industrial clients, and contractors globally, specific named public customer companies are not typically identified as major customers in their financial reporting, as no single customer generally represents a significant portion of their revenue. Instead, Xylem's customer base can be best described by the following major categories of organizations it serves:

• Public Water and Wastewater Utilities: These include municipal, regional, and national utilities responsible for the entire water lifecycle, from sourcing and treating drinking water to collecting and treating wastewater. Xylem provides essential infrastructure, pumps, valves, treatment systems, and analytical instruments to these entities, which are often government-owned or highly regulated and generally not publicly traded companies with stock symbols.

• Industrial Sector Companies: Xylem serves a wide range of industrial customers across various sectors such as power generation, mining, food & beverage, pharmaceuticals, and chemicals. These companies utilize Xylem's solutions for process water management, cooling, dewatering, and industrial wastewater treatment within their operations.

• Commercial and Residential Building Market: This category includes developers, general contractors, and facility managers for commercial buildings (e.g., hospitals, hotels, data centers, office complexes) and residential developments. Xylem provides products for HVAC systems, fire protection, plumbing, and on-site water management solutions (e.g., well pumps, booster systems, sewage systems) for these applications, often selling through distributors and OEMs.

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Matthew Pine, President and Chief Executive Officer

Matthew Pine joined Xylem in 2020 and was appointed President and Chief Executive Officer in January 2024. He leads Xylem's mission to help customers solve global water challenges. Prior to becoming CEO, he served as Chief Operating Officer, leading Xylem's regions, business segments, and global innovation, technology, product management, IT, integrated supply chain, and digital functions. He also previously led Xylem's Applied Water Systems and Measurement & Control Solutions segments and the Americas Commercial Team.

William Grogan, Senior Vice President and Chief Financial Officer

William Grogan was appointed Senior Vice President and Chief Financial Officer of Xylem, effective October 1, 2023. Before joining Xylem, he served as Chief Financial Officer of IDEX Corporation. He holds a Bachelor's Degree in Finance from Merrimack College and an MBA from Kellogg Graduate School of Management at Northwestern University. Mr. Grogan is also a member of the Board of Directors and the Audit Committee for Crane NXT.

Snehal Desai, Executive Vice President, Chief Growth and Innovation Officer

Snehal Desai leads growth, innovation, digital strategy, and integration execution for the combined company of Xylem and Evoqua.

Albert Cho, Executive Vice President, Chief Strategy and External Affairs Officer

Albert Cho leads Xylem's strategy and external affairs, focusing on the roadmap for the company and its stakeholder ecosystem to deliver a more sustainable water future.

Claudia Toussaint, Executive Vice President, Chief People and Sustainability Officer

Claudia Toussaint is head of human resources and sustainability at Xylem.

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The key risks to Xylem's business include macroeconomic and geopolitical factors, risks associated with the integration of acquisitions, and the highly competitive market landscape.

1. Macroeconomic and Geopolitical Risks: Xylem's operations are susceptible to global economic conditions, geopolitical tensions, and ongoing supply chain challenges. These risks encompass trade tensions, tariffs, geopolitical conflicts, and persistent inflationary pressures on material and labor costs. Such factors can lead to compressed margins, disruptions in supply chains, and negatively impact demand for Xylem's products and services.
2. Integration Risk from Acquisitions: The strategic acquisition of Evoqua Water Technologies, in particular, poses integration risks for Xylem. While the company anticipates cost synergies, the execution of this integration can involve significant expenses and restructuring actions, which may impact reported financial results and free cash flow.
3. Competitive Market Landscape and Technological Changes: Xylem operates in a highly competitive industry characterized by rapid technological advancements and evolving customer needs. To maintain its market position, Xylem must continuously adapt and innovate against competitors who are also investing in new technologies and expanding their product lines.

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Xylem Inc. (XYL) operates within several significant addressable markets related to water infrastructure and management. The company's main products and services primarily address the global water industry, encompassing water and wastewater treatment, smart water solutions, and pumping technologies.

• The total addressable market size of the global water industry, excluding operational expenditures related to labor, energy, and chemicals, is estimated to be approximately $750 billion.
• The global water and wastewater treatment market was valued at USD 323.32 billion in 2023 and is projected to grow to USD 617.81 billion by 2032. In 2023, North America accounted for 38.67% of this market, with the U.S. market alone projected to reach USD 314.96 billion by 2032.
• More specifically, the global water treatment systems market was valued at USD 4.65 billion in 2024 and is projected to reach USD 8.68 billion by 2032. Another estimate places the global water treatment systems market size at USD 42,078.0 million in 2024, expected to reach USD 88,023.5 million by 2033.
• The global water treatment market (a broader category) is calculated at USD 74.68 billion in 2025 and is forecasted to reach approximately USD 137.87 billion by 2034. Asia Pacific dominated this market in 2024.
• For water and wastewater treatment equipment, the global market size is projected to be worth US$88.5 billion by 2028, growing from US$63.4 billion in 2020.
• The global smart water metering market is projected to reach US$4.3 billion by 2027, up from an estimated US$834.3 million in 2020.
• The global water and wastewater pumps market is calculated at USD 19.53 billion in 2025 and is predicted to increase to approximately USD 36.67 billion by 2034. Asia Pacific held a 39% share of this market in 2024.
• The municipal water infrastructure market is estimated at $82.4 billion globally as of 2024.

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Share Repurchases

• As of December 31, 2022, approximately $182 million remained under a $500 million share repurchase program authorized in August 2015.
• In 2022, Xylem repurchased 0.5 million shares for $46 million under the authorized program, and an additional 0.1 million shares for $6 million related to employee tax withholding obligations.
• In 2021, Xylem repurchased 0.6 million shares for $60 million under the authorized program, and an additional 0.1 million shares for $8 million related to employee tax withholding obligations.

Share Issuance

• In May 2023, Xylem issued 58,779,096 shares of common stock to Evoqua stockholders as part of the Evoqua acquisition.
• Share incentive plan net activity resulted in issuances of 0.437 million shares in 2022, 0.716 million shares in 2021, and 0.986 million shares in 2020.
• A special grant of less than 0.1 million ESG performance shares was issued to certain employees in the first quarter of 2021.

Outbound Investments

• Xylem completed the acquisition of Evoqua in May 2023.
• In July 2024, Xylem committed $50 million to expand its corporate venture investing in startups and specialty venture capital funds focused on water scarcity, quality, and decarbonization.
• In December 2024, Xylem acquired a majority stake in Idrica, a water data management and analytics solutions provider, and also acquired Heusser Water Solutions AG.

Capital Expenditures

• Capital expenditures were $317 million in 2024, $270 million in 2023, $204 million in 2022, $205 million in 2021, and $183 million in 2020.
• For 2025, Xylem anticipates a full-year free cash flow margin of approximately 9 to 10 percent, indicating continued capital allocation.
• The primary focus of capital expenditures includes advanced filtration, measurement, and water quality control technologies, digital solutions, and services for complex water systems, as well as research and development.