Research · Sep 3, 2026
[XYL] Xylem Thesis 2026: Eighty-Twenty Simplification Drives Margin Toward New Target Range
Xylem FY25 revenue $9.04B (+6%); op income $1.22B (+21%); NI $957M (+8%); EPS $3.92. Q4 record EBITDA margin >23% / +200bp YoY / +23% EPS growth. MCS smart metering orders +22% Q4 (AMI strong); EBITDA margin 20.2% (+310bp). Water Infrastructure margin +510bp Q4. WSS 23.9% margin. International metering divested for $125M. Vacom + Envirex acquired. 80/20 Phase 2 growth engine launched. FY26 guide: revenue $9.1-$9.2B (organic +2-4%); EBITDA margin 22.9-23.3% (+70-110bp); EPS $5.35-$5.60 (+10-14%).