Xylem
The company behind the pumps, treatment plants and smart water meters many cities run on, with a growing side business running water systems for factories.
The scores
Growth2/4 ↓
Growth without acquisitions slowed from 5% in 2025 to 1% in Q2 2026 and 2% to 3% guided; most growth since 2021 was Evoqua, bought.
Business quality3/4 →
Installed meter networks keep utilities rebuying the brand, but Badger Meter and Itron compete for every new network and metering is shrinking now.
Financial position3/4 ↓
Net debt about 0.8 times EBITDA before the $1.5B Cornell notes; maturities spread to 2037, but debt is real, not trivial.
Execution record3/4 →
Beat earnings estimates seven of eight quarters and raised 2026 earnings guidance, but cut growth guidance and lost its finance chief mid-year.
Per share capture3/4 ↑
Evoqua in shares cut revenue per share growth to 29% against 74%; buybacks now shrink the count and deals are cash.
Potential2/4 →
The upside rests on utilities' spending, flat this year, and electric projects resuming; the committed backlog and Dow contract mostly sustain today.
Risk profile3/4 →
No customer above 5% and wide geography, but metering relies on FCC-licensed spectrum and utility budgets set by rates and federal loans.
Valuation3/4 ↑
12.4 times trailing adjusted EBITDA and 18.3 times 2026 earnings pay for today plus slow growth; not cheap at a 4% cash yield.
Evidence quality3/4 →
Results, debt and backlog are filed and the lock-in is a city's own record; the growth recovery rests on management's word.
If it works 1.1× · if it fails you keep about 99%.
The Verdict
We rate Xylem Neutral. The business is mixed: cities that install its meters tend to keep buying them, and it keeps more of each sale every year, but its growth without acquisitions has stalled at about zero. The price is fair: after a 31% fall, about 12 times its yearly earnings before interest, tax and depreciation is about right for today's business and slow growth, with nothing paid for a recovery. As a bet it is defensive: water for chip plants and data centres would add little to the whole if it works, and almost nothing is lost if it fails.
The long caseChip plants and AI data centres need clean and recycled water where it is short, and Xylem can treat, pump and run it for them.
The evidence under this - 7 claims
- The same lock-in protects whichever vendor is installed: Badger Meter and Itron compete for the same utilities (C15), and searches found Badger Meter sole-source awards in other cities.
- Measurement and Control Solutions orders were below revenue in Q2 2026 and its revenue fell 1% organically (C04), so new wins are not outrunning the base.
Consensus already sits at $5.66 a share for 2026, inside the range, so the raise moved estimates little; the cut fell on the revenue line the growth case needs.
- 2026-10-27editedRe-struck on the Q3 2026 release: organic growth guidance cut to flat and earnings guidance cut to $5.40-$5.45.
Much of the recent gain is price rises and pruning rather than volume: Q2 2026's margin rose 1.5 points on revenue up only 1%, and price rises cannot compound for ever.
- 2026-10-27editedQ3 2026 margin of 23.9% added; margin kept widening on price and productivity.
Adjusted EBITDA leaves out $53M a year of stock pay and restructuring charges that recur, and the Cornell debt adds about $1.5B; on GAAP earnings the multiple is 24.5.
Only about 2% of revenue: tripling a small base adds little to a company growing 2% to 3% overall.
The company
Every town needs to pump clean water to homes, carry sewage away and charge each household for what it used. Xylem makes much of the equipment for that: Flygt pumps, treatment systems and Sensus smart meters that report use by radio instead of a person reading a dial.
Its other big arm, from the Evoqua purchase, runs water systems for factories, chip plants and power stations, sometimes building and operating the whole plant for decades. It sells in about 150 countries; no customer is more than 5% of sales.
The evidence under this - 3 claims
How it makes money
Most money comes from selling equipment: a pump, a treatment line, a batch of meters. A growing slice is recurring: parts and service on what is already installed, meter-reading software, and long contracts where a factory pays for water delivered.
In the year to June 2026 the business turned about $960M of its $9.13B of sales into free cash flow, the cash left after paying for its own factories and equipment.
The evidence under this - 4 claims
Where the money comes from, stream by stream
| Stream | Share of sales (FY 2025) | How it earns it |
|---|---|---|
| Water Infrastructure | 29.2% | Pumps and treatment for moving and cleaning water, 59% transport and 41% treatment. |
| Water Solutions and Services | 27.3% | Treatment systems, outsourced water, rental and dewatering for industry and cities, 41% services. |
| Measurement and Control Solutions | 23.1% | Smart meters and networks, 83%, and analytics software, 17%, for water, gas and electric utilities. |
| Applied Water | 20.5% | Pumps, valves and controls for buildings, homes and light industry. |
Who runs it
Matthew Pine has run Xylem since January 2024. He has pruned weaker products and sold over $400M of businesses, and margins rose, while growth slowed. He owns 299,154 shares; directors and officers together hold under 1%.
His bonus rides on margins, growth and cash, and half his long-term award on shareholder returns against other industrial companies and on earnings per share. The finance chief left in September 2026 for another job; a director bought shares in May.
The evidence under this - 4 claims
Why it wins, and who could beat it
Why customers come back
The hold is in the meters. Each city's meters report over Xylem's own radio network into its billing system, so buying a different brand later means running two systems side by side.
A city's own record shows it. Albany, Oregon, with over 20,000 meters, skipped a competitive bid and signed a five-year contract for Sensus meters, saying one consistent brand was the efficient choice.
The evidence under this - 3 claims
- The same lock-in protects whichever vendor is installed: Badger Meter and Itron compete for the same utilities (C15), and searches found Badger Meter sole-source awards in other cities.
- Measurement and Control Solutions orders were below revenue in Q2 2026 and its revenue fell 1% organically (C04), so new wins are not outrunning the base.
The threat
The same lock-in protects rivals where they are installed. Badger Meter and Itron name Xylem as a competitor and bid for every new city network. In pumps, Franklin Electric and the private Danish firm Grundfos compete for the same buyers. In chip-plant water, Ecolab paid $1.6B in December 2025 for Ovivo's ultrapure water business.
The evidence under this - 2 claims
The rivals: BMI, ITRI, FELE, ECL, ECL, MWA, and 2 more that are private, in-house or listed abroad.
Who else does this, rival by rival
| Ticker | Rival | Where it competes | How far along | Priced against it |
|---|---|---|---|---|
| BMI | Badger MeterPriced against it: Yes | Measurement and Control Solutions | On sale | Yes |
| ITRI | ItronPriced against it: Yes | Measurement and Control Solutions | On sale | Yes |
| FELE | Franklin ElectricPriced against it: Yes | Applied Water | On sale | Yes |
| Private | GrundfosPriced against it: Private | Water Infrastructure | On sale | Private |
| ECL | Ecolab, through Ovivo ElectronicsPriced against it: One segment only | Water Solutions and Services | On sale | One segment only |
| Ecolab, through Ovivo Electronics and its high-tech water treatment | Chip-plant and data-centre water | On sale | ||
| Veolia, targeting over €1 billion from data centres and chip plants by 2030Priced against it: Listed abroad | Chip-plant and data-centre water | On sale | Listed abroad | |
| MWA | Mueller Water ProductsPriced against it: One segment only | - | On sale | One segment only |
How big it could get
How big this could get
America spends about $90.6B a year building water supply and sewer systems, and the EPA counts about $1.26 trillion of needed work over 20 years. Xylem's own US sales were about $5.2B in 2025.
That spending rose about a quarter from 2023 to 2026 but barely grew in the last year. Nobody publishes how much of it goes on equipment rather than pipes and digging, so Xylem's share cannot be measured.
The evidence under this - 3 claims
Who has signed
Orders on hand reached $5.3B in June 2026. The largest single piece is Dow's contract, about $850M over 23 years, mostly for running the plant, with water flowing from 2028. Multi-year orders can still be delayed or cancelled. Xylem has also agreed to buy two pump makers for $1.46B.
The evidence under this - 3 claims
The 10-Q warns that annual or multi-year contracts can be rescheduled or cancelled by customers, and the Dow plant earns its service revenue only from 2028.
The results
The numbers
Sales grew 1.9% over the twelve months to Sep 2026, about the same pace as the 5.5% in the year to Dec 2025.
Operating margin is 15%, up from 8.9% in the year to Dec 2023.
Running costs take 25¢ of each sales dollar, down from 27¢ in the year to Dec 2021.
Shareholders' money earned 10% a year.
It turned 10% of sales into free cash, $921M over the last twelve months.
It owes $2.19B more than the cash it holds, about 1.7 years of the cash its operations bring in.
The share count rose 28% in 4.8 years, and pay in shares costs 0.6% of sales.
All the numbers
Filed figures from the company's 10-K and 10-Q, read 2026-10-27. Fiscal years end in December.
| Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 | 12 mo to Sep 2026 | |
|---|---|---|---|---|---|---|
| Size and growth | ||||||
| Sales | $5.20B | $5.52B | $7.36B | $8.56B | $9.04B | $9.06B |
| Sales growth | +6.5% | +6.3% | +33% | +16% | +5.5% | +1.9% |
| Profit | ||||||
| Gross margin | 38% | 38% | 37% | 38% | 38% | 40% |
| Operating margin | 11% | 11% | 8.9% | 12% | 14% | 15% |
| Net margin | 8.2% | 6.4% | 8.3% | 10% | 11% | 12% |
| What growth costs, per sales dollar | ||||||
| Research and development | 3.9% | 3.7% | 3.2% | 2.7% | 2.5% | 2.5% |
| Selling, general and admin | 23% | 22% | 24% | 22% | 21% | 21% |
| Pay in shares | 0.6% | 0.7% | 0.8% | 0.7% | 0.6% | 0.6% |
| Capital spending | 4.0% | 3.8% | 3.7% | 3.7% | 3.7% | 3.9% |
| Cash | ||||||
| Cash from operations | $538M | $596M | $837M | $1.26B | $1.24B | $1.27B |
| Free cash flow | $330M | $388M | $566M | $942M | $910M | $921M |
| Balance sheet | ||||||
| Cash and short-term investments | $1.35B | $944M | $1.02B | $1.12B | $1.48B | $708M |
| Debt | $2.44B | $1.88B | $2.28B | $2.02B | $1.94B | $2.90B |
| Net cash | −$1.09B | −$936M | −$1.26B | −$895M | −$463M | −$2.19B |
| Returns and shares | ||||||
| Return on capital | 8.3% | 9.1% | 7.0% | 6.6% | 7.5% | - |
| Shares (diluted) | 182M | 181M | 218M | 244M | 244M | 233M |
What growth costs
Growing has made Xylem more profitable: it keeps more of each sale than five years ago, while research spending and pay in shares stayed flat. Lately the gain has come from price rises and cutting weak products rather than selling more, and that cannot continue for ever.
The evidence under this - 2 claims
Much of the recent gain is price rises and pruning rather than volume: Q2 2026's margin rose 1.5 points on revenue up only 1%, and price rises cannot compound for ever.
- 2026-10-27editedQ3 2026 margin of 23.9% added; margin kept widening on price and productivity.
The last report (28 Jul)
Quarter ended June 2026, filed figures.
In the September quarter orders rose 10% without acquisitions, but revenue was flat without acquisitions against the 3% promised. Adjusted earnings were $1.44 a share, in the promised range, and the profit margin rose to 23.9%.
Xylem cut its 2026 forecast to flat growth and $5.40 to $5.45 a share and plans to sell two businesses. On the call, managers blamed utilities delaying meter and plant projects; data-centre orders tripled.
What it did to the thesisIt pressured our case: growth missed and the forecast was cut again. The call blamed delayed projects, not lost customers, so the view stays Neutral until growth returns.
The quarter in detail
Sales growth from the previous quarter, filed figures.
Earnings per share $1.46 against $1.35 expected; $1.11 as filed, the gap being what the company adds back.
The evidence under this - 5 claims
Q2 2026 grew only 1% without acquisitions, so 3% in Q3 needs a pick-up that further metering delays could stop.
- 2026-10-27editedQ3 2026 result recorded against the guide: margin and earnings in range, organic growth flat against about 3%.
Consensus already sits at $5.66 a share for 2026, inside the range, so the raise moved estimates little; the cut fell on the revenue line the growth case needs.
- 2026-10-27editedRe-struck on the Q3 2026 release: organic growth guidance cut to flat and earnings guidance cut to $5.40-$5.45.
Much of the recent gain is price rises and pruning rather than volume: Q2 2026's margin rose 1.5 points on revenue up only 1%, and price rises cannot compound for ever.
- 2026-10-27editedQ3 2026 margin of 23.9% added; margin kept widening on price and productivity.
Orders up 30% in metering and 10% overall have not yet become revenue, and Water Infrastructure orders were described by an analyst as flat to down for the year; the company's own filed revenue fell 3% in Q3.
What management did with the money
Xylem paid for Evoqua in 2023 with new shares, which is why each share's slice of revenue grew far less than revenue. It has now turned to buying shares back: $1.24B in the first half of 2026. Its next purchase, two pump makers for $1.46B, is paid in cash borrowed through new bonds.
Insiders in 2026Q3: 5 purchases and 0 sales, from their Form 4 filings.
The evidence under this - 4 claims
The price, and where we disagree
In short. Fair. The price pays for today's business, slow growth and margins edging up, but not for a return to faster growth.
The shares have fallen about 31% in a year, near their lowest, after the growth forecast was cut in July and again on October 27. The pump purchase should close by the end of the year.
The October 27 results missed the 3% growth test while orders rose 10%. On the call management put the gap down to utilities delaying projects and gave no 2027 growth figure, so the results due by late February 2027 show whether orders turn into sales.
The evidence under this - 5 claims
Q2 2026 grew only 1% without acquisitions, so 3% in Q3 needs a pick-up that further metering delays could stop.
- 2026-10-27editedQ3 2026 result recorded against the guide: margin and earnings in range, organic growth flat against about 3%.
Consensus already sits at $5.66 a share for 2026, inside the range, so the raise moved estimates little; the cut fell on the revenue line the growth case needs.
- 2026-10-27editedRe-struck on the Q3 2026 release: organic growth guidance cut to flat and earnings guidance cut to $5.40-$5.45.
Orders up 30% in metering and 10% overall have not yet become revenue, and Water Infrastructure orders were described by an analyst as flat to down for the year; the company's own filed revenue fell 3% in Q3.
How we read the multiple
A buyer pays for a steady, slowly growing business. The fact the verdict rests on is that growth without acquisitions is 2% to 3%.
1. The shares are worth about $24.0B; with about $1.65B of net debt the business is valued at about $25.6B. 2. It earned $2.07B before interest, tax and depreciation over the past year, on its own measure. 3. So the business costs about 12 times those earnings. 4. Free cash flow was about $960M, about 4% of the shares' value.
Against its own history. Buyers now pay about half what they used to for each dollar of profit, because growth slowed; the old normal was set when growth was faster.
The evidence under this - 3 claims
Adjusted EBITDA leaves out $53M a year of stock pay and restructuring charges that recur, and the Cornell debt adds about $1.5B; on GAAP earnings the multiple is 24.5.
Priced against its rivals
The competitors its own annual report names, each confirmed against the rival's filing. Measured on company value for each $1 of cash profit, cheapest first:
| Ticker | Company | company value for each $1 of cash profit |
|---|---|---|
| ITRI | Itron | 8.6× |
| FELE | Franklin Electric | 12.9× |
| XYL | Xylem | 13.7× |
| BMI | Badger Meter | 19.2× |
The middle of the other 3 is 12.9. Xylem Inc. is 2nd dearest of 4.
Rivals' figures come from a data provider, so read the spread of the group rather than any single pair.
In the middle of its listed rivals, so the discount is to Xylem's own past rather than to the companies it competes with.
Private or foreign rivals that cannot be priced: Grundfos, Kamstrup, Veolia, Kurita and Organo.
The bet: what it pays if it works
This bet is on one line: the water Xylem treats, purifies and pumps for chip plants and AI data centres. Xylem reports no sales figure for it; management says data-centre sales are tripling this year.
The rest of Xylem is counted separately at the price the market pays for it today, and on its own it covers that price. So this line comes free, but even a big win adds only a little to the whole company, which makes it an expensive bet. Veolia and Ecolab chase the same work.
| Chip-plant and data-centre water revenue in two to three years | Points of Xylem's 2025 revenue needed | At the stated multiple |
|---|---|---|
| $360.00M | about 4 at 100% kept | 1.0× |
| $540.00M (the big win) | about 6 at 100% kept | 1.1× |
| $900.00M | about 10 at 100% kept | 1.1× |
To pay 2× (a Fair bet) it would need about $9.26B of Chip-plant and data-centre water revenue (about 102 points of Xylem's 2025 revenue); to pay 5× (a Cheap bet), about $36.86B of Chip-plant and data-centre water revenue (about 408 points of Xylem's 2025 revenue), at the same multiple.
Each row is Chip-plant and data-centre water alone, plus the rest of the company (Xylem without chip-plant and data-centre water) counted at about $25.61B.
The steps it has to take
- Done Data-centre orders in Applied Water up over 300% in Q2 2026
- Done WaterFleet, with a hyperscale data-centre project in Texas, agreed to be bought
- In progress Data-centre revenue near 2% of the total by the end of 2026 due 2027-02
- Not started A filed revenue figure for data centres or microelectronics due 2027-12
- Not started Chip-plant and data-centre revenue near six points of 2025 revenue due 2029-03
The detail behind the label
The evidence under this - 5 claims
Only about 2% of revenue: tripling a small base adds little to a company growing 2% to 3% overall.
Adjusted EBITDA leaves out $53M a year of stock pay and restructuring charges that recur, and the Cornell debt adds about $1.5B; on GAAP earnings the multiple is 24.5.
It is a rival's target for 2030 covering water, local energy and hazardous waste, not a measure of the market; nobody publishes what the two markets spend on water.
Where we disagree with the market
Split: an AI and industrial water story that should restart growth, or a slowing utility supplier; 19 analysts say buy and 20 hold.
Both stories are small beside a sticky utility business growing 2% to 3% with rising margins, priced about right.
Data centres are real but about 2% of sales, so tripling them barely moves the total. Utility construction spending barely grew in the last year, which argues against a quick rebound.
Against us: the price is about half its six-year normal, orders and orders on hand are at records, and margins keep rising. If growth returns, today's price would look cheap.
What analysts say, and the evidence
The evidence under this - 6 claims
Only about 2% of revenue: tripling a small base adds little to a company growing 2% to 3% overall.
Consensus already sits at $5.66 a share for 2026, inside the range, so the raise moved estimates little; the cut fell on the revenue line the growth case needs.
- 2026-10-27editedRe-struck on the Q3 2026 release: organic growth guidance cut to flat and earnings guidance cut to $5.40-$5.45.
Adjusted EBITDA leaves out $53M a year of stock pay and restructuring charges that recur, and the Cornell debt adds about $1.5B; on GAAP earnings the multiple is 24.5.
What could go wrong, and how we would know
The risks
- Metering stays weak. Electric utilities delayed meter projects on affordability worries; if that spreads to water, the business with the strongest hold shrinks.
- Paying up for pumps. Before promised savings and tax benefits, Xylem pays about 16.6 times the pump makers' profit, more than its own shares cost.
- Rivals win the next networks. Lock-in protects whoever is installed; if Badger Meter or Itron win the new networks, Xylem's base stops growing.
- City budgets flatten. Water and sewer construction barely grew in the last year, and utilities pay from rates and federal loans that politics can squeeze.
- Spectrum rules. Its meter networks run mostly on licensed radio spectrum, and a regulator could change or decline to renew those licences.
The evidence under this - 6 claims
Measurement and Control Solutions orders were below revenue in the quarter (C04); a pipeline is not an order.
- 2026-10-27editedthe Q3 call: orders strong, short-cycle sales soft
The tax benefit is real cash and the margin above 30% is higher than Xylem's own, so a higher multiple can still add to earnings per share, as Xylem says it will in 2027.
- The same lock-in protects whichever vendor is installed: Badger Meter and Itron compete for the same utilities (C15), and searches found Badger Meter sole-source awards in other cities.
- Measurement and Control Solutions orders were below revenue in Q2 2026 and its revenue fell 1% organically (C04), so new wins are not outrunning the base.
What we still do not know
- What share of US water meters are already smart, and how much replacement is left?
- How much of metering revenue is replacements on installed networks rather than new networks won?
- What do the two pump makers earn before the savings and tax benefits Xylem counts?
The evidence under this - 3 claims
The tax benefit is real cash and the margin above 30% is higher than Xylem's own, so a higher multiple can still add to earnings per share, as Xylem says it will in 2027.
What would change our view
- Neutral→AttractiveA cheaper price on unchanged earnings
It needs:
- ○The business is valued at 10.5 times its yearly earnings before interest, tax and depreciation, from about 12.4 today.about ≈$86.97 today, 15% below the last close
- Neutral→AttractiveGrowth returns with margins intact
It needs all of:
- ○Revenue growth without acquisitions reaches 5% or more for two quarters in a row.checked at the next results, due by 28 Feb
- ○Xylem keeps at least 23.5 cents of each sales dollar as those earnings.checked at the next results, due by 28 Feb
We would also be wrong if
- Metering revenue falls for a full year as electric projects stay delayed.
- Cities replace installed Sensus networks with rival brands in public bids.
- US water and sewer construction spending falls for a full year.
What is coming
- 27 October 2026 Q3 2026 results: Whether organic growth reaches the guided 3% and the margin 23.5%, and whether metering stops shrinking.
Every dated event ahead
- 27 October 2026 Q3 2026 results: Whether organic growth reaches the guided 3% and the margin 23.5%, and whether metering stops shrinking.
- 31 December 2026 Cornell and Roper purchase closes: The final price and debt, and the first reported earnings of the acquired pump businesses.
- 10 February 2027 FY2026 results and 2027 guidance: Whether 2027 organic growth guidance returns to 4% or more as the Dow contract builds and meter projects resume.
Since we wrote this
- 27 OctEarningsSales flat without acquisitions and forecast cut; view holdsOrganic growth missed the 3% guide and the 2026 forecast fell, but margin 23.9% and orders +10% held and two businesses are to be sold.
- 11 OctThesis reviewChip-plant and data-centre water lifted out as early, and bet onThe owner's rule of 2026-10-11: a Futures winner declares the line each theory names it for, and an early line owes a bet that cannot be declined.
- 10 OctThesis writtenNeutral, medium convictionWritten two weeks before Q3 results, after the shares fell 31% in a year on slower growth, a finance chief's exit and a pump purchase.
Sources 31
Sources - 31
Every claim above cites one of these, or states the reasoning that derived it. The quote is frozen at the date it was read: a link can rot, and an agent fetch returns a reading of a page rather than the page. Backs counts the whole claim ledger, so it can name a claim this page does not surface.
- S01primarycompany filing2026-02-25the four segments and their 2025 revenue, the products, the installed base, the FCC spectrum, competition classes, customers, the Evoqua deal and the risk factorsbacksC01C07C13C17C23C38
- S02primarycompany release2026-02-102025 revenue, organic growth and earnings per share, the dividend raise and the first 2026 guidancebacksC02C08C12C26
- S03primarycompany release2026-07-28Q2 2026 orders, revenue, earnings and margin, revenue and orders by segment, and the revised 2026 guidancebacksC02C03C04C05C12C26C34C38
- S04primarycompany filing2026-07-28the balance sheet, debt, share repurchases, the backlog of $5,315M and the definition of an orderbacksC03C07C08C09C17C18C26C38
- S05primarytranscript2026-07-28Xylem Q2 2026 earnings call transcript (FMP), held 28 July 2026the Dow order, data-centre revenue and orders, the electric meter delays, China, Q3 guidance and net debt to EBITDA
we expect revenue to be up 200% you know, this year, and we will probably be exiting this year about 2% of our revenue tied to data centers
backsC04C05C09C18C19C32C36C37 - S06primarytranscript2026-04-28Xylem Q1 2026 earnings call transcript (FMP), held 28 April 2026the split and timing of the Dow outsourced water contract
So out of the $850 million, it's about 75% service and 25% capital
backsC18 - S07primarycompany filing2026-07-28six years and the trailing year of revenue, gross and operating profit, net income, cash flow, capital spending, stock pay and diluted sharesbacksC06C07C26C27C34C35
- S08primaryvendor data2026-10-09Research pack for XYL (FMP market tier, FINRA short interest), fetched 10 October 2026the 9 October close, the 52-week range and returns, the price move split, analyst ratings and estimates, the valuation series, peer returns, short interest and earnings historybacksC12C24C25C26C27C33C36
- S09primarycompany filing2026-09-17the Cornell and Roper purchase price, the use of the note proceeds and the capitalization table as adjustedbacksC09C10C11
- S10secondarycompany release2026-08-11the price, the revenue above $260M, the margin above 30%, the synergies and the tax benefit; Business Wire refuses this client and the newsroom page was not found
The purchase price of $1.46 billion represents approximately 11.6x 2026 projected EBITDA after run-rate cost synergies of $23 million and an estimated $170 million of expected tax benefits.
backsC10C11 - S11primarycompany filing2026-09-09the new five-year revolving credit facilitybacksC09
- S12primarycompany release2026-08-18the new chief financial officer from 1 September 2026 and William Grogan's departurebacksC31
- S13primarycompany release2026-08-13the new director, Carlisle's chief executivebacksC31
- S14primarycompany filing2026-03-30the leaders, ownership, the large holders, bonus measures and long-term awardsbacksC29C30
- S15primarycompany filing2026-10-10each open-market trade, its price and its Rule 10b5-1 flagbacksC28
- S16primarycompany filing2026-02-17a rival naming Sensus (Xylem) among its utility water meter competitorsbacksC15
- S17primarycompany filing2026-02-17a rival naming Xylem among its primary metering competitorsbacksC15
- S18primarycompany filing2026-02-23Ecolab's $1.6B purchase of Ovivo's ultrapure water business for chip plantsbacksC16
- S19primaryregulator2023-04-04the 20-year capital need of US drinking water systems
The survey determined that drinking water systems will need $625 billion for pipe replacement, treatment plant upgrades, storage tanks, and other key assets
backsC20 - S20primaryregulator2024-04-01the 20-year capital need of US wastewater and stormwater systems
2022 CWNS Results Total Reported Needs* $630.1 billion
backsC20 - S21primarygovernment data2026-10-01US Census Bureau via FRED, Total Construction Spending: Water Supply in the United States (TLWSCONS) US Census Bureaumonthly water supply construction spending at an annual rate, August 2023 to August 2026
Total Construction Spending: Water Supply in the United States
backsC21 - S22primarygovernment data2026-10-01US Census Bureau via FRED, Total Construction Spending: Sewage and Waste Disposal in the United States (TLSWDCONS) US Census Bureaumonthly sewage and waste disposal construction spending at an annual rate
Total Construction Spending: Sewage and Waste Disposal in the United States
backsC21 - S23primarygovernment data2026-10-10US Energy Information Administration, FAQ 'How many smart meters are installed in the United States' EIAthe share of US electric meters that are smart, and that no agency counts water meters
equal to about 72% of total electric meters installations
backsC22 - S24primarygovernment data2023-06-29City of Albany, Oregon, Resolution 7247 waiving competitive bidding for Sensus water meters City of Albany, Oregona utility buying replacement meters from the installed brand without a competitive bid; signed on the 28th, the PDF was created 29 June 2023
for efficient utilization of the existing goods, maintaining a consistent brand water meter is in the best interest of the city
backsC14C23 - S25primarycompany filing2026-02-20a pump rival naming Xylem with Grundfos and Pentair as its principal competitorsbacksC15
- S26primarycompany release2026-04-15Veolia positions for growth in clean tech for data centers and chip production with a EUR 1 billion annual revenue goal by 2030 (press release) Veolia Environnementa rival's revenue target from data centres and chip plants
Veolia announces an ambitious plan to accelerate its footprint in the data centers industry and microelectronics, targeting over €1 billion in annual revenue from these two markets by 2030.
backsC39 - S27primarycompany filing2026-02-23a rival's growth in water treatment for high-tech customers
Light & Heavy organic sales increased 2% in 2025 reflecting double-digit growth in global high-tech
backsC40 - S28primarycompany release2024-12-09Microsoft, Sustainable by design: next-generation datacenters consume zero water for cooling Microsofta hyperscaler moving new designs to cooling that evaporates no water
Starting August 2024, all new Microsoft datacenter designs began using this next-generation cooling technology, as we work to make zero-water evaporation the primary cooling method across our owned portfolio.
backsC41 - S29primarygovernment data2026-07-31Congressional Research Service, Data Centers and Water: Frequently Asked Questions (R49057) Congressional Research ServiceUS data centres' direct water use in 2014 and 2023 and their share of US consumption
One study estimates that in 2023, U.S. data centers directly used approximately 17 billion gallons of water, compared with 5.6 billion gallons in 2014.
backsC42 - S30primarycompany filing2026-10-27Q3 2026 orders, revenue, organic growth, adjusted earnings and margin, the cut 2026 outlook and the planned divestitures and three-segment structure.backsC05C34C36C43
- S31primarytranscript2026-10-27management's account of the Q3 miss: metering and large-project timing, utility caution, the 2027 setup, data-centre orders, and the planned divestitures
MCS orders up 30%, but the backlog is still down year-over-year; water metering within our backlog is up by 13%.
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