Q2 2026 Xylem Inc Earnings Call Transcript
Key Points
- Xylem Inc (XYL) reported a strong quarterly EBITDA margin of 23.3%, up 150 basis points from the previous year, driven by productivity, price, and mix.
- The company achieved record quarterly EPS of $1.46, a 16% increase over the prior year.
- Xylem Inc (XYL) has a strong backlog of $5.3 billion, with a book-to-bill ratio well above one, indicating healthy demand.
- The Applied Water segment saw significant growth, with data center orders up over 300% and revenue expected to increase by approximately 200% this year.
- The acquisition of WaterFleet and TriOS strengthens Xylem Inc (XYL)'s capabilities in mobile water treatment and advanced sensing, aligning with high-growth markets.
- Revenue in the Measurement and Control Solutions segment was down 1%, driven by a slowdown in electric meter deployments due to affordability concerns and cautious capital spending.
- Xylem Inc (XYL) experienced a 27% decline in revenue from China, impacting overall growth.
- The company's Water Infrastructure segment faced challenges with a 40% decline in China and softness in treatment due to strategic walkaway actions.
- The EBITDA margin for the Measurement and Control Solutions segment decreased by 200 basis points due to unfavorable mix, inflation, and volume.
- The company lowered its full-year revenue growth outlook for the Measurement and Control Solutions segment to low-single-digit growth due to project delays in electric metering.
Good day, everyone, and welcome to Xylem's second-quarter 2026 results conference call. (Operator Instructions) Please also note today's event is being recorded. At this time, I'd like to turn the floor over to Mr. Gregory Giometti. Senior Vice President, Investor Relations and FP&A. Please go ahead.
Thank you, operator. Good morning, everyone, and welcome to Xylem's second-quarter 2026 earnings call. With me today are Chief Executive Officer, Matthew Pine; and Chief Financial Officer, Bill Grogan. They will provide their perspectives on Xylem's second-quarter results and discuss the third-quarter and full-year 2026 outlook. Following our prepared remarks, we will address questions related to the information covered on the call. I'll ask that you please keep to one question and a follow-up, and then return to the queue.
As a reminder, this call and our webcast are accompanied by a slide presentation available in the investors section of our website. A replay of
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