Xylem Announces Reportable Segment Change to Scale Global Services Offering
December 13 2023 - 6:55AM
Business Wire
- Water Solutions and Services (WSS) segment unifies legacy
Evoqua Integrated Solutions and Services (ISS) segment with Xylem
dewatering and assessment services businesses
- Realigned structure will accelerate integration and
synergies from Evoqua acquisition
Global water technology leader Xylem (NYSE: XYL), today
announced a planned realignment of its reportable segments to
reflect the operating drivers of financial performance with greater
transparency. The change is driven by the integration of the Evoqua
acquisition completed earlier this year. Effective January 1, 2024,
the new segment, Water Solutions and Services (WSS), will unify
Evoqua’s legacy Integrated Solutions and Services (ISS) segment
with Xylem’s legacy dewatering and assessment services
businesses.
In May 2023, Xylem acquired Evoqua to create the world’s most
advanced platform of capabilities to address customers’ and
communities’ mission-critical water needs. In the process of
integrating the two companies, opportunities emerged to accelerate
synergy capture by bringing multiple services offerings together in
a single segment. With this realignment, WSS will comprise ISS,
Xylem’s dewatering business, previously part of the Water
Infrastructure segment, and the assessment services business,
previously part of the Measurement and Control Solutions segment.
WSS will deliver a greater breadth of services at scale and enable
the Company’s service force to address a variety of customer
challenges with a unified customer experience.
“Our combination with Evoqua positions Xylem to address even
more of the complex challenges our customers face,” said Matthew
Pine, Xylem's Chief Operating Officer and incoming CEO. “We have
already seen strong synergies by combining our go-to-market
strategies across businesses. This new segment is a natural next
step to accelerate integration, scale our service capabilities and
drive shareholder value as we bring the full power of this platform
to bear for our customers.”
For fiscal 2024, the approximate proportion of total revenue per
business segment is expected to be Water Solutions and Services
(30%), Measurement and Control Solutions (20%), Water
Infrastructure (30%), and Applied Water (20%).
Xylem will discuss the new segment during its fourth quarter and
full-year earnings conference call on February 6. For information
purposes and to provide investors with historical information on a
basis consistent with its new reporting structure, Xylem will
provide certain recast financial information for affected
reportable segments following the filing of its 2023 Annual Report
on Form 10-K.
About Xylem
Xylem (XYL) is a leading global water technology company
committed to solving the world’s critical water, wastewater, and
water-related challenges through technology, innovation, and
expertise. Our more than 22,000 diverse employees delivered
combined pro forma revenue of $7.3 billion in 2022. We are creating
a more sustainable world by enabling our customers to optimize
water and resource management and helping communities in more than
150 countries become water-secure. Join us in the effort at
www.xylem.com and Let’s Solve Water.
Forward-Looking Statements
This press release contains “forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Generally, the words “anticipate,” “estimate,” “expect,”
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“likely,” “believe,” “target,” “will,” “could,” “would,” “should,”
"potential," "may" and similar expressions or their negative, may,
but are not necessary to, identify forward-looking statements. By
their nature, forward-looking statements address uncertain matters
and include any statements that: are not historical, such as
statements about our strategy, financial plans, outlook,
objectives, plans, intentions or goals (including those related to
our social, environmental and other sustainability goals); or
address possible or future results of operations or financial
performance, including statements relating to orders, revenues,
operating margins and earnings per share growth.
Although we believe that the expectations reflected in any of
our forward-looking statements are reasonable, actual results could
differ materially from those projected or assumed in any of our
forward-looking statements. Our future financial condition and
results of operations, as well as any forward-looking statements,
are subject to change and to inherent risks and uncertainties, many
of which are beyond our control. Important factors that could cause
our actual results, performance and achievements, or industry
results to differ materially from estimates or projections
contained in or implied by our forward-looking statements include,
among others, factors set forth under “Item 1A. Risk Factors” in
our Annual Report on Form 10-K for the year ended December 31, 2022
and in subsequent filings we make with the Securities and Exchange
Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20231212318094/en/
Media Houston Spencer +1 (914) 323-5723
houston.spencer@xylem.com
Investors Andrea van der Berg +1 (914) 260-8612
andrea.vanderberg@xylem.com
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