Xylem Lays Out 2027 Growth Plan as Data Center Orders Jump 200%
XYL is trading near its 52-week low of $87.4 (7.7% above the low).
Summary
Xylem gave its first 2027 outlook: low-single-digit revenue growth and modest margin expansion, with metering flat to down but other segments growing 4%-6%, led by Applied Water and data center demand. Data center orders in Applied Water rose 200% over the last two quarters, and the company is working to double heat exchanger and pump capacity by year-end. It also completed the Cornell Roper acquisition, which adds pumps and mining exposure, though higher interest costs are expected to offset its EPS contribution in year one. Two divestitures representing about 9% of revenue and less than 5% of EBITDA are planned, alongside a reporting change from four segments to three. The $1.5 billion buyback authorization, with no end date or set schedule, follows $1.5 billion of repurchases this year and comes after the October 27 guidance cut that sent shares to a three-year low.
At the time of this announcement, XYL was trading at $94.17 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $21.6B. The 52-week trading range was $87.40 to $150.51. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Wiseek News.