The Evoqua acquisition contributed $561 million to the Water Solutions and Services segment, driving a 39.2% increase in revenue. This highlights the impact of strategic M&A activities on expanding market presence.

The company acquired a 25.1% equity interest in Idrica, a digital transformation specialist for the water industry, for $51 million. This investment underscores a commitment to innovation and digital solutions.

Total backlog was $5.07 billion at December 31, 2024, a slight decrease from $5.088 billion in 2023, with approximately 50% expected to be recognized as revenue in 2025. This indicates a healthy pipeline of future projects.

Gross margin increased by 60 basis points to 37.5% in 2024, with 280 basis points attributed to operational improvements, including 180 basis points from productivity savings. This reflects effective management of operational efficiency.

Starting in 2024, Xylem launched initiatives focused on business simplification, strategic pricing, and operational productivity, with restructuring charges expected between $90 million and $110 million in 2025. This demonstrates proactive management to enhance long-term performance.

Xylem successfully integrated Evoqua, contributing significantly to revenue growth and expanding the company's portfolio of water treatment solutions. This showcases effective execution of strategic acquisitions.

The 10-K highlights risks related to geopolitical events, economic conditions, and volatility, including conflicts, inflation, and supply chain disruptions. These factors could adversely affect customer demand and the company's financial performance.

The filing emphasizes the potential for cybersecurity incidents to disrupt operations, compromise data, and result in financial losses and reputational damage. The company is actively working to mitigate these risks.

The company acknowledges risks related to the availability and pricing of raw materials, energy, and logistics, which could impact manufacturing costs and ability to meet customer demand. These disruptions could stem from various factors including geopolitical events and trade actions.

The 10-K acknowledges that Xylem operates in highly competitive markets and must continuously innovate and differentiate its offerings to maintain its market position. This includes adapting to emerging technologies and customer needs.

Xylem emphasizes product and service performance, quality, reliability, and innovation as key differentiators in the competitive landscape. This focus aims to enhance customer satisfaction and loyalty.

The company's success is linked to its ability to attract, develop, and retain highly skilled employees, particularly in engineering, innovation, and digital technologies. Competition for talent remains a key challenge.

Productivity savings accounted for 270 basis points of the 280 basis points improvement in gross margin, indicating successful implementation of efficiency initiatives. This highlights the company's focus on operational excellence.

Despite productivity savings, price inflation negatively impacted operating costs by 250 basis points, indicating ongoing challenges in managing input costs. This underscores the need for continued cost management efforts.

The company emphasizes the importance of optimizing its supply chain to ensure predictable and efficient delivery to customers. This is crucial for maintaining customer satisfaction and managing operational costs.

R&D expense was $230 million in 2024, consistent with $232 million in 2023, indicating a sustained commitment to innovation. This investment supports the development of new technologies and solutions.

The company's investment in Idrica and other partnerships demonstrates a focus on expanding its digital offerings. This includes leveraging advanced technologies for water management and infrastructure solutions.

The 10-K acknowledges the importance of radio spectrum for certain products and the potential impact of regulatory changes and interference. The company is actively managing these risks.

The company's capital allocation strategy includes acquisitions like Evoqua, increased dividend payments, and share repurchases. This demonstrates a balanced approach to deploying capital for growth and shareholder returns.

The company increased dividends paid to shareholders, reflecting a commitment to returning capital to investors. This indicates confidence in future cash flow generation.

Capital expenditures totaled $321 million in 2024, supporting investments in facilities and equipment. These investments are aimed at enhancing productivity and supporting future growth initiatives.

The company emphasizes sustainability as a core value and has established high-impact pillars aligned with its strategy, including decarbonizing the water sector and advancing water stewardship. This demonstrates a commitment to long-term sustainable practices.

Xylem is committed to reach Net Zero greenhouse gas emissions across its value chain before 2050. This commitment reinforces our alignment with sector-wide efforts to reduce carbon footprints and advance sustainability

The company prioritizes employee health and safety and fosters a diverse and inclusive workplace. This includes employee surveys, well-being programs, and employee network groups.

The company's business is driven by macro trends such as water scarcity, increasing regulation, and the need for energy efficiency. These trends create opportunities for growth in the global water industry.

Xylem is subject to various laws and regulations related to trade, anti-corruption, data privacy, and environmental matters. Compliance with these regulations requires ongoing effort and resources.

The company acknowledges the impact of weather conditions, including climate change, on its served markets and demand. This includes the potential for both positive and negative impacts on different parts of the business.