Xylem forecasts downbeat 2026 on weak demand for water-treatment equipment

Reuters
02/10
Xylem forecasts downbeat 2026 on weak demand for water-treatment equipment 

Feb 10 (Reuters) - Xylem XYL.N on Tuesday forecast 2026 revenue and profit below Wall Street expectations, anticipating weaker-than-expected demand for its water-treatment equipment.

Shares of the water management company fell 4.3% in premarket trading.

Xylem expects 2026 revenue to range between $9.1 billion and $9.2 billion, compared with analysts' estimates of $9.33 billion, according to data compiled by LSEG.

Annual profit per share is expected to be $5.35 to $5.60, the midpoint of which is below estimates of $5.56.

The company, however, surpassed Wall Street expectations for fourth-quarter profit and revenue.

Xylem's applied water unit, which sells pumps, valves and other equipment, recorded quarterly sales of $474 million, beating estimates of $468.96 million.

Sales from the water infrastructure unit, which sells products including wastewater pumps, stood at $691 million for the quarter, falling short of analysts' expectations of $745.45 million.

On an adjusted basis, quarterly profit stood at $1.42 per share, beating estimates of $1.41 per share.

Fourth-quarter revenue came in at $2.4 billion, higher than estimates of $2.37 billion.

(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Jonathan Ananda)

((Padmanabhan.Ananthan@thomsonreuters.com;))

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