Global water technology company Xylem has a 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. From 1 Jan 2024, the new segment — Water Solutions and Services (WSS) — will unify Evoqua Integrated Solutions and Services (ISS) segment with Xylem dewatering and assessment services businesses.
In May 2023, Xylem acquired Evoqua to create a platform of capabilities to address customers’ and communities’ water needs. In the process of integrating the two companies, opportunities emerged to bring multiple services offerings together in a single segment. With this realignment, WSS will comprise ISS, Xylem dewatering business — previously part of the water infrastructure segment —and the assessment services business — previously part of the measurement and control solutions segment. WSS is said to deliver a greater breadth of services at scale and enable Xylem service force to address customer challenges with a unified customer experience.
“Our combination with Evoqua positions Xylem to address more of the complex challenges our customers face,” said Matthew Pine, Xylem COO and incoming CEO. “We have seen 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.”
For fiscal 2024, the approximate proportion of total revenue per business segment is expected to be 30% of WSS, 20% of measurement and control solutions, 30% of water infrastructure, and 20% of applied water.
Xylem will discuss the new segment during Q4 and full-year earnings conference call on 6 Feb 2024. For information 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.