Xylem (XYL) risk factors: FY2025 10-K

Item 1A of the 10-K for the period ending 2025-12-31, filed 2026-02-25. 24 risk factor headings as filed. Read Item 1A in full · The whole 10-K · What changed since FY2024

1new since FY2024
14reworded
3removed
9unchanged

Headings mentioning a theme: Tariffs 1 · AI 0 · Cybersecurity 1 · China 0 · Interest rates 0. Compare across the S&P 500.

Risks Related to Geopolitical, Macroeconomic and Industry Factors

3
  1. Industry and economic conditions may adversely affect our markets and our customers’ operating conditions and demand.
  2. Geopolitical, regulatory, economic, foreign exchange and other risks associated with our global sales, supply chain and operations may adversely affect our business.
  3. Inflation, tariffs, customs duties, and other manufacturing and operating cost increases or fluctuations have adversely affected, and may continue to adversely affect, our cash flows and results of operations.rewordedTariffs

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Risks Related to Our Business and Operations

13
  1. We may be unable to compete successfully in our markets or develop and commercialize innovative and disruptive solutions and technologies.
  2. Cybersecurity incidents, data breaches, or other disruptions, and software and system implementations involving our enterprise or operational information technology, connected products and services, or information technology on which we or our customers rely, could materially and adversely affect our business.rewordedCybersecurity
  3. Lack of or delays in availability of products, parts, raw materials, transportation, or energy from our supply chain, or supplier failures to meet requirements, could adversely affect our business.reworded
  4. A material disruption to any of our facilities or operations, or those of third parties upon which we rely, may adversely affect our business and financial performance.reworded
  5. Water and wastewater treatment operations, including those related to emerging contaminants, as well as the generation, handling, storage, use, transport, treatment, release or disposal of hazardous materials may result in contamination, environmental, personal or other liabilities, or pose other significant risks that could result in significant costs and reputational harm.reworded
  6. We may be unable to successfully execute large projects or meet customer timelines, budget, performance, or safety requirements.reworded
  7. We may be unable to retain key leadership, engineering, technology, sales, service and other talent or attract new qualified talent with diverse backgrounds, experiences and perspectives.reworded
  8. Defects, unanticipated or improper use, or inadequate disclosures about our products could adversely affect our business, reputation and financial condition.reworded
  9. We may not achieve the expected benefits of our simplification, productivity, restructuring, or realignment plans, or such initiatives and plans may adversely affect our business.reworded
  10. Our strategy includes acquisitions and divestitures, which we may be unable to execute successfully.reworded
  11. A significant portion of our products and offerings in our Measurement and Control Solutions segment are affected by the availability, regulation of and interference with radio spectrum that we use.
  12. Weather conditions, including the effects of changing climate patterns and related governmental or regulatory efforts to mitigate such effects, may cause volatility in our served markets and demand for our products.reworded
  13. Sustainability-related laws, regulations, targets and objectives, and stakeholder expectations expose us to numerous risks.new

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Risks Related to Financial and Tax

4
  1. Our business is subject to foreign currency exchange rate fluctuations.
  2. Our financial results may fluctuate from period to period and can be difficult to predict.
  3. We may incur impairment charges for our goodwill and other indefinite-lived intangible assets.
  4. Changes in our effective tax rates and tax expenses may adversely affect our financial results.

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Risks Related to Legal and Regulatory

4
  1. Failure to comply with business conduct laws, regulations and policies, including anti-corruption, anti-trust, trade, and data privacy and security, could have a material adverse impact on us.reworded
  2. Failure to comply with, and the cost of complying with, laws, regulations, policies and taxes applicable to our operations, products and services, including those involving the environment and health and safety, could have a material adverse impact on us.reworded
  3. We face risks related to legal and regulatory proceedings.
  4. Infringement or expiration of our intellectual property rights, or allegations that we have infringed on the intellectual property rights of third parties could adversely affect us.reworded

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No longer in Item 1A

3

Headings in the FY2024 10-K with no match this year.

  1. We may not realize some or all the expected benefits and synergies from our acquisition of Evoqua.
  2. Our sustainability commitments, goals, targets, objectives and initiatives, and our public statements and disclosures regarding them or in response to mandatory reporting standards, expose us to numerous risks.
  3. Our pension and other defined benefit plans are subject to regulatory and financial market risks.

Headings are the lines of Item 1A set wholly in bold or italics, as the parser reads them, without the introductory paragraph that opens the section. A heading is new when no heading in the prior 10-K matches it after ignoring case and punctuation, and reworded when it shares at least 60 percent of its words with one that went away. Source: the filing on sec.gov.