Xylem Completes $1.46 Billion Acquisition of Cornell Pump and Roper Pump

Key Facts

Xylem announced it had completed its previously announced acquisition of Cornell Pump and Roper Pump, expanding its presence in industrial markets and specialized pumping applications. In August, the company agreed to buy the businesses from Indicor for $1.46 billion. Chief Executive Matthew Pine said the deal "adds strong positions in markets benefiting from some of the largest investment trends we see today." The targeted markets include mining, energy, semiconductors, and food and beverage. The businesses also add technologies for slurry transport, solids handling and lift-station applications, which Xylem said require specialized engineered solutions.

Xylem expects the acquired businesses to generate more than $260 million in revenue in 2026, with an EBITDA margin above 30%. The purchase price equates, by the company's estimate, to about 11.6 times expected 2026 EBITDA after accounting for annual cost savings of $23 million and expected tax benefits of $170 million. These are figures and estimates the company announced when it agreed to the deal, not operating results achieved after its completion. Xylem expects the deal to be accretive to adjusted earnings per share in 2027. The estimates give investors a measure of the size of the added businesses and the financial impact the company expects after integrating them.

The deal comes as Xylem recorded orders of $2.3 billion in the third quarter, up 7% on a reported basis and 10% organically from the same period a year earlier. Revenue, by contrast, was $2.2 billion, down 3% on a reported basis, while organic revenue was unchanged. The company attributed the revenue impact to project timing and greater caution in spending decisions. It said the strength of orders and operating performance demonstrated the resilience of its businesses despite those factors. These results provide context for the addition of businesses that Xylem expects to grow faster than its target, although their future figures remain company forecasts.

Xylem cut its 2026 revenue forecast in October to about $8.95 billion, equivalent to a reported decline of 1% from the previous year, while expecting organic revenue to be stable. Its previous forecast pointed to reported growth of 2% and organic growth of between 2% and 3%. The company also expects an adjusted EBITDA margin of about 23.2% for the year and adjusted earnings per share of between $5.40 and $5.45, compared with a previous range of between $5.55 and $5.70. The forecast cut reflects a divergence between order momentum and revenue, which was affected by project timing and spending caution, according to the company's explanation. The full-year outlook remains an important factor in assessing the contribution Xylem expects from the deal.

Xylem described Cornell and Roper's historical business growth as exceeding the company's target growth rate, and listed WaterFleet and TriOS among the businesses it said had recorded that performance. The company completed its acquisition of WaterFleet on September 2 and of TriOS on July 1, 2026. These deals are part of broader moves across its portfolio: in October, Xylem announced its intention to sell its Applied Water International and Specialty Flow Control units. These steps show the company expanding some activities while reshaping other parts of its portfolio. The completion announcement does not specify Cornell and Roper's individual contribution to Xylem's results after integration.

The acquired businesses will initially be included in the Water Infrastructure segment, then reported within Flow Solutions starting in January 2027. This comes as Xylem moves to a three-segment operating structure effective January 1, 2027: Treatment and Services, Flow Solutions, and Measurement and Analytics. The businesses will therefore appear in reports under the new structure as they begin to be included in Flow Solutions. The company expects the deal to support adjusted earnings per share in 2027, after a year in which it expects the added businesses to generate more than $260 million in revenue. XYL shares closed at $95.11 on November 11, 2026, according to EL7 data.