Xylem Inc. (NYSE:XYL) Q4 2023 Earnings Call Transcript

So, a little bit of a land and expand is how I would frame it. Get the platform in place, help them optimize their water networks with our applications as well as pulling through our products like AMI, our treatment products, et cetera. So, we’ve had some significant wins. Some of those I’ve highlighted on prior calls. We continue to have wins and build momentum. Like I said, and it’s not a specific region, it’s across the world, whether that’s in the U.K., Italy. We just won a big deal in the Middle East, which is for a new city with fully digitizing their water management system with this platform. And I’ve talked in the past about some of the deals in Spain and the U.S. we’ve done, in terms of putting the platform in and being able to sell AMI deals as well as treatment products.

So, I think it can be a big opportunity for us. Obviously, we’ll give you a lot more color as we as we get closer to May 30th at our Investor Day. But we’re really bullish on the partnership.

Joe Giordano: That’s great color. And then, I just apologize if you mentioned some of this on the prepared remarks. I had to join late, but — on Evoqua, like revenue side synergies, I know like selling an ISS solution outside the U.S. is going to take a long time to build out, but I’m curious if there’s anything you could point to about like leveraging existing channels that you have and like Europe to put product through, which I would imagine would be a lower lift than to try to do a solution based on.

Matthew Pine: Yes, that’s kind of a shorter to medium term objective, and we’ve already had some wins. We just had one in South Africa, actually, where we took the capital from the legacy of local business through the legacies island business in South Africa. So, we were able to execute and deploy that capital into an industrial application without really having to have service, folks on the ground and infrastructure. So, those are things that we’re focused on kind of in the short to medium term is leveraging the product side and really the capital side of the legacy of local business through those island channels, both in the U.S. as well as internationally. So, we are all starting to see progress there.

Operator: This concludes our question-and-session session. I would like to turn the conference back over to Matthew Pine for any closing remarks.

Matthew Pine: Yes, I just want to thank everybody for joining our call today, and for your interest in Xylem. We look forward to speaking again in early May, followed by our Investor Day on May 30, where we’re going to provide more details on our long-term outlook. Take care, and make it a great day.

Operator: The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.