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  "docSlug": "41aa7e476e91",
  "documentTitle": "Xylem Inc. (XYL)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2023-08-09 00:00:00",
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  "notes": "Uses red boxes to highlight specific financial figures and the 'No Guidance?' conclusion.",
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      "kind": "callout",
      "text": "No Guidance?",
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      "text": "Taken as a whole, we believe this segment will be highly problematic for Evoqua.",
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      "text": "special charges: $25 million",
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      "kind": "paragraph",
      "text": "Xylem's Integrated Solutions & Services segment is inherited from Evoqua. While management describes it as attractive with 75% recurring revenue, it is unable to provide any organic revenue guidance. Why? Despite having revenues of just $125 million in Q2 (making it by far the smallest segment), it absorbed a significant amount of special, restructuring, realignment, accounting an intangible amortization expenses totaling $25 million (20% of revenues). Taken as a whole, we believe this segment will be highly problematic for Evoqua.",
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      "kind": "quote",
      "text": "ISS is a leading North American water treatment solution and services provider that brings access to a durable and highly recurring revenue stream as well as a diverse and attractive industrial verticals. With approximately 75% recurring revenue, ISS is known for dependability and bringing mission-critical water treatment expertise to our customers.",
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      "kind": "quote",
      "text": "ISS is a leading North American water treatment solution and services provider that brings access to a durable and highly recurring revenue stream as well as a diverse and attractive industrial verticals. With approximately 75% recurring revenue, ISS is known for dependability and bringing mission-critical water treatment expertise to our customers. — CFO Rowland Q2 2023",
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      "text": "Organic Revenue By Segment table showing N/A for ISS guidance",
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      "text": "Charges By Segment table showing Special Charges, Restructuring, and Amortization",
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      "kind": "title",
      "text": "New ISS Segment Inherited From Evoqua Looks Injured And In Need Of Repair",
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