Xylem has become a strategic investor in Norwegian subsea desalination firm Flocean, joining a $22.5 million Series A round that brings the company’s total capital to $22.5 million (NOK 228 million). While the exact amount contributed by Xylem has not been disclosed, the investment is part of the round that will fund Flocean’s global expansion. Flocean’s platform harnesses the natural pressure of the ocean at depths of 400–600 meters to produce freshwater, cutting capital and operating costs and eliminating brine discharge. The company has been desalinating water for 12 months at its test site in Norway and plans to launch its first commercial plant, Flocean One, in 2026.
Xylem’s move aligns with its broader strategy to invest in breakthrough water technologies. The company’s Q3 2025 results—revenue of $2.3 billion, up 8% year‑over‑year, and adjusted EPS of $1.37, up 23%—demonstrate strong financial health and a capacity for strategic investments. Xylem also raised its full‑year 2025 guidance, signaling confidence in continued growth and profitability.
Flocean had previously raised $8.3 million in a Series A round in December 2024, along with earlier seed funding. The new $22.5 million round provides the capital needed to scale the subsea technology across Europe, the Middle East, the Americas, and island nations. The partnership gives Xylem exposure to a low‑carbon, scalable desalination solution that complements its existing portfolio of advanced water treatment and digital solutions.
The investment has significant business implications. Flocean’s technology can reduce energy consumption by up to 50% compared with conventional land‑based plants and eliminates harmful brine discharge, addressing the projected 40% freshwater deficit by 2030. Recognition as a TIME Best Invention of 2025 underscores the innovation’s potential to reshape the global desalination market and positions Xylem to tap into a rapidly expanding opportunity.
While the investment itself has not yet triggered a measurable market reaction, Xylem’s Q3 2025 earnings—an earnings beat of $0.13 per share and a revenue beat of $0.06 billion—led to a 2.14% pre‑market rise on November 18. The earnings beat was driven by disciplined cost control and strong demand in core segments, while the revenue beat reflected higher volumes and favorable pricing. The raised full‑year guidance further reinforces investor confidence in Xylem’s growth trajectory.
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