Open the filing on EDGARXylem Inc.
301 Water Street SE, Suite 200
Washington, DC 20003
Xylem Reports Fourth Quarter and Full Year 2025 Results
Fourth-Quarter Highlights
- Orders of $2.4 billion, up 9% on a reported basis and 7% organically
- Revenue of $2.4 billion, up 6% on a reported basis and 4% organically
- Earnings per share of $1.37, up 2%; $1.42 on an adjusted basis, up 20%
Full-Year Highlights
- Revenue of $9.0 billion, up 6% on a reported basis and 5% organically
- Earnings per share of $3.92, up 7%; $5.08 on an adjusted basis, up 19%
- Initiating 2026 full-year revenue guidance of $9.1 to $9.2 billion, up 2% to 4% organically, and adjusted earnings per share of $5.35 to $5.60
Washington, D.C., February 10, 2026 -- Xylem Inc. (NYSE: XYL), a leading global water solutions company dedicated to solving the world’s most challenging water issues, today reported fourth-quarter and full-year 2025 results. The Company’s fourth-quarter revenue of $2.4 billion was driven by strong execution. Fourth-quarter adjusted earnings per share were up 20% driven by productivity and price.
“The team delivered an exceptionally strong fourth quarter, capping a year of solid execution and transformation across Xylem,” said Matthew Pine, Xylem’s CEO. “We achieved record full-year revenue, adjusted EBITDA margin, and adjusted EPS, supported by broad-based demand across our largest end markets. Healthy organic revenue and orders growth gave us solid momentum coming into 2026.”
“Xylem’s transformation continues to strengthen the quality of our earnings and position us for sustainable, profitable growth. In 2026, we expect resilient underlying demand as we sharpen our focus on simplifying the product portfolio to deliver essential technologies that help customers address their biggest water challenges. We remain confident in both our 2026 outlook and our ability to execute against our long-term framework.”
Net income attributable to Xylem for the quarter was $335 million, or $1.37 per share. Net income margin decreased 50 basis points to 14.0 percent. These results are driven by strong operational performance and a reduction in the estimated loss on sale of businesses, partially offset by increased restructuring and realignment costs. Adjusted net income attributable to Xylem was $348 million, or $1.42 per share, which excludes the loss on sale of businesses, purchase accounting intangible amortization, restructuring and realignment costs, and special charges.
Fourth-quarter adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) margin was 23.2 percent, reflecting a year-over-year increase of 220 basis points. Productivity savings and strong price realization drove the margin expansion, exceeding the impact of inflation, lower volumes, and tariffs.
The Board of Directors of Xylem has declared a first-quarter dividend of $0.43 per share, an increase of 8 percent. The dividend is payable on March 24, 2026, to shareholders of record as of February 24, 2026.
Outlook
Xylem forecasts full-year 2026 revenue of approximately $9.1 to $9.2 billion, up approximately 1 to 3 percent on a reported basis and up approximately 2 to 4 percent on an organic basis.
Full-year 2026 adjusted EBITDA margin is expected to be approximately 22.9 to 23.3 percent, an increase of 70 to 110 basis points from Xylem’s 2025 adjusted results. Full-year free cash flow margin is expected to be approximately 10.2 to 11 percent.
Further 2026 planning assumptions are included in Xylem’s fourth-quarter 2025 earnings materials posted at www.xylem.com/investors. Excluding revenue, Xylem provides guidance only on a non-GAAP basis due to the inherent difficulty in forecasting certain amounts that would be included in GAAP earnings, such as discrete tax items, without unreasonable effort.
Supplemental information on Xylem’s fourth-quarter earnings, as well as definitions of and reconciliations for certain non-GAAP items is posted at www.xylem.com/investors.
About Xylem
Xylem (XYL) is a Fortune 500 global water solutions company that empowers customers and communities to build a more water-secure world. Our 22,000 employees delivered revenue of $9 billion in 2025, optimizing water and resource management with innovation and expertise. Join us at www.xylem.com and Let’s Solve Water.
Forward-Looking Statements
This press release contains “forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Generally, the words “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” "contemplate," "predict," “outlook,” “forecast,” “likely,” “believe,” “target,” “goal,” “objective,” “will,” “could,” “would,” “should,” "potential," "may" and similar expressions or their negative, may, but are not necessary to, identify forward-looking statements. By their nature, forward-looking statements address uncertain matters and include any statements that: are not historical, such as statements about our strategy, financial plans, outlook, objectives, plans, intentions or goals (including those related to our social, environmental and other sustainability goals); or address possible or future results of operations or financial performance, including statements relating to orders, revenues, operating margins and earnings per share growth.
Forward-looking statements notice
Although we believe that expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition, results of operations, and any forward-looking statements are subject to change and to inherent risks and uncertainties, many of which are beyond our control. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in or implied by our forward-looking statements include, among others, the following: the impact of overall industry and general economic conditions, including industrial, governmental, and public and private sector spending, interest rates, availability of funding for customers, inflation and governments’ related monetary policy in response, and the strength of the real estate markets, on economic activity and our operations; geopolitical matters, including nationalism, protectionism and anti-global sentiment, volatility involving the U.S. and other governments, ongoing, escalation or outbreak of international conflicts, and regulatory, trade protection, economic and other risks associated with our global sales and operations; manufacturing and operating cost increases due to macroeconomic conditions, including inflation, energy supply, supply chain shortages, logistics challenges, labor shortages, trade agreements, tariffs, and other trade protection measures, and other factors; demand for our products, disruption, competition or pricing pressures in the markets we serve; cybersecurity incidents, data breaches, or other disruptions of information technology systems on which we or our customers rely, or involving our connected products and services; lack of availability or delays in receiving parts and raw materials from our supply chain, including semiconductors or other key components; operational disruptions at our facilities or that of third parties upon which we rely; safe and compliant treatment and handling of water, wastewater and hazardous materials; failure to successfully execute large projects, including as respects performance guarantees and customers’ budgets, timelines and safety requirements; our ability to retain, compete for and attract leadership, other key talent and labor; defects, security, warranty and liability claims, and recalls related to our products; uncertainty around productivity, simplification, restructuring and realignment actions and related costs and savings; our ability to execute strategic investments for growth, including acquisitions and divestitures; availability, regulation or interference with radio spectrum used by certain of our products; volatility in served markets or impacts on our business and operations due to weather conditions, including the effects of climate change; risks related to our sustainability efforts and related disclosures; fluctuations in foreign currency exchange rates; difficulty predicting our financial results; risk of future impairments to goodwill and other intangible assets; changes in our effective tax rates or tax expenses; failure to comply with, or changes in, laws or regulations, pertaining to our business conduct, operations, products and services, including anti-corruption, artificial intelligence, data privacy and security, trade, competition, the environment, climate change and health and safety; legal, governmental or regulatory claims, investigations or proceedings and associated contingent liabilities; matters related to intellectual property infringement or expiration of rights; and other factors set forth under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024 and in subsequent filings we make with the Securities and Exchange Commission (“SEC”).
Forward-looking and other statements in this press release regarding our environmental and other sustainability efforts, plans and goals are not an indication that these statements are necessarily material to investors, to our business, operating results, financial condition, outlook, or strategy, to our impacts on sustainability matters or other parties, or are required to be disclosed in our filings with the SEC or other regulatory authorities, and are not intended to create legal rights or obligations. In addition, historical, current, and forward-looking social, environmental and sustainability-related statements may be based on: standards for measuring progress that are still developing; internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. All forward-looking statements made herein are based on information currently available to us as of the date of this press release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
XYLEM INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS (Unaudited)
(in millions, except per share data)
| Year Ended December 31, | | 2025 | | 2024 | | 2023 |
| Revenue from products | $7,472 | | $7,095 | | $6,291 | |
| Revenue from services | 1,563 | | 1,467 | | 1,073 | |
| Revenue | 9,035 | | 8,562 | | 7,364 | |
| Cost of revenue from products | 4,459 | | 4,250 | | 3,817 | |
| Cost of revenue from services | 1,101 | | 1,100 | | 830 | |
| Cost of revenue | 5,560 | | 5,350 | | 4,647 | |
| Gross profit | 3,475 | | 3,212 | | 2,717 | |
| Selling, general and administrative expenses | 1,923 | | 1,911 | | 1,757 | |
| Research and development expenses | 226 | | 230 | | 232 | |
| Restructuring and asset impairment charges | 103 | | 62 | | 76 | |
| Operating income | 1,223 | | 1,009 | | 652 | |
| Interest expense | (29) | | (44) | | (49) | |
| Gain on remeasurement of previously held equity interest | - | | 152 | | 152 | |
| Other non-operating income, net | 18 | | 16 | | 33 | |
| Loss on sale of businesses | (31) | | (46) | | (1) | |
| Income before taxes | 1,181 | | 1,087 | | 635 | |
| Income tax expense | (231) | | (197) | | (26) | |
| Net income | 950 | | 890 | | 609 | |
| Net loss attributable to non-controlling interests | 7 | | - | | - | |
| Net income attributable to Xylem | $957 | | $890 | | $609 | |
| Earnings per share: | | | |
| Basic | $3.93 | | $3.67 | | $2.81 | |
| Diluted | $3.92 | | $3.65 | | $2.79 | |
| Weighted average number of shares: | | | |
| Basic | | 243.4 | | 242.6 | | 217.0 |
| Diluted | | 244.0 | | 243.5 | | 218.2 |
XYLEM INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions, except per share amounts)
| December 31, | | 2025 | | 2024 |
| ASSETS | | |
| Current assets: | | |
| Cash and cash equivalents | $1,479 | | $1,121 | |
| Receivables, less allowances for discounts, returns and credit losses of $68 and $59 in 2025 and 2024, respectively | 1,759 | | 1,668 | |
| Inventories | 983 | | 996 | |
| Prepaid and other current assets | 244 | | 236 | |
| Assets held for sale | 176 | | 77 | |
| Total current assets | 4,641 | | 4,098 | |
| Property, plant and equipment, net | 1,159 | | 1,152 | |
| Goodwill | 8,332 | | 7,980 | |
| Other intangible assets, net | 2,272 | | 2,379 | |
| Other non-current assets | 1,230 | | 884 | |
| Total assets | $17,634 | | $16,493 | |
| LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY |
| Current liabilities: | | |
| Accounts payable | $1,013 | | $1,006 | |
| Accrued and other current liabilities | 1,237 | | 1,271 | |
| Short-term borrowings and current maturities of long-term debt | 534 | | 38 | |
| Liabilities held for sale | 72 | | 21 | |
| Total current liabilities | 2,856 | | 2,336 | |
| Long-term debt, net | 1,408 | | 1,978 | |
| Accrued post-retirement benefit obligations | 317 | | 304 | |
| Deferred income tax liabilities | 405 | | 497 | |
| Other non-current accrued liabilities | 899 | | 496 | |
| Total liabilities | 5,885 | | 5,611 | |
| Commitment and Contingencies (Note 20) | | |
| Redeemable non-controlling interest | 258 | | 235 | |
| Stockholders’ equity: | | |
| Common stock - par value $0.01 per share: | | |
| Authorized 750.0 shares, issued 259.9 and 259.2 shares in 2025 and 2024, respectively | 3 | | 3 | |
| Capital in excess of par value | 8,759 | | 8,687 | |
| Retained earnings | 3,706 | | 3,140 | |
| Treasury stock - at cost 16.3 shares and 16.2 shares in 2025 and 2024, respectively | (768) | | (753) | |
| Accumulated other comprehensive loss | (220) | | (435) | |
| Total stockholders’ equity | 11,480 | | 10,642 | |
| Non-controlling interest | 11 | | 5 | |
| Total equity | 11,491 | | 10,647 | |
| Total liabilities, redeemable non-controlling interest, and stockholders’ equity | $17,634 | | $16,493 | |
XYLEM INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(in millions)
| Year Ended December 31, | | 2025 | | 2024 | | 2023 |
| Operating Activities | | | |
| Net income | $950 | | $890 | | $609 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | |
| Depreciation | 267 | | 258 | | 193 | |
| Amortization | 308 | | 304 | | 243 | |
| Deferred income taxes | (35) | | (36) | | (79) | |
| Share-based compensation | 53 | | 56 | | 60 | |
| Restructuring and asset impairment charges | 103 | | 62 | | 76 | |
| Loss from sale of businesses | 31 | | 46 | | 1 | |
| Gain on remeasurement of previously held equity interest | - | | (152) | | - | |
| Other, net | 5 | | 4 | | - | |
| Payments for restructuring | (82) | | (32) | | (30) | |
| Contributions to post-retirement benefit plans | (26) | | (25) | | (25) | |
| Changes in assets and liabilities (net of acquisitions): | | | |
| Changes in receivables | (55) | | (107) | | (87) | |
| Changes in inventories | 23 | | (41) | | 41 | |
| Changes in accounts payable | (22) | | 64 | | 22 | |
| Changes in accrued liabilities | (69) | | 17 | | (4) | |
| Changes in accrued and deferred taxes | - | | 14 | | (109) | |
| Changes in long term receivables | (146) | | (37) | | 1 | |
| Net changes in other assets and liabilities | (64) | | (22) | | (75) | |
| Net Cash - Operating activities | 1,241 | | 1,263 | | 837 | |
| Investing Activities | | | |
| Capital expenditures | (331) | | (321) | | (271) | |
| Proceeds from the sale of property, plant and equipment | 17 | | 4 | | 1 | |
| Acquisitions of businesses, net of cash acquired | (163) | | (193) | | (476) | |
| Proceeds from sale of businesses, net of cash disposed | 49 | | 11 | | 105 | |
| Cash received from investments | 8 | | 6 | | 1 | |
| Cash paid for investments | (42) | | (11) | | (1) | |
| Cash paid for equity investments | (7) | | (6) | | (57) | |
| Cash received from interest rate swaps | - | | - | | 38 | |
| Cash received from cross-currency swaps | 35 | | 29 | | 28 | |
| Cash paid for asset acquisition | (37) | | - | | - | |
| Other, net | - | | (1) | | 4 | |
| Net Cash - Investing activities | (471) | | (482) | | (628) | |
| Financing Activities | | | |
| Short-term debt issued, net | 1 | | - | | - | |
| Short-term debt repaid | - | | (268) | | - | |
| Long-term debt issued, net | - | | 1 | | 278 | |
| Long-term debt repaid, net | (82) | | (17) | | (160) | |
| Repurchase of common stock | (15) | | (20) | | (25) | |
| Proceeds from exercise of employee stock options | 20 | | 67 | | 62 | |
| Dividends paid | (391) | | (350) | | (299) | |
| Other, net | (34) | | (28) | | (13) | |
| Net Cash - Financing activities | (501) | | (615) | | (157) | |
| Effect of exchange rate changes on cash | 90 | | (53) | | 23 | |
| Increase in cash classified within assets held for sale | (12) | | (11) | | - | |
| Decrease in cash classified within assets held for sale | 11 | | - | | - | |
| Cash classified within assets held for sale | (1) | | (11) | | - | |
| Net change in cash and cash equivalents | 358 | | 102 | | 75 | |
| Cash and cash equivalents at beginning of year | 1,121 | | 1,019 | | 944 | |
| Cash and cash equivalents at end of year | $1,479 | | $1,121 | | $1,019 | |
| Supplemental disclosure of cash flow information: | | | |
| Cash paid during the year for: | | | |
| Interest | $61 | | $67 | | $69 | |
| Income taxes (net of refunds received) | $267 | | $219 | | $211 | |
Xylem Inc. Non-GAAP Measures
Management reviews key performance indicators including revenue, gross margins, segment operating income and margins, orders growth, working capital and backlog, among others. In addition, we consider certain non-GAAP (or “adjusted”) measures to be useful to management and investors evaluating our operating performance for the periods presented, and to provide a tool for evaluating our ongoing operations, liquidity and management of assets. This information can assist investors in assessing our financial performance and measures our ability to generate capital for deployment among competing strategic alternatives and initiatives, including but not limited to, dividends, acquisitions, share repurchases and debt repayment. Excluding revenue, Xylem provides guidance only on a non-GAAP basis due to the inherent difficulty in forecasting certain amounts that would be included in GAAP earnings, such as discrete tax items, without unreasonable effort. These adjusted metrics are consistent with how management views our business and are used to make financial, operating and planning decisions. These metrics, however, are not measures of financial performance under GAAP and should not be considered a substitute for revenue, operating income, net income, earnings per share (basic and diluted) or net cash from operating activities as determined in accordance with GAAP. We consider the following items to represent the non-GAAP measures we consider to be key performance indicators, as well as the related reconciling items to the most directly comparable measure calculated and presented in accordance with GAAP. The non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
“Organic revenue” and “Organic orders” defined as revenue and orders, respectively, excluding the impact of fluctuations in foreign currency translation and contributions from acquisitions and divestitures. Divestitures include sales or discontinuance of insignificant portions of our business that did not meet the criteria for classification as a discontinued operation. The period-over-period change resulting from foreign currency translation impacts is determined by translating current period and prior period activity using the same currency conversion rate.
“Constant currency” defined as financial results adjusted for foreign currency translation impacts by translating current period and prior period activity using the same currency conversion rate. This approach is used for countries whose functional currency is not the U.S. dollar.
“EBITDA” defined as earnings before interest, taxes, depreciation and amortization expense. “Adjusted EBITDA” and “Adjusted Segment EBITDA” reflect the adjustments to EBITDA and segment EBITDA, respectively, to exclude share-based compensation charges, restructuring and realignment costs, gain or loss from sale of businesses and special charges.
“Adjusted EBITDA Margin” and “Adjusted Segment EBITDA Margin” defined as adjusted EBITDA and adjusted segment EBITDA divided by total revenue and segment revenue, respectively.
“Adjusted Operating Income”, “Adjusted Segment Operating Income”, “Adjusted Net Income” and “Adjusted EPS” defined as operating income, segment operating income, net income attributable to Xylem and earnings per share attributable to Xylem, adjusted to exclude restructuring and realignment costs, amortization of acquired intangible assets, gain or loss from sale of businesses, gain on remeasurement of previously held equity interest, special charges and tax-related special items, as applicable.
“Adjusted Operating Margin” and “Adjusted Segment Operating Margin” defined as adjusted operating income and adjusted segment operating income divided by total revenue and segment revenue, respectively.
“Free Cash Flow” defined as net cash from operating activities, as reported in the Statement of Cash Flows, less capital expenditures. Our definition of free cash flow does not consider certain non-discretionary cash payments, such as debt.
"Free Cash Flow Margin" defined as free cash flow, adjusted (as applicable) for significant cash paid or received for non-operational tax, acquisition or divestiture activities; divided by revenue.
“Realignment costs” defined as costs not included in restructuring costs that are incurred as part of actions taken to reposition our business, including items such as professional fees, severance, relocation, travel, facility set-up and other costs.
“Special charges” defined as non-recurring costs incurred by the Company, such those related to acquisitions and integrations, divestitures and non-cash impairment charges.
“Tax-related special items” defined as tax items, such as tax return versus tax provision adjustments, tax exam impacts, tax law change impacts, excess tax benefits/losses and other discrete tax adjustments.
Reported vs. Organic & Constant Currency Orders
| (As Reported - GAAP) | (As Adjusted - Organic) | Constant Currency |
|---|
| | (A) | (B) | | | (C) | (D) | (E)=B+C+D | (F) = E/A | (G) = (E - C) / A |
|---|
| Orders | Orders | Change2025 v. 2024 | % Change 2025 v. 2024 | Book-to-Bill | Acquisitions/ Divestitures | FX Impact | ChangeAdj.2025 v. 2024 | % ChangeAdj. 2025 v. 2024 | |
|---|
| 2025 | 2024 | | | | | | | | |
|---|
| Year Ended December 31 | | | | | | | | | | |
| Xylem Inc. | 8,904 | | 8,730 | | 174 | 2% | 99% | 30 | (65) | 139 | 2% | 1% |
| Water Infrastructure | 2,672 | | 2,727 | | (55) | (2)% | 101% | 60 | (35) | (30) | (1)% | (3)% |
| Applied Water | 1,893 | | 1,824 | | 69 | 4% | 102% | - | (15) | 54 | 3% | 3% |
| Measurement and Control Solutions | 1,873 | | 1,672 | | 201 | 12% | 90% | (30) | (14) | 157 | 9% | 11% |
| Water Solutions and Services | 2,466 | | 2,507 | | (41) | (2)% | 100% | - | (1) | (42) | (2)% | (2)% |
| Quarter Ended December 31 | | | | | | | | | | |
| Xylem Inc. | 2,391 | | 2,196 | | 195 | 9% | 100% | 10 | (45) | 160 | 7% | 7% |
| Water Infrastructure | 691 | | 691 | | - | 0% | 92% | 15 | (22) | (7) | (1)% | (3)% |
| Applied Water | 474 | | 442 | | 32 | 7% | 100% | - | (10) | 22 | 5% | 5% |
| Measurement and Control Solutions | 588 | | 473 | | 115 | 24% | 110% | (5) | (7) | 103 | 22% | 23% |
| Water Solutions and Services | 638 | | 590 | | 48 | 8% | 100% | - | (6) | 42 | 7% | 7% |
| Quarter Ended September 30 | | | | | | | | | | |
| Xylem Inc. | 2,181 | | 2,201 | | (20) | (1)% | 96% | 2 | (27) | (45) | (2)% | (2)% |
| Water Infrastructure | 683 | | 700 | | (17) | (2)% | 104% | 15 | (13) | (15) | (2)% | (4)% |
| Applied Water | 445 | | 437 | | 8 | 2% | 98% | - | (6) | 2 | - % | - % |
| Measurement and Control Solutions | 446 | | 386 | | 60 | 16% | 85% | (13) | (5) | 42 | 11% | 14% |
| Water Solutions and Services | 607 | | 678 | | (71) | (10)% | 96% | - | (3) | (74) | (11)% | (11)% |
| Quarter Ended June 30 | | | | | | | | | | |
| Xylem Inc. | 2,174 | | 2,087 | | 87 | 4% | 94% | 13 | (23) | 77 | 4% | 3% |
| Water Infrastructure | 672 | | 690 | | (18) | (3)% | 103% | 16 | (12) | (14) | (2)% | (4)% |
| Applied Water | 488 | | 465 | | 23 | 5% | 101% | - | (5) | 18 | 4% | 4% |
| Measurement and Control Solutions | 437 | | 384 | | 53 | 14% | 81% | (3) | (5) | 45 | 12% | 13% |
| Water Solutions and Services | 577 | | 548 | | 29 | 5% | 92% | - | (1) | 28 | 5% | 5% |
| Quarter Ended March 31 | | | | | | | | | | |
| Xylem Inc. | 2,158 | | 2,246 | | (88) | (4)% | 104% | 5 | 30 | (53) | (2)% | (3)% |
| Water Infrastructure | 626 | | 646 | | (20) | (3)% | 108% | 14 | 12 | 6 | 1% | (1)% |
| Applied Water | 486 | | 480 | | 6 | 1% | 112% | - | 6 | 12 | 3% | 3% |
| Measurement and Control Solutions | 402 | | 429 | | (27) | (6)% | 82% | (9) | 3 | (33) | (8)% | (6)% |
| Water Solutions and Services | 644 | | 691 | | (47) | (7)% | 114% | - | 9 | (38) | (5)% | (5)% |
Reported vs. Organic & Constant Currency Revenue
| (As Reported - GAAP) | (As Adjusted - Organic) | Constant Currency |
|---|
| | (A) | (B) | | (C) | (D) | (E) = B+C+D | (F) = E/A | (G) = (E - C) / A |
|---|
| Revenue | Revenue | Change2025 v. 2024 | % Change 2025 v. 2024 | Acquisitions/ Divestitures | FX Impact | ChangeAdj.2025 v. 2024 | % ChangeAdj. 2025 v. 2024 | |
|---|
| 2025 | 2024 | | | | | | | |
|---|
| Year Ended December 31 | | | | | | | | | |
| Xylem Inc. | 9,035 | | 8,562 | | 473 | 6% | 17 | (71) | 419 | 5% | 5% |
| Water Infrastructure | 2,636 | | 2,555 | | 81 | 3% | 48 | (41) | 88 | 3% | 2% |
| Applied Water | 1,849 | | 1,793 | | 56 | 3% | - | (14) | 42 | 2% | 2% |
| Measurement and Control Solutions | 2,086 | | 1,871 | | 215 | 11% | (30) | (13) | 172 | 9% | 11% |
| Water Solutions and Services | 2,464 | | 2,343 | | 121 | 5% | (1) | (3) | 117 | 5% | 5% |
| Quarter Ended December 31 | | | | | | | | | |
| Xylem Inc. | 2,397 | | 2,256 | | 141 | 6% | (6) | (48) | 87 | 4% | 4% |
| Water Infrastructure | 749 | | 727 | | 22 | 3% | 4 | (26) | - | - % | (1)% |
| Applied Water | 475 | | 454 | | 21 | 5% | - | (9) | 12 | 3% | 3% |
| Measurement and Control Solutions | 534 | | 469 | | 65 | 14% | (9) | (7) | 49 | 10% | 12% |
| Water Solutions and Services | 639 | | 606 | | 33 | 5% | (1) | (6) | 26 | 4% | 4% |
| Quarter Ended September 30 | | | | | | | | | |
| Xylem Inc. | 2,268 | | 2,104 | | 164 | 8% | 7 | (26) | 145 | 7% | 7% |
| Water Infrastructure | 656 | | 623 | | 33 | 5% | 15 | (14) | 34 | 5% | 3% |
| Applied Water | 456 | | 447 | | 9 | 2% | - | (5) | 4 | 1% | 1% |
| Measurement and Control Solutions | 522 | | 458 | | 64 | 14% | (8) | (6) | 50 | 11% | 13% |
| Water Solutions and Services | 634 | | 576 | | 58 | 10% | - | (1) | 57 | 10% | 10% |
| Quarter Ended June 30 | | | | | | | | | |
| Xylem Inc. | 2,301 | | 2,169 | | 132 | 6% | 11 | (23) | 120 | 6% | 5% |
| Water Infrastructure | 650 | | 631 | | 19 | 3% | 19 | (12) | 26 | 4% | 1% |
| Applied Water | 483 | | 456 | | 27 | 6% | - | (6) | 21 | 5% | 5% |
| Measurement and Control Solutions | 540 | | 482 | | 58 | 12% | (8) | (4) | 46 | 10% | 11% |
| Water Solutions and Services | 628 | | 600 | | 28 | 5% | - | (1) | 27 | 5% | 5% |
| Quarter Ended March 31 | | | | | | | | | |
| Xylem Inc. | 2,069 | | 2,033 | | 36 | 2% | 5 | 26 | 67 | 3% | 3% |
| Water Infrastructure | 581 | | 574 | | 7 | 1% | 10 | 11 | 28 | 5% | 3% |
| Applied Water | 435 | | 436 | | (1) | 0% | - | 6 | 5 | 1% | 1% |
| Measurement and Control Solutions | 490 | | 462 | | 28 | 6% | (5) | 4 | 27 | 6% | 7% |
| Water Solutions and Services | 563 | | 561 | | 2 | 0% | - | 5 | 7 | 1% | 1% |
Adjusted Diluted EPS
($ Millions, except per share amounts)
| Q4 2025 | Q4 2024 |
|---|
| As Reported | Adjustments | | Adjusted | As Reported | Adjustments | | Adjusted |
|---|
| Total Revenue | 2,397 | - | | | 2,397 | 2,256 | - | | 2,256 |
| Operating Income | 353 | 103 | | a | 456 | 267 | 110 | a | 377 |
| Operating Margin | 14.7% | | | 19.0% | 11.8% | | | 16.7% |
| Interest Expense | (6) | - | | | (6) | (9) | - | | (9) |
| Other Non-Operating Income (Expense) | 5 | - | | | 5 | 5 | - | | 5 |
| Gain on remeasurement of previously held equity interest | - | - | | | - | 152 | (152) | b | - |
| Gain/(Loss) from sale of businesses | 16 | (16) | | c | - | (40) | 40 | c | - |
| Income before Taxes | 368 | 87 | | | 455 | 375 | (2) | | 373 |
| Provision for Income Taxes | (35) | (74) | | d | (109) | (49) | (37) | d | (86) |
| Net Income | 333 | 13 | | | 346 | 326 | (39) | | 287 |
| Net Loss Attributable to Non-controlling Interests | 2 | - | | | 2 | - | - | | - |
| Net Income Attributable to Xylem | 335 | | 13 | | 348 | 326 | (39) | | 287 |
| Diluted Shares | 244.2 | | | 244.2 | 243.8 | | | 243.8 |
| Diluted EPS | $1.37 | $0.05 | | | $1.42 | $1.34 | $(0.16) | | $1.18 |
| Q4 YTD 2025 | Q4 YTD 2024 |
|---|
| As Reported | Adjustments | | Adjusted | As Reported | Adjustments | | Adjusted |
|---|
| Total Revenue | 9,035 | - | | 9,035 | 8,562 | - | | 8,562 |
| Operating Income | 1,223 | 389 | a | 1,612 | 1,009 | 364 | a | 1,373 |
| Operating Margin | 13.5% | | | 17.8% | 11.8% | | | 16.0% |
| Interest Expense | (29) | - | | (29) | (44) | - | | (44) |
| Other Non-Operating Income (Expense) | 18 | - | | 18 | 16 | - | | 16 |
| Gain on remeasurement of previously held equity interest | - | - | | - | 152 | (152) | b | - |
| Gain/(Loss) from Sale of businesses | (31) | 31 | c | - | (46) | 46 | c | - |
| Income before Taxes | 1,181 | 420 | | 1,601 | 1,087 | 258 | | 1,345 |
| Provision for Income Taxes | (231) | (137) | d | (368) | (197) | (107) | d | (304) |
| Net Income | 950 | 283 | | 1,233 | 890 | 151 | | 1,041 |
| Net Loss Attributable to Non-controlling Interest | 7 | - | | 7 | - | - | | - |
| Net Income Attributable to Xylem | 957 | 283 | | 1,240 | 890 | 151 | | 1,041 |
| Diluted Shares | 244.0 | | | 244.0 | 243.5 | | | 243.5 |
| Diluted EPS | $3.92 | $1.16 | | $5.08 | $3.65 | $0.62 | | $4.27 |
a
Quarter-to-date: Restructuring & realignment costs: 2025 - $46 million and 2024 - $36 millionSpecial charges: 2025 - $2 million of acquisition, divestiture & integration costs; 2024 - $15 million of acquisition & integration costs and $6 million of other special charges Purchase accounting intangible amortization: 2025 - $55 million and 2024 - $53 million
Year-to-date:Restructuring & realignment costs: 2025 - $133 million and 2024 - $91 millionSpecial charges: 2025 - $28 million of acquisition, divestiture & integration costs and $8 million of intangible asset impairment charges; 2024 - $50 million of acquisition & integration related costs and $7 million of intangible asset impairment chargesPurchase Accounting Intangible amortization: 2025 - $220 million and 2024 - $216 million b
Gain on joint venture remeasurement as per income statement
Gain/(Loss) from sale of business as per income statement for all periods presented d
Quarter-to-date: 2025 - Net tax impact on pre-tax adjustments (notes a and c) of $16 million and $58 million of other tax special benefit items, primarily deferred tax benefits from internal reorganizations; 2024 - Net tax impact on pre-tax adjustments (notes a, b and c) of $29 million and other tax special benefit items of $8 million
Year-to-date: 2025 - Net tax impact on pre-tax adjustments (notes a and c) of $85 million and other tax special benefit items of $52 million, primarily deferred tax benefits from internal reorganizations; 2024 - Net tax impact on pre-tax adjustments (notes a, b and c) of $88 million and other tax special benefit items of $19 million
EBITDA and Adjusted EBITDA by Quarter
| Q1 | Q2 | Q3 | Q4 | Total |
|---|
| 2025 |
| Net Income attributable to Xylem | 169 | 226 | 227 | 335 | 957 | |
| Net Income Margin | 8.2% | 9.8% | 10.0% | 14.0% | 10.6% | |
| Depreciation | 68 | 69 | 64 | 66 | 267 | |
| Amortization | 77 | 76 | 78 | 77 | 308 | |
| Interest Expense (Income), net | - | 3 | - | (1) | 2 | |
| Income Tax Expense | 50 | 75 | 71 | 35 | 231 | |
| EBITDA | 364 | 449 | 440 | 512 | 1,765 | |
| Share-based Compensation | 12 | 13 | 12 | 16 | 53 | |
| Restructuring & Realignment | 27 | 29 | 30 | 45 | 131 | |
| Special Charges | 12 | 13 | 9 | 2 | 36 | |
| Loss/(Gain) from sale of business | 10 | - | 37 | (16) | 31 | |
| Loss attributable to non-controlling interest | (2) | (2) | (1) | (2) | (7) | |
| Adjusted EBITDA | 423 | 502 | 527 | 557 | 2,009 | |
| Revenue | 2,069 | 2,301 | 2,268 | 2,397 | 9,035 | |
| Adjusted EBITDA Margin | 20.4% | 21.8% | 23.2% | 23.2% | 22.2% | |
| | | | | | 2024 |
| Q1 | Q2 | Q3 | Q4 | Total |
| Net Income | 153 | 194 | 217 | 326 | 890 | |
| Net Income Margin | 7.5% | 8.9% | 10.3% | 14.5% | 10.4% | |
| Depreciation | 61 | 62 | 68 | 67 | 258 | |
| Amortization | 73 | 83 | 73 | 75 | 304 | |
| Interest Expense (Income), net | 7 | 6 | 5 | (2) | 16 | |
| Income Tax Expense | 43 | 53 | 52 | 49 | 197 | |
| EBITDA | 337 | 398 | 415 | 515 | 1,665 | |
| Share-based Compensation | 18 | 13 | 12 | 13 | 56 | |
| Restructuring & Realignment | 15 | 29 | 11 | 36 | 91 | |
| Special Charges | 16 | 13 | 7 | 21 | 57 | |
| Gain on joint venture remeasurement | - | - | - | (152) | (152) | |
| Loss/(gain) from sale of business | 5 | (1) | 2 | 40 | 46 | |
| Adjusted EBITDA | 391 | 452 | 447 | 473 | 1,763 | |
| Revenue | 2,033 | 2,169 | 2,104 | 2,256 | 8,562 | |
| Adjusted EBITDA Margin | 19.2% | 20.8% | 21.2% | 21.0% | 20.6% | |
Contacts
Tel +1.202.869.9150
Media · Houston Spencer +1 (914) 240-3046 · houston.spencer@xylem.com
Investors · Keith Buettner +1 (724) 772-1531 · keith.buettner@xylem.com