Xylem Inc. · NYSE:XYL

Xylem — Q4 2025 Earnings Presentation

24 slides from Xylem's earnings presentation, Feb 10, 2026

  1. Slide 1: 2025 Fourth Quarter Results and Earnings

    2025 Fourth Quarter Results and Earnings February 10, 2026

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements This presentation 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,” “int

  3. Slide 3: 4Q 2025 Performance Summary

    4Q 2025 Performance Summary ($ in millions, unless otherwise noted) Measurement Water Solutions Xylem Consolidated Water Infrastructure Applied Water and Control Solutions and Services Reported 4Q Adj* 4Q Reported 4Q Adj* 4Q Reported 4Q Adj* 4Q Reported 4Q Adj* 4Q Reported 4Q Adj* 4Q Orders 2,391 2,

  4. Slide 4: 2025 Earnings Highlights

    2025 Earnings Highlights Outstanding full-year performance with strong 4Q close Record FY revenue, Adj. EBITDA Margin* and Adj. EPS* Healthy demand and FY book to bill ~1, high single digit Q4 orders growth Solid 4Q organic revenue growth of 4%, up across most end markets, and record Adj. EPS* Simpl

  5. Slide 5: 4Q 2025 Financial Performance

    4Q 2025 Financial Performance Orders Revenue Adj. EBITDA Margin* Adj. EPS* YTD Free Cash Flow* $2,391 $2,397 23.2% $1.42 $942 $925 $2,196 $2,256 21.0% $1.18 (2)% Organic* 7% Organic* 4% +220 bps 20% 4Q 2024 4Q 2025 4Q 2024 4Q 2025 4Q 2024 4Q 2025 4Q 2024 4Q 2025 2024 2025 YTD FCF Margin* 11% 10% • R

  6. Slide 6: 4Q 2025 Segment Performance Summary

    4Q 2025 Segment Performance Summary Measurement and Water Solutions Water Infrastructure Applied Water Control Solutions and Services Orders / Organic Growth* $588M +22% $691M (1)% $474M +5% $638M +7% Revenue / Organic Growth* $534M +10% $749M +0% $475M +3% $639M +4% Adj. EBITDA $108M $219M $89M $15

  7. Slide 7: FY 2026 Segment Outlook

    FY 2026 Segment Outlook Measurement and Water Solutions Water Infrastructure Applied Water Control Solutions and Services Organic Revenue* Up Mid-Single Up Low-Single Up Low-Single Up Mid-Single Growth Digits Digits Digits Digits Key Drivers • Healthy demand with strong • Resilient demand due to our

  8. Slide 8: FY 2026 and 1Q 2026 Guidance

    FY 2026 and 1Q 2026 Guidance FY Guide** 1Q Guide Full-Year Highlights $9.1 – 9.2B ~$2.1B Revenue 1 - 3% Total Growth 1 - 2% Total Growth 2 - 4% Organic* Growth ~0% Organic* Growth • Organic revenue* growth driven by healthy demand, backlog execution, and price more than offsetting 80/20 implementati

  9. Slide 9: Key Takeaways

    Key Takeaways Record full-year 2025 performance Momentum going into 2026 with focus on profitable growth On track to deliver long-term commitments Optimizing our portfolio to best serve our customers 9 4Q 2025 Results & Earnings

  10. Slide 10: Appendix

    Appendix 10 Q2 2025 Results & Earnings

  11. Slide 11: FY 2026 Guidance Key Assumptions

    FY 2026 Guidance Key Assumptions FY 2026 Assumptions Corporate Expense ~$85M Restructuring & Realignment Costs* $50M - $70M Capex ~$350M Estimated Tax Rate1 ~22 - 23% Purchase Accounting Intangible Amortization ~$220M EUR / USD Rate 1.18 *See appendix for definitions of non-GAAP measures and non-GAA

  12. Slide 12: Segment Key Facts

    Segment Key Facts Water Solutions and Services Applied Water Treatment, transport and assessment services solutions with an Industrial and buildings solutions applications including pumps, extensive service network and highly recurring revenue valves, heat exchangers, controls, and dispensing equipm

  13. Slide 13: Xylem Inc. Non-GAAP Measures

    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 a

  14. Slide 14: Non-GAAP Reconciliation: Orders

    Xylem Inc. Non-GAAP Reconciliation Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic and Constant Currency Orders Reported ($and vs. Organic Millions) Constant Currency Orders ($ Millions) (As Reported) (As Adjusted - Organic) Constant Currency (A) (B) (C) (D) (E) = B+C+D (F) = E/A (G) = (E -

  15. Slide 15: Non-GAAP Reconciliation: Revenue

    Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic and Constant Currency Revenue ($ Millions) (As Reported - GAAP) (As Adjusted - Organic) Constant Currency (A) (B) (C) (D) (E) = B+C+D (F) = E/A (G) = (E - C) / A Change % Change Acquisitions / Change % Change Revenue Revenue 2025 v. 2024 2025 v

  16. Slide 16: Non-GAAP Reconciliation: Adjusted Operating Income

    Xylem Inc. Non-GAAP Reconciliation Adjusted Operating Income ($ Millions) Q1 Q2 Q3 Q4 YTD 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Total Revenue • Total Xylem 2,069 2,033 2,301 2,169 2,268 2,104 2,397 2,256 9,035 8,562 • Water Infrastructure 581 574 650 631 656 623 749 727 2,636 2,555 • App

  17. Slide 17: Non-GAAP Reconciliation: Adjusted Operating Income

    Xylem Inc. Non-GAAP Reconciliation Adjusted Operating Income ($ Millions) Q1 Q2 Q3 Q4 YTD 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Special Charges • Total Xylem 12 16 13 13 9 7 2 21 36 57 • Water Infrastructure 2 2 2 4 - (2) - 6 4 10 • Applied Water - - - - - - - - - - • Measurement and Con

  18. Slide 18: Non-GAAP Reconciliation: Adjusted Diluted EPS Q4

    Xylem Inc. Non-GAAP Reconciliation 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% 1

  19. Slide 19: Non-GAAP Reconciliation: Adjusted Diluted EPS YTD

    Xylem Inc. Non-GAAP Reconciliation Adjusted Diluted EPS ($ Millions, except per share amounts) 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.

  20. Slide 20: Non-GAAP Reconciliation: EBITDA by Quarter

    Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) 2025 Q1 Q2 Q3 Q4 Total Net Income attributable to Xylem 169 226 227 335 957 Net Income margin 8.2% 9.8% N/A 10.0% 14.0% 10.6% De

  21. Slide 21: Non-GAAP Reconciliation: EBITDA Water Infrastructure and Applied Water

    Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Xylem Inc. Non-GAAP Reconciliation Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) EBITDA and Adjusted EBITDA by Quarter ($ Millions) Water Infrastucture Applied Water 2025 202

  22. Slide 22: Non-GAAP Reconciliation: EBITDA MCS and WSS

    Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Xylem Inc. Non-GAAP Reconciliation Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) EBITDA and Adjusted EBITDA by Quarter ($ Millions) Measurement and Control Solutions Water So

  23. Slide 23: Net Cash – Operating Activities vs. Free Cash Flow

    Xylem Inc. Non-GAAP Reconciliation Net Cash – Operating Activities vs. Free Cash Flow ($ Millions) Xylem Inc. Non-GAAP Reconciliation Net Cash - Operating Activities vs. Free Cash Flow ($ Millions) Q1 Q2 Q3 Q4 Year-to-Date 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Net Cash - Operating Activi

  24. Slide 24: Thank you.

    Thank you. 4Q 2025 Earnings & Results Replay of the webcast is available until midnight February 24, 2026 Replay: +1 (855) 669-9658 or +1 (412) 317-0088 (INTL) Access Code 3280652 NYSE: XYL Xylem Investor Relations Website LinkedIn | Twitter | Facebook | YouTube | Instagram

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