Slide 1: 2025 First Quarter Results and Earnings
2025 First Quarter Results and Earnings April 29, 2025
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
Slide 3: 1Q 2025 Performance Summary
1Q 2025 Performance Summary ($ in millions, unless otherwise noted) Measurement Water Solutions Xylem Consolidated Water Infrastructure Applied Water and Control Solutions and Services Reported 1Q Adj* 1Q Reported 1Q Adj* 1Q Reported 1Q Adj* 1Q Reported 1Q Adj* 1Q Reported 1Q Adj* 1Q Orders 2,158 40
Slide 4: 1Q 2025 Earnings Highlights
1Q 2025 Earnings Highlights Strong start to 2025 with 1Q exceeding expectations Strong demand with book to bill >1, revenue growth across all segments 120 bps Adj. EBITDA* margin expansion and double-digit Adj. EPS* growth Releasing 2024 Sustainability Report April 30, highlighting progress towards
Slide 5: 1Q 2025 Financial Performance
1Q 2025 Financial Performance Orders Revenue Adj. EBITDA* Margin Adj. EPS* Free Cash Flow* $2,246 $2,158 $2,033 $2,069 19.2% 20.4% $1.03 $15 $0.90 Organic* (2%) Organic* 3% +120 bps 14% -353% -$38 1Q 2024 1Q 2025 1Q 2024 1Q 2025 1Q 2024 1Q 2025 1Q 2024 1Q 2025 1Q 2024 1Q 2025 FCF Margin* 1% (2)% • R
Slide 6: 1Q 2025 Segment Performance Summary
1Q 2025 Segment Performance Summary Measurement and Water Solutions Water Infrastructure Applied Water Control Solutions and Services Orders / Organic Growth* $402M (8%) $626M +1% $486M +3% $644M (5%) Revenue / Organic Growth* $490M +6% $581M +5% $435M +1% $563M +1% Adj. EBITDA* $103M $120M $85M $12
Slide 7: Approximate Annualized Tariff Impact Assumptions
Approximate Annualized Tariff Impact Assumptions (Import $ with tariff rates as of 4/28/25) Imports Tariff Impact Net Tariff Exposure Actions China $100M $145M $145M • Price increases implemented in (145%) impacted segments • Supply chain management Mexico $500M $125M $30M accelerated (25%) (ex-USMC
Slide 8: FY 2025 and 2Q 2025 Guidance
FY 2025 and 2Q 2025 Guidance Prior FY Guide** Updated FY Guide*** 2Q Guide Full-Year Highlights $8.6 - 8.7B $8.7 – 8.8B ~$2.2B Revenue 0 – 2% Total Growth 1 - 2% Total Growth 1 - 2% Total Growth • Organic revenue growth driven by price, strong demand, and backlog 3 – 4% Organic* Growth 3 - 4% Organi
Slide 9: Key Takeaways
Key Takeaways Momentum driven by Simplification of our business Capital Deployment and Portfolio Optimization underway Maintaining Sustainability Leadership position Driving profitable growth and shareholder value creation 9 1Q 2025 Results & Earnings
Slide 10: Appendix
Appendix 10 1Q 2025 Results & Earnings
Slide 11: FY 2025 Guidance Key Assumptions
FY 2025 Guidance Key Assumptions FY 2025 Assumptions Corporate Expense $65M - $70M Restructuring & Realignment Costs* $90M - $110M Capex ~$390M Estimated Tax Rate1 ~22 - 23% Purchase Accounting Intangible Amortization ~$240M EUR / USD Rate 1.08 11 1Q 2025 Results & Earnings *See appendix for definit
Slide 12: Segment Key Facts
Segment Key Facts Water Solutions and Services Applied Water Treatment, transport and assessment services solutions with an Industrial and buildings solutions applications including pumps, extensive service network and highly recurring revenue valves, heat exchangers, controls, and dispensing equipm
Slide 13: Xylem Inc. Non-GAAP Measures
Xylem Inc. Non-GAAP Measures Management reviews key performance indicators including revenue, gross margins, segment operating income and margins, orders growth, working capital and backlog, among others. In addition, we consider certain non-GAAP (or "adjusted") measures to be useful to management a
Slide 14: Non-GAAP Reconciliation: Orders
Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic and Constant Currency Orders ($ Millions) Constant (As Reported - GAAP) (As Adjusted - Organic) Currency (A) (B) (C) (D) (E) = B+C+D (F) = E/A (G) = (E - C) / A Change % Change Acquisitions / Change % Change Orders Orders 2025 v. 2024 2025 v. 2
Slide 15: Non-GAAP Reconciliation: Revenue
Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic and Constant Currency Revenue ($ Millions) Constant (As Reported - GAAP) (As Adjusted - Organic) 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
Slide 16: Non-GAAP Reconciliation: Adjusted Operating Income
Xylem Inc. Non-GAAP Reconciliation Adjusted Operating Income ($ Millions) Q1 Q1 Q1 2025 2024 2025 2024 2025 2024 Total Revenue Special Charges Adjusted Operating Income (Loss) • Total Xylem 2,069 2,033 • Total Xylem 12 16 • Total Xylem 325 294 • Water Infrastructure 581 574 • Water Infrastructure 2
Slide 17: Non-GAAP Reconciliation: Adjusted Diluted EPS
Xylem Inc. Non-GAAP Reconciliation Adjusted Diluted EPS ($ Millions, except per share amounts) Q1 2025 Q1 2024 As Reported Adjustments Adjusted As Reported Adjustments Adjusted Total Revenue 2,069 - 2,069 2,033 - 2,033 Operating Income 231 94 a 325 209 85 a 294 Operating Margin 11.2% 15.7% 10.3% 14.
Slide 18: Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA
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 169 169 Net Income margin 8.2% N/A N/A N/A N/A 8.2% Depreciation 68 68 A
Slide 19: EBITDA Reconciliation: 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
Slide 20: EBITDA Reconciliation: Measurement and Control, Water Solutions
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
Slide 21: Net Cash Operating Activities vs. Free Cash Flow
Xylem Inc. Non-GAAP Reconciliation Net Cash – Operating Activities vs. Free Cash Flow ($ Millions) Q1 2025 2024 Net Cash - Operating Activities $33 $89 Capital Expenditures - PPE (55) (59) Capital Expenditures - Software (16) (15) Capital Expenditures (71) (74) Free Cash Flow ($38) $15 Revenue $2,06
Slide 22: Thank you.
Thank you. 1Q 2025 Earnings & Results Replay of the webcast is available until midnight May 13, 2025 Replay: +1 (877) 344-7529 or +1 (412) 317-0088 (INTL) Access Code 9566520 NYSE: XYL Xylem Investor Relations Website LinkedIn | Twitter | Facebook | YouTube | Instagram