Slide 1: 2025 Second Quarter Results and Earnings
2025 Second Quarter Results and Earnings July 31, 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: 2Q 2025 Performance Summary
2Q 2025 Performance Summary ($ in millions, unless otherwise noted) Measurement Water Solutions Xylem Consolidated Water Infrastructure Applied Water and Control Solutions and Services Reported 2Q Adj* 2Q Reported 2Q Adj* 2Q Reported 2Q Adj* 2Q Reported 2Q Adj* 2Q Reported 2Q Adj* 2Q Orders 2,174 43
Slide 4: 2Q 2025 Earnings Highlights
2Q 2025 Earnings Highlights Outperformed expectations on strong execution Order strength driven by developed markets Revenue growth across all segments Record quarterly Adj EBITDA Margin* with 100 bps expansion and double-digit EPS growth Operating model transformation driving profitable growth Pric
Slide 5: 2Q 2025 Financial Performance
2Q 2025 Financial Performance Orders Revenue Adj. EBITDA Margin* Adj. EPS* YTD Free Cash Flow* $2,174 $2,301 21.8% $1.26 $230 $2,087 $2,169 20.8% $1.09 $169 Organic* 4% Organic* 6% +100 bps 16% -27% 2Q 2024 2Q 2025 2Q 2024 2Q 2025 2Q 2024 2Q 2025 2Q 2024 2Q 2025 2Q 2024 2Q 2025 YTD FCF Margin* 5% 4%
Slide 6: 2Q 2025 Segment Performance Summary
2Q 2025 Segment Performance Summary Measurement and Water Solutions Water Infrastructure Applied Water Control Solutions and Services Orders / Organic Growth* $437M +12% $672M (2)% $488M +4% $577M +5% Revenue / Organic Growth* $540M +10% $650M +4% $483M +5% $628M +5% Adj. EBITDA $125M $142M $105M $1
Slide 7: Approximate Annualized Tariff Impact Assumptions
Approximate Annualized Tariff Impact Assumptions (Import $ with tariff rates as expected on 7/30/25) Imports Tariff Impact Net Tariff Exposure Comments China (30%) $100M $30M $30M • Price increases implemented in impacted segments, supply Mexico $500M $125M $30M chain management accelerated (25%) (e
Slide 8: FY 2025 and 3Q 2025 Guidance
FY 2025 and 3Q 2025 Guidance Prior FY Guide Updated FY Guide** 3Q Guide** Full-Year Highlights $8.6 - 8.7B $8.9 – 9.0B ~$2.2B Revenue 1 – 2% Total Growth 4-5% Total Growth 5 - 6% Total Growth • Organic revenue* growth driven by price, strong demand, and backlog 3 – 4% Organic* Growth ~4% Organic* Gr
Slide 9: Key Takeaways
Key Takeaways Strong results driven by execution and simplification Self-help initiatives building foundation for long-term growth Guidance raise reflects 1H outperformance and healthy demand Aligned, customer-centric culture driving shareholder value creation 9 2Q 2025 Results & Earnings
Slide 10: Appendix
Appendix 10 2Q 2025 Results & Earnings
Slide 11: FY 2025 Guidance Key Assumptions
FY 2025 Guidance Key Assumptions FY 2025 Assumptions Corporate Expense $75M - $85M Restructuring & Realignment Costs* $90M - $110M Capex ~$390M Estimated Tax Rate1 ~22 - 23% Purchase Accounting Intangible Amortization ~$240M EUR / USD Rate 1.17 11 2Q 2025 Results & Earnings *See appendix for definit
Slide 12: Segment Key Facts
Segment Key Facts Water Solutions and Services Applied Water Treatment, transport and assessment services solutions with an Industrial and buildings solutions applications including pumps, extensive service network and highly recurring revenue valves, heat exchangers, controls, and dispensing equipm
Slide 13: Xylem Inc. Non-GAAP Measures
Xylem Inc. Non-GAAP Measures Management reviews key performance indicators including revenue, gross margins, segment operating income and margins, orders growth, working capital and backlog, among others. In addition, we consider certain non-GAAP (or "adjusted") measures to be useful to management a
Slide 14: Reported vs. Organic and Constant Currency Orders
Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic and Constant Currency Orders ($ Millions) 14 2Q 2025 Results & Earnings
Slide 15: Reported vs. Organic and Constant Currency 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
Slide 16: Adjusted Operating Income
Xylem Inc. Non-GAAP Reconciliation Adjusted Operating Income ($ Millions) Q1 Q2 YTD Restructuring & Realignment Costs 2025 2024 2025 2024 2025 2024 • Total Xylem 27 15 29 29 56 44 Total Revenue • Water Infrastructure 15 7 12 2 27 9 • Total Xylem 2,069 2,033 2,301 2,169 4,370 4,202 • Applied Water 5
Slide 17: Adjusted Diluted EPS Q2
Xylem Inc. Non-GAAP Reconciliation Adjusted Diluted EPS ($ Millions, except per share amounts) Q2 2025 Q2 2024 As Reported Adjustments Adjusted As Reported Adjustments Adjusted Total Revenue 2,301 - 2,301 2,169 - 2,169 Operating Income 305 96 a 401 253 99 a 352 Operating Margin 13.3% 17.4% 11.7% 16.
Slide 18: Adjusted Diluted EPS Q2 YTD
Xylem Inc. Non-GAAP Reconciliation Adjusted Diluted EPS ($ Millions, except per share amounts) Q2 YTD 2025 Q2 YTD 2024 As Reported Adjustments Adjusted As Reported Adjustments Adjusted Total Revenue 4,370 - 4,370 4,202 - 4,202 Operating Income 536 191 a 727 462 184 a 646 Operating Margin 12.3% 16.6%
Slide 19: EBITDA and Adjusted 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 169 226 395 Net Income margin 8.2% 9.8% N/A 9.0% Depreciation 68 69 137
Slide 20: EBITDA and Adjusted EBITDA: Water Infrastructure, 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 21: EBITDA and Adjusted EBITDA: 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 22: Net Cash – Operating Activities vs. Free Cash Flow
Xylem Inc. Non-GAAP Reconciliation Net Cash – Operating Activities vs. Free Cash Flow ($ Millions) 22 2Q 2025 Results & Earnings
Slide 23: Thank you.
Thank you. 2Q 2025 Earnings & Results Replay of the webcast is available until midnight August 14, 2025 Replay: +1 (877) 344-7529 or +1 (412) 317-0088 (INTL) Access Code 7818240 NYSE: XYL Xylem Investor Relations Website LinkedIn | Twitter | Facebook | YouTube | Instagram