Xylem Inc. · NYSE:XYL

Xylem — Q3 2025 Earnings Presentation

23 slides from Xylem's earnings presentation, Oct 28, 2025

  1. Slide 1: 2025 Third Quarter Results and Earnings

    2025 Third Quarter Results and Earnings October 28, 2025

  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: 3Q 2025 Performance Summary

    3Q 2025 Performance Summary ($ in millions, unless otherwise noted) Measurement Water Solutions Xylem Consolidated Water Infrastructure Applied Water and Control Solutions and Services Reported 3Q Adj* 3Q Reported 3Q Adj* 3Q Reported 3Q Adj* 3Q Reported 3Q Adj* 3Q Reported 3Q Adj* 3Q Orders 2,181 44

  4. Slide 4: 3Q 2025 Earnings Highlights

    3Q 2025 Earnings Highlights Exceeded targets through commercial and operational momentum Revenue growth across all segments and most end markets with double digit growth in MCS and WSS Record quarterly Adj EBITDA Margin* with 200 bps year over year expansion 23% Adj EPS* growth Simplification drivin

  5. Slide 5: 3Q 2025 Financial Performance

    3Q 2025 Financial Performance Orders Revenue Adj. EBITDA Margin* Adj. EPS* YTD Free Cash Flow $2,201 $2,181 $2,268 23.2% $1.37 $467 $450 $2,104 21.2% $1.11 Organic* (2)% Organic* 7% +200 bps 23% (4)% 3Q 2024 3Q 2025 3Q 2024 3Q 2025 3Q 2024 3Q 2025 3Q 2024 3Q 2025 3Q 2024 3Q 2025 YTD FCF Margin* 7% 7

  6. Slide 6: 3Q 2025 Segment Performance Summary

    3Q 2025 Segment Performance Summary Measurement and Water Solutions Water Infrastructure Applied Water Control Solutions and Services Orders / Organic Growth* $446M +11% $683M (2)% $445M +0% $607M (11)% Revenue / Organic Growth* $522M +11% $656M +5% $456M +1% $634M +10% Adj. EBITDA $114M $160M $99M

  7. Slide 7: Approximate Annualized Tariff Impact Assumptions

    Approximate Annualized Tariff Impact Assumptions (Import $ with tariff rates as expected on 10/27/25) Imports Tariff Impact Net Tariff Exposure Comments China (30%) $100M $30M $30M • Price increases implemented in Mexico $500M $125M $30M impacted segments, supply chain (25%) management accelerated (

  8. Slide 8: FY 2025 and 4Q 2025 Guidance

    FY 2025 and 4Q 2025 Guidance Prior FY Guide** Updated FY Guide*** 4Q Guide Full-Year Highlights $8.9 – 9.0B ~$9.0B ~$2.4B Revenue 4-5% Total Growth 5-6% Total Growth 5 - 6% Total Growth • Organic revenue growth driven by price, strong demand, and backlog ~4% Organic* Growth 4-5% Organic* Growth 2 -

  9. Slide 9: Key Takeaways

    Key Takeaways Strong results driven by simplification and execution Self-help initiatives building foundation for long-term growth Guidance raise reflects strong performance and healthy demand Strongly positioned to drive sustainable growth and value creation 9 3Q 2025 Results & Earnings

  10. Slide 10: Appendix

    Appendix 10 3Q 2025 Results & Earnings

  11. Slide 11: FY 2025 Guidance Key Assumptions

    FY 2025 Guidance Key Assumptions FY 2025 Assumptions Corporate Expense $75M - $85M Restructuring & Realignment Costs* $120M - $140M Capex ~$370M Estimated Tax Rate1 ~22 - 23% Purchase Accounting Intangible Amortization ~$220M EUR / USD Rate 1.17 11 3Q 2025 Results & Earnings *See appendix for defini

  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: Xylem Inc. Non-GAAP Reconciliation

    Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic and Constant Currency Orders ($ 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 Orders Orders 2025 v. 2024 2025 v. 2

  15. Slide 15: Xylem Inc. Non-GAAP Reconciliation

    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: Xylem Inc. Non-GAAP Reconciliation

    Xylem Inc. Non-GAAP Reconciliation Adjusted Operating Income ($ Millions) Q1 Q2 Q3 YTD Q1 Q2 Q3 YTD 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Restructuring & Realignment Costs Total Revenue • Total Xylem 27 15 29 29 31 11 87 55 • Total Xylem 2,069 2,033 2,301 2,

  17. Slide 17: Xylem Inc. Non-GAAP Reconciliation

    Xylem Inc. Non-GAAP Reconciliation Adjusted Diluted EPS ($ Millions, except per share amounts) Q3 2025 Q3 2024 As Reported Adjustments Adjusted As Reported Adjustments Adjusted Total Revenue 2,268 - 2,268 2,104 - 2,104 Operating Income 334 95 a 429 280 70 a 350 Operating Margin 14.7% 18.9% 13.3% 16.

  18. Slide 18: Xylem Inc. Non-GAAP Reconciliation

    Xylem Inc. Non-GAAP Reconciliation Adjusted Diluted EPS ($ Millions, except per share amounts) Q3 YTD 2025 Q3 YTD 2024 As Reported Adjustments Adjusted As Reported Adjustments Adjusted Total Revenue 6,638 - 6,638 6,306 - 6,306 Operating Income 870 286 a 1,156 742 254 a 996 Operating Margin 13.1% 17.

  19. Slide 19: Xylem Inc. Non-GAAP Reconciliation

    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 169 226 227 622 Net Income margin 8.2% 9.8% N/A 10.0% 9.4% Depreciation

  20. Slide 20: Xylem Inc. Non-GAAP Reconciliation

    Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) 3Q 2025 Results & Earnings

  21. Slide 21: Xylem Inc. Non-GAAP Reconciliation

    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

  22. Slide 22: Net Cash – Operating Activities vs. Free Cash Flow

    Xylem Inc. Non-GAAP Reconciliation Net Cash – Operating Activities vs. Free Cash Flow ($ Millions) Q1 Q2 Q3 Year-to-Date 2025 2024 2025 2024 2025 2024 2025 2024 Net Cash - Operating Activities $33 $89 $305 $288 $360 $311 $698 $688 Capital Expenditures - PPE (55) (59) (78) (59) (57) (60) (190) (178)

  23. Slide 23: Thank you.

    Thank you. 3Q 2025 Earnings & Results Replay of the webcast is available until midnight November 11, 2025 Replay: +1 (877) 344-7529 or +1 (412) 317-0088 (INTL) Access Code 2400446 NYSE: XYL Xylem Investor Relations Website LinkedIn | Twitter | Facebook | YouTube | Instagram

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