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Xylem Inc.
301 Water Street SE, Washington, DC 20003
Tel +1.202.869.9150

Contacts:MediaInvestors
Houston Spencer Keith Buettner
+1 (914) 240-3046+1 (724) 772-1531
Houston.Spencer@xylem.comKeith.Buettner@xylem.com


Xylem Reports Third Quarter 2025 Results

•Revenue of $2.3 billion, up 8% on a reported basis; 7% organically
•Earnings per share of $0.93, up 4%; $1.37 on an adjusted basis, up 23%
•Raising full-year 2025 revenue and adjusted earnings per share guidance

WASHINGTON, D.C., October 28, 2025 -- Xylem Inc. (NYSE: XYL), a leading global water solutions company dedicated to solving the world’s most challenging water issues, today reported third-quarter 2025 results. The Company delivered total revenue of $2.3 billion, on strong execution and demand. Third-quarter earnings per share were up 4 percent on a reported basis and 23 percent on an adjusted basis.

“The team delivered another strong quarter, exceeding expectations with disciplined execution on continuing commercial momentum,” said Matthew Pine, Xylem’s president and CEO. “Revenue grew across all segments, with double-digit gains in Measurement and Control Solutions and Water Solutions and Services. Record adjusted EBITDA margin reflected the impact of our simplification initiatives, with strong margin expansion contributing to 23 percent adjusted EPS growth.”

“Resilient market demand for our solutions and our team’s accelerating performance give us the confidence to raise our full-year guidance. We are solidly on track to deliver our long-term financial framework and drive sustainable growth and value creation over the cycle.”

Net income attributable to Xylem for the quarter was $227 million, or $0.93 per share. Net income margin declined 30 basis points to 10.0 percent. These results are driven by strong operational performance and decreased interest expense, offset by increased loss from the sale of businesses and tax expense. Adjusted net income was $333 million, or $1.37 per share, which excludes the impacts of purchase accounting intangible amortization, restructuring and realignment costs, special charges, loss from the sale of businesses and the net tax impact of these adjustments.

Third-quarter adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) margin was 23.2 percent, reflecting a year-over-year increase of 200 basis points. Productivity savings, strong price realization, and volume drove the margin expansion, exceeding the impact of inflation, investments, and mix.
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Outlook

Xylem now forecasts full-year 2025 revenue of approximately $9.0 billion, up approximately 5 to 6 percent on a reported basis, versus 4 to 5 percent previously guided, and up approximately 4 to 5 percent on an organic basis.

Full-year 2025 adjusted EBITDA margin is expected to be approximately 22.0 to 22.3 percent, an increase of 140 to 170 basis points from Xylem’s 2024 adjusted earnings. This results in full-year adjusted earnings per share of $5.03 to $5.08, versus the previous guide of $4.70 to $4.85. Full-year free cash flow margin is still expected to be approximately 9 to 10 percent.

Further 2025 planning assumptions are included in Xylem’s third-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. Outlook is being provided in the context of the current volatility, including due to geopolitical, trade, macroeconomic and regulatory uncertainty.

Supplemental information on Xylem’s third-quarter earnings, as well as definitions of and reconciliations for certain non-GAAP items, is posted at www.xylem.com/investors.


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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 23,000 diverse employees delivered revenue of $8.6 billion in 2024, 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," “forecast,” “likely,” “believe,” “target,” “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.
Although we believe that the 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 and results of operations, as well as 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, inflation and related monetary policy by governments in response to inflation, and the strength of the residential and commercial real estate markets, on economic activity and our operations; geopolitical events, including ongoing, possible escalation or outbreak of international conflicts, as well as regulatory, economic and other risks associated with our global sales and operations, including those related to domestic content requirements applicable to projects receiving governmental funding; manufacturing and operating cost increases
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due to macroeconomic conditions, including inflation, energy supply, supply chain shortages, logistics challenges, tight labor markets, prevailing price changes, tariffs, trade policies or agreements and other factors; demand for our products, disruption, competition or pricing pressures in the markets we serve; cybersecurity incidents or other disruptions of information technology systems on which we rely, or involving our connected products and services; lack of availability or delays in receiving parts and raw materials from our supply chain, including electronic components (in particular, semiconductors); disruptions in operations 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 with respect to meeting performance guarantees and customers’ budgets, timelines and safety requirements; our ability to retain and attract leadership and other key talent, as well as competition for overall talent and labor; defects, security, warranty and liability claims, and recalls related to our products; uncertainty around 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 commitments 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; financial market risks related to our pension and other defined benefit plans; 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 ("2024 Annual Report") 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 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. 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.


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XYLEM INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) (in millions, except per share data)
Three MonthsNine Months
For the periods ended September 30,2025202420252024
Revenue from products$1,867 $1,744 $5,487 $5,236 
Revenue from services401 360 1,151 1,070 
Revenue2,268 2,104 6,638 6,306 
Cost of revenue from products1,109 1,047 3,279 3,147 
Cost of revenue from services276 273 816 804 
Cost of revenue1,385 1,320 4,095 3,951 
Gross profit883 784 2,543 2,355 
Selling, general and administrative expenses474 445 1,437 1,404 
Research and development expenses52 55 166 172 
Restructuring and asset impairment charges23 4 70 37 
Operating income334 280 870 742 
Interest expense(6)(10)(23)(35)
Other non-operating income, net6 1 13 11 
Loss on sale of businesses(37)(2)(47)(6)
Income before taxes297 269 813 712 
Income tax expense(71)(52)(196)(148)
Net income$226 $217 $617 $564 
Net loss attributable to non-controlling interests1 — 5 — 
Net income attributable to Xylem 227 217 622 564 
Earnings per share:
Basic$0.93 $0.89 $2.56 $2.33 
Diluted$0.93 $0.89 $2.55 $2.32 
Weighted average number of shares:
Basic243.5 242.9 243.3 242.5 
Diluted244.1 243.8 243.9 243.4 


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XYLEM INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions)
September 30,
2025		December 31,
2024
  
ASSETS
Current assets:
Cash and cash equivalents$1,191 $1,121 
Receivables, less allowances for discounts, returns and credit losses of $66 and $59 in 2025 and 2024, respectively
1,803 1,668 
Inventories1,035 996 
Prepaid and other current assets254 236 
Assets held for sale158 77 
Total current assets4,441 4,098 
Property, plant and equipment, net1,141 1,152 
Goodwill8,280 7,980 
Other intangible assets, net2,319 2,379 
Other non-current assets1,114 884 
Total assets$17,295 $16,493 
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$968 $1,006 
Accrued and other current liabilities1,172 1,271 
Short-term borrowings and current maturities of long-term debt49 38 
Liabilities held for sale80 21 
Total current liabilities2,269 2,336 
Long-term debt1,913 1,978 
Accrued post-retirement benefit obligations323 304 
Deferred income tax liabilities492 497 
Other non-current accrued liabilities853 496 
Total liabilities5,850 5,611 
Redeemable non-controlling interest226 235 
Stockholders’ equity:
Common Stock – par value $0.01 per share:
Authorized 750.0 shares, issued 259.8 shares and 259.2 shares in 2025 and 2024, respectively
3 3 
Capital in excess of par value8,735 8,687 
Retained earnings3,469 3,140 
Treasury stock – at cost 16.3 shares and 16.2 shares in 2025 and 2024, respectively
(767)(753)
Accumulated other comprehensive loss(233)(435)
Total stockholders’ equity11,207 10,642 
Non-controlling interests12 5 
Total equity11,219 10,647 
Total liabilities, redeemable non-controlling interest, and stockholders’ equity$17,295 $16,493 

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XYLEM INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(in millions)
For the periods ended September 30,20252024
Operating Activities
Net income$617 $564 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation201 191 
Amortization231 229 
Share-based compensation37 43 
Restructuring and asset impairment charges70 37 
Loss from sale of business47 6 
Other, net3 (4)
Payments for restructuring(48)(24)
Changes in assets and liabilities (net of acquisitions):
Changes in receivables(113)(101)
Changes in inventories(30)(88)
Changes in accounts payable(45)(31)
Changes in accrued and deferred taxes(12)(11)
Other, net(260)(123)
Net Cash – Operating activities698 688 
Investing Activities
Capital expenditures(248)(221)
Acquisition of businesses, net of cash acquired (113)(5)
Proceeds from sale of business, net of cash disposed48 11 
Proceeds from the sale of property, plant and equipment15 3 
Cash received from investments5 5 
Cash paid for investments(26)(8)
Cash paid for equity investments(5)(4)
Cash paid for asset acquisition(37)— 
Cash received from cross-currency swaps31 25 
Other, net1 1 
Net Cash – Investing activities(329)(193)
Financing Activities
Short-term debt issued, net1 — 
Short-term debt repaid— (268)
   Long-term debt repaid(60)(13)
Repurchase of common stock(14)(19)
Proceeds from exercise of employee stock options11 66 
Dividends paid(293)(263)
Other, net(27)(23)
Net Cash – Financing activities(382)(520)
Effect of exchange rate changes on cash83 (5)
Increase in cash classified within assets held for sale11 — 
Decrease in cash classified within assets held for sale(11)
Changes in cash classified within assets held for sale— — 
Net change in cash and cash equivalents70 (30)
Cash and cash equivalents at beginning of year1,121 1,019 
Cash and cash equivalents at end of period$1,191 $989 
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest$43 $49 
Income taxes (net of refunds received)$208 $160 
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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 non-GAAP measures 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 as 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.
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Xylem Inc. Non-GAAP Reconciliation
Reported vs. Organic & 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
RevenueRevenueChange 2025 v. 2024% Change 2025 v. 2024Acquisitions /
Divestitures		FX
Impact		Change Adj. 2025 v. 2024% Change Adj. 2025 v. 2024
20252024
Nine Months Ended September 30
Xylem Inc.6,638 6,306 332 5 %23 (23)332 5 %5 %
Water Infrastructure1,887 1,828 59 3 %44 (15)88 5 %2 %
Applied Water1,374 1,339 35 3 %— (5)30 2 %2 %
Measurement and Control Solutions1,552 1,402 150 11 %(21)(6)123 9 %10 %
Water Solutions and Services1,825 1,737 88 5 %— 3 91 5 %5 %
Quarter Ended September 30
Xylem Inc.2,268 2,104 164 8 %7 (26)145 7 %7 %
Water Infrastructure656 623 33 5 %15 (14)34 5 %3 %
Applied Water456 447 9 2 %— (5)4 1 %1 %
Measurement and Control Solutions522 458 64 14 %(8)(6)50 11 %13 %
Water Solutions and Services634 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 Infrastructure650 631 19 3 %19 (12)26 4 %1 %
Applied Water483 456 27 6 %— (6)21 5 %5 %
Measurement and Control Solutions540 482 58 12 %(8)(4)46 10 %11 %
Water Solutions and Services628 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 Infrastructure581 574 7 1 %10 11 28 5 %3 %
Applied Water435 436 (1)— %— 6 5 1 %1 %
Measurement and Control Solutions490 462 28 6 %(5)4 27 6 %7 %
Water Solutions and Services563 561 2 — %— 5 7 1 %1 %
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Xylem Inc. Non-GAAP Reconciliation
Adjusted Diluted EPS
($ Millions, except per share amounts)
Q3 2025Q3 2024
As ReportedAdjustmentsAdjustedAs ReportedAdjustmentsAdjusted
Total Revenue2,268—2,2682,104—2,104
Operating Income33495 a 42928070 a 350
Operating Margin14.7 %18.9 %13.3 %16.6 %
Interest Expense(6)—(6)(10)—(10)
Other Non-Operating Income (Expense)6—61—1
Gain/(Loss) from Sale of Business(37)37b—(2)2b—
Income before Taxes29713242926972341
Provision for Income Taxes(71)(26)c(97)(52)(20)c(72)
Net Income 22610633221752269
Net Loss Attributable to Non-controlling Interests1—1———
Net Income Attributable to Xylem22710633321752269
Diluted Shares244.1244.1243.8243.8
Diluted EPS$0.93 $0.44 $1.37 $0.89 $0.22 $1.11 
aQuarter-to-date: Restructuring & realignment costs: 2025 - $31 million and 2024 - $11 million                                                
Special charges: 2025 - $9 million of acquisition, divestiture & integration costs; 2024 - $6 million of acquisition & integration costs and $1 million of other special charges                                            
Purchase accounting intangible amortization: 2025 - $55 million and 2024 - $52 million
bGain/(Loss) from sale of business as per income statement for all periods presented
cQuarter-to-date: 2025 - Net tax impact on pre-tax adjustments (note a and b) of $27 million and $1 million of other tax special expense items; 2024 - Net tax impact on pre-tax adjustments (note a and b) of $17 million and other tax special benefit items of $3 million
                                                                    
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Xylem Inc. Non-GAAP Reconciliation
EBITDA and Adjusted EBITDA by Quarter
($ Millions)
2025
Q1Q2Q3Q4Total
Net Income attributable to Xylem169 226 227 622 
Net Income Margin8.2 %9.8 %10.0 %N/A9.4 %
Depreciation68 69 64 201 
Amortization77 76 78 231 
Interest Expense (Income), net— 3 — 3 
Income Tax Expense50 75 71 196 
EBITDA364 449 440 — 1,253 
Share-based Compensation12 13 12 37 
Restructuring & Realignment27 29 30 86 
Special Charges12 13 9 34 
Loss/(Gain) from sale of business10 — 37 47 
Loss attributable to non-controlling interest(2)(2)(1)(5)
Adjusted EBITDA423 502 527 — 1,452 
Revenue2,069 2,301 2,268 6,638 
Adjusted EBITDA Margin20.4 %21.8 %23.2 %N/A21.9 %
2024
Q1Q2Q3Q4Total
Net Income153 194 217 326 890 
Net Income Margin7.5 %8.9 %10.3 %14.5 %10.4 %
Depreciation61 62 68 67 258 
Amortization73 83 73 75 304 
Interest Expense (Income), net7 6 5 (2)16 
Income Tax Expense43 53 52 49 197 
EBITDA337 398 415 515 1,665 
Share-based Compensation18 13 12 13 56 
Restructuring & Realignment15 29 11 36 91 
Special Charges16 13 7 21 57 
Gain on joint venture remeasurement— — — (152)(152)
Loss/(Gain) from sale of business5 (1)2 40 46 
Adjusted EBITDA391 452 447 473 1,763 
Revenue2,033 2,169 2,104 2,256 8,562 
Adjusted EBITDA Margin19.2 %20.8 %21.2 %21.0 %20.6 %











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