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2025 Fourth Quarter Results and Earnings February 10, 2026
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4Q 2025 Results & Earnings2 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,” “intend,” “plan,” "contemplate," "predict," “outlook,” “forecast,” “likely,” “believe,” “target,” “goal,” “objective,” “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 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, results of operations, and 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, availability of funding for customers, inflation and governments’ related monetary policy in response, and the strength of the real estate markets, on economic activity and our operations; geopolitical matters, including nationalism, protectionism and anti-global sentiment, volatility involving the U.S. and other governments, ongoing, escalation or outbreak of international conflicts, and regulatory, trade protection, economic and other risks associated with our global sales and operations; manufacturing and operating cost increases due to macroeconomic conditions, including inflation, energy supply, supply chain shortages, logistics challenges, labor shortages, trade agreements, tariffs, and other trade protection measures, and other factors; demand for our products, disruption, competition or pricing pressures in the markets we serve; cybersecurity incidents, data breaches, or other disruptions of information technology systems on which we or our customers rely, or involving our connected products and services; lack of availability or delays in receiving parts and raw materials from our supply chain, including semiconductors or other key components; operational disruptions 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 as respects performance guarantees and customers’ budgets, timelines and safety requirements; our ability to retain, compete for and attract leadership, other key talent and labor; defects, security, warranty and liability claims, and recalls related to our products; uncertainty around productivity, simplification, 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 efforts 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; 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 and in subsequent filings we make with the Securities and Exchange Commission (“SEC”). Forward-looking and other statements in this presentation regarding our environmental and other sustainability efforts, 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 or other regulatory authorities, and are not intended to create legal rights or obligations. 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 presentation. 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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4Q 2025 Results & Earnings3 4Q 2025 Performance Summary ($ in millions, unless otherwise noted) Reported 4Q Adj* 4Q Orders 2,391 2,391 Overall Growth 9% Organic Growth* 7% Revenue 2,397 2,397 Overall Growth 6% Organic Growth* 4% Operating Income 353 456 Operating Margin 14.7% 19.0% EBITDA* 512 557 EBITDA Margin* 21.4% 23.2% Earnings Per Share $1.37 $1.42 Reported 4Q Adj* 4Q 588 588 24% 22% 534 534 14% 10% 56 83 10.5% 15.5% 115 108 21.5% 20.2% Reported 4Q Adj* 4Q 691 691 0% (1)% 749 749 3% 0% 166 204 22.2% 27.2% 192 219 25.6% 29.2% Reported 4Q Adj* 4Q 474 474 7% 5% 475 475 5% 3% 71 80 14.9% 16.8% 78 89 16.4% 18.7% Reported 4Q Adj* 4Q 638 638 8% 7% 639 639 5% 4% 82 111 12.8% 17.4% 146 153 22.8% 23.9% Xylem Consolidated Measurement and Control Solutions Water Infrastructure Applied Water Water Solutions and Services *See appendix for definitions of non-GAAP measures and non-GAAP reconciliations.
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4Q 2025 Results & Earnings4 2025 Earnings Highlights Strong full-year guidance including 70-110 bps Adj. EBITDA Margin* expansion Focused on quality earnings with greater walk-away from maturing 80/20 program Balanced capital deployment and portfolio optimization to maximize shareholder value 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* On track to deliver our long-term framework Outstanding full-year performance with strong 4Q close Simplification driving further margin expansion in 2026 *See appendix for definitions of non-GAAP measures and non-GAAP reconciliations.
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4Q 2025 Results & Earnings5 4Q 2025 Financial Performance Revenue Adj. EBITDA Margin* Adj. EPS* YTD Free Cash Flow* • Growth supported by MCS and WSS • Strength in US • Improvement driven by productivity, price, and investments more than offset inflation, volume, and tariffs • $0.23 organic operations • $0.01 due to acquisitions • Adj. free cash flow* driven by restructuring costs and higher capex partly offset by higher net income • 0.2x net debt / adjusted EBITDA* (TTM) Orders • Resilient demand with book-to-bill ratio ~1x • Strength in MCS and WSS • $4.6B backlog $2,196 $2,391 4Q 2024 4Q 2025 $2,397 4Q 2024 4Q 2025 $2,256 4Q 2024 4Q 2025 21.0% 23.2% $1.18 $1.42 4Q 2024 4Q 2025 $942 $925 2024 2025 11% 10% YTD FCF Margin* Organic* 7% Organic* 4% +220 bps 20% (2)% Operational execution drove record quarter performance *See appendix for definitions of non-GAAP measures and non-GAAP reconciliations.
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4Q 2025 Results & Earnings6 4Q 2025 Segment Performance Summary Orders / Organic Growth* $588M +22% $691M (1)% $474M +5% $638M +7% Revenue / Organic Growth* $534M +10% $749M +0% $475M +3% $639M +4% Adj. EBITDA Margin* / Expansion 20.2% $108M +310 bps YoY 29.2% $219M +510 bps YoY 18.7% $89M +60 bps YoY 23.9% $153M +110 bps YoY • Orders growth across smart metering • Revenue growth led by smart metering demand and execution • Margin up due to productivity, price and volume more than offsetting mix and inflation • Orders decline driven by Treatment, particularly China market declines • Revenue flat with growth in Treatment, strength in US • Margin up due to productivity, price, and mix offset by inflation, volume, and investments • Orders growth driven by US, offset by declines in China • Revenue growth driven by commercial end market • Margin up due to productivity and price offset by inflation, volume, and mix • Orders growth driven by services • Revenue growth across applications • Margin up due to price, volume, and productivity, offset by inflation and mix Measurement and Control Solutions Water Infrastructure Applied Water Water Solutions and Services Healthy demand across most applications and end markets *See appendix for definitions of non-GAAP measures and non-GAAP reconciliations .
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4Q 2025 Results & Earnings7 Organic Revenue* Growth Up Mid-Single Digits Up Low-Single Digits Up Low-Single Digits Up Mid-Single Digits Key Drivers • Healthy demand with strong pipeline • Momentum in Energy meters, Water meters returning to growth • Sequential improvement throughout the year • Headwind from 80/20 actions • Resilient demand due to our mission-critical applications • Overall healthy opex and capex environment • 80/20 walkaway acceleration • Headwind from China softness • Strength in North America commercial buildings • Data centers driving rapid book and ship • Long-term projects kicking off • Headwind from China softness • Expect growth across capital and services • Resilient $1.3B+ backlog and services model • Strength in outsourced water and Dewatering FY 2026 Segment Outlook Measurement and Control Solutions Water Infrastructure Applied Water Water Solutions and Services 4Q 2023 Results & Earnings Supported by robust backlog and healthy demand in our largest end markets *See appendix for definitions of non-GAAP measures .
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4Q 2025 Results & Earnings8 FY 2026 and 1Q 2026 Guidance • Organic revenue* growth driven by healthy demand, backlog execution, and price more than offsetting 80/20 implementation headwinds • Margin driven by productivity, volume, and price offsetting inflation and investments • Benefits from simplification • FX headwind • Cash flow impacted by remaining restructuring costs, system investments and outsourced water projects 1Q Guide Full-Year Highlights Full-year guidance reflects commercial and operational momentum *See appendix for definitions of non-GAAP measures ** Guidance does not include any assumption for impact of potential changes to tariff policy FY Guide** Revenue $9.1 – 9.2B 1 - 3% Total Growth 2 - 4% Organic* Growth ~$2.1B 1 - 2% Total Growth ~0% Organic* Growth Adjusted EBITDA Margin* ~22.9 - 23.3% +70 - 110 bps expansion 20.5 – 21.0% 0 – 50 bps expansion Adjusted EPS* $5.35 – $5.60 $1.06 – $1.11 Free Cash Flow Margin* 10.2-11% margin
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4Q 2025 Results & Earnings9 Key Takeaways Optimizing our portfolio to best serve our customers Record full-year 2025 performance Momentum going into 2026 with focus on profitable growth On track to deliver long-term commitments
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Q2 2025 Results & Earnings Appendix 10
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4Q 2025 Results & Earnings11 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-GAAP reconciliations 1 Estimated tax rate is on an adjusted basis
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4Q 2025 Results & Earnings12 Segment Key FactsSegment Key Facts Diversified Portfolio Addressing the Full Lifecycle of Water Water Infrastructure Products and solutions for the transportation and treatment of water, including pumps, filtration and treatment equipment, and controls • Key brands: Flygt, Wedeco, Sanitaire, Defender, Magneto • Geographic split: US ~35% / W. Europe ~35% / EM & Other ~30% • End-market Split: Wastewater Utilities ~60% / Industrials ~40% • Channels: Primarily direct • Market drivers: Water scarcity, affordability, aging infrastructure, regulations, sustainability • Competitive advantage: Innovation leadership, significant global installed base, digital offerings Measurement and Control Solutions Advanced technology solutions for water and energy, including smart metering and test & measurement • Key brands: Sensus, Smith-Blair, WTW, Xylem Vue, YSI • Geography split: US ~65% / W. Europe ~15% / EM & Other ~20% • End-market Split: Clean Water Utilities ~85% / Industrials ~15% • Channels: Primarily indirect, some direct for larger projects • Market drivers: AMI adoption acceleration, connected solutions, non-revenue water, affordability, labor shortages • Competitive advantage: Deep application expertise and technology leadership, long-standing customer relationships, FlexNet, Idrica Applied Water Industrial and buildings solutions applications including pumps, valves, heat exchangers, controls, and dispensing equipment • Key brands: Bell & Gossett, Flojet, Goulds, Lowara • Geographic split: US ~50% / W. Europe ~20% / EM & Other ~30% • End-market split: Industrials ~45% / Building Solutions ~55% • Channels: Primarily indirect • Market drivers: Urbanization, climate, regulation, labor shortage • Competitive advantage: Established footprint, strong channel partnerships, quality & reliability Water Solutions and Services Treatment, transport and assessment services solutions with an extensive service network and highly recurring revenue • Key brands: Grindex, Godwin, MarCor • Geographic split: US ~80% / Rest of World ~20% • End-market split: Industrials ~70% / Utilities ~30% • Channels: Primarily direct • Market drivers: Outsourced service, water scarcity, regulation, emerging contaminants • Competitive advantage: Service network, mobile fleet, SOPHIS digital solutions, technology agnostic business model ~27% ~20% ~23% ~30% Portfolio breakdown by FY25 revenue
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4Q 2025 Results & Earnings13 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 items to represent the non-GAAP measures that we consider 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 and earnings per share, adjusted to exclude restructuring and realignment costs, amortization of acquired intangible assets, gain or loss from sale of businesses, 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. “Free cash flow Conversion” defined as free cash flow, or adjusted free cash flow as applicable; divided by net income, excluding the gain on sale of businesses and other non- recurring, significant non-cash impacts, such as non-cash impairment charges and significant deferred tax items. “Adjusted free cash flow" used in free cash flow conversion defined as free cash flow adjusted for significant cash items for which the corresponding income statement impact does not occur within the same fiscal year. "Free cash flow margin" defined as free cash flow, adjusted 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 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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4Q 2025 Results & Earnings14 Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic and Constant Currency Orders ($ Millions) Constant Currency (A) (B) (C) (D) (E) = B+C+D (F) = E/A (G) = (E - C) / A Change % Change Change % Change Orders Orders 2025 v. 2024 2025 v. 2024 Book-to-Bill FX Impact Adj. 2025 v. 2024 Adj. 2025 v. 2024 2025 2024 Year Ended December 31 Xylem Inc. 8,904 8,730 174 2% 99% 30 (65) 139 2% 1% Water Infrastructure 2,672 2,727 (55) (2%) 101% 60 (35) (30) (1%) (3%) Applied Water 1,893 1,824 69 4% 102% - (15) 54 3% 3% Measurement and Control Solutions 1,873 1,672 201 12% 90% (30) (14) 157 9% 11% Water Solutions and Services 2,466 2,507 (41) (2%) 100% - (1) (42) (2%) (2%) Quarter Ended December 31 Xylem Inc. 2,391 2,196 195 9% 100% 10 (45) 160 7% 7% Water Infrastructure 691 691 - 0% 92% 15 (22) (7) (1%) (3%) Applied Water 474 442 32 7% 100% - (10) 22 5% 5% Measurement and Control Solutions 588 473 115 24% 110% (5) (7) 103 22% 23% Water Solutions and Services 638 590 48 8% 100% - (6) 42 7% 7% Quarter Ended September 30 Xylem Inc. 2,181 2,201 (20) (1%) 96% 2 (27) (45) (2%) (2%) Water Infrastructure 683 700 (17) (2%) 104% 15 (13) (15) (2%) (4%) Applied Water 445 437 8 2% 98% - (6) 2 - - Measurement and Control Solutions 446 386 60 16% 85% (13) (5) 42 11% 14% Water Solutions and Services 607 678 (71) (10%) 96% - (3) (74) (11%) (11%) Quarter Ended June 30 Xylem Inc. 2,174 2,087 87 4% 94% 13 (23) 77 4% 3% Water Infrastructure 672 690 (18) (3%) 103% 16 (12) (14) (2%) (4%) Applied Water 488 465 23 5% 101% - (5) 18 4% 4% Measurement and Control Solutions 437 384 53 14% 81% (3) (5) 45 12% 13% Water Solutions and Services 577 548 29 5% 92% - (1) 28 5% 5% Quarter Ended March 31 Xylem Inc. 2,158 2,246 (88) (4%) 104% 5 30 (53) (2%) (3%) Water Infrastructure 626 646 (20) (3%) 108% 14 12 6 1% (1%) Applied Water 486 480 6 1% 112% - 6 12 3% 3% Measurement and Control Solutions 402 429 (27) (6%) 82% (9) 3 (33) (8%) (6%) Water Solutions and Services 644 691 (47) (7%) 114% - 9 (38) (5%) (5%) Acquisitions / Divestitures Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic and Constant Currency Orders ($ Millions) (As Adjusted - Organic)(As Reported)
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4Q 2025 Results & Earnings15 Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic and Constant Currency Revenue ($ Millions) Constant Currency (A) (B) (C) (D) (E) = B+C+D (F) = E/A (G) = (E - C) / A Change % Change Change % Change Revenue Revenue 2025 v. 2024 2025 v. 2024 FX Impact Adj. 2025 v. 2024 Adj. 2025 v. 2024 2025 2024 Year Ended December 31 Xylem Inc. 9,035 8,562 473 6% 17 (71) 419 5% 5% Water Infrastructure 2,636 2,555 81 3% 48 (41) 88 3% 2% Applied Water 1,849 1,793 56 3% - (14) 42 2% 2% Measurement and Control Solutions 2,086 1,871 215 11% (30) (13) 172 9% 11% Water Solutions and Services 2,464 2,343 121 5% (1) (3) 117 5% 5% Quarter Ended December 31 Xylem Inc. 2,397 2,256 141 6% (6) (48) 87 4% 4% Water Infrastructure 749 727 22 3% 4 (26) - - (1%) Applied Water 475 454 21 5% - (9) 12 3% 3% Measurement and Control Solutions 534 469 65 14% (9) (7) 49 10% 12% Water Solutions and Services 639 606 33 5% (1) (6) 26 4% 4% Quarter Ended September 30 Xylem Inc. 2,268 2,104 164 8% 7 (26) 145 7% 7% Water Infrastructure 656 623 33 5% 15 (14) 34 5% 3% Applied Water 456 447 9 2% - (5) 4 1% 1% Measurement and Control Solutions 522 458 64 14% (8) (6) 50 11% 13% Water Solutions and Services 634 576 58 10% - (1) 57 10% 10% Quarter Ended June 30 Xylem Inc. 2,301 2,169 132 6% 11 (23) 120 6% 5% Water Infrastructure 650 631 19 3% 19 (12) 26 4% 1% Applied Water 483 456 27 6% - (6) 21 5% 5% Measurement and Control Solutions 540 482 58 12% (8) (4) 46 10% 11% Water Solutions and Services 628 600 28 5% - (1) 27 5% 5% Quarter Ended March 31 Xylem Inc. 2,069 2,033 36 2% 5 26 67 3% 3% Water Infrastructure 581 574 7 1% 10 11 28 5% 3% Applied Water 435 436 (1) (0%) - 6 5 1% 1% Measurement and Control Solutions 490 462 28 6% (5) 4 27 6% 7% Water Solutions and Services 563 561 2 0% - 5 7 1% 1% (As Reported - GAAP) (As Adjusted - Organic) Acquisitions / Divestitures
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4Q 2025 Results & Earnings16 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 • Applied Water 435 436 483 456 456 447 475 454 1,849 1,793 • Measurement and Control Solutions 490 462 540 482 522 458 534 469 2,086 1,871 • Water Solutions and Services 563 561 628 600 634 576 639 606 2,464 2,343 • Corporate/ Other - - - - - - - - - - Operating Income (Loss) • Total Xylem 231 209 305 253 334 280 353 267 1,223 1,009 • Water Infrastructure 80 60 103 78 113 96 166 122 462 356 • Applied Water 72 61 84 71 85 71 71 68 312 271 • Measurement and Control Solutions 56 70 68 79 64 66 56 32 244 247 • Water Solutions and Services 44 50 78 47 98 63 82 59 302 219 • Corporate/ Other (21) (32) (28) (22) (26) (16) (22) (14) (97) (84) Operating Margin • Total Xylem 11.2% 10.3% 13.3% 11.7% 14.7% 13.3% 14.7% 11.8% 13.5% 11.8% • Water Infrastructure 13.8% 10.5% 15.8% 12.4% 17.2% 15.4% 22.2% 16.8% 17.5% 13.9% • Applied Water 16.6% 14.0% 17.4% 15.6% 18.6% 15.9% 14.9% 15.0% 16.9% 15.1% • Measurement and Control Solutions 11.4% 15.2% 12.6% 16.4% 12.3% 14.4% 10.5% 6.8% 11.7% 13.2% • Water Solutions and Services 7.8% 8.9% 12.4% 7.8% 15.5% 10.9% 12.8% 9.7% 12.3% 9.3% • Corporate/ Other N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
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4Q 2025 Results & Earnings17 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 Control Solutions 4 - 6 1 5 2 1 9 16 12 • Water Solutions and Services 4 9 1 3 1 1 - 2 6 15 • Corporate/ Other 2 5 4 5 3 6 1 4 10 20 Restructuring & Realignment Costs • Total Xylem 27 15 29 29 31 11 46 36 133 91 • Water Infrastructure 15 7 12 2 22 6 26 15 75 30 • Applied Water 5 2 10 2 4 2 9 9 28 15 • Measurement and Control Solutions 3 2 5 2 1 (1) 7 7 16 10 • Water Solutions and Services 4 3 2 23 3 4 5 5 14 35 • Corporate/ Other - 1 - - 1 - (1) - - 1 Purchase Accounting Intangible Amortization Adjustment • Total Xylem 55 54 55 57 55 52 55 53 220 216 • Water Infrastructure 10 19 10 17 10 11 12 12 42 59 • Applied Water - - - - - - - - - - • Measurement and Control Solutions 19 14 19 14 20 15 19 15 77 58 • Water Solutions and Services 26 21 25 26 25 26 24 26 100 99 • Corporate/ Other - - 1 - - - - - 1 - Adjusted Operating Income (Loss) • Total Xylem 325 294 402 352 429 350 456 377 1,612 1,373 • Water Infrastructure 107 88 127 101 145 111 204 155 583 455 • Applied Water 77 63 94 73 89 73 80 77 340 286 • Measurement and Control Solutions 82 86 98 96 90 82 83 63 353 327 • Water Solutions and Services 78 83 106 99 127 94 111 92 422 368 • Corporate/ Other (19) (26) (23) (17) (22) (10) (22) (10) (86) (63) Adjusted Operating Margin • Total Xylem 15.7% 14.5% 17.5% 16.2% 18.9% 16.6% 19.0% 16.7% 17.8% 16.0% • Water Infrastructure 18.4% 15.3% 19.5% 16.0% 22.1% 17.8% 27.2% 21.3% 22.1% 17.8% • Applied Water 17.7% 14.4% 19.5% 16.0% 19.5% 16.3% 16.8% 17.0% 18.4% 16.0% • Measurement and Control Solutions 16.7% 18.6% 18.1% 19.9% 17.2% 17.9% 15.5% 13.4% 16.9% 17.5% • Water Solutions and Services 13.9% 14.8% 16.9% 16.5% 20.0% 16.3% 17.4% 15.2% 17.1% 15.7% • Corporate/ Other N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
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4Q 2025 Results & Earnings18 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% 16.7% Interest Expense (6) - (6) (9) - (9) Other Non-Operating Income (Expense) 5 - 5 5 - 5 Gain on remeasurement of previously held equity interest - - - 152 (152) b - Gain/(Loss) From Sale of Businesses 16 (16) c - (40) 40 c - Income before Taxes 368 87 455 375 (2) 373 Provision for Income Taxes (35) (74) d (109) (49) (37) d (86) Net Income 333 13 346 326 (39) 287 Net Loss Attributable to Non-controlling Interests 2 - 2 - - - Net Income Attributable to Xylem 335 13 348 326 (39) 287 Diluted Shares 244.2 244.2 243.8 243.8 Diluted EPS $1.37 $0.05 $1.42 $1.34 ($0.16) $1.18 Quarter-to-date: a Restructuring & realignment costs: 2025 - $46 million and 2024 - $36 million Special charges: 2025 - $2 million of acquisition, divestiture & integration costs; 2024 - $15 million of acquisition & integration costs and $6 million of other special charges Purchase accounting intangible amortization: 2025 - $55 million and 2024 - $53 million b c d Gain/(Loss) from sale of business as per income statement for all periods presented Gain on joint venture remeasurement as per income statement Quarter-to-date: 2025 - Net tax impact on pre-tax adjustments (notes a and c) of $16 million and $58 million of other tax special benefit items, primarily deferred tax benefits from internal reorganizations; 2024 - Net tax impact on pre-tax adjustments (notes a, b and c) of $29 million and other tax special benefit items of $8 million
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4Q 2025 Results & Earnings19 Xylem Inc. Non-GAAP Reconciliation Adjusted Diluted EPS ($ 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 13.5% 17.8% 11.8% 16.0% Interest Expense (29) - (29) (44) - (44) Other Non-Operating Income (Expense) 18 - 18 16 - 16 Gain on remeasurement of previously held equity interest - - - 152 (152) b Gain/(Loss) From Sale of Businesses (31) 31 c - (46) 46 c - Income before Taxes 1,181 420 1,601 1,087 258 1,345 Provision for Income Taxes (231) (137) d (368) (197) (107) d (304) Income Attributable to Minority Interest - - - Net Income 950 283 1,233 890 151 1,041 Net Loss Attributable to Non-controlling Interests 7 - 7 - - - Net Income Attributable to Xylem 957 283 1,240 890 151 1,041 Diluted Shares 244.0 244.0 243.5 243.5 Diluted EPS $3.92 $1.16 $5.08 $3.65 $0.62 $4.27 a Year-to-date: Restructuring & realignment costs: 2025 - $133 million and 2024 - $91 million Purchase accounting intangible amortization: 2025 - $220 million and 2024 - $216 million b c d Gain/(Loss) from sale of business as per income statement for all periods presented Year-to-date: 2025 - Net tax impact on pre-tax adjustments (notes a and c) of $85 million and other tax special benefit items of $52 million, primarily deferred tax benefits from internal reorganizations; 2024 - Net tax impact on pre-tax adjustments (notes a, b and c) of $88 million and other tax special benefit items of $19 million Gain on joint venture remeasurement as per income statement Special charges: 2025 - $28 million of acquisition, divestiture & integration costs and $8 million of intangible asset impairment charges; 2024 - $50 million of acquisition & integration related costs and $7 million of intangible asset impairment charges
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4Q 2025 Results & Earnings20 Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) 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% Depreciation 68 69 64 66 267 Amortization 77 76 78 77 308 Interest Expense (Income), net - 3 - (1) 2 Income Tax Expense 50 75 71 35 231 EBITDA 364 449 440 512 1,765 Share-based Compensation 12 13 12 16 53 Restructuring & Realignment 27 29 30 45 131 Special Charges 12 13 9 2 36 Loss/(Gain) from sale of businesses 10 - 37 (16) 31 Loss attributable to non-controlling interest (2) (2) (1) (2) (7) Adjusted EBITDA 423 502 527 557 2,009 Revenue 2,069 2,301 2,268 2,397 9,035 Adjusted EBITDA Margin 20.4% 21.8% 23.2% 23.2% 22.2% Q1 Q2 Q3 Q4 Total Net Income 153 194 217 326 890 Net Income margin 7.5% 8.9% 10.3% 14.5% 10.4% Depreciation 61 62 68 67 258 Amortization 73 83 73 75 304 Interest Expense (Income), net 7 6 5 (2) 16 Income Tax Expense 43 53 52 49 197 EBITDA 337 398 415 515 1,665 Share-based Compensation 18 13 12 13 56 Restructuring & Realignment 15 29 11 36 91 Special Charges 16 13 7 21 57 Gain on joint venture remeasurement - - - (152) (152) Loss/(Gain) from sale of businesses 5 (1) 2 40 46 Adjusted EBITDA 391 452 447 473 1,763 Revenue 2,033 2,169 2,104 2,256 8,562 Adjusted EBITDA Margin 19.2% 20.8% 21.2% 21.0% 20.6% Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) 2025 2024
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4Q 2025 Results & Earnings21 Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Q1 Q2 Q3 Q4 Total Operating Income 72 84 85 71 312 Operating Margin 16.6% 17.4% 18.6%N/A 14.9% 16.9% (Gain) attributable to non-controlling interest - - - (1) (1) Depreciation 7 8 6 8 29 Amortization 1 1 2 - 4 Other non-operating expense, excluding interest income (1) 1 - - - EBITDA 79 94 93 78 344 Share-based Compensation 1 1 2 1 5 Restructuring & Realignment 5 10 4 9 28 Special Charges - - - - - Gain attributable to non-controlling interest - - - 1 1 Adjusted EBITDA 85 105 99 89 378 Revenue 435 483 456 475 1,849 Adjusted EBITDA Margin 19.5% 21.7% 21.7% 18.7% 20.4% Q1 Q2 Q3 Q4 Total Operating Income 61 71 71 68 271 Operating Margin 14.0% 15.6% 15.9%N/A 15.0% 15.1% Depreciation 6 7 6 6 25 Amortization 1 - 1 1 3 Other non-operating expense, excluding interest income - (1) 1 (3) (3) EBITDA 68 77 79 72 296 Share-based Compensation 2 1 2 1 6 Restructuring & Realignment 2 2 2 9 15 Special Charges - - - - - Adjusted EBITDA 72 80 83 82 317 Revenue 436 456 447 454 1,793 Adjusted EBITDA Margin 16.5% 17.5% 18.6% 18.1% 17.7% 2024 Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Applied Water 2025 Q1 Q2 Q3 Q4 Total Operating Income 80 103 113 166 462 Operating Margin 13.8% 15.8% 17.2% 22.2% 17.5% (Loss)/Gain from sale of businesses (10) - 2 1 (7) Depreciation 10 11 11 12 44 Amortization 13 13 13 15 54 Other non-operating expense, excluding interest income (2) (2) - (2) (6) EBITDA 91 125 139 192 547 Share-based Compensation 2 3 2 3 10 Restructuring & Realignment 15 12 21 25 73 Special Charges 2 2 - - 4 Loss/(Gain) from sale of businesses 10 - (2) (1) 7 Adjusted EBITDA 120 142 160 219 641 Revenue 581 650 656 749 2,636 Adjusted EBITDA Margin 20.7% 21.8% 24.4% 29.2% 24.3% Q1 Q2 Q3 Q4 Total Operating Income 60 78 96 122 356 Operating Margin 10.5% 12.4% 15.4%N/A 16.8% 13.9% (Loss)/Gain from sale of businesses - - - (40) (40) Depreciation 10 10 12 14 46 Amortization 21 27 13 15 76 Other non-operating expense, excluding interest income (1) - (1) 1 (1) EBITDA 90 115 120 112 437 Share-based Compensation 3 4 3 2 12 Restructuring & Realignment 7 2 6 15 30 Special Charges 2 4 (2) 6 10 Loss/(Gain) from sale of businesses - - - 40 40 Adjusted EBITDA 102 125 127 175 529 Revenue 574 631 623 727 2,555 Adjusted EBITDA Margin 17.8% 19.8% 20.4% 24.1% 20.7% 2024 Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Water Infrastucture 2025
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4Q 2025 Results & Earnings22 Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Q1 Q2 Q3 Q4 Total Operating Income 56 68 64 56 244 Operating Margin 11.4% 12.6% 12.3%N/A 10.5% 11.7% Loss attributable to non-controlling interest - 4 2 3 9 (Loss)/Gain from sale of businesses - - (39) 15 (24) Depreciation 7 10 8 8 33 Amortization 32 34 35 34 135 Other non-operating expense, excluding interest income - (1) - (1) (2) EBITDA 95 115 70 115 395 Share-based Compensation 1 3 1 3 8 Restructuring & Realignment 3 5 1 7 16 Special Charges 4 6 5 1 16 Loss/(Gain) from sale of businesses - - 39 (15) 24 (Loss) attributable to non-controlling interest - (4) (2) (3) (9) Adjusted EBITDA 103 125 114 108 450 Revenue 490 540 522 534 2,086 Adjusted EBITDA Margin 21.0% 23.1% 21.8% 20.2% 21.6% Q1 Q2 Q3 Q4 Total Operating Income 70 79 66 32 247 Operating Margin 15.2% 16.4% 14.4%N/A 6.8% 13.2% Gain on joint venture remeasurement - - - 152 152 Depreciation 6 7 7 6 26 Amortization 27 25 26 28 106 Other non-operating expense, excluding interest income (1) (2) (4) (3) (10) EBITDA 102 109 95 215 521 Share-based Compensation 1 1 1 1 4 Restructuring & Realignment 2 2 (1) 7 10 Special Charges - 1 2 9 12 Gain on joint venture remeasurement - - - (152) (152) Adjusted EBITDA 105 113 97 80 395 Revenue 462 482 458 469 1,871 Adjusted EBITDA Margin 22.7% 23.4% 21.2% 17.1% 21.1% 2024 Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Measurement and Control Solutions 2025 Q1 Q2 Q3 Q4 Total Operating Income 44 78 98 82 302 Operating Margin 7.8% 12.4% 15.5%N/A 12.8% 12.3% Depreciation 41 43 38 37 159 Amortization 27 28 26 27 108 Other non-operating expense, excluding interest income - (1) - - (1) (Gain) attributable to non-controlling interest - - (1) - (1) EBITDA 112 148 161 146 567 Share-based Compensation 2 2 1 2 7 Restructuring & Realignment 4 2 3 5 14 Special Charges 4 1 1 - 6 Gain attributable to non-controlling interest - - 1 - 1 Adjusted EBITDA 122 153 167 153 595 Revenue 563 628 634 639 2,464 Adjusted EBITDA Margin 21.7% 24.4% 26.3% 23.9% 24.1% Q1 Q2 Q3 Q4 Total Operating Income 50 47 63 59 219 Operating Margin 8.9% 7.8% 10.9%N/A 9.7% 9.3% (Loss)/Gain from sale of businesses (5) 1 (2) - (6) Depreciation 38 38 43 40 159 Amortization 22 28 30 28 108 Other non-operating expense, excluding interest income - 1 (1) 1 1 EBITDA 105 115 133 128 481 Share-based Compensation 3 3 2 3 11 Restructuring & Realignment 3 23 4 5 35 Special Charges 9 3 1 2 15 Loss/(Gain) from sale of businesses 5 (1) 2 - 6 Adjusted EBITDA 125 143 142 138 548 Revenue 561 600 576 606 2,343 Adjusted EBITDA Margin 22.3% 23.8% 24.7% 22.8% 23.4% Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Water Solutions and Services 2025 2024
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4Q 2025 Results & Earnings23 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) 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Net Cash - Operating Activities $33 $89 $305 $288 $360 $311 $543 $575 $1,241 $1,263 Capital Expenditures - PPE (55) (59) (78) (59) (57) (60) (72) (85) (262) (263) Capital Expenditures - Software (16) (15) (20) (14) (22) (14) (11) (15) (69) (58) Capital Expenditures (71) (74) (98) (73) (79) (74) (83) (100) (331) (321) Free Cash Flow ($38) $15 $207 $215 $281 $237 $460 $475 $910 $942 Cash Paid for Significant Divestiture Activities - - - - 12 - 3 15 - Adjusted Free Cash Flow for Margin Calculation ($38) $15 $207 $215 $293 $237 $463 $475 $925 $942 Revenue $2,069 $2,033 $2,301 $2,169 $2,268 $2,104 $2,397 $2,256 $9,035 $8,562 Operating Cash Flow Margin 1.6% 4.4% 13.3% 13.3% 15.9% 14.8% 22.7% 25.5% 13.7% 14.8% Free Cash Flow Margin (1.8%) 0.7% 9.0% 9.9% 12.9% 11.3% 19.2% 21.1% 10.2% 11.0% Q1 Q2 Q3 Q4 Year-to-Date
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Thank you. NYSE: XYL Xylem Investor Relations Website LinkedIn | Twitter | Facebook | YouTube | Instagram 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