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2026 Second Quarter Results and Earnings July 28, 2026
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2Q 2026 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," “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 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, availability of funding for our 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, volatile weather events, or changing climate patterns; 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, 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, 2025 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 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 note 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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2Q 2026 Results & Earnings3 2Q 2026 Performance Summary ($ in millions, unless otherwise noted) Reported 2Q Adj* 2Q Orders 3,086 3,086 Overall Growth 42% Organic Growth* 41% Revenue 2,336 2,336 Overall Growth 2% Organic Growth* 1% Operating Income 390 447 Operating Margin 16.7% 19.1% EBITDA* 508 544 EBITDA Margin* 21.7% 23.3% Earnings Per Share $1.11 $1.46 Reported 2Q Adj* 2Q 430 430 (2%) 2% 508 508 (6%) (1%) 63 83 12.4% 16.3% 88 107 17.3% 21.1% Reported 2Q Adj* 2Q 669 669 (0%) (4%) 683 683 5% 3% 157 168 23.0% 24.6% 175 182 25.6% 26.6% Reported 2Q Adj* 2Q 538 538 10% 9% 501 501 4% 3% 101 98 20.2% 19.6% 108 106 21.6% 21.2% Reported 2Q Adj* 2Q 1,449 1,449 151% 147% 644 644 3% 1% 91 120 14.1% 18.6% 157 163 24.4% 25.3% 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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2Q 2026 Results & Earnings4 2Q 2026 Earnings Highlights Solving larger, more complex water challenges through our comprehensive solutions Increasing exposure to high growth industrial verticals building off the Evoqua acquisition Optimizing our portfolio to support accelerating value creation Healthy demand with book to bill >1, WSS orders growth driven by outsourced model Stronger than expected revenue growth and profitability from WI Sustained capital deployment, repurchased ~$648M in shares and signed WaterFleet acquisition for ~$200M Raising FY guide on updated outlook Strong earnings growth driven by disciplined execution Positioned for long-term growth and profitability Positioned for long-term resilience and profitability
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2Q 2026 Results & Earnings5 2Q 2026 Financial Performance Revenue Adj. EBITDA Margin* Adj. EPS* YTD Free Cash Flow* • Strength in Transport, Energy Metering, Building Solutions, and Capital in Heavy • Strength in developed markets offset China declines • Improvement driven by productivity, price, and improving mix more than offsetting inflation and lower volume • $0.16 organic operations • $0.02 other including interest income • $0.02 accretion from share repurchase net of forgone interest income • Free cash flow* driven by higher net income partly offset by outsourced water contracts • 0.8x net debt / adjusted EBITDA* (TTM) Orders • Resilient demand with book-to-bill ratio >1x • Strength in WSS outsourced water and AW data center orders • $5.3B backlog $2,174 $3,086 2Q 2025 2Q 2026 $2,301 $2,336 2Q 2025 2Q 2026 2Q 2025 2Q 2026 21.8% 23.3% $1.26 $1.46 2Q 2025 2Q 2026 $169 $219 2025 2026 4% 5% YTD FCF Margin* Organic* 41%Organic* 41% Organic* 1%Organic* 1% +150 bps+150 bps 16%16% 30%30% Solid performance driven by operational execution *See appendix for definitions of non-GAAP measures and non-GAAP reconciliations.
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2Q 2026 Results & Earnings6 2Q 2026 Segment Performance Summary Orders / Organic Growth* $430M +2% $669M (4%) $538M +9% $1,449M +147% Revenue / Organic Growth* $508M (1%) $683M +3% $501M +3% $644M +1% Adj. EBITDA Margin* / Expansion 21.1% $107M -200 bps YoY 26.6% $182M +480 bps YoY 21.2% $106M -50 bps YoY 25.3% $163M +90 bps YoY • Orders growth driven by Water Metering • Revenue decline mostly offset by Energy Metering and VUE demand • Margin decline due to mix, inflation, and volume, offset partly by productivity and price • Orders decline driven by Treatment offset partially by Transport • Revenue growth driven by Transport offset by Treatment and China • Margin up due to productivity, mix, price, and volume offsetting inflation and investments • Orders growth driven by data centers • Revenue growth driven by commercial end market • Margin decline due to inflation and volume, mostly offset by productivity and price • Orders growth from large outsourced water contracts • Revenue growth driven by capital and Dewatering • Margin up due to price, mix, and productivity, offset by lower volume and inflation Measurement and Control Solutions Water Infrastructure Applied Water Water Solutions and Services Healthy demand across key markets *See appendix for definitions of non-GAAP measures and non-GAAP reconciliations .
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2Q 2026 Results & Earnings7 FY 2026 and 3Q 2026 Guidance • Organic revenue* growth driven healthy demand, backlog execution, and price more than offsetting 80/20 and China headwinds • Margin driven by productivity, volume, and price offsetting inflation, investments and mix • Benefits from simplification • Cash flow impaired by working capital requirements from outsourced water projects, remaining restructuring costs, and system investments Full-Year Highlights Updated full year guidance reflects year to date progress and momentum *See appendix for definitions of non-GAAP measures ** Initial Guidance did not include any assumption for impact of changes to tariff policy *** Includes tariff impact and mitigation based on information available as of 7/27/2026 Prior FY Guide** 3Q GuideUpdated FY Guide*** Revenue $9.2 – 9.3B 2 - 3% Total Growth 2 - 4% Organic* Growth ~$9.2B ~2% Total Growth 2 - 3% Organic* Growth ~$2.3 ~0% Total Growth ~3% Organic* Growth Adjusted EBITDA Margin* ~22.9 - 23.3% +70 - 110 bps expansion 23.1 - 23.5% +90 - 130 bps expansion 23.5 - 24.0% +30 - 80 bps expansion Adjusted EPS* $5.35 – $5.60 $5.55 – $5.70 $1.42 – $1.47 Free Cash Flow Margin* 10.2-11% margin 10.2-11% margin
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2Q 2026 Results & Earnings8 Key Takeaways Confident in achieving our long-term commitments Raising full year earnings guidance Secular growth drivers in Municipal intact, Industrial accelerating Strengthening our team and capabilities
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2Q 2026 Results & Earnings Appendix 9
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2Q 2026 Results & Earnings10 FY 2026 Guidance Key Assumptions FY 2026 Assumptions Corporate Expense ~$85M Restructuring & Realignment Costs* $70M - $90M Capex ~$350M Estimated Tax Rate1 ~22 - 23% Purchase Accounting Intangible Amortization ~$220M EUR / USD Rate 1.14 *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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2Q 2026 Results & Earnings11 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 • Geographic split: US ~35% / W. Europe ~35% / EM & Other ~30% • End-market Split: 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 ~75% / W. Europe ~15% / EM & Other ~10% • End-market Split: Clean Water Utilities ~90% / Industrials ~10% • 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 ~55% / W. Europe ~20% / EM & Other ~25% • 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 ~75% / Rest of World ~25% • End-market split: Industrials ~80% / Utilities ~20% • 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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2Q 2026 Results & Earnings12 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. “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, less capital expenditures, as reported in the Statement of Cash Flows. Our definition of “free cash flow” does not consider certain non-discretionary cash payments, such as debt. “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, non-cash impairment charges and other special charges. In 2026, these charges include reductions of expense related to the refunds of certain tariffs previously imposed under the International Emergency Economic Powers Act (“IEEPA”). “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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2Q 2026 Results & Earnings13 Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic Orders ($ Millions) (A) (B) (C) (D) (E) (F) = B+C+D+E (G) = F/(A-D) Change % Change Change % Change Orders Orders 2026 v. 2025 2026 v. 2025 Book-to-Bill FX Impact Adj. 2026 v. 2025 Adj. 2026 v. 2025 2026 2025 Six Months Ended June 30 Xylem Inc. 5,314 4,332 982 23% 119% (27) 28 (111) 872 20% Water Infrastructure 1,344 1,298 46 4% 105% (21) 8 (45) (12) (1%) Applied Water 1,050 974 76 8% 111% - - (20) 56 6% Measurement and Control Solutions 905 839 66 8% 89% - 20 (14) 72 9% Water Solutions and Services 2,015 1,221 794 65% 167% (6) - (32) 756 62% Quarter Ended June 30 Xylem Inc. 3,086 2,174 912 42% 132% (15) 23 (41) 879 41% Water Infrastructure 669 672 (3) (0%) 98% (13) 3 (13) (26) (4%) Applied Water 538 488 50 10% 107% - - (5) 45 9% Measurement and Control Solutions 430 437 (7) (2%) 85% - 20 (3) 10 2% Water Solutions and Services 1,449 577 872 151% 225% (2) - (20) 850 147% Quarter Ended March 31 Xylem Inc. 2,228 2,158 70 3% 105% (12) 5 (70) (7) (0%) Water Infrastructure 675 626 49 8% 112% (8) 5 (32) 14 2% Applied Water 512 486 26 5% 114% - - (15) 11 2% Measurement and Control Solutions 475 402 73 18% 94% - - (11) 62 15% Water Solutions and Services 566 644 (78) (12%) 100% (4) - (12) (94) (15%) Acquisitions (As Reported) (As Adjusted - Organic) Divestitures
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2Q 2026 Results & Earnings14 Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic Revenue ($ Millions) (A) (B) (C) (D) (E) (F) = B+C+D+E (G) = F/(A-D) Change % Change Change % Change Revenue Revenue 2026 v. 2025 2026 v. 2025 FX Impact Adj. 2026 v. 2025 Adj. 2026 v. 2025 2026 2025 Six Months Ended June 30 Xylem Inc. 4,461 4,370 91 2% (12) 36 (94) 21 0% Water Infrastructure 1,286 1,231 55 4% (7) 7 (43) 12 1% Applied Water 949 918 31 3% - - (19) 12 1% Measurement and Control Solutions 1,016 1,030 (14) (1%) - 29 (15) - 0% Water Solutions and Services 1,210 1,191 19 2% (5) - (17) (3) (0%) Quarter Ended June 30 Xylem Inc. 2,336 2,301 35 2% (7) 31 (29) 30 1% Water Infrastructure 683 650 33 5% (4) 2 (14) 17 3% Applied Water 501 483 18 4% - - (5) 13 3% Measurement and Control Solutions 508 540 (32) (6%) - 29 (4) (7) (1%) Water Solutions and Services 644 628 16 3% (3) - (6) 7 1% Quarter Ended March 31 Xylem Inc. 2,125 2,069 56 3% (5) 5 (65) (9) (0%) Water Infrastructure 603 581 22 4% (3) 5 (29) (5) (1%) Applied Water 448 435 13 3% - - (14) (1) (0%) Measurement and Control Solutions 508 490 18 4% - - (11) 7 1% Water Solutions and Services 566 563 3 1% (2) - (11) (10) (2%) (As Reported - GAAP) Acquisitions (As Adjusted - Organic) Divestitures
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2Q 2026 Results & Earnings15 Xylem Inc. Non-GAAP Reconciliation Adjusted Operating Income ($ Millions) Q1 Q2 YTD 2026 2025 2026 2025 2026 2025 Total Revenue • Total Xylem 2,125 2,069 2,336 2,301 4,461 4,370 • Water Infrastructure 603 581 683 650 1,286 1,231 • Applied Water 448 435 501 483 949 918 • Measurement and Control Solutions 508 490 508 540 1,016 1,030 • Water Solutions and Services 566 563 644 628 1,210 1,191 • Corporate/ Other - - - - - Operating Income (Loss) • Total Xylem 244 231 390 305 634 536 • Water Infrastructure 76 80 157 103 233 183 • Applied Water 77 72 101 84 178 156 • Measurement and Control Solutions 57 56 63 68 120 124 • Water Solutions and Services 56 44 91 78 147 122 • Corporate/ Other (22) (21) (22) (28) (44) (49) Operating Margin • Total Xylem 11.5% 11.2% 16.7% 13.3% 14.2% 12.3% • Water Infrastructure 12.6% 13.8% 23.0% 15.8% 18.1% 14.9% • Applied Water 17.2% 16.6% 20.2% 17.4% 18.8% 17.0% • Measurement and Control Solutions 11.2% 11.4% 12.4% 12.6% 11.8% 12.0% • Water Solutions and Services 9.9% 7.8% 14.1% 12.4% 12.1% 10.2% • Corporate/ Other N/A N/A N/A N/A N/A N/A Special Charges • Total Xylem 5 12 (10) 13 (5) 25 • Water Infrastructure - 2 (3) 2 (3) 4 • Applied Water - - (6) - (6) - • Measurement and Control Solutions 3 4 (2) 6 1 10 • Water Solutions and Services - 4 1 1 1 5 • Corporate/ Other 2 2 - 4 2 6 Q1 Q2 YTD 2026 2025 2026 2025 2026 2025 Restructuring & Realignment Costs • Total Xylem 38 27 15 29 53 56 • Water Infrastructure 30 15 5 12 35 27 • Applied Water 2 5 3 10 5 15 • Measurement and Control Solutions 4 3 3 5 7 8 • Water Solutions and Services 2 4 4 2 6 6 • Corporate/ Other - - - - - - Purchase Accounting Intangible Amortization Adjustment • Total Xylem 55 55 52 55 107 110 • Water Infrastructure 11 10 9 10 20 20 • Applied Water - - - - - - • Measurement and Control Solutions 19 19 19 19 38 38 • Water Solutions and Services 25 26 24 25 49 51 • Corporate/ Other - - - 1 - 1 Adjusted Operating Income (Loss) • Total Xylem 342 325 447 402 789 727 • Water Infrastructure 117 107 168 127 285 234 • Applied Water 79 77 98 94 177 171 • Measurement and Control Solutions 83 82 83 98 166 180 • Water Solutions and Services 83 78 120 106 203 184 • Corporate/ Other (20) (19) (22) (23) (42) (42) Adjusted Operating Margin • Total Xylem 16.1% 15.7% 19.1% 17.5% 17.7% 16.6% • Water Infrastructure 19.4% 18.4% 24.6% 19.5% 22.2% 19.0% • Applied Water 17.6% 17.7% 19.6% 19.5% 18.7% 18.6% • Measurement and Control Solutions 16.3% 16.7% 16.3% 18.1% 16.3% 17.5% • Water Solutions and Services 14.7% 13.9% 18.6% 16.9% 16.8% 15.4% • Corporate/ Other N/A N/A N/A N/A N/A N/A
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2Q 2026 Results & Earnings16 Xylem Inc. Non-GAAP Reconciliation Adjusted Diluted EPS ($ Millions, except per share amounts) Q2 2026 Q2 2025 As Reported Adjustments Adjusted As Reported Adjustments Adjusted Total Revenue 2,336 - 2,336 2,301 - 2,301 Operating Income 390 57 a 447 305 97 a 402 Operating Margin 16.7% 19.1% 13.3% 17.5% Interest Expense (7) - (7) (9) - (9) Other Non-Operating Income (Expense) (3) 7 b 4 3 - b 3 Gain/(Loss) From Sale of Businesses (16) 16 c - - - c - Income before Taxes 364 80 444 299 97 396 Provision for Income Taxes (103) 2 d (101) (75) (15) d (90) Net Income 261 82 343 224 82 306 Net Loss Attributable to Non-controlling Interests 2 - 2 2 - 2 Net Income Attributable to Xylem 263 82 345 226 82 308 Diluted Shares 236.6 236.6 243.9 243.9 Diluted EPS $1.11 $0.35 $1.46 $0.93 $0.33 $1.26 a Quarter-to-date: Restructuring & realignment costs: 2026 - $15 million; 2025 - $29 million Purchase accounting intangible amortization: 2026 - $52 million; 2025 - $55 million b c d Gain/(Loss) from sale of businesses as per income statement for all periods presented Other special charges Quarter-to-date: 2026 - Net tax impact on pre-tax adjustments (notes a, b and c) of $13 million, offset by $15 million of other tax special expense items; 2025 - Net tax impact on pre-tax adjustments (note a, b and c) of $20 million, offset by $5 million of other tax special expense items; Special charges: 2026 - $6 million of acquisition, divestiture & integration costs, offset by $16 million of IEEPA tariff refunds ; 2025 - $9 million of acquisition, divestiture & integration costs and $4 million of intangible asset impairment charges
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2Q 2026 Results & Earnings17 Xylem Inc. Non-GAAP Reconciliation Adjusted Diluted EPS ($ Millions, except per share amounts) a Year-to-date: Restructuring & realignment costs: 2026 - $53 million and 2025 - $56 million Purchase accounting intangible amortization: 2026 - $107 million and 2025 - $110 million b c d Gain/(Loss) from sale of businesses as per income statement for all periods presented Year-to-date: 2026 - Net tax impact on pre-tax adjustments (notes a, b and c) of $34 million, offset by $16 million of other tax special expense items; 2025 - Net tax impact on pre-tax adjustments (note a, b and c) of $42 million, offset by other tax special expense items of $5 million; Other special charges Special charges: 2026 - $11 million of acquisition, divestiture & integration costs, offset by $16 million of IEEPA tariff refunds; 2025 - $17 million of acquisition & integration related costs and $8 million of intangible asset impairment charges Q2 YTD 2026 Q2 YTD 2025 As Reported Adjustments Adjusted As Reported Adjustments Adjusted Total Revenue 4,461 - 4,461 4,370 - 4,370 Operating Income 634 155 a 789 536 191 a 727 Operating Margin 14.2% 17.7% 12.3% 16.6% Interest Expense (11) - (11) (17) - (17) Other Non-Operating Income (Expense) (3) 12 b 9 7 - b 7 Gain/(Loss) From Sale of Businesses (12) 12 c - (10) 10 c - Income before Taxes 608 179 787 516 201 717 Provision for Income Taxes (158) (18) d (176) (125) (37) d (162) Net Income 450 161 611 391 164 555 Net Loss Attributable to Non-controlling Interests 6 - 6 4 - 4 Net Income Attributable to Xylem 456 161 617 395 164 559 Diluted Shares 240.0 240.0 243.8 243.8 Diluted EPS $1.90 $0.67 $2.57 $1.62 $0.67 $2.29
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2Q 2026 Results & Earnings18 Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Q1 Q2 Q3 Q4 Total Net Income attributable to Xylem 193 263 456 Net Income margin 9.1% 11.3%N/A 10.2% Depreciation 65 65 130 Amortization 75 75 150 Interest Expense (Income), net (4) 2 (2) Income Tax Expense 55 103 158 EBITDA 384 508 - - 892 Share-based Compensation 13 12 25 Restructuring & Realignment 38 13 51 Special Charges 10 (3) 7 Loss/(Gain) from sale of businesses (4) 16 12 Loss attributable to non-controlling interests (4) (2) (6) Adjusted EBITDA 437 544 - - 981 Revenue 2,125 2,336 4,461 Adjusted EBITDA Margin 20.6% 23.3% 22.0% 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 interests (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% 2025 Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) 2026
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2Q 2026 Results & Earnings19 Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Q1 Q2 Q3 Q4 Total Operating Income 76 157 233 Operating Margin 12.6% 23.0% 18.1% (Loss)/Gain from sale of businesses - 2 2 Depreciation 12 11 23 Amortization 14 13 27 Other non-operating expense, excluding interest income (2) (8) (10) EBITDA 100 175 - - 275 Share-based Compensation 2 2 4 Restructuring & Realignment 30 3 33 Special Charges - 4 4 Loss/(Gain) from sale of businesses - (2) (2) Adjusted EBITDA 132 182 - - 314 Revenue 603 683 1,286 Adjusted EBITDA Margin 21.9% 26.6% 24.4% 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% 2025 Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Water Infrastucture 2026 Q1 Q2 Q3 Q4 Total Operating Income 77 101 178 Operating Margin 17.2% 20.2% N/A 18.8% (Gain) attributable to non-controlling interests - - Depreciation 7 6 13 Amortization 1 1 2 Other non-operating expense, excluding interest income (1) - (1) EBITDA 84 108 - - 192 Share-based Compensation 2 1 3 Restructuring & Realignment 2 3 5 Special Charges - (6) (6) Gain attributable to non-controlling interests - - Adjusted EBITDA 88 106 - - 194 Revenue 448 501 949 Adjusted EBITDA Margin 19.6% 21.2% 20.4% 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 interests - - - (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 interests - - - 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% 2025 Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Applied Water 2026
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2Q 2026 Results & Earnings20 Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Q1 Q2 Q3 Q4 Total Operating Income 57 63 120 Operating Margin 11.2% 12.4% 11.8% Loss attributable to non-controlling interests 4 2 6 (Loss)/Gain from sale of businesses 4 (18) (14) Depreciation 7 8 15 Amortization 33 33 66 Other non-operating expense, excluding interest income - - - EBITDA 105 88 - - 193 Share-based Compensation 2 2 4 Restructuring & Realignment 4 3 7 Special Charges 3 (2) 1 Loss/(Gain) from sale of businesses (4) 18 14 (Loss) attributable to non-controlling interests (4) (2) (6) Adjusted EBITDA 106 107 - - 213 Revenue 508 508 1,016 Adjusted EBITDA Margin 20.9% 21.1% 21.0% 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 interests - 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 interests - (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% 2025 Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Measurement and Control Solutions 2026 Q1 Q2 Q3 Q4 Total Operating Income 56 91 147 Operating Margin 9.9% 14.1% 12.1% Depreciation 39 39 78 Amortization 26 27 53 Other non-operating expense, excluding interest income (5) - (5) (Gain) attributable to non-controlling interests - - - EBITDA 116 157 - - 273 Share-based Compensation 2 1 3 Restructuring & Realignment 2 4 6 Special Charges 5 1 6 Gain attributable to non-controlling interests - - Adjusted EBITDA 125 163 - - 288 Revenue 566 644 1,210 Adjusted EBITDA Margin 22.1% 25.3% 23.8% 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 interests - - (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 interests - - 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% Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Water Solutions and Services 2026 2025
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2Q 2026 Results & Earnings21 Xylem Inc. Non-GAAP Reconciliation Net Cash – Operating Activities vs. Free Cash Flow ($ Millions) 2026 2025 2026 2025 2026 2025 Net Cash - Operating Activities $108 $33 $290 $305 $398 $338 Capital Expenditures - PPE (66) (55) (70) (78) (136) (133) Capital Expenditures - Software (24) (16) (19) (20) (43) (36) Capital Expenditures (90) (71) (89) (98) (179) (169) Free Cash Flow $18 ($38) $201 $207 $219 $169 Cash Paid for Significant Divestiture Activities 7 - 14 - 21 - Cash Received for IEEPA Tariff Refunds - - (4) - (4) - Adjusted Free Cash Flow for Margin Calculation $25 ($38) $211 $207 $236 $169 Revenue $2,125 $2,069 $2,336 $2,301 $4,461 $4,370 Operating Cash Flow Margin 5.1% 1.6% 12.4% 13.3% 8.9% 7.7% Free Cash Flow Margin 1.2% (1.8%) 9.0% 9.0% 5.3% 3.9% Q1 Q2 Year-to-Date
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Thank you. NYSE: XYL Xylem Investor Relations Website LinkedIn | Twitter | Facebook | YouTube | Instagram 2Q 2026 Results & Earnings Replay of the webcast is available until midnight August 11, 2026 Replay: +1 (855) 669-9658 or +1 (412) 317-0088 (INTL) Access Code 8084219