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2026 Third Quarter Results and Earnings October 27, 2026
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3Q 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 necessarily 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 demand and spending, interest rates, availability of funding to our customers, timing of customers’ capital spending and project deployments, 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 and portfolio optimization actions, 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; our level of indebtedness, including debt incurred to finance the pending Cornell Pump and Roper Pump acquisition; 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”). 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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3Q 2026 Results & Earnings3 3Q 2026 Performance Summary ($ in millions, unless otherwise noted) Reported 3Q Adj* 3Q Orders 2,331 2,331 Overall Growth 7% Organic Growth* 10% Revenue 2,201 2,201 Overall Growth (3%) Organic Growth* (0%) Operating Income 385 428 Operating Margin 17.5% 19.4% EBITDA* 520 527 EBITDA Margin* 23.6% 23.9% Earnings Per Share $1.25 $1.44 Reported 3Q Adj* 3Q 504 504 13% 30% 436 436 (16%) (5%) 66 84 15.1% 19.3% 94 107 21.6% 24.5% Reported 3Q Adj* 3Q 675 675 (1%) (1%) 645 645 (2%) (1%) 147 154 22.8% 23.9% 171 169 26.5% 26.2% Reported 3Q Adj* 3Q 502 502 13% 15% 489 489 7% 9% 100 94 20.4% 19.2% 116 104 23.7% 21.3% Reported 3Q Adj* 3Q 650 650 7% 6% 631 631 (0%) (2%) 92 114 14.6% 18.1% 155 157 24.6% 24.9% 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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3Q 2026 Results & Earnings4 2026 3Q Earnings Highlights Optimizing portfolio toward higher growth markets through Cornell & Roper and WaterFleet acquisitions Announced planned divestiture of AW International1 and Specialty Flow Control Strengthening focus on growth and customer centricity by moving from 4 to 3 segments Orders up 10% and book-to-bill >1, strong orders growth driven by MCS water meters and AW data center demand Revenue below expectations due to affordability pressure in metering and project timing Operational excellence delivered solid earnings and YoY EBITDA margin* expansion of 70 bps in line with expectations Positioned for long-term growth and profitability Healthy demand and operational excellence Proactive acceleration of our transformation plan *See appendix for definitions of non-GAAP measures and non-GAAP reconciliations. 1 Includes AW Europe, Middle East Africa and Asia Pacific
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3Q 2026 Results & Earnings5 3Q 2026 Financial Performance • Softness in MCS Metering, WI Treatment and WSS mostly offset by strength in WI Transport and AW Data Centers • Strength in North America offset by W Europe and China declines • Expansion driven by productivity and price more than offsetting inflation and lower volume • Margin expansion and strategic capital deployment more than offset topline headwinds • Excludes $0.11 benefit from IEEPA tariff refunds • Free cash flow* driven by net working capital and outsourced water contracts, partly offset by higher net income • 1.1x net debt / adjusted EBITDA* (TTM) • Healthy demand with book- to-bill ratio >1 • Strength in MCS and AW data center orders • $5.5B backlog, 16% organic growth, up ~$0.2B sequentially Disciplined operations driving profitability *See appendix for definitions of non-GAAP measures and non-GAAP reconciliations. Revenue Adj. EBITDA Margin* Adj. EPS* YTD Adj. Free Cash Flow*Orders $2,181 3Q 2025 3Q 2026 $2,331 $2,268 $2,201 3Q 2025 3Q 2026 3Q 2025 3Q 2026 23.2% 23.9% $1.37 $1.42 3Q 2025 3Q 2026 2025 2026 $462 $444 7.0% 6.7% YTD Adj FCF Margin* Organic* 10%Organic* 10% Organic* (0)%Organic* (0)% +70 bps+70 bps 5%5% (4)%(4)%
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3Q 2026 Results & Earnings6 3Q 2026 Segment Performance Summary Orders / Organic Growth* $504M +30% $675M (1%) $502M +15% $650M +6% Revenue / Organic Growth* $436M (5%) $645M (1%) $489M +9% $631M (2%) Adj. EBITDA Margin* / Expansion 24.5% $107M +270 bps YoY 26.2% $169M +180 bps YoY 21.3% $104M (40) bps YoY 24.9% $157M (140) bps YoY • Orders growth across Metering driven by Water and Gas • Revenue decline largely driven by Electric Metering and Analytics • Margin up due to productivity, price, and divestiture partially offset by inflation, volume, and mix • Orders decline driven by Treatment partially offset by Transport • Revenue decline driven by Treatment offset by Transport • Margin up due to productivity and price offsetting inflation, volume and investments • Orders growth driven by NA Data Centers and Commercial • Revenue growth driven by Americas • Margin decline due to inflation, mix, and investments partly offset by productivity, volume, and price • Orders growth driven by Capital • Revenue decline driven by PY one-time Services and Capital work that did not repeat • Margin decline due to inflation, lower volume, and mix partly offset by price and productivity Measurement and Control Solutions Water Infrastructure Applied Water Water Solutions and Services *See appendix for definitions of non-GAAP measures and non-GAAP reconciliations . Orders building momentum for 2027
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3Q 2026 Results & Earnings7 FY 2026 and 4Q 2026 Guidance • Organic revenue roughly flat; demand healthy with book-to-bill >1; backlog scheduled to ship in later periods • MCS book-and-ship volume and WSS project ramps account for lower revenue outlook • Maintaining ~100 bps margin expansion on lower volume, as productivity and price more than offset inflation and investments • Cash flow reflects profit margin expansion, partially offset by higher interest payments Full-Year Highlights Full year Adj EPS in line with original framework despite topline headwinds *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 10/27/2026 Prior FY Guide** 4Q GuideUpdated FY Guide*** Revenue ~$9.2B ~2% Total Growth 2 - 3% Organic* Growth ~$8.95B (1%) Total Growth Flat Organic* Growth ~$2.3B (5%) Total Growth (2%) - (1%) Organic* Growth Adjusted EBITDA Margin* 23.1 - 23.5% +90 - 130 bps expansion ~23.2% +100 bps expansion ~24.5% +130 bps expansion Adjusted EPS* $5.55 – $5.70 $5.40 – $5.45 $1.39 – $1.44 Free Cash Flow Margin* 10.2-11% margin ~10.2% margin
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3Q 2026 Results & Earnings8 Key Takeaways Confident in our strategy and ability to create long-term value Healthy demand reinforces our resilient outlook A simpler Xylem strengthens customer focus and execution Accelerating portfolio rotation toward higher growth markets
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3Q 2026 Results & Earnings Appendix 9
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3Q 2026 Results & Earnings10 2027 segment realignment: Four segments to three Continuing to rotate our portfolio positioning Xylem to accelerate profitable growth > CURRENT SEGMENTS Water Solutions and Services $2.5B Water Infrastructure $2.6B Measurement and Control Solutions1 $2.1B Applied Water $1.8B FY25 REV NEW SEGMENTS (Jan 1, 2027) WSS Segment WI Treatment Division ~$3.5BTreatment and Services WI Transport Division AW Americas Division ~$2.6B (est) Flow Solutions MCS Segment ~$2.1BMeasurement and Analytics ~$0.8B (est)AW International Division (divest)2 AW Specialty Flow Control Division (divest) Other FY25 REV KEY OFFERING Treatment and lifecycle solutions Pumping, transport and flow Metering, sensing and digital To be divested Planned divestiture of Applied Water businesses move to “Other” 1 MCS FY25 revenue includes international metrology which was divested in May 2026 accounting for ~$250M of revenue 2 Includes AW Europe, Middle East Africa and Asia Pacific
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3Q 2026 Results & Earnings11 FY 2026 Guidance Key Assumptions FY 2026 Assumptions Q4 2026 Assumptions Revenue reduction from divestitures net of acquisitions1 ~($140M) ~($53M) Corporate Expense ~$80M ~$18M Restructuring & Realignment Costs* $80M - $90M $13M - $23M Capex ~$350M ~$80M Interest Expense ~$50M ~$37M Estimated Tax Rate2 ~21 - 22% ~21 - 22% Purchase Accounting Intangible Amortization ~$220M ~$55M Diluted Shares 235.9M 230.7M EUR / USD Rate 1.14 1.14 *See appendix for definitions of non-GAAP measures 1 Excludes any impact from anticipated Cornell and Roper acquisition in Q4 2026 2 Estimated tax rate is on an adjusted basis
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3Q 2026 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 • 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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3Q 2026 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. “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, 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 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 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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3Q 2026 Results & Earnings14 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 Nine Months Ended September 30 Xylem Inc. 7,645 6,513 1,132 17% 115% (38) 102 (115) 1,081 17% Water Infrastructure 2,019 1,981 38 2% 105% (23) 12 (47) (20) (1%) Applied Water 1,552 1,419 133 9% 108% - 10 (20) 123 9% Measurement and Control Solutions 1,409 1,285 124 10% 97% (4) 80 (14) 186 15% Water Solutions and Services 2,665 1,828 837 46% 145% (11) - (34) 792 43% Quarter Ended September 30 Xylem Inc. 2,331 2,181 150 7% 106% (11) 74 (4) 209 10% Water Infrastructure 675 683 (8) (1%) 105% (2) 4 (2) (8) (1%) Applied Water 502 445 57 13% 103% - 10 - 67 15% Measurement and Control Solutions 504 446 58 13% 116% (4) 60 - 114 30% Water Solutions and Services 650 607 43 7% 103% (5) - (2) 36 6% 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 Adjusted - Organic) Divestitures (As Reported)
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3Q 2026 Results & Earnings15 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 Nine Months Ended September 30 Xylem Inc. 6,662 6,638 24 0% (29) 116 (97) 14 0% Water Infrastructure 1,931 1,887 44 2% (8) 13 (45) 4 0% Applied Water 1,438 1,374 64 5% - 6 (19) 51 4% Measurement and Control Solutions 1,452 1,552 (100) (6%) (6) 97 (14) (23) (2%) Water Solutions and Services 1,841 1,825 16 1% (15) - (19) (18) (1%) Quarter Ended September 30 Xylem Inc. 2,201 2,268 (67) (3%) (17) 80 (3) (7) (0%) Water Infrastructure 645 656 (11) (2%) (1) 6 (2) (8) (1%) Applied Water 489 456 33 7% - 6 - 39 9% Measurement and Control Solutions 436 522 (86) (16%) (6) 68 1 (23) (5%) Water Solutions and Services 631 634 (3) (0%) (10) - (2) (15) (2%) 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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3Q 2026 Results & Earnings16 Xylem Inc. Non-GAAP Reconciliation Adjusted Operating Income ($ Millions) Q1 Q2 Q3 YTD 2026 2025 2026 2025 2026 2025 2026 2025 Total Revenue • Total Xylem 2,125 2,069 2,336 2,301 2,201 2,268 6,662 6,638 • Water Infrastructure 603 581 683 650 645 656 1,931 1,887 • Applied Water 448 435 501 483 489 456 1,438 1,374 • Measurement and Control Solutions 508 490 508 540 436 522 1,452 1,552 • Water Solutions and Services 566 563 644 628 631 634 1,841 1,825 • Corporate/ Other - - - - - - - Operating Income (Loss) • Total Xylem 244 231 390 305 385 334 1,019 870 • Water Infrastructure 76 80 157 103 147 113 380 296 • Applied Water 77 72 101 84 100 85 278 241 • Measurement and Control Solutions 57 56 63 68 66 64 186 188 • Water Solutions and Services 56 44 91 78 92 98 239 220 • Corporate/ Other (22) (21) (22) (28) (20) (26) (64) (75) Operating Margin • Total Xylem 11.5% 11.2% 16.7% 13.3% 17.5% 14.7% 15.3% 13.1% • Water Infrastructure 12.6% 13.8% 23.0% 15.8% 22.8% 17.2% 19.7% 15.7% • Applied Water 17.2% 16.6% 20.2% 17.4% 20.4% 18.6% 19.3% 17.5% • Measurement and Control Solutions 11.2% 11.4% 12.4% 12.6% 15.1% 12.3% 12.8% 12.1% • Water Solutions and Services 9.9% 7.8% 14.1% 12.4% 14.6% 15.5% 13.0% 12.1% • Corporate/ Other N/A N/A N/A N/A N/A N/A N/A N/A Special Charges • Total Xylem 5 12 (10) 13 (23) 9 (28) 34 • Water Infrastructure - 2 (3) 2 (5) - (8) 4 • Applied Water - - (6) - (9) - (15) - • Measurement and Control Solutions 3 4 (2) 6 (8) 5 (7) 15 • Water Solutions and Services - 4 1 1 (3) 1 (2) 6 • Corporate/ Other 2 2 - 4 2 3 4 9 Q1 Q2 Q3 YTD 2026 2025 2026 2025 2026 2025 2026 2025 Restructuring & Realignment Costs • Total Xylem 38 27 15 29 14 31 67 87 • Water Infrastructure 30 15 5 12 2 22 37 49 • Applied Water 2 5 3 10 3 4 8 19 • Measurement and Control Solutions 4 3 3 5 7 1 14 9 • Water Solutions and Services 2 4 4 2 2 3 8 9 • Corporate/ Other - - - - - 1 - 1 Purchase Accounting Intangible Amortization Adjustment • Total Xylem 55 55 52 55 52 55 159 165 • Water Infrastructure 11 10 9 10 10 10 30 30 • Applied Water - - - - - - - - • Measurement and Control Solutions 19 19 19 19 19 20 57 58 • Water Solutions and Services 25 26 24 25 23 25 72 76 • Corporate/ Other - - - 1 - - - 1 Adjusted Operating Income (Loss) • Total Xylem 342 325 447 402 428 429 1,217 1,156 • Water Infrastructure 117 107 168 127 154 145 439 379 • Applied Water 79 77 98 94 94 89 271 260 • Measurement and Control Solutions 83 82 83 98 84 90 250 270 • Water Solutions and Services 83 78 120 106 114 127 317 311 • Corporate/ Other (20) (19) (22) (23) (18) (22) (60) (64) Adjusted Operating Margin • Total Xylem 16.1% 15.7% 19.1% 17.5% 19.4% 18.9% 18.3% 17.4% • Water Infrastructure 19.4% 18.4% 24.6% 19.5% 23.9% 22.1% 22.7% 20.1% • Applied Water 17.6% 17.7% 19.6% 19.5% 19.2% 19.5% 18.8% 18.9% • Measurement and Control Solutions 16.3% 16.7% 16.3% 18.1% 19.3% 17.2% 17.2% 17.4% • Water Solutions and Services 14.7% 13.9% 18.6% 16.9% 18.1% 20.0% 17.2% 17.0% • Corporate/ Other N/A N/A N/A N/A N/A N/A N/A N/A
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3Q 2026 Results & Earnings17 Xylem Inc. Non-GAAP Reconciliation Adjusted Diluted EPS ($ Millions, except per share amounts) Q3 2026 Q3 2025 As Reported Adjustments Adjusted As Reported Adjustments Adjusted Total Revenue 2,201 - 2,201 2,268 - 2,268 Operating Income 385 43 a 428 334 95 a 429 Operating Margin 17.5% 19.4% 14.7% 18.9% Interest Expense (21) - (21) (6) - (6) Other Non-Operating Income (Expense) 6 - 6 6 - 6 Gain/(Loss) From Sale of Businesses (5) 5 b - (37) 37 b - Income before Taxes 365 48 413 297 132 429 Provision for Income Taxes (77) (3) c (80) (71) (26) c (97) Net Income 288 45 333 226 106 332 Net Loss Attributable to Non-controlling Interests 3 - 3 1 - 1 Net Income Attributable to Xylem 291 45 336 227 106 333 Diluted Shares 233.0 233.0 244.1 244.1 Diluted EPS $1.25 $0.19 $1.44 $0.93 $0.44 $1.37 a Quarter-to-date: Restructuring & realignment costs: 2026 - $14 million; 2025 - $31 million Purchase accounting intangible amortization: 2026 - $52 million; 2025 - $55 million b c Quarter-to-date: 2026 - Net tax impact on pre-tax adjustments (notes a, b and c) of $8 million, offset by $5 million of other tax special expense items; 2025 - Net tax impact on pre-tax adjustments (note a, b and c) of $27 million, offset by $1 million of other tax special expense items; Special charges: 2026 - $10 million of acquisition, divestiture & integration costs, offset by $33 million of IEEPA tariff refunds ; 2025 - $9 million of acquisition, divestiture & integration costs Gain/(Loss) from sale of businesses as per income statement for all periods presented
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3Q 2026 Results & Earnings18 Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Water Infrastructure Applied Water Q1 Q2 Q3 Q4 Total Operating Income 76 157 147 380 Operating Margin 12.6% 23.0% 22.8% N/A 19.7% (Loss)/Gain from sale of businesses - 2 2 4 Depreciation 12 11 12 35 Amortization 14 13 12 39 Other non-operating expense, excluding interest income (2) (8) (2) (12) EBITDA 100 175 171 - 446 EBITDA Margin 16.6% 25.6% 26.5% N/A 23.1% Share-based Compensation 2 2 3 7 Restructuring & Realignment 30 3 2 35 Special Charges - 4 (5) (1) Loss/(Gain) from sale of businesses - (2) (2) (4) Adjusted EBITDA 132 182 169 - 483 Revenue 603 683 645 1,931 Adjusted EBITDA Margin 21.9% 26.6% 26.2% N/A 25.0% Year over Year Expansion 120bps 480bps 180bps 260bps 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 EBITDA Margin 15.7% 19.2% 21.2% 25.6% 20.8% 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 2026 Q1 Q2 Q3 Q4 Total Operating Income 77 101 100 278 Operating Margin 17.2% 20.2% 20.4% N/A 19.3% (Loss)/Gain from sale of businesses - - 8 8 Depreciation 7 6 7 20 Amortization 1 1 1 3 Other non-operating expense, excluding interest income (1) - - (1) EBITDA 84 108 116 - 308 EBITDA Margin 18.8% 21.6% 23.7% N/A 21.4% Share-based Compensation 2 1 2 5 Restructuring & Realignment 2 3 3 8 Special Charges - (6) (9) (15) Loss/(Gain) from sale of businesses - - (8) (8) Adjusted EBITDA 88 106 104 - 298 Revenue 448 501 489 1,438 Adjusted EBITDA Margin 19.6% 21.2% 21.3% N/A 20.7% Year over Year Expansion 10bps -50bps -40bps -30bps Q1 Q2 Q3 Q4 Total Operating Income 72 84 85 71 312 Operating Margin 16.6% 17.4% 18.6% 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 EBITDA Margin 18.2% 19.5% 20.4% 16.4% 18.6% 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% 2025 2026
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3Q 2026 Results & Earnings19 Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) Measurement and Control Solutions Water Solutions and Services Q1 Q2 Q3 Q4 Total Operating Income 57 63 66 186 Operating Margin 11.2% 12.4% 15.1% N/A 12.8% Loss attributable to non-controlling interest 4 2 3 9 (Loss)/Gain from sale of businesses 4 (18) (15) (29) Depreciation 7 8 7 22 Amortization 33 33 33 99 Other non-operating expense, excluding interest income - - - - EBITDA 105 88 94 - 287 EBITDA Margin 20.7% 17.3% 21.6% N/A 19.8% Share-based Compensation 2 2 2 6 Restructuring & Realignment 4 3 7 14 Special Charges 3 (2) (8) (7) Loss/(Gain) from sale of businesses (4) 18 15 29 (Loss) attributable to non-controlling interest (4) (2) (3) (9) Adjusted EBITDA 106 107 107 - 320 Revenue 508 508 436 1,452 Adjusted EBITDA Margin 20.9% 21.1% 24.5% N/A 22.0% Year over Year Expansion (bps) -10bps -200bps 270bps 0bps Q1 Q2 Q3 Q4 Total Operating Income 56 68 64 56 244 Operating Margin 11.4% 12.6% 12.3% 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 EBITDA Margin 19.4% 21.3% 13.4% 21.5% 18.9% 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% 2025 2026 Q1 Q2 Q3 Q4 Total Operating Income 56 91 92 239 Operating Margin 9.9% 14.1% 14.6% N/A 13.0% Depreciation 39 39 38 116 Amortization 26 27 25 78 Other non-operating expense, excluding interest income (5) - - (5) (Gain) attributable to non-controlling interest - - - - EBITDA 116 157 155 - 428 EBITDA Margin 20.5% 24.4% 24.6% N/A 23.2% Share-based Compensation 2 1 3 6 Restructuring & Realignment 2 4 2 8 Special Charges 5 1 (3) 3 Gain attributable to non-controlling interest - - - - Adjusted EBITDA 125 163 157 - 445 Revenue 566 644 631 1,841 Adjusted EBITDA Margin 22.1% 25.3% 24.9% N/A 24.2% Year over Year Expansion (bps) 40bps 90bps -140bps 0bps Q1 Q2 Q3 Q4 Total Operating Income 44 78 98 82 302 Operating Margin 7.8% 12.4% 15.5% 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 EBITDA Margin 19.9% 23.6% 25.4% 22.8% 23.0% 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% 2025 2026
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3Q 2026 Results & Earnings20 Xylem Inc. Non-GAAP Reconciliation Net Cash – Operating Activities vs. Free Cash Flow ($ Millions) 2026 2025 2026 2025 2026 2025 2026 2025 Net Cash - Operating Activities $108 $33 $290 $305 $331 $360 $729 $698 Capital Expenditures - PPE (66) (55) (70) (78) (74) (57) (210) (190) Capital Expenditures - Software (24) (16) (19) (20) (15) (22) (58) (58) Capital Expenditures (90) (71) (89) (98) (89) (79) (268) (248) Free Cash Flow $18 ($38) $201 $207 $242 $281 $461 $450 Cash Paid for Significant Divestiture Activities 7 - 14 - 5 12 26 12 Cash Received for IEEPA Tariff Refunds - - (4) - (39) - (43) - Adjusted Free Cash Flow for Margin Calculation $25 ($38) $211 $207 $208 $293 $444 $462 Revenue $2,125 $2,069 $2,336 $2,301 $2,201 $2,268 $6,662 $6,638 Operating Cash Flow Margin 5.1% 1.6% 12.4% 13.3% 15.0% 15.9% 10.9% 10.5% Free Cash Flow Margin 1.2% (1.8%) 9.0% 9.0% 9.5% 12.9% 6.7% 7.0% Q1 Q2 Q3 Year-to-Date
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Thank you. NYSE: XYL Xylem Investor Relations Website LinkedIn | Twitter | Facebook | YouTube | Instagram 3Q 2026 Results & Earnings Replay of the webcast is available until midnight November 10, 2026 Replay: +1 (855) 669-9658 or +1 (412) 317-0088 (INTL) Access Code 9823594