# EDGAR Filing Document

**Accession Number:** 0001524472
**File Stem:** 0001524472-25-000035
**Filing Date:** 2025-7
**Character Count:** 38491
**Document Hash:** d47d26cfa6ae90b8d8cd48e917d99dc0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001524472-25-000035.hdr.sgml**: 20250731

**ACCESSION NUMBER**: 0001524472-25-000035

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250731

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250731

**DATE AS OF CHANGE**: 20250731

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Xylem Inc.
- **CENTRAL INDEX KEY:** 0001524472
- **STANDARD INDUSTRIAL CLASSIFICATION:** PUMPS & PUMPING EQUIPMENT [3561]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 452080495
- **STATE OF INCORPORATION:** IN
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35229
- **FILM NUMBER:** 251169347

**BUSINESS ADDRESS:**
- **STREET 1:** 301 WATER STREET SE
- **CITY:** WASHINGTON
- **STATE:** DC
- **ZIP:** 20003
- **BUSINESS PHONE:** 202-869-9150

**MAIL ADDRESS:**
- **STREET 1:** 301 WATER STREET SE
- **CITY:** WASHINGTON
- **STATE:** DC
- **ZIP:** 20003

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ITT WCO, Inc.
- **DATE OF NAME CHANGE:** 20110628

?xml version='1.0' encoding='ASCII'? xyl-20250731

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

**FORM 8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d)**

**of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): July 31, 2025** 

**XYLEM INC.** 

**(Exact name of registrant as specified in its charter)**

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| | | |
|:---|:---|:---|
| **Indiana** | **001-35229** | **45-2080495** |
| **(State or other jurisdiction**<br>**of incorporation)** | **(Commission**<br>**File Number)** | **(IRS Employer**<br>**Identification No.)** |

---

---

| | | |
|:---|:---|:---|
| **301 Water Street SE** | **301 Water Street SE** | **20003** |
| **Washington** | **DC** | |
| **(Address of principal executive offices)** | **(Address of principal executive offices)** | **(Zip Code)** |

---

**(202) 869-9150** 

**(Registrant's telephone number, including area code)**

**(Former name or former address, if changed since last report)**

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **<u>Title of each class</u>** | **<u>Trading Symbol(s)</u>** | **<u>Name of each exchange of which registered</u>** |
| Common Stock, par value $0.01 per share | XYL | New York Stock Exchange |

---

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

☐ Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.¨

------

---

| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition** |

---

On July 31, 2025, Xylem Inc. issued a press release announcing its financial results for the quarter ended June 30, 2025. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated by reference herein.

This information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing

---

| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits** |

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(d) Exhibits.

---

| | |
|:---|:---|
| **Exhibit**<br>&nbsp;&nbsp;&nbsp;&nbsp;**No.** | **Description** |
| <u>[99.1](xyl07312025ex991.htm)</u> | Press Release issued by Xylem Inc. on July 31, 2025. |
| 104.0 | The cover page from Xylem Inc.'s Form 8-K, formatted in Inline XBRL. |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **XYLEM INC.** | **XYLEM INC.** |
| Date: July 31, 2025 | By: | /s/ William K. Grogan |
|  |  | William K. Grogan |
|  |  | Senior Vice President & Chief Financial Officer<br>(Authorized Officer of Registrant) |

---

## Exhibit 99.1

**Exhibit 99.1**

![image.jpg](image.jpg)

**Xylem Inc.**

301 Water Street SE, Washington, DC 20003

Tel +1.202.869.9150

---

| | | |
|:---|:---|:---|
| **Contacts:** | Media | Investors |
|  | Houston Spencer | Keith Buettner |
|  | +1 (914) 240-3046 | +1 (724) 772-1531 |
|  | Houston.Spencer@xylem.com | Keith.Buettner@xylem.com |

---

**Xylem Reports Second Quarter 2025 Results**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Revenue of $2.3 billion, up 6% on a reported and organic basis** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Earnings per share of $0.93, up 16%; $1.26 on an adjusted basis, also up 16%**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Raising full-year 2025 revenue and adjusted earnings per share guidance**

**WASHINGTON, D.C.,** July 31, 2025 -- Xylem Inc. (NYSE: XYL), a leading global water solutions company dedicated to solving the world's most challenging water issues, today reported second-quarter 2025 results. The Company delivered total revenue of $2.3 billion, on strong execution and demand. Second-quarter earnings per share were up 16 percent on a reported and adjusted basis.

"Our team delivered another strong quarter, exceeding expectations with robust organic revenue growth across all segments, a record-high adjusted EBITDA margin, and double-digit EPS growth," said Matthew Pine, Xylem's president and CEO. "Based on our team's disciplined execution on resilient underlying demand, we are raising our full-year guidance."

"This performance underscores the transformation of our operating model. Our simplification efforts have already yielded measurable gains in speed, accountability, and customer responsiveness. We continue to build energy and momentum across the enterprise, reinforcing our confidence in delivering a strong second half and a clear path to profitable, above-market growth and long-term value creation."

Net income attributable to Xylem for the quarter was $226million, or $0.93 per share. Net income margin increased 90 basis points to 9.8 percent, driven by strong operational performance. Adjusted net income was $307 million, or $1.26 per share, which excludes the impacts of purchase accounting intangible amortization, restructuring and realignment costs, special charges, tax-related specials and the net tax impact of these adjustments.

Second-quarter adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) margin was 21.8 percent, reflecting a year-over-year increase of 100 basis points. Productivity savings and strong price realization drove the margin expansion, exceeding the impact of inflation and mix.

------

**Outlook**

Xylem now forecasts full-year 2025 revenue of approximately $8.9 to $9.0 billion, up approximately 4 to 5 percent on a reported basis, versus 1 to 2 percent previously guided, and up approximately 4 percent on an organic basis.

Full-year 2025 adjusted EBITDA margin is expected to be approximately 21.3 to 21.8 percent, an increase of 70 to 120 basis points from Xylem's 2024 adjusted results. This results in full-year adjusted earnings per share of $4.70 to $4.85, versus the previous guide of $4.50 to $4.70. Full-year free cash flow margin is still expected to be approximately 9 to 10 percent.

Further 2025 planning assumptions are included in Xylem's second-quarter 2025 earnings materials posted at www.xylem.com/investors. Excluding revenue, Xylem provides guidance only on a non-GAAP basis due to the inherent difficulty in forecasting certain amounts that would be included in GAAP earnings, such as discrete tax items, without unreasonable effort. Outlook is being provided in the context of the current volatility, including due to geopolitical, trade, macroeconomic and regulatory uncertainty.

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

###

**About Xylem** 

Xylem (XYL) is a Fortune 500 global water solutions company that empowers customers and communities to build a more water-secure world. Our 23,000 diverse employees delivered revenue of $8.6 billion in 2024, optimizing water and resource management with innovation and expertise. Join us at www.xylem.com and Let's Solve Water.

**Forward-Looking Statements** 

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Generally, the words "anticipate," "estimate," "expect," "project," "intend," "plan," "contemplate," "predict," "forecast," "likely," "believe," "target," "will," "could," "would," "should," "potential," "may" and similar expressions or their negative, may, but are not necessary to, identify forward-looking statements. By their nature, forward-looking statements address uncertain matters and include any statements that: are not historical, such as statements about our strategy, financial plans, outlook, objectives, plans, intentions or goals (including those related to our social, environmental and other sustainability goals); or address possible or future results of operations or financial performance, including statements relating to orders, revenues, operating margins and earnings per share growth.

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in or implied by our forward-looking statements include, among others, the following: the impact of overall industry and general economic conditions, including industrial,

------

governmental, and public and private sector spending, interest rates, inflation and related monetary policy by governments in response to inflation, and the strength of the residential and commercial real estate markets, on economic activity and our operations; geopolitical events, including ongoing, possible escalation or outbreak of international conflicts, as well as regulatory, economic and other risks associated with our global sales and operations, including those related to domestic content requirements applicable to projects receiving governmental funding; manufacturing and operating cost increases due to macroeconomic conditions, including inflation, energy supply, supply chain shortages, logistics challenges, tight labor markets, prevailing price changes, tariffs, trade policies and other factors; demand for our products, disruption, competition or pricing pressures in the markets we serve; cybersecurity incidents or other disruptions of information technology systems on which we rely, or involving our connected products and services; lack of availability or delays in receiving parts and raw materials from our supply chain, including electronic components (in particular, semiconductors); disruptions in operations at our facilities or that of third parties upon which we rely; uncertainty related to the realization of the benefits and synergies from our acquisition of Evoqua Water Technologies Corp.; safe and compliant treatment and handling of water, wastewater and hazardous materials; failure to successfully execute large projects, including with respect to meeting performance guarantees and customers' budgets, timelines and safety requirements; our ability to retain and attract leadership and other diverse and key talent, as well as competition for overall talent and labor; defects, security, warranty and liability claims, and recalls related to our products; uncertainty around restructuring and realignment actions and related costs and savings; our ability to execute strategic investments for growth, including related to acquisitions and divestitures; availability, regulation or interference with radio spectrum used by certain of our products; volatility in served markets or impacts on our business and operations due to weather conditions, including the effects of climate change; risks related to our sustainability commitments and related disclosures; fluctuations in foreign currency exchange rates; difficulty predicting our financial results; risk of future impairments to goodwill and other intangible assets; changes in our effective tax rates or tax expenses; financial market risks related to our pension and other defined benefit plans; failure to comply with, or changes in, laws or regulations, including those pertaining to our business conduct, operations, products and services, including anti-corruption, data privacy and security, trade, competition, the environment, climate change and health and safety; legal, governmental or regulatory claims, investigations or proceedings and associated contingent liabilities; matters related to intellectual property infringement or expiration of rights; and other factors set forth under "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024 ("2024 Annual Report") and in subsequent filings we make with the Securities and Exchange Commission ("SEC").

Forward-looking and other statements in this press release regarding our environmental and other sustainability plans and goals are not an indication that these statements are necessarily material to investors, to our business, operating results, financial condition, outlook, or strategy, to our impacts on sustainability matters or other parties, or are required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking social, environmental and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. All forward-looking statements made herein are based on information currently available to us as of the date of this press release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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**XYLEM INC. AND SUBSIDIARIES**

CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) (in millions, except per share data)

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| | | |
|:---|:---|:---|
| | **Six Months** | **Six Months** |
| **For the periods ended June 30,** | **2025** | 2024 |
| Revenue from products | $**1911** | $1802 |
| Revenue from services | **390** | 367 |
| &nbsp;&nbsp;Revenue | **2301** | 2169 |
| Cost of revenue from products | **1129** | 1079 |
| Cost of revenue from services | **280** | 271 |
| &nbsp;&nbsp;Cost of revenue | **1409** | 1350 |
| &nbsp;&nbsp;Gross profit | **892** | 819 |
| Selling, general and administrative expenses | **503** | 485 |
| Research and development expenses | **58** | 58 |
| Restructuring and asset impairment charges | **26** | 23 |
| &nbsp;&nbsp;Operating income | **305** | 253 |
| Interest expense | **(9)** | (11) |
| Other non-operating income, net | **3** | 4 |
| (Loss)/gain on sale of businesses | **—** | 1 |
| &nbsp;&nbsp;Income before taxes | **299** | 247 |
| Income tax expense | **(75)** | (53) |
| &nbsp;&nbsp;Net income | $**224** | $194 |
| &nbsp;&nbsp;Net loss attributable to non-controlling interests | 2 |  |
| Net income attributable to Xylem | **226** | 194 |
| Earnings per share: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $**0.93** | $0.80 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $**0.93** | $0.80 |
| Weighted average number of shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | **243.4** | 242.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | **243.9** | 243.5 |

---

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**XYLEM INC. AND SUBSIDIARIES**

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in millions)

---

| | | |
|:---|:---|:---|
| | **June 30,<br>2025** | December 31,<br>2024 |
| &nbsp;&nbsp;&nbsp;**ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp;Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $**1170** | $1121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables, less allowances for discounts, returns and credit losses of $61 and $59 in 2025 and 2024, respectively | **1837** | 1668 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | **1071** | 996 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid and other current assets | **283** | 236 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets held for sale | **8** | 77 |
| &nbsp;&nbsp;&nbsp;Total current assets | **4369** | 4098 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment, net | **1189** | 1152 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill | **8237** | 7980 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other intangible assets, net | **2354** | 2379 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-current assets | **1042** | 884 |
| &nbsp;&nbsp;&nbsp;**Total assets** | $**17191** | $16493 |
| &nbsp;&nbsp;&nbsp;**LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND STOCKHOLDERS' EQUITY** | &nbsp;&nbsp;&nbsp;**LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND STOCKHOLDERS' EQUITY** | &nbsp;&nbsp;&nbsp;**LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND STOCKHOLDERS' EQUITY** |
| &nbsp;&nbsp;&nbsp;Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $**1047** | $1006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued and other current liabilities | **1186** | 1271 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings and current maturities of long-term debt | **68** | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liabilities held for sale | **—** | 21 |
| &nbsp;&nbsp;&nbsp;Total current liabilities | **2301** | 2336 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | **1928** | 1978 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued post-retirement benefit obligations | **340** | 304 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax liabilities | **427** | 497 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other non-current accrued liabilities | **886** | 496 |
| &nbsp;&nbsp;&nbsp;**Total liabilities** | **5882** | 5611 |
| &nbsp;&nbsp;&nbsp;Commitments and contingencies (Note 18) |  |  |
| &nbsp;&nbsp;&nbsp;**Redeemable non-controlling interest** | **228** | 235 |
| &nbsp;&nbsp;&nbsp;Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Stock – par value $0.01 per share: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorized 750.0 shares, issued 259.7 shares and 259.2 shares in 2025 and 2024, respectively | **3** | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital in excess of par value | **8720** | 8687 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | **3339** | 3140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock – at cost 16.3 shares and 16.2 shares in 2025 and 2024, respectively | **(766)** | (753) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | **(222)** | (435) |
| &nbsp;&nbsp;&nbsp;**Total stockholders' equity** | **11074** | 10642 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interests | **7** | 5 |
| &nbsp;&nbsp;&nbsp;**Total equity** | **11081** | 10647 |
| &nbsp;&nbsp;&nbsp;**Total liabilities, redeemable non-controlling interest, and stockholders' equity** | $**17191** | $16493 |

---

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**XYLEM INC. AND SUBSIDIARIES**

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in millions)

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| | | |
|:---|:---|:---|
| **For the periods ended June 30,** | **2025** | 2024 |
| **Operating Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $**395** | $347 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | **137** | 123 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | **153** | 156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | **25** | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restructuring and asset impairment charges | **47** | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from sale of business | **10** | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | **6** | (4) |
| &nbsp;&nbsp;&nbsp;Payments for restructuring | **(36)** | (18) |
| &nbsp;&nbsp;&nbsp;Changes in assets and liabilities (net of acquisitions): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in receivables | **(103)** | (84) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in inventories | **(27)** | (75) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in accounts payable | **6** | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in accrued and deferred taxes | **(50)** | (14) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | **(225)** | (120) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash – Operating activities** | **338** | 377 |
| **Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures | **(169)** | (147) |
| &nbsp;&nbsp;&nbsp;Acquisition of businesses, net of cash acquired | **(7)** | (5) |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of business, net of cash disposed | **50** | 11 |
| &nbsp;&nbsp;&nbsp;Proceeds from the sale of property, plant and equipment | **5** | 3 |
| &nbsp;&nbsp;&nbsp;Cash received from investments | **—** | 4 |
| &nbsp;&nbsp;&nbsp;Cash paid for investments | **—** | (7) |
| &nbsp;&nbsp;&nbsp;Cash paid for equity investments | **(3)** | (2) |
| &nbsp;&nbsp;&nbsp;Cash paid for asset acquisition | **(37)** |  |
| &nbsp;&nbsp;&nbsp;Cash received from cross-currency swaps | **21** | 14 |
| &nbsp;&nbsp;&nbsp;Other, net | **—** | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash – Investing activities** | **(140)** | **(128)** |
| **Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Short-term debt issued, net | **4** |  |
| &nbsp;&nbsp;&nbsp;Short-term debt repaid | **—** | (268) |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt repaid | **(28)** | (9) |
| &nbsp;&nbsp;&nbsp;Repurchase of common stock | **(13)** | (18) |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of employee stock options | **8** | 63 |
| &nbsp;&nbsp;&nbsp;Dividends paid | **(196)** | (175) |
| &nbsp;&nbsp;&nbsp;Other, net | **(19)** | (12) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash – Financing activities** | **(244)** | (419) |
| **Effect of exchange rate changes on cash** | **84** | (34) |
| **Changes in cash classified within assets held for sale** | **11** |  |
| Net change in cash and cash equivalents | **49** | (204) |
| Cash and cash equivalents at beginning of year | **1121** | 1019 |
| **Cash and cash equivalents at end of period** | $**1170** | $815 |
| **Supplemental disclosure of cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid during the period for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest | $**32** | $36 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes (net of refunds received) | $**175** | $110 |

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Xylem Inc. Non-GAAP Measures

Management reviews key performance indicators including revenue, gross margins, segment operating income and margins, orders growth, working capital and backlog, among others. In addition, we consider certain non-GAAP (or "adjusted") measures to be useful to management and investors evaluating our operating performance for the periods presented, and to provide a tool for evaluating our ongoing operations, liquidity and management of assets. This information can assist investors in assessing our financial performance and measures our ability to generate capital for deployment among competing strategic alternatives and initiatives, including but not limited to, dividends, acquisitions, share repurchases and debt repayment. Excluding revenue, Xylem provides guidance only on a non-GAAP basis due to the inherent difficulty in forecasting certain amounts that would be included in GAAP earnings, such as discrete tax items, without unreasonable effort. These adjusted metrics are consistent with how management views our business and are used to make financial, operating and planning decisions. These metrics, however, are not measures of financial performance under GAAP and should not be considered a substitute for revenue, operating income, net income, earnings per share (basic and diluted) or net cash from operating activities as determined in accordance with GAAP. We consider the following 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 attributable to Xylem and earnings per share attributable to Xylem, adjusted to exclude restructuring and realignment costs, amortization of acquired intangible assets, gain or loss from sale of businesses, gain on remeasurement of previously held equity interest, special charges and tax-related special items, as applicable.

**"Adjusted Operating Margin"** and **"Adjusted Segment Operating Margin"** defined as adjusted operating income and adjusted segment operating income divided by total revenue and segment revenue, respectively.

**"Free Cash Flow"** defined as net cash from operating activities, as reported in the Statement of Cash Flows, less capital expenditures. Our definition of free cash flow does not consider certain non-discretionary cash payments, such as debt.

**"Free Cash Flow Margin"** defined as free cash flow, adjusted (as applicable) for significant cash paid or received for non-operational tax, acquisition or divestiture activities; divided by revenue.

**"Realignment costs"** defined as costs not included in restructuring costs that are incurred as part of actions taken to reposition our business, including items such as professional fees, severance, relocation, travel, facility set-up and other costs.

**"Special charges"** defined as non-recurring costs incurred by the Company, such as those related to acquisitions and integrations, divestitures and non-cash impairment charges.

**"Tax-related special items"** defined as tax items, such as tax return versus tax provision adjustments, tax exam impacts, tax law change impacts, excess tax benefits/losses and other discrete tax adjustments.

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Xylem Inc. Non-GAAP Reconciliation

Reported vs. Organic & Constant Currency Revenue

($ Millions)

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **<u>(As Reported - GAAP)</u>** | **<u>(As Reported - GAAP)</u>** | **<u>(As Reported - GAAP)</u>** | **<u>(As Reported - GAAP)</u>** | **(As Adjusted - Organic)** | **(As Adjusted - Organic)** | **(As Adjusted - Organic)** | **(As Adjusted - Organic)** | **Constant <br>Currency** |
| | | | | | | | | | (G) = (E - C) / A |
| |<br>Revenue | (A)<br>Revenue | (B)<br>Change 2025 v. 2024 |% Change 2025 v. 2024 | (C)<br>Acquisitions /<br>Divestitures | (D)<br>FX<br>Impact | (E) = B+C+D<br>Change Adj. 2025 v. 2024 | (F) = E/A% Change Adj. 2025 v. 2024 | |
| | 2025 | 2024 | | | | | | | |
| **<u>Six Months Ended June 30</u>** |  |  |  |  |  |  |  |  |  |
| **Xylem Inc.** | 4370 | 4202 | 168 | 4% | 16 | 3 | 187 | 4% | 4% |
| Water Infrastructure | 1231 | 1205 | 26 | 2% | 29 | (1) | 54 | 4% | 2% |
| Applied Water | 918 | 892 | 26 | 3% |  |  | 26 | 3% | 3% |
| Measurement & Control Solutions | 1030 | 944 | 86 | 9% | (13) |  | 73 | 8% | 9% |
| Integrated Solutions & Services | 1191 | 1161 | 30 | 3% |  | 4 | 34 | 3% | 3% |
| **<u>Quarter Ended June 30</u>** |  |  |  |  |  |  |  |  |  |
| **Xylem Inc.** | 2301 | 2169 | 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% |
| **<u>Quarter Ended March 31</u>** |  |  |  |  |  |  |  |  |  |
| **Xylem Inc.** | 2069 | 2033 | 36 | 2% | 5 | 26 | 67 | 3% | 3% |
| Water Infrastructure | 581 | 574 | 7 | 1% | 10 | 11 | 28 | 5% | 3% |
| Applied Water | 435 | 436 | (1) | —% |  | 6 | 5 | 1% | 1% |
| Measurement and Control Solutions | 490 | 462 | 28 | 6% | (5) | 4 | 27 | 6% | 7% |
| Water Solutions and Services | 563 | 561 | 2 | —% |  | 5 | 7 | 1% | 1% |

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Xylem Inc. Non-GAAP Reconciliation

Adjusted Diluted EPS

($ Millions, except per share amounts)

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Q2 2025** | **Q2 2025** | **Q2 2025** | **Q2 2025** | **Q2 2024** | **Q2 2024** | **Q2 2024** | **Q2 2024** |
| | <u>As Reported</u> | <u>Adjustments</u> | | <u>Adjusted</u> | <u>As Reported</u> | <u>Adjustments</u> | | <u>Adjusted</u> |
| Total Revenue | 2301 |  |  | 2301 | 2169 |  |  | 2169 |
| Operating Income | 305 | 96 | a | 401 | 253 | 99 | a | 352 |
| Operating Margin | *13.3 %* |  |  | *17.4 %* | *11.7 %* |  |  | *16.2 %* |
| Interest Expense | (9) |  |  | (9) | (11) |  |  | (11) |
| Other Non-Operating Income (Expense) | 3 |  |  | 3 | 4 |  |  | 4 |
| Gain/(Loss) from Sale of Business |  |  | b |  | 1 | (1) | b |  |
| Income before Taxes | 299 | 96 |  | 395 | 247 | 98 |  | 345 |
| Provision for Income Taxes | (75) | (15) | c | (90) | (53) | (26) | c | (79) |
| Net Income | 224 | 81 |  | 305 | 194 | 72 |  | 266 |
| Net Loss Attributable to Non-controlling Interests | 2 |  |  | 2 |  |  |  |  |
| Net Income Attributable to Xylem | 226 | 81 |  | 307 | 194 | 72 |  | 266 |
| Diluted Shares | 243.9 |  |  | 243.9 | 243.5 |  |  | 243.5 |
| **Diluted EPS** | $0.93 | $0.33 |  | $1.26 | $0.80 | $0.29 |  | $1.09 |
|  | **Q2 YTD 2025** | **Q2 YTD 2025** | **Q2 YTD 2025** | **Q2 YTD 2025** | **Q2 YTD 2024** | **Q2 YTD 2024** | **Q2 YTD 2024** | **Q2 YTD 2024** |
|  | <u>As Reported</u> | <u>Adjustments</u> |  | <u>Adjusted</u> | <u>As Reported</u> | <u>Adjustments</u> |  | <u>Adjusted</u> |
| Total Revenue | 4370 |  |  | 4370 | 4202 |  |  | 4202 |
| Operating Income | 536 | 191 | a | 727 | 462 | 184 | a | 646 |
| Operating Margin | *12.3 %* |  |  | *16.6 %* | *11.0 %* |  |  | *15.4 %* |
| Interest Expense | (17) |  |  | (17) | (25) |  |  | (25) |
| Other Non-Operating Income (Expense) | 7 |  |  | 7 | 10 |  |  | 10 |
| Gain/(Loss) From Sale of Businesses | (10) | 10 | b |  | (4) | 4 | b |  |
| Income before Taxes | 516 | 201 |  | 717 | 443 | 188 |  | 631 |
| Provision for Income Taxes | (125) | (37) | c | (162) | (96) | (50) | c | (146) |
| Net Income | 391 | 164 |  | 555 | 347 | 138 |  | 485 |
| Net Loss Attributable to Non-controlling interests | 4 |  |  | 4 |  |  |  |  |
| Net Income Attributable to Xylem | 395 | 164 |  | 559 | 347 | 138 |  | 485 |
| Diluted Shares | 243.8 |  |  | 243.8 | 243.3 |  |  | 243.3 |
| **Diluted EPS** | $1.62 | $0.67 |  | $2.29 | $1.43 | $0.56 |  | $1.99 |

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| | |
|:---|:---|
| a | Quarter-to-date: Restructuring & realignment costs: 2025 - $29 million and 2024 - $29 million&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Special charges: 2025 - $9 million of acquisition, divestiture & integration costs and $4 million of intangible asset impairment charges; 2024 - $13 million of acquisition & integration costs&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Purchase accounting intangible amortization: 2025 - $54 million and 2024 - $57 million Year-to-date: Restructuring & realignment costs: 2025 - $56 million and 2024 - $44 million&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Special charges: 2025 - $17 million of acquisition, divestiture & integration costs and $8 million of intangible asset impairment charges; 2024 - $28 million of acquisition & integration related costs and $1 million of asset impairment charges&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Purchase accounting intangible amortization: 2025 - $110 million and 2024 - $111 million |
| b | Gain/(Loss) from sale of business as per income statement for all periods presented |
| c | Quarter-to-date: 2025 - Net tax impact on pre-tax adjustments (note a and b) of $20 million and $5 million of other tax special expense items; 2024 - Net tax impact on pre-tax adjustments (note a and b) of $20 million and other tax special benefit items of $6 million<br>Year-to-date: 2025 - Net tax impact on pre-tax adjustments (note a and b) of $42 million and other tax special expense items of $5 million; 2024 - Net tax impact on pre-tax adjustments (note a and b) of $42 million and other tax special benefits of $8 million |

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Xylem Inc. Non-GAAP Reconciliation

EBITDA and Adjusted EBITDA by Quarter

($ Millions)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **2025** | **2025** | **2025** | **2025** | **2025** | **2025** |
|  | Q1 | Q2 | Q3 | Q4 | Total |
| Net Income attributable to Xylem | 169 | 226 |  |  | 395 |
| Net Income Margin | 8.2% | 9.8% | N/A | N/A | 9.0% |
| Depreciation | 68 | 69 |  |  | 137 |
| Amortization | 77 | 76 |  |  | 153 |
| Interest Expense (Income), net |  | 3 |  |  | 3 |
| Income Tax Expense | 50 | 75 |  |  | 125 |
| EBITDA | 364 | 449 |  |  | 813 |
| Share-based Compensation | 12 | 13 |  |  | 25 |
| Restructuring & Realignment | 27 | 29 |  |  | 56 |
| Special Charges | 12 | 13 |  |  | 25 |
| Loss/(Gain) from sale of business | 10 |  |  |  | 10 |
| Loss attributable to non-controlling interest | (2) | (2) |  |  | (4) |
| Adjusted EBITDA | 423 | 502 |  |  | 925 |
| Revenue | 2069 | 2301 |  |  | 4370 |
| Adjusted EBITDA Margin | 20.4% | 21.8% | N/A | N/A | 21.2% |
| **2024** | **2024** | **2024** | **2024** | **2024** | **2024** |
|  | 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 | 1665 |
| 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 business | 5 | (1) | 2 | 40 | 46 |
| Adjusted EBITDA | 391 | 452 | 447 | 473 | 1763 |
| Revenue | 2033 | 2169 | 2104 | 2256 | 8562 |
| Adjusted EBITDA Margin | 19.2% | 20.8% | 21.2% | 21.0% | 20.6% |

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