Revenue: As of FY2025, the actual value is USD 9.035 B, beating the estimate of USD 9.007 B.EPS: As of FY2025, the actual value is USD 3.92, beating the estimate of USD 3.659.EBIT: As of FY2025, the actual value is USD 1.252 B.<h4>Segment Revenue</h4>Xylem Inc. reported total revenue of $9,035 million in 2025, an increase of 5.5% from $8,562 million in 2024. This growth included $419 million in organic growth and $71 million from favorable foreign currency impacts, partially offset by a - $17 million net decline from acquisitions and divestitures .<table><thead><tr><th align="left">Segment</th><th align="left">2025 Revenue (in millions)</th><th align="left">2024 Revenue (in millions)</th><th align="left">Organic Growth %</th><th align="left">Acquisitions/(Divestitures) %</th><th align="left">Foreign Currency Translation %</th><th align="left">Total Change %</th></tr></thead><tbody><tr><td align="left">Water Infrastructure</td><td align="left">$2,636</td><td align="left">$2,555</td><td align="left">3.4%</td><td align="left">-1.8%</td><td align="left">1.6%</td><td align="left">3.2%</td></tr><tr><td align="left">Applied Water</td><td align="left">$1,849</td><td align="left">$1,793</td><td align="left">2.3%</td><td align="left">-</td><td align="left">0.8%</td><td align="left">3.1%</td></tr><tr><td align="left">Measurement and Control Solutions</td><td align="left">$2,086</td><td align="left">$1,871</td><td align="left">9.2%</td><td align="left">1.6%</td><td align="left">0.7%</td><td align="left">11.5%</td></tr><tr><td align="left">Water Solutions and Services</td><td align="left">$2,464</td><td align="left">$2,343</td><td align="left">5.0%</td><td align="left">0.1%</td><td align="left">0.1%</td><td align="left">5.2%</td></tr><tr><td align="left">Total Xylem</td><td align="left">$9,035</td><td align="left">$8,562</td><td align="left">4.9%</td><td align="left">-0.2%</td><td align="left">0.8%</td><td align="left">5.5%</td></tr></tbody></table>Water Infrastructure Segment Revenue Breakdown (2025): Transport: $1,556 million Treatment: $1,080 million Applied Water Segment Revenue Breakdown (2025): Building Solutions: $1,037 million Industrial Water: $812 million Measurement and Control Solutions Segment Revenue Breakdown (2025): Smart Metering and Other: $1,726 million Analytics: $360 million Water Solutions and Services Segment Revenue Breakdown (2025): Capital and Other: $1,144 million Services: $1,005 million <h4>Operational Metrics</h4>Consolidated Performance (2025 vs. 2024): Gross Profit: Increased to $3,475 million in 2025 from $3,212 million in 2024, an 8.2% increase . Gross Margin: Increased by 100 basis points to 38.5% in 2025 from 37.5% in 2024, driven by 370 basis points of favorable operational impacts (230 basis points from productivity savings, 140 basis points from price realization), partially offset by -290 basis points of unfavorable operating impacts (including -190 basis points from inflation and -60 basis points from unfavorable mix) . Selling, General and Administrative (SG&amp;A) Expenses: Increased by $12 million, or 0.6%, to $1,923 million in 2025 from $1,911 million in 2024. As a percentage of revenue, SG&amp;A decreased to 21.3% in 2025 from 22.3% in 2024 . Research and Development (R&amp;D) Expenses: Were $226 million (2.5% of revenue) in 2025, compared to $230 million (2.7% of revenue) in 2024 . Restructuring and Asset Impairment Charges: Totaled $103 million in 2025, up from $62 million in 2024, primarily due to simplification actions across all segments, particularly Water Infrastructure and Applied Water . Employee position reductions were 1,463 in 2025, leading to estimated annual future net savings of $80 million to $120 million starting in 2026 . Operating Income: Increased by 21.2% to $1,223 million in 2025 from $1,009 million in 2024 . Operating Margin: Expanded by 170 basis points to 13.5% in 2025 from 11.8% in 2024, including 540 basis points from favorable operating impacts (330 basis points from productivity savings, 190 basis points from price realization), offset by -360 basis points of unfavorable impacts (240 basis points from inflation, -50 basis points from unfavorable mix) . Adjusted Operating Income: Increased by 17.4% to $1,612 million in 2025 from $1,373 million in 2024 . Adjusted Operating Margin: Expanded by 180 basis points to 17.8% in 2025 from 16.0% in 2024 . Net Income attributable to Xylem Inc.: Increased by 7.5% to $957 million in 2025 from $890 million in 2024, with a net income margin of 10.6% in 2025 compared to 10.4% in 2024 . Adjusted Net Income: Increased to $1,240 million in 2025 from $1,041 million in 2024, representing a 19.0% increase . EBITDA: Increased by 6% to $1,765 million in 2025 from $1,665 million in 2024 . Adjusted EBITDA: Increased by 14.0% to $2,009 million in 2025 from $1,763 million in 2024 . Adjusted EBITDA Margin: Expanded by 160 basis points to 22.2% in 2025 from 20.6% in 2024 . Interest Expense: Decreased to - $29 million in 2025 from - $44 million in 2024, primarily due to increased income on cross-currency swaps and lower debt . Income Tax Expense: Was $231 million in 2025 (effective tax rate of 19.5%) compared to $197 million in 2024 (effective tax rate of 18.1%) .Segment Operating Income and Adjusted Operating Income (2025 vs. 2024):<table><thead><tr><th align="left">Segment</th><th align="left">2025 Operating Income (in millions)</th><th align="left">2024 Operating Income (in millions)</th><th align="left">Operating Margin 2025</th><th align="left">Operating Margin 2024</th><th align="left">Change in Operating Margin (bp)</th><th align="left">2025 Adjusted Operating Income (in millions)</th><th align="left">2024 Adjusted Operating Income (in millions)</th><th align="left">Adjusted Operating Margin 2025</th><th align="left">Adjusted Operating Margin 2024</th><th align="left">Change in Adjusted Operating Margin (bp)</th></tr></thead><tbody><tr><td align="left">Water Infrastructure</td><td align="left">$462</td><td align="left">$356</td><td align="left">17.5%</td><td align="left">13.9%</td><td align="left">360</td><td align="left">$583</td><td align="left">$455</td><td align="left">22.1%</td><td align="left">17.8%</td><td align="left">430</td></tr><tr><td align="left">Applied Water</td><td align="left">$312</td><td align="left">$271</td><td align="left">16.9%</td><td align="left">15.1%</td><td align="left">180</td><td align="left">$340</td><td align="left">$286</td><td align="left">18.4%</td><td align="left">16.0%</td><td align="left">240</td></tr><tr><td align="left">Measurement and Control Solutions</td><td align="left">$244</td><td align="left">$247</td><td align="left">11.7%</td><td align="left">13.2%</td><td align="left">-150</td><td align="left">$353</td><td align="left">$327</td><td align="left">16.9%</td><td align="left">17.5%</td><td align="left">-60</td></tr><tr><td align="left">Water Solutions and Services</td><td align="left">$302</td><td align="left">$219</td><td align="left">12.3%</td><td align="left">9.3%</td><td align="left">300</td><td align="left">$422</td><td align="left">$368</td><td align="left">17.1%</td><td align="left">15.7%</td><td align="left">140</td></tr><tr><td align="left">Corporate and other</td><td align="left">- $97</td><td align="left">- $84</td><td align="left">-</td><td align="left">-</td><td align="left">-</td><td align="left">- $86</td><td align="left">- $63</td><td align="left">-</td><td align="left">-</td><td align="left">-</td></tr></tbody></table>Segment Adjusted EBITDA and Adjusted EBITDA Margin (2025 vs. 2024):<table><thead><tr><th align="left">Segment</th><th align="left">2025 Adjusted EBITDA (in millions)</th><th align="left">2024 Adjusted EBITDA (in millions)</th><th align="left">Adjusted EBITDA Margin 2025</th><th align="left">Adjusted EBITDA Margin 2024</th><th align="left">Change in Adjusted EBITDA Margin (bp)</th></tr></thead><tbody><tr><td align="left">Water Infrastructure</td><td align="left">$641</td><td align="left">$529</td><td align="left">24.3%</td><td align="left">20.7%</td><td align="left">360</td></tr><tr><td align="left">Applied Water</td><td align="left">$378</td><td align="left">$317</td><td align="left">20.4%</td><td align="left">17.7%</td><td align="left">270</td></tr><tr><td align="left">Measurement and Control Solutions</td><td align="left">$450</td><td align="left">$395</td><td align="left">21.6%</td><td align="left">21.1%</td><td align="left">50</td></tr><tr><td align="left">Water Solutions and Services</td><td align="left">$595</td><td align="left">$548</td><td align="left">24.1%</td><td align="left">23.4%</td><td align="left">70</td></tr></tbody></table><h4>Cash Flow</h4><ul><li>Net Cash Provided by Operating Activities: Was $1,241 million in 2025, a decrease of - $22 million from $1,263 million in 2024. This decrease was mainly due to increased spending on long-term outsourced water projects, liquidation of customer advances, and higher restructuring payments, partially offset by higher cash earnings and decreased investment in net working capital .</li><li>Free Cash Flow: Was $910 million in 2025, a decrease of - $32 million from $942 million in 2024 .</li><li>Net Cash Used in Investing Activities: Was - $471 million in 2025, a decrease of - $11 million from - $482 million in 2024, reflecting increased proceeds from asset sales and less cash used for acquisitions .</li><li>Net Cash Used in Financing Activities: Was - $501 million in 2025, a decrease of - $114 million from - $615 million in 2024, primarily due to the repayment of a term loan in 2024 .</li></ul><h4>Unique Metrics</h4><ul><li>Orders: Total orders were $8,904 million in 2025, up 2.0% from $8,730 million in 2024, with 1.6% organic growth . Orders for Water Infrastructure changed by -2.0%, Applied Water by 3.8%, Measurement and Control Solutions by 12.0%, and Water Solutions and Services by -1.6% .</li><li>Backlog: Total backlog was $4,615 million at December 31, 2025, a 9.0% decrease from $5,070 million at December 31, 2024. Approximately 60% of the 2025 backlog is expected to be recognized as revenue in 2026 .</li><li>Dividends: Dividends per share paid to shareholders increased by 11% in 2025 .</li><li>Capitalized Software: Net capitalized software for external sales and services was $175 million as of December 31, 2025, compared to $185 million as of December 31, 2024 .</li></ul><h4>Outlook / Guidance</h4>Xylem Inc. anticipates total revenue growth of 1% to 3% in 2026, with organic revenue growth projected to be in the range of 2% to 4%. This outlook is based on current market conditions and expectations, acknowledging that actual results may vary due to various risks .

Xylem | 10-K: FY2025 Revenue Beats Estimate at USD 9.035 B