Xylem Reports Strong 2025 Financial Results with 5.5% Revenue Growth, 19% Adjusted EPS Increase, and Positive 2026 Outlook
Summary
Xylem Inc. reported robust 2025 financial results, including 5.5% revenue growth and a 19% increase in adjusted EPS, alongside an 11% dividend hike and positive revenue guidance for 2026.
Key Events
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Record 2025 Financial Performance
Xylem reported 2025 revenue of $9,035 million, a 5.5% increase from 2024, with organic growth of 4.9%. Net income attributable to Xylem rose 7.5% to $957 million, and adjusted diluted EPS increased 19.0% to $5.08.
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Significant Margin Expansion
Operating income for 2025 increased by 21.2% to $1,223 million, with the operating margin expanding by 170 basis points to 13.5%. Adjusted operating margin also saw a strong increase of 180 basis points to 17.8%.
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Increased Shareholder Returns
The company increased dividends per share by 11% in 2025 to $1.60. A share repurchase program with $182 million remaining authorization is in place, though no shares were repurchased under this program in Q4 2025.
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Positive 2026 Revenue Guidance
Xylem anticipates total revenue growth of 1% to 3% in 2026, with organic revenue growth projected to be in the range of 2% to 4%, reflecting continued positive outlook.
Analysis
Xylem Inc. delivered a strong annual performance for 2025, building on the preliminary results announced earlier. The company achieved notable revenue growth, significant expansion in operating margins, and a substantial increase in adjusted earnings per share. The positive momentum is expected to continue into 2026, with management providing an optimistic revenue growth outlook. This comprehensive annual report confirms the company's solid financial health and strategic execution, reinforcing investor confidence in its long-term trajectory.
At the time of this filing, XYL was trading at $127.87 on NYSE in the Technology sector, with a market capitalization of approximately $31.1B. The 52-week trading range was $100.47 to $154.27. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.