Xylem Reports Strong Q4 & Full-Year 2025 Results, Raises Dividend, and Issues Positive 2026 Guidance
Summary
Xylem Inc. reported strong Q4 and full-year 2025 financial results, including record revenue and adjusted EPS, provided optimistic 2026 guidance, and increased its quarterly dividend by 8%.
Key Events
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Strong Q4 and Full-Year 2025 Financial Performance
Xylem reported Q4 2025 revenue of $2.4 billion (up 6% reported, 4% organically) and adjusted EPS of $1.42 (up 20%). Full-year 2025 revenue reached $9.0 billion (up 6% reported, 5% organically) with adjusted EPS of $5.08 (up 19%), marking record achievements.
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Positive 2026 Financial Outlook
The company initiated full-year 2026 revenue guidance of $9.1 to $9.2 billion (up 2% to 4% organically) and adjusted EPS guidance of $5.35 to $5.60. Adjusted EBITDA margin is expected to expand by 70 to 110 basis points to 22.9% to 23.3%.
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8% Dividend Increase
Xylem's Board of Directors declared a first-quarter dividend of $0.43 per share, an 8% increase, payable on March 24, 2026, to shareholders of record as of February 24, 2026.
Analysis
Xylem Inc. delivered robust financial results for the fourth quarter and full fiscal year 2025, achieving record full-year revenue, adjusted EBITDA margin, and adjusted EPS. The company's strong operational performance, driven by productivity and price realization, led to significant margin expansion. The positive momentum is expected to continue into 2026, with guidance projecting further organic revenue growth and adjusted EBITDA margin improvement. The 8% increase in the quarterly dividend underscores management's confidence in the company's sustained profitability and commitment to shareholder returns.
At the time of this filing, XYL was trading at $137.51 on NYSE in the Technology sector, with a market capitalization of approximately $34.1B. The 52-week trading range was $100.47 to $154.27. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.