Xylem Inc

Latest Results (28.08.2026):

Xylem Inc. reported results for the second quarter of 2026. The company delivered orders of $3.09 billion, revenue of $2.34 billion, reported EPS of $1.11 and adjusted EPS of $1.46. Results reflected strong order growth, margin expansion driven by productivity and price/mix, and an updated full‑year 2026 outlook with modest revenue growth and higher adjusted EPS guidance.

Top-line & Orders

Second‑quarter 2026 orders were $3.086 billion, up 42% reported and 41% organically. Revenue for Q2 2026 was $2.336 billion, up 2% on a reported basis and 1% organically versus Q2 2025.

Profitability & EPS

Net income attributable to Xylem for Q2 2026 was $263 million (net income margin 11.3%, +150 bps). Reported diluted EPS was $1.11, up 19% year‑over‑year; adjusted diluted EPS was $1.46, up 16% year‑over‑year after excluding amortization, restructuring, loss on sale of businesses and other adjustments.

Adjusted EBITDA & Margins

Q2 adjusted EBITDA was $544 million, producing an adjusted EBITDA margin of 23.3% (up 150 basis points year‑over‑year). Management cited productivity savings, strong price realization and favorable mix as key drivers of margin expansion.

Balance Sheet & Cash Flow

Cash and cash equivalents were $1.276 billion at June 30, 2026 (down from $1.479 billion at year‑end 2025). Long‑term debt rose to $2.395 billion (from $1.408 billion at year‑end 2025) after issuing debt in the period. Six‑month operating cash flow was $398 million; capex was $179 million, implying free cash flow of roughly $219 million for the six months.

Shareholder Actions

Xylem repurchased $1.243 billion of common stock in the first half of 2026, a material use of cash that increased treasury stock to $2.023 billion as of June 30, 2026.

Segment & Organic Trends

Order growth was broad‑based but especially strong in Water Solutions and Services (Q2 orders ~ $1.449 billion vs $577 million a year ago). Revenue growth was modestly positive across the quarter with variances by segment; overall organic revenue was roughly flat year‑over‑year for the quarter (~+1% organic reported).

Updated Outlook

Xylem now forecasts full‑year 2026 revenue of approximately $9.2 billion (≈ +2% reported; +2–3% organic). Full‑year adjusted EBITDA margin is expected ~23.1–23.5% (up ~90–130 bps vs 2025), adjusted EPS $5.55–$5.70 (raised from prior $5.35–$5.60) and full‑year free cash flow margin ~10.2–11.0%.