Xylem Inc. (NYSE:XYL) reported fourth-quarter results on Tuesday that came in slightly ahead of expectations, though the water technology group offered a more measured outlook for the year ahead.
The company posted adjusted earnings per share of $1.42, narrowly beating the consensus estimate of $1.41, while revenue reached $2.4 billion versus forecasts of $2.37 billion. Shares edged 0.37% lower in premarket trading following the update.
Fourth-quarter performance reflected solid execution, with adjusted EPS up 20% year on year, supported by productivity gains and pricing actions. Revenue increased 6% on a reported basis and 4% organically compared with the same period last year. Order intake rose 9% to $2.4 billion, pointing to continued demand across Xylem’s core end markets.
“The team delivered an exceptionally strong fourth quarter, capping a year of solid execution and transformation across Xylem,” said Matthew Pine, Xylem’s CEO. “We achieved record full-year revenue, adjusted EBITDA margin, and adjusted EPS, supported by broad-based demand across our largest end markets.”
For full-year 2025, Xylem generated revenue of $9.0 billion, up 6% on a reported basis and 5% organically. Adjusted earnings per share for the year climbed 19% to $5.08.
Looking ahead, the company guided to 2026 revenue of $9.1 billion to $9.2 billion, implying organic growth of 2% to 4%, below the analyst consensus of $9.33 billion. Xylem forecast adjusted EPS in a range of $5.35 to $5.60, with the midpoint of $5.48 slightly under the $5.55 consensus.
Adjusted EBITDA margin expanded to 23.2% in the fourth quarter, up 220 basis points year on year, as productivity improvements and pricing more than offset inflationary pressures, lower volumes, and tariff-related impacts.
Xylem’s board also approved an 8% increase in its quarterly dividend, declaring a first-quarter payout of $0.43 per share, payable on March 24, 2026, to shareholders of record as of February 24, 2026.