Xylem Stock Earnings Reports

Xylem reported a resilient start to 2026 with Q1 results broadly in line with expectations. Key operating highlights: organic/reported revenue roughly flat year-over-year; ending backlog rose sequentially to $4.7 billion and book-to-bill was >1 for the quarter; quarterly adjusted EBITDA margin was 20.6% and adjusted EPS was $1.12 (up 9% YoY). Management executed capital allocation actions early in the year — an ~8% dividend increase, a new $1.5 billion repurchase authorization and $581 million of repurchases in Q1 — while keeping a balanced approach to leverage (net debt/EBITDA ~0.6x). M&A: Xylem closed a ~$219 million tuck-in to expand analytics/optical sensing and signed a larger WSS outsourced-water contract (announced as $850 million over 20 years, ~75% service). Segment trends: Measurement & Control (MCS) saw strong orders (up ~15%) but timing and divestiture push impacted near-term margins; Water Infrastructure experienced modest order growth with geographic softness in China and Western Europe; Applied Water and WSS had mixed results but management expects sequential margin improvement and stronger second-half volume. Guidance: full-year organic growth unchanged at ~2%–4% with reported revenue now $9.2–9.3B; EBITDA margin expected 22.9%–23.3% (70–110 bps expansion YoY); FY EPS range unchanged at $5.35–$5.60. Risks/puts: China weakness and the company’s 80/20 portfolio optimization weigh on near-term revenue (front‑loaded), but management expects normalization and stronger volume/margin cadence in H2 driven by project timing, productivity, pricing and realized synergies.