$XYL

Xylem Inc.

CIK:0001524472|SEC Filings

Condensed Consolidated Income Statements (Unaudited) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenue	$ 2,336	$ 2,301	$ 4,461	$ 4,370
Cost of revenue	1,373	1,409	2,695	2,710
Gross profit	963	892	1,766	1,660
Selling, general and administrative expenses	503	503	975	963
Research and development expenses	59	58	115	114
Restructuring and asset impairment charges	11	26	42	47
Operating income	390	305	634	536
Interest expense	(7)	(9)	(11)	(17)
Other non-operating (expense)/income, net	(3)	3	(3)	7
Loss on sale of businesses	(16)	0	(12)	(10)
Income before taxes	364	299	608	516
Income tax expense	(103)	(75)	(158)	(125)
Net income	261	224	450	391
Net loss attributable to non-controlling interests	2	2	6	4
Net income attributable to Xylem	$ 263	$ 226	$ 456	$ 395
Earnings per share:
Basic (usd per share)	$ 1.11	$ 0.93	$ 1.90	$ 1.62
Diluted (usd per share)	$ 1.11	$ 0.93	$ 1.90	$ 1.62
Weighted average number of shares:
Basic (in shares)	236,295	243,397	239,534	243,251
Diluted (in shares)	236,574	243,859	239,967	243,820
Revenue from products
Revenue	$ 1,953	$ 1,911	$ 3,710	$ 3,620
Cost of revenue	1,093	1,129	2,150	2,170
Revenue from services
Revenue	383	390	751	750
Cost of revenue	$ 280	$ 280	$ 545	$ 540

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2026	Mar. 31, 2026	Jun. 30, 2025	Mar. 31, 2025	Jun. 30, 2026	Jun. 30, 2025	Dec. 31, 2025
Operating Activities
Net income	$ 261		$ 224		$ 450	$ 391
Net income attributable to Xylem	263	$ 193	226	$ 169	456	395
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation					130	137
Amortization					150	153
Share-based compensation	12		13		25	25
Restructuring and asset impairment charges					42	47
Loss on sale of businesses	(16)		0		(12)	(10)
Other, net					(27)	6
Payments for restructuring					(49)	(36)
Changes in assets and liabilities (net of acquisitions):
Changes in receivables					(142)	(103)
Changes in inventories					41	27
Changes in accrued expenses					(13)	(64)
Changes in accrued and deferred taxes					1	(50)
Other, net					(36)	(85)
Changes in long term receivables					(104)	(70)
Net Cash – Operating activities					398	338
Investing Activities
Capital expenditures					(179)	(169)
Acquisitions of businesses, net of cash acquired					(1)	(7)
Proceeds from sale of businesses, net of cash disposed					59	50
Proceeds from the sale of property, plant and equipment					11	5
Cash paid for investments					(3)	(3)
Cash paid for asset acquisition					(2)	(37)
Cash received from cross-currency swaps					17	21
Net Cash – Investing activities					(98)	(140)
Financing Activities
Short-term debt issued, net					0	4
Long-term debt issued, net					990	0
Long-term debt repaid					(6)	(28)
Repurchase of common stock					(1,243)	(13)
Proceeds from exercise of employee stock options					2	8
Dividends paid					(207)	(196)
Other, net					(20)	(19)
Net Cash – Financing activities					(484)	(244)
Effect of exchange rate changes on cash					(31)	84
Increase in cash classified within assets held for sale					0	11
Decrease in cash classified within assets held for sale					12	0
Changes in cash classified within assets held for sale					12	11
Net change in cash and cash equivalents					(203)	49
Cash and cash equivalents at beginning of year		$ 1,479		$ 1,121	1,479	1,121	$ 1,121
Cash and cash equivalents at end of period	$ 1,276		$ 1,170		1,276	1,170	$ 1,479
Cash paid during the period for:
Interest					29	32
Income taxes (net of refunds received)					$ 157	$ 175

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 1,276	$ 1,479
Receivables, less allowances for discounts, returns and credit losses of $54 and $68 in 2026 and 2025, respectively	1,875	1,759
Inventories	1,016	983
Prepaid and other current assets	219	244
Assets held for sale	8	176
Total current assets	4,394	4,641
Property, plant and equipment, net	1,167	1,159
Goodwill	8,256	8,332
Other intangible assets, net	2,150	2,272
Other non-current assets	1,375	1,230
Total assets	17,342	17,634
Current liabilities:
Accounts payable	1,013	1,013
Accrued and other current liabilities	1,180	1,237
Short-term borrowings and current maturities of long-term debt	531	534
Liabilities held for sale	0	72
Total current liabilities	2,724	2,856
Long-term debt	2,395	1,408
Accrued post-retirement benefit obligations	301	317
Deferred income tax liabilities	446	405
Other non-current accrued liabilities	810	899
Total liabilities	6,676	5,885
Commitments and contingencies (Note 18)
Redeemable non-controlling interest	242	258
Stockholders’ equity:
Authorized 750.0 shares, issued 260.3 shares and 259.9 shares in 2026 and 2025, respectively	3	3
Capital in excess of par value	8,787	8,759
Retained earnings	3,956	3,706
Treasury stock – at cost 26.8 shares and 16.3 shares in 2026 and 2025, respectively	(2,023)	(768)
Accumulated other comprehensive loss	(302)	(220)
Total stockholders’ equity	10,421	11,480
Non-controlling interests	3	11
Total equity	10,424	11,491
Total liabilities, redeemable non-controlling interest, and stockholders’ equity	$ 17,342	$ 17,634