Xylem (NYSE:XYL) shares traded near 52-week highs on Tuesday, February 10, 2026, after the global water solutions giant reported a record-breaking fiscal 2025 and an optimistic outlook for the year ahead.
The Washington-based company posted fourth-quarter revenue of $2.4 billion, a 6% increase that edged out analyst expectations, while adjusted earnings per share (EPS) for the quarter rose 20% to $1.42.
The full-year results underscored Xylem's successful integration of its massive Evoqua acquisition and a pivot toward high-margin digital water solutions.
Annual revenue hit a milestone $9 billion, up 5% organically, while adjusted EPS climbed 19% to $5.08.
CEO Matthew Pine characterized the year as one of "solid execution and transformation," noting that broad-based demand for water scarcity and resiliency technologies helped the company achieve record adjusted EBITDA margins of 22.2%.
Efficiency was a key theme for the quarter, as productivity savings and pricing power allowed Xylem to expand its adjusted EBITDA margin by 220 basis points to 23.2%.
This operational discipline helped offset inflationary pressures and the impact of recent tariffs.
Order momentum remained strong through year-end, with fourth-quarter bookings rising 9% to $2.4 billion, providing a healthy backlog as the company enters 2026.
Reflecting its robust cash position, Xylem’s board authorized an 8% increase to the quarterly dividend, raising it to $0.43 per share.
For 2026, the company expects to maintain its momentum with projected revenue of $9.1 billion to $9.2 billion and adjusted EPS of $5.35 to $5.60.