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Xylem Is Turning M&A Into a Core Advantage—How Evoqua Changed the Playbook!

Xylem’s fourth quarter of 2025 results highlighted both achievements and challenges faced by the company. The company reported strong performance across key financial metrics, marking a record year. Revenue growth for the quarter was at 4%, and full-year growth stood at 5%. The EBITDA margin for the full year expanded by 160 basis points to 22.2%, indicating effective operational management. Additionally, earnings per share for the quarter increased by 20% to $1.42, and the company’s balance sheet remained robust with net debt to adjusted EBITDA of 0.2x. However, there were some areas of concern. The backlog, which finished at $4.6 billion, was lower than expected, impacting the revenue cadence for 2026. Delays in project bookings in the Measurement & Control Solutions (MCS) segment affected the outlook for the first half of 2026, contributing to anticipated low single-digit growth for the year.