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XYLXylem Inc.

Industrials · Pumps · NYSE
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The 10-K against last year's

282 changes: 18 added, 18 removed, 239 reworded, 7 quiet changes

10-K Feb 25, 2026 vs Mar 3, 2025
Risk FactorsRedline ↓
33.3%
of the text changed · 9,047 words now
34.3%
of the text changed · 10,355 words now
Legal ProceedingsRedline ↓
26.3%
of the text changed · 536 words now
Accounting PoliciesRedline ↓
7.8%
of the text changed · 6,014 words now

10-K 0001524472-26-000012 (2026-02-25) vs 10-K 0001524472-25-000013 (2025-03-03)

The redline

The paragraph that changed most in each section

Marked against last year's 10-K: cut words struck through, new words highlighted and underlined.

MD&A 364 words changed in this paragraph; it is 47% similar to last year's version.
The table below provides a reconciliation of total and each segment's operating income to adjusted operating income, and a calculation of the corresponding adjusted operating margin: (In millions) 2023 2022 2025 2024 Change Water Infrastructure Operating income $ 275 462 $ 279 (1.4) 356 29.8 % Operating margin 12.4 17.5 % 16.5 13.9 % (410) 360 bp Restructuring and realignment costs 18 9 100.0 75 30 150.0 % Purchase accounting intangible amortization 47 4 1,075.0% 42 59 (28.8) % Special charges 28 — NM 4 10 (60.0) % Adjusted operating income $ 368 583 $ 292 26.0 455 28.1 % Adjusted operating margin 16.6 22.1 % 17.3 17.8 % (70) 430 bp Applied Water Operating income $ 310 312 $ 258 20.2 271 15.1 % Operating margin 16.7 16.9 % 14.6 15.1 % 210 180 bp Restructuring and realignment costs 14 13 7.7 % Purchase accounting intangible amortization — — NM % Special charges — — NM 28 15 86.7 % Adjusted operating income $ 324 340 $ 271 19.6 286 18.9 % Adjusted operating margin 17.5 18.4 % 15.3 16.0 % 220 240 bp Measurement and Control Solutions Operating income $ 133 244 $ 19 600.0 247 (1.2) % Operating margin 8.3 11.7 % 1.5 13.2 % 680 (150) bp Restructuring and realignment costs 19 16 10 90.0 60.0 % Purchase accounting intangible amortization 57 57 — 77 58 32.8 % Special charges 4 13 (69.2) 16 12 33.3 % Adjusted operating income $ 213 353 $ 99 115.2 327 8.0 % Adjusted operating margin 13.2 16.9 % 7.8 17.5 % 540 (60) bp Water Solutions and Services Operating income $ 132 302 $ 122 8.2 219 37.9 % Operating margin 7.8 12.3 % 15.4 9.3 % (760) 300 bp Restructuring and realignment costs 20 2 900.0 14 35 (60.0) % Purchase accounting intangible amortization 72 11 554.5 100 99 1.0 % Special charges 22 1 2,100.0% 6 15 (60.0) % Adjusted operating income $ 246 422 $ 136 80.9 368 14.7 % Adjusted operating margin 14.6 % 17.1 % (250) 15.7 % 140 bp Corporate and other Operating loss $ (198) (97) $ (56) 253.6 (84) 15.5 % Restructuring and realignment costs 35 — 1 (100.0) % Purchase accounting intangible amortization 1 — NM % Special charges 84 2 4,100.0 10 20 (50.0) % Adjusted operating loss $ (79) (86) $ (54) 46.3 (63) 36.5 % Total Xylem Operating income $ 652 1,223 $ 622 4.8 1,009 21.2 % Operating margin 8.9 13.5 % 11.3 11.8 % (240) 170 bp Restructuring and realignment costs 106 34 211.8 133 91 46.2 % Purchase accounting intangible amortization 176 72 144.4 220 216 1.9 % Special charges 138 16 762.5 36 57 (36.8) % Adjusted operating income $ 1,072 1,612 $ 744 44.1 1,373 17.4 % Adjusted operating margin 14.6 17.8 % 13.5 16.0 % 110 180 bp

Source: Item 7, 10-K 0001524472-26-000012 vs Item 7, 10-K 0001524472-25-000013

Risk Factors 278 words changed in this paragraph; it is 57% similar to last year's version.
Our manufacturing and operating costs are subject to fluctuations, particularly due to fluctuate with volatility or changes in the prices for of commodities, parts, raw materials, energy and related energy, utilities, freight and freight, logistics, and the cost of labor. Cost These fluctuations have been been, and may continue to be be, driven by a variety of factors, such as inflation, tight labor markets, prevailing price levels, exchange rates, changes in trade agreements, tariffs and other trade protection measures, and other economic and geopolitical factors. Throughout 2024, our operating costs were adversely impacted by price inflation, which could continue in 2025 to varying degrees depending, in part, on broader macroeconomic, political or geopolitical conditions. factors. For example, our global supply chain includes shipping routes through the Red Sea, where vessels have been and may continue to be impacted by armed conflicts involving rebel groups; and continued conflicts ongoing or escalation of ongoing conflicts in Ukraine or and the Middle East East, and the increasing tensions or outbreak of conflict between China and Taiwan, could adversely impact our logistics costs and result in an further increase in our costs for logistics, energy and supplies, supply costs, and potentially delay shipments to customers. customer shipments. We have rely on a large and complex network of suppliers (and their suppliers) and contract manufacturers globally, including in China and Mexico. The U.S. has enacted or threatened various trade actions, including new or additional tariffs on certain goods we import imported from China, Mexico, Canada Canada, Europe and other countries, which has or may result in retaliatory measures. On August 29, 2025, the U.S. Court of Appeals for the Federal Circuit ruled that many of the tariffs imposed by the U.S. federal government under the International Emergency Economic Powers Act exceed presidential authority and other therefore are invalid. On February 20, 2026, the U.S. Supreme Court affirmed that ruling. As of the date of this filing, tariffs issued under the different statutes remain in place, and the scope and durability of existing and future tariffs, as well as tariffs in place prior to the U.S. Supreme Court’s ruling, remain uncertain. U.S. and international trade actions. As a result, these U.S. trade measures or countermeasures by China, Mexico or other countries actions could increase the cost of our products, which we may not be able to offset through price increases pricing or productivity, and could also impede impair our ability to remain competitive. Further, in competitiveness. In a declining price environment, our operating margins may contract because we account for inventory using the first-in, first-out method. Actions we take to mitigate cost volatility in manufacturing and operating costs may not be successful and, as a result, our business, financial condition, cash flows and results of operations could be materially and adversely affected.

Source: Item 1A, 10-K 0001524472-26-000012 vs Item 1A, 10-K 0001524472-25-000013

Legal Proceedings 96 words changed in this paragraph; it is 57% similar to last year's version.
Accruals In the ordinary course of business, we are subject to federal, state, local, and foreign environmental laws and regulations. We are responsible, or are alleged to be responsible, for ongoing environmental matters are recorded on a site-by-site basis when it is probable that a liability has been incurred investigation and the amount remediation of the liability can be reasonably estimated, based on current law and existing technologies. sites in various countries. Our accrued liabilities for these environmental matters represent our best estimates related to the investigation and remediation of environmental media such as water, soil, soil vapor, air and structures, as well as related legal fees. These estimates, and related accruals, are reviewed quarterly and updated for progress of investigation and remediation efforts and changes in facts and legal circumstances. Liabilities for these environmental expenditures are recorded on an undiscounted basis. We have estimated and accrued $4 million as of both December 31, 2024 2025 and 2023, 2024, respectively, for environmental matters.

Source: Item 3, via Note 20 – Commitments and Contingencies, 10-K 0001524472-26-000012 vs Item 3, via Note 20 – Commitments and Contingencies, 10-K 0001524472-25-000013

Accounting Policies 59 words changed in this paragraph; it is 73% similar to last year's version.
Xylem recognizes revenue in a manner that depicts the transfer of promised goods and services to customers in an amount that reflects the consideration to which it expects to be entitled for providing those goods and services. For each arrangement with a customer, we identify the contract and the associated performance obligations within the contract, determine the transaction price of that contract, allocate the transaction price to each performance obligation and recognize revenue as each performance obligation is satisfied. As a result of the Evoqua acquisition, we assessed our prior definition of service revenue and redefined service revenue for the combined company as revenue resulting from the satisfaction of performance obligations primarily related to outsourced water services, maintenance, repair, preventive and inspection services, software as a service ("SaaS") subscriptions, and spare parts sales related to these service offerings.

Source: Item 8, Note 1 – Summary of Significant Accounting Policies, 10-K 0001524472-26-000012 vs Item 8, Note 1 – Summary of Significant Accounting Policies, 10-K 0001524472-25-000013

Every change, by type

Sentences and paragraphs added, removed or reworded

Sentences and paragraphs of XYL's Risk Factors and MD&A, 10-K 2026-02-25 against 10-K 2025-03-03. Each links to the text at sec.gov.

AddedRisk Factors
Geopolitical changes in China-Taiwan relations could disrupt the operations of companies in Taiwan that are critical to the global supply chain for semiconductors (“chips”) and other electronic components, as well as the supply of lithium batteries, carbide seals, and rare earth elements. Such changes could have significant negative effects on the global supply chain for these components and materials and could adversely affect our ability to manufacture certain of our digitally-enabled products, such as pumps, controllers and smart meters.

Read it in 10-K 2026-02-25 at sec.gov ↗

AddedRisk Factors
We cannot predict the impact that such factors might have on our business, financial condition, cash flows, results of operations an share price.

Read it in 10-K 2026-02-25 at sec.gov ↗

AddedRisk Factors
and improving our competitive position requires successful management of these factors in a volatile business environment marked by rapid change and disruption.

Read it in 10-K 2026-02-25 at sec.gov ↗

AddedRisk Factors
A cybersecurity incident or other damage or disruption to IT and communications networks, or involving our connected products and services, may have adverse effects on us, our customers or third parties on which we rely by interfering with operations and services, potentially with public health and safety risks involving certain of our

Read it in 10-K 2026-02-25 at sec.gov ↗

AddedRisk Factors
security, or service may result in significant costs, reduced profitability, and negative publicity and reputational harm, reducing demand for our products and materially affecting our business, financial condition and results of operations.

Read it in 10-K 2026-02-25 at sec.gov ↗

AddedRisk Factors
In support of our strategy, we have and will continue to establish goals, targets, and other objectives related to sustainability matters. Achieving these goals, targets and objectives requires evolving our business, making capital investments, and developing new or existing technologies. These efforts may result in additional expenses or require us to recognize impairment charges. These goals, targets and objectives reflect our current plans but there

Read it in 10-K 2026-02-25 at sec.gov ↗

AddedMD&A
external partners, and extensive service branch networks across the globe, including a rental fleet of transfer and treatment assets to serve our customers.

Read it in 10-K 2026-02-25 at sec.gov ↗

Show the other 10
AddedMD&A
If shipping and handling activities are performed after a customer obtains control of a good, we account for the shipping and handling activities as activities to fulfill a promise to transfer a good. Shipping and handling related costs are accrued as revenue is recognized.

Read it in 10-K 2026-02-25 at sec.gov ↗

AddedMD&A
We exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer, for example sales, use, value added and some excise taxes.

Read it in 10-K 2026-02-25 at sec.gov ↗

AddedMD&A
For all contracts with customers, payment received for our products and services may not necessarily follow the same pattern of revenue recognition to which it relates and are dictated by the terms and conditions of our contracts with customers. Payments received for product sales typically occur following delivery and the satisfaction of the performance obligations based upon the terms outlined in the contracts. Payments received for services typically occur following the services being rendered. For long-term construction-type projects, payments are typically made throughout the contract as progress is made.

Read it in 10-K 2026-02-25 at sec.gov ↗

AddedMD&A
In limited situations, contracts with customers include financing components where payment terms exceed one year; however, we believe that the financing effects are not significant to Xylem. In addition, we apply a practical expedient and do not adjust the promised amount of consideration in a contract for the effects of significant financing components when we expect payment terms to be one year or less from the time the goods or services are transferred until ultimate payment.

Read it in 10-K 2026-02-25 at sec.gov ↗

AddedMD&A
We offer standard warranties for our products to enable compliance with agreed-upon specifications in our contracts. Standard warranties do not give rise to performance obligations and represent assurance-type warranties. In certain instances, product warranty terms are adjusted to account for the specific nature of the contract. In these instances, we assess the warranties to determine whether they represent service-type warranties, and should be accounted for as a separate performance obligation in the contract.

Read it in 10-K 2026-02-25 at sec.gov ↗

AddedMD&A
Costs to obtain a contract include incremental costs that the Company has incurred that it expects to recover. Incremental costs only include costs that the Company would not have incurred had the contract not been obtained. Costs that would have been incurred regardless of whether or not the contract was obtained are expensed as incurred, unless they are explicitly chargeable to the customer whether or not the contract is obtained.

Read it in 10-K 2026-02-25 at sec.gov ↗

AddedMD&A
Costs to obtain contracts are capitalized when incurred, and are then amortized in a manner that is consistent with the pattern of transfer of the related goods or services provided in the contract. The Company elects to apply the practical expedient to expense costs to obtain contracts when the associated amortization period of those costs would be one year or less.

Read it in 10-K 2026-02-25 at sec.gov ↗

AddedMD&A
Business Combinations. We record acquisitions using the acquisition method of accounting. Under this method, we recognize the identifiable assets acquired, liabilities assumed, contractual contingencies, and any contingent consideration at their estimated fair values as of the acquisition date. The excess of the consideration transferred over the fair value of the identifiable net assets acquired is recorded as goodwill.

Read it in 10-K 2026-02-25 at sec.gov ↗

AddedMD&A
The determination of the fair value of acquired assets and assumed liabilities requires the use of significant estimates and assumptions. These include judgments about the selection of valuation methodologies, the determination of appropriate discount rates and market‑participant assumptions, estimates of future cash flows attributable to the acquired assets, and expected cost synergies or other benefits arising from the acquisition. For certain assets such as technology‑based intangibles, customer‑related intangibles, and trade names, valuation techniques may require assumptions about replacement cost, expected economic obsolescence, projected revenue growth, customer attrition, and the weighted‑average cost of capital.

Read it in 10-K 2026-02-25 at sec.gov ↗

AddedMD&A
We develop these fair value estimates using historical experience, information obtained from the management of the acquired business, and, when appropriate, the assistance of independent third‑party valuation specialists. These estimates are inherently uncertain, rely on judgment, and may be affected by unanticipated events or changes in economic conditions. As a result, actual results may differ materially from the estimates used in acquisition accounting.

Read it in 10-K 2026-02-25 at sec.gov ↗

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