Xylem Inc. Reports First Quarter 2025 Results

Xylem Inc., a leading global water solutions company, has released its financial results for the first quarter of 2025. The company, which focuses on addressing the world's most challenging water issues, reported a solid start to the year with notable financial and operational achievements.

Financial Highlights

For the first quarter of 2025, Xylem reported revenue of $2.1 billion, reflecting a 2% increase on a reported basis and a 3% increase on an organic basis. The company's earnings per share (EPS) rose by 10% to $0.69 on a reported basis and by 14% to $1.03 on an adjusted basis. Net income attributable to Xylem was $169 million, with a net income margin of 8.2%, up 70 basis points from the previous year. Adjusted net income was $251 million.

Business and Operational Highlights

Xylem's performance was driven by strong execution and demand across all segments, despite facing foreign exchange headwinds. The company's book-to-bill ratio exceeded one, indicating healthy demand. The operating model transformation, including process simplification initiatives and segment-oriented restructuring, contributed to a 120 basis point margin expansion and double-digit EPS growth.

Strategic Initiatives and Corporate Developments

During the quarter, Xylem continued to focus on strategic pricing and proactive supply chain management to offset tariff impacts. The company also reaffirmed its full-year 2025 adjusted EPS guidance, projecting revenue of approximately $8.7 to $8.8 billion and an adjusted EBITDA margin of 21.3% to 21.8%. Full-year free cash flow margin is expected to be around 9% to 10%.

Management's Perspective

Matthew Pine, Xylem’s president and CEO, expressed satisfaction with the first-quarter results, highlighting the company's strong start to 2025. He emphasized the positive impact of the operating model transformation on agility and profitability, and the company's ability to serve customers more effectively. Pine also noted the resilience in volumes despite market volatility, supported by the essential nature of Xylem’s services and alignment with operational expenditure-driven spending.

Future Outlook

Xylem's outlook for the full year 2025 remains positive, with revenue expected to grow by 1% to 2% on a reported basis and by 3% to 4% on an organic basis. The company anticipates an adjusted EBITDA margin increase of 70 to 120 basis points from 2024, resulting in adjusted EPS of $4.50 to $4.70. The guidance reflects the company's confidence in its strategic initiatives and market positioning, despite ongoing geopolitical, trade, macroeconomic, and regulatory uncertainties.

SEC Filing: Xylem Inc. [ XYL ] - 8-K - Apr. 29, 2025