Xylem has released its financial results for the first quarter of 2025, reporting revenues of $2.1 billion, a 2% increase on a reported basis and a 3% on an organic basis. The company also reported earnings per share (EPS) of $0.69, reflecting a 10% increase, while adjusted EPS rose 14% to $1.03. Xylem reaffirmed its full-year 2025 guidance for adjusted EPS.
Revenue growth in the first quarter was supported by solid demand and effective execution, although foreign exchange headwinds provided some offset.
"The team’s first-quarter results exceeded expectations, continuing our momentum and delivering a strong start to 2025,” said Matthew Pine, Xylem’s president and CEO. “Organic revenue grew across all segments on healthy demand, with our book-to-bill ratio exceeding one. The team’s operating discipline drove 120 basis points of margin expansion and double-digit EPS growth.”
Net income attributable to Xylem was $169 million, or $0.69 per share, with a net income margin of 8.2%, representing a 70 basis point improvement. The rise in net income was driven by operational strength and reduced interest expense. These gains were partially offset by higher restructuring and realignment costs, increased tax expense, and a loss on the sale of certain businesses.
Adjusted net income totalled $251 million, or $1.03 per share. Adjustments excluded items such as purchase accounting intangible amortization, restructuring and realignment costs, special charges, the loss on sale of businesses, and associated tax impacts.
Xylem projects full-year 2025 revenues between $8.7 billion and $8.8 billion, representing growth of 1–2% on a reported basis, slightly raised from its earlier range of 0–2%
Adjusted EBITDA margin for the quarter reached 20.4%, an increase of 120 basis points year-over-year. This improvement was largely due to productivity gains and effective pricing strategies, which outweighed inflationary pressures and unfavorable mix.
“Our operating model transformation – including our high-impact culture, process simplification initiatives, and segment-oriented restructuring – is progressing well, strengthening our agility and driving improved profitability in an increasingly dynamic environment. We are serving our customers more effectively and seeing a reduction in wasted time and effort internally, enabling our colleagues to move faster, with more focus and accountability. Despite current market volatility, we anticipate continued resilience in volumes, supported by the essential nature of our customers’ services and Xylem’s strong alignment with opex-driven spending. We are offsetting the current tariff impacts with strategic pricing and proactive supply chain management. As a result, we are reaffirming our full-year adjusted EPS guidance,” Pine added.
2025 outlook
Xylem projects full-year 2025 revenues between $8.7 billion and $8.8 billion, representing growth of 1–2% on a reported basis, slightly raised from its earlier range of 0–2%. Organic revenue growth remains guided at 3–4%.
Adjusted EBITDA margin is expected to range between 21.3% and 21.8%, marking a 70 to 120 basis point increase over 2024. Full-year adjusted EPS guidance remains at $4.50 to $4.70. Free cash flow margin is projected at 9–10%.
