Xylem Inc. reported its financial results for the second quarter of 2025, posting total revenue of $2.3 billion. This represents a 6% increase both on a reported and organic basis. Earnings per share for the quarter were $0.93, up 16% from the same period last year. Adjusted earnings per share were $1.26, also reflecting a 16% year-over-year increase. Based on second-quarter performance, the company has revised its full-year 2025 revenue and adjusted EPS guidance upward.
“Our team delivered another strong quarter, exceeding expectations with robust organic revenue growth across all segments, a record-high adjusted EBITDA margin, and double-digit EPS growth,” said Matthew Pine, Xylem’s president and CEO. “Based on our team’s disciplined execution on resilient underlying demand, we are raising our full-year guidance.”
Xylem reported a second-quarter adjusted EBITDA margin of 21.8%, an increase of 100 basis points compared to the prior year
“This performance underscores the transformation of our operating model. Our simplification efforts have already yielded measurable gains in speed, accountability, and customer responsiveness. We continue to build energy and momentum across the enterprise, reinforcing our confidence in delivering a strong second half and a clear path to profitable, above-market growth and long-term value creation,” Pine added.
Net income attributable to Xylem for the quarter was $226 million, or $0.93 per share. The company’s net income margin rose by 90 basis points to 9.8%, attributed to operational performance. Adjusted net income, which excludes purchase accounting intangible amortization, restructuring and realignment costs, special charges, tax-related items, and the net tax impact of these adjustments, was $307 million, or $1.26 per share.
Xylem reported a second-quarter adjusted EBITDA margin of 21.8%, an increase of 100 basis points compared to the prior year. The company cited productivity savings and pricing improvements as key contributors to the margin expansion, which offset inflationary and product mix pressures.
Full-year 2025 outlook
Xylem now projects full-year 2025 revenue between $8.9 billion and $9.0 billion, an increase of approximately 4 to 5% on a reported basis (up from its previous guidance of 1 to 2%) and approximately 4% on an organic basis.
The company expects its full-year 2025 adjusted EBITDA margin to range between 21.3% and 21.8%, representing a 70 to 120 basis point increase compared to 2024. Adjusted earnings per share for the full year are now forecast to be between $4.70 and $4.85, up from the earlier estimate of $4.50 to $4.70. Free cash flow margin remains projected at approximately 9 to 10%.
