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Mar 31
Xylem Q1 2025 Earnings Report
Xylem delivered a strong start to 2025 with revenue growth and expanded margins.
Key Takeaways
Xylem exceeded expectations in Q1 2025, posting growth in revenue and earnings, supported by healthy demand, operating discipline, and strategic pricing actions.
Revenue reached $2.1 billion, growing 2% year-over-year.
Reported EPS was $0.69; adjusted EPS was $1.03, up 14%.
Net income rose to $169 million, with an 8.2% net income margin.
First-quarter adjusted EBITDA margin expanded by 120 basis points to 20.4%.
Xylem
Xylem
Xylem Revenue by Segment
Forward Guidance
Xylem reaffirmed its full-year 2025 guidance, expecting stable revenue growth and margin expansion despite market volatility.
Positive Outlook
- Full-year 2025 revenue forecast increased to $8.7–$8.8 billion.
- Full-year adjusted EBITDA margin expected to improve by 70–120 basis points.
- Full-year adjusted EPS expected between $4.50 and $4.70.
- Anticipated resilience in volumes due to essential customer services.
- Continued benefits from operating model transformation and strategic pricing.
Challenges Ahead
- Foreign exchange headwinds impacting reported results.
- Restructuring and realignment costs partially offsetting gains.
- Ongoing market volatility across regions.
- Increased tax expenses weighing on bottom-line growth.
- Potential challenges from tariffs and supply chain pressures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income