Xylem Inc. reported strong second quarter results on July 31, 2025. Here are the key points:
Financials
Revenue: $2.3 billion - an increase of 6% year-over-year
Earnings per share (EPS): $0.93 (reported value), $1.26 (adjusted) - both an increase of
Adjusted EBITDA margin:
Record 21.8%, an increase of 100 basis points
Net income: $226 million; adjusted: $307 million
Outlook for the full year 2025
Revenue guidance: $8.9 to $9.0 billion (previously: $8.7 to $8.9 billion)
Adjusted EPS forecast: $4.70 to $4.85 (previously: $4.50 to $4.70)
Free cash flow margin:
Expected at 9-10%
Water technology company Xylem on Thursday raised its second-quarter sales and earnings forecasts, citing robust demand and strong operating performance that helped the company beat Wall Street estimates for the second quarter.
The company's shares rose 8.4 percent in morning trading.
The company said productivity savings and strong price realization led to margin expansion that outpaced the impact of inflation.
"Our simplification efforts have already yielded measurable gains in speed, accountability and customer responsiveness," CEO Matthew Pine said in a statement.
Xylem now expects adjusted earnings per share in 2025 to be between $4.70 and $4.85, compared with its previous guidance of between $4.50 and $4.70.
The company is forecasting revenue of USD 8.90 to 9 billion in 2025, up from previous expectations of USD 8.70 to 8.80 billion.
On average, analysts had expected earnings of USD 4.64 per share and revenue of USD 8.76 billion, according to data compiled by LSEG.
Sales from Xylem's water infrastructure division, which sells products such as water and wastewater pumps, totaled $650 million in the quarter, exceeding analysts' expectations of $640.27 million.
The applied water technology unit, which sells pumps, valves and other equipment, reported sales of $483 million, above analysts' expectations of $462.27 million.
On an adjusted basis, Xylem earned $1.26 per share in the quarter, compared with analysts' average expectations of $1.16 per share.
The company reported quarterly revenue of $2.30 billion, compared to analysts' estimates of $2.21 billion.