01—Abstract
Summary
Summary of the 8-K filed April 29, 2025. Cited figures are marked; the original filing is the authoritative source.
Xylem Inc. (NYSE: XYL) reported first-quarter 2025 results on April 29, 2025, as described in Exhibit 99.1, a press release furnished under Item 2.02.
Revenue was $2.1 billiona ($2,069 million versus $2,033 million a year earlier), up 2% on a reported basis and 3% on an organic basis. Reported diluted earnings per share were $0.69, up from $0.63, and adjusted EPS was $1.03, up 14%. Net income attributable to Xylem was $169 million, and adjusted net income was $251 million.
Management cited strong operational performance and decreased interest expense, partially offset by higher restructuring and realignment costs, tax expense and a loss on sale of businesses. Adjusted EBITDA margin was 20.4%, a 120 basis point increase year over year, driven by productivity savings and price realization. For full-year 2025, Xylem raised its revenue guidance to approximately $8.7 to $8.8 billionb, up 1 to 2% on a reported basis, versus 0 to 2% previously.
Organic growth guidance of 3 to 4% was unchanged, and adjusted EPS guidance of $4.50 to $4.70c was reaffirmed. The company expects an adjusted EBITDA margin of approximately 21.3 to 21.8% and free cash flow margin of approximately 9 to 10%. Management said it is offsetting current tariff impacts with strategic pricing and proactive supply chain management, and that outlook reflects geopolitical, trade, macroeconomic and regulatory uncertainty.
Cash flow from operations was $33 milliond in the quarter, down from $89 million a year earlier, and capital expenditures were $71 million. Cash and cash equivalents were $1,059 million at March 31, 2025, and long-term debt was $1,974 million. Total assets were $16,559 million.
02—Key points
Key Highlights
- Revenue of $2,069 million, up 2% reported and 3% organic year over year, with organic revenue growing across all segments.
- Diluted GAAP EPS of $0.69 (up from $0.63); adjusted EPS of $1.03, up 14%.
- Adjusted EBITDA margin of 20.4%, up 120 basis points, driven by productivity savings and strong price realization.
- Full-year 2025 revenue guidance raised to $8.7 to $8.8 billion (1 to 2% reported growth, from 0 to 2%); adjusted EPS guidance of $4.50 to $4.70 reaffirmed.
- Operating cash flow fell to $33 million from $89 million, with capital expenditures of $71 million.
- Management is offsetting tariff impacts through strategic pricing and proactive supply chain management, and the book-to-bill ratio exceeded one.
03—Questions
Frequently Asked Questions
How did Xylem perform in the first quarter of 2025?
Revenue was $2,069 million, up 2% on a reported basis and 3% on an organic basis. Diluted EPS was $0.69 and adjusted EPS was $1.03, up 14%. Net income attributable to Xylem was $169 million.
Did Xylem change its 2025 guidance?
Revenue guidance was raised to approximately $8.7 to $8.8 billion, up 1 to 2% on a reported basis from the prior 0 to 2%. Organic growth guidance of 3 to 4% and adjusted EPS guidance of $4.50 to $4.70 were unchanged, and the adjusted EBITDA margin outlook is 21.3 to 21.8%.
What is driving margin expansion?
The filing attributes the 120 basis point increase in adjusted EBITDA margin to productivity savings and strong price realization, which exceeded the impact of inflation and mix.
What risks did management highlight?
Management pointed to tariff impacts, which it is offsetting with pricing and supply chain actions, along with foreign exchange headwinds, and broader geopolitical, trade, macroeconomic and regulatory uncertainty affecting the outlook.
How did cash flow compare with the prior year?
Net cash from operating activities was $33 million, compared with $89 million in the first quarter of 2024. Capital expenditures were $71 million, and cash and cash equivalents were $1,059 million at March 31, 2025.
04—Continue