01—Abstract
Summary
Summary of the 8-K filed July 31, 2025. Cited figures are marked; the original filing is the authoritative source.
Xylem Inc. (NYSE: XYL) reported second-quarter 2025 results on July 31, 2025, furnished as Exhibit 99.1 to this Form 8-K.
Revenue was $2.3 billiona, up 6% on both a reported and organic basis. Net income attributable to Xylem was $226 million, or $0.93 per share, and adjusted net income was $307 million, or $1.26 per share, with both EPS figures up 16%. Net income margin rose 90 basis points to 9.8 percent, and adjusted EBITDA margin was 21.8 percent, up 100 basis points year over year.
Xylem raised its full-year 2025 outlook. It now forecasts revenue of approximately $8.9 to $9.0 billionb, up approximately 4 to 5 percent on a reported basis versus the prior guidance of 1 to 2 percent, and up approximately 4 percent organically. Full-year adjusted EBITDA margin is expected to be approximately 21.3 to 21.8 percent, and adjusted EPS is now guided to $4.70 to $4.85, up from $4.50 to $4.70.
Free cash flow margin guidance is unchanged at approximately 9 to 10 percent. For the six months ended June 30, 2025, revenue was $4.37 billionc and GAAP net income attributable to Xylem was $395 million. Management attributed the margin expansion to productivity savings and strong price realization, and cited its simplification efforts as having yielded measurable gains in speed, accountability and customer responsiveness.
02—Key points
Key Highlights
- Q2 2025 revenue of $2.3 billion, up 6% on both a reported and organic basis; organic revenue growth was 5% per the non-GAAP reconciliation.
- Q2 2025 GAAP EPS of $0.93 and adjusted EPS of $1.26, each up 16% year over year.
- Adjusted EBITDA margin of 21.8% in Q2 2025, up 100 basis points year over year, driven by productivity savings and price realization.
- Full-year 2025 revenue guidance raised to approximately $8.9 to $9.0 billion, up approximately 4 to 5% reported (previously 1 to 2%).
- Full-year 2025 adjusted EPS guidance raised to $4.70 to $4.85 from $4.50 to $4.70.
- Full-year 2025 adjusted EBITDA margin expected at approximately 21.3% to 21.8%; free cash flow margin guidance unchanged at approximately 9% to 10%.
- Six-month operating cash flow of $338 million versus $377 million a year earlier, with capital expenditures of $169 million.
03—Questions
Frequently Asked Questions
How did Xylem perform in the second quarter of 2025?
Revenue was $2.3 billion, up 6% on both a reported and organic basis. GAAP net income attributable to Xylem was $226 million, or $0.93 per share, and adjusted EPS was $1.26, both up 16%. Net income margin increased 90 basis points to 9.8%.
What changed in Xylem's full-year 2025 outlook?
Xylem raised its full-year revenue forecast to approximately $8.9 to $9.0 billion, up about 4 to 5% on a reported basis, from 1 to 2% previously. Adjusted EPS guidance rose to $4.70 to $4.85 from $4.50 to $4.70. The adjusted EBITDA margin is expected to be about 21.3% to 21.8%, and free cash flow margin guidance of about 9% to 10% is unchanged.
What drove the improvement in profitability?
Management said productivity savings and strong price realization drove the adjusted EBITDA margin expansion, which exceeded the impact of inflation and mix. CEO Matthew Pine also cited the company's simplification efforts as yielding measurable gains in speed, accountability and customer responsiveness.
What risks does Xylem flag for its outlook?
The company said its outlook reflects current volatility, including geopolitical, trade, macroeconomic and regulatory uncertainty. The forward-looking statements section also lists risks such as industry and economic conditions, inflation, tariffs, supply chain and semiconductor availability, foreign currency fluctuations and the realization of benefits from its acquisition of Evoqua Water Technologies Corp.
04—Continue