Xylem delivered total revenue of $2.3 billion, on strong execution and demand. Second-quarter earnings per share were up 16 percent on a reported and adjusted basis.
“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.”
“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.”
For the quarter, Xylem’s net income was $226 million, or $0.93 per share. Strong operational performance drove a 90 basis point increase in net income margin to 9.8%. Excluding the effects of purchase accounting intangible amortization, restructuring and realignment costs, special charges, tax-related specials, and the net tax impact of these adjustments, adjusted net income was $307 million, or $1.26 per share.
The adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) margin for the second quarter was 21.8 percent, which represents a 100 basis point increase from the previous year. The margin expansion was driven by productivity savings and strong price realization, outpacing the effects of mix and inflation.
Xylem (XYL) is a Fortune 500 worldwide provider of water solutions that enables communities and consumers to create a more water-secure world. In 2024, our 23,000 diverse employees generated $8.6 billion in revenue by using their creativity and knowledge to optimize water and resource management.
As opposed to the 1 to 2 percent previously guided, Xylem now projects full-year 2025 revenue of roughly $8.9 to $9.0 billion, up about 4 to 5 percent on a reported basis and up about 4 percent on an organic basis.
It is anticipated that the full-year 2025 adjusted EBITDA margin will be between 21.3 and 21.8 percent, which is 70 to 120 basis points higher than Xylem’s 2024 adjusted results. Compared to the prior guide of $4.50 to $4.70, this leads to full-year adjusted earnings per share of $4.70 to $4.85. The free cash flow margin for the entire year is still anticipated to be between 9 and 10 percent.
Source : Xylem Water
