Xylem beats Q1 estimates, reaffirms 2025 outlook; shares rise

Published 29/04/2025, 12:42
Xylem beats Q1 estimates, reaffirms 2025 outlook; shares rise

NEW YORK -On Tuesday, Xylem Inc. (NYSE:XYL) reported first-quarter results that exceeded analyst expectations, driven by strong execution and demand across all segments.

The water technology company also reaffirmed its full-year 2025 earnings guidance, sending shares up 1.79% in early trading.

For Q1 2025, Xylem posted adjusted earnings per share of $1.03, surpassing the consensus estimate of $0.95. Revenue came in at $2.1 billion, up 2% YoY on a reported basis and 3% organically, beating analyst projections of $2.04 billion.

"The team’s first-quarter results exceeded expectations, continuing our momentum and delivering a strong start to 2025," said Matthew Pine, Xylem’s president and CEO. He noted that organic revenue grew across all segments on healthy demand, with the book-to-bill ratio exceeding one.

The company’s operating discipline drove 120 basis points of margin expansion and double-digit EPS growth. Adjusted EBITDA margin increased to 20.4% from 19.2% in the year-ago quarter.

Looking ahead, Xylem reaffirmed its full-year 2025 adjusted EPS guidance range of $4.50 to $4.70, in line with the $4.63 consensus. The company now expects revenue of $8.7 billion to $8.8 billion, up 1% to 2% on a reported basis and 3% to 4% organically.

Pine expressed confidence in continued resilience in volumes, supported by the essential nature of customers’ services and Xylem’s strong alignment with opex-driven spending. The company is offsetting current tariff impacts through strategic pricing and proactive supply chain management.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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