Xylem reports first quarter 2025 results: revenue up 2 percent, adjusted EPS up 14 percent, full-year guidance reaffirmed

Main points:

- Revenue:
- Total revenue was 2.069 billion dollars, up 2 percent reported and 3 percent organic compared to Q1 2024.

- Profitability:
- Net income attributable to Xylem was 169 million dollars, or 0.69 dollars per share, up 10 percent year-over-year.
- Adjusted net income was 251 million dollars, or 1.03 dollars per share, up 14 percent.
- Adjusted EBITDA margin expanded by 120 basis points to 20.4 percent.

- Operational highlights:
- Organic revenue growth occurred across all segments.
- Book-to-bill ratio remained above 1.
- Operating margin improved by 90 basis points year-over-year.

- Cash flow:
- Net cash provided by operating activities was 33 million dollars.
- Free cash flow was lower than the prior year due to working capital usage, particularly changes in accounts payable and receivables.

- Balance sheet:
- Cash and cash equivalents stood at 1.059 billion dollars as of March 31, 2025.
- Total debt remained stable at approximately 2.015 billion dollars.

- Outlook:
- Full-year 2025 revenue is forecasted between 8.7 and 8.8 billion dollars, up approximately 1 to 2 percent on a reported basis and 3 to 4 percent organically.
- Full-year adjusted EBITDA margin is expected between 21.3 percent and 21.8 percent.
- Full-year adjusted EPS is expected between 4.50 and 4.70 dollars.
- Free cash flow margin is projected between 9 and 10 percent.

Xylem Inc. filed an SEC Form 8-K on January 10, 2025, reporting a change in its Board of Directors. Jeanne Beliveau-Dunn, a current Board member, has decided not to seek re-election at the company’s 2025 annual meeting of shareholders. Her decision is not due to any disagreements with the company’s operations, policies, or practices. She will continue to serve on the Board until the annual meeting, at which time the Board’s size will be reduced from ten to nine members.