Xylem Holds its Own with 1.8-Percent First Quarter 2025 Revenue Increase
Pump manufacturer and water technology company Xylem Inc. posted $2.069 billion in first quarter revenue compared to $2.033 billion in the first quarter of 2024, a 1.8-percent increase. Revenue from products totaled $1.709 billion in the quarter compared to $1.690 billion in the same period in 2024, essentially flat, and $360 million in revenue from services in Q125 compared to $343 million in Q124, a 5-percent increase.
“The team’s first-quarter results exceeded expectations, continuing our momentum and delivering a strong start to 2025,” said Matthew Pine, Xylem president and CEO. “Organic revenue grew across all segments on healthy demand, with our book-to-bill ratio exceeding one. The team’s operating discipline drove 120 basis points of margin expansion and double-digit EPS growth. Our operating model transformation – including our high-impact culture, process simplification initiatives, and segment-oriented restructuring – is progressing well, strengthening our agility and driving improved profitability in an increasingly dynamic environment.
"We are serving our customers more effectively and seeing a reduction in wasted time and effort internally, enabling our colleagues to move faster, with more focus and accountability. Despite current market volatility, we anticipate continued resilience in volumes, supported by the essential nature of our customers’ services and Xylem’s strong alignment with opex-driven spending. We are offsetting the current tariff impacts with strategic pricing and proactive supply chain management. As a result, we are reaffirming our full-year adjusted EPS guidance.”
Net income attributable to Xylem for the quarter was $169 million, or $0.69 per share. Net income margin increased 70 basis points to 8.2 percent. These results are driven by strong operational performance and decreased interest expense, partially offset by increased restructuring and realignment costs, tax expense and loss on sale of businesses. Adjusted net income was $251 million, or $1.03 per share. First quarter adjusted EBITDA margin was 20.4 percent, reflecting a year-over-year increase of 120 basis points. Productivity savings and strong price realization drove the margin expansion, exceeding the impact of inflation and mix.
Xylem forecasts full-year 2025 revenue of $8.7 to $8.8 billion, up around 1 to 2 percent on a reported basis, and up 3 to 4 percent on an organic basis, in line with previous guidance.
