Xylem Inc Beats Q2 Earnings Estimates, Revenue Surges to $2.3 Billion

Xylem Inc (XYL) reported Q2 revenue of $2.3 billion, up 6% YoY, and EPS of $0.93, beating estimates. Adjusted EPS rose 16% to $1.26. The company raised its full-year 2025 revenue and adjusted EPS guidance, expecting revenue of $8.9-$9 billion and adjusted EPS of $4.70-$4.85. Xylem's strong performance is attributed to robust demand and effective execution across all segments.

Water technology company Xylem Inc. (NYSE: XYL) reported its Q2 2025 financial results, demonstrating robust performance across all segments. The company's revenue for the quarter stood at $2.3 billion, representing a 6% year-on-year (YoY) increase, which exceeded Wall Street's estimates by 4.2%. This growth was driven by strong organic revenue growth, with sales up 6.1% YoY.

Xylem's adjusted earnings per share (EPS) for Q2 2025 were $1.26, a 16% increase over the same period last year, significantly beating analysts' consensus estimates of $1.15 per share. The company also reported an adjusted EBITDA margin of 21.8%, up 100 basis points compared to the prior year, underscoring its operational efficiency.

In response to its strong Q2 performance, Xylem raised its full-year 2025 revenue guidance to $8.9 billion to $9.0 billion, representing a 4% to 5% increase on a reported basis and a 4% increase on an organic basis. The company also increased its full-year adjusted EPS guidance to $4.70 to $4.85, up from its previous estimate of $4.50 to $4.70.

Matthew Pine, Xylem's president and CEO, commented, "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. Based on our team's disciplined execution on resilient underlying demand, we are raising our full-year guidance."

Xylem's strong performance can be attributed to effective execution and resilient demand across all segments. The company's focus on operational efficiency and cost management has resulted in a significant improvement in its EBITDA margin and free cash flow margin.

Looking ahead, Xylem's full-year 2025 outlook remains positive, with expectations for continued growth in revenue and profitability. The company's ability to deliver strong results in the face of inflationary pressures and product mix challenges is a testament to its operational excellence and strategic positioning in the water sector.

References:
[1] https://finance.yahoo.com/news/xylem-nyse-xyl-delivers-strong-120317965.html
[2] https://smartwatermagazine.com/news/smart-water-magazine/xylem-posts-6-revenue-growth-second-quarter-2025
[3] https://www.marketscreener.com/news/xylem-inc-raises-earnings-guidance-for-the-year-2025-ce7c5fdddb8cf02c