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Xylem Tops Q2 Earnings & Revenue Estimates, Raises '25 Outlook
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Key Takeaways
XYL Q2 EPS rose 16% to $1.26, beating the $1.14 the consensus mark and supported by 6% revenue growth.
All segments posted year-over-year growth, led by 12% gains in Measurement & Control Solutions.
XYL raised its 2025 EPS forecast to $4.70-$4.85, up from the prior range of $4.50-$4.70.
Xylem Inc.’s (XYL - Free Report) second-quarter 2025 adjusted earnings of $1.26 per share beat the Zacks Consensus Estimate of $1.14. The bottom line increased 16% year over year.
XYL’s revenues of $2.30 billion beat the consensus estimate of $2.21 billion. The top line increased 6% year over year, driven by resilient demand reflected by solid order growth across segments. Organic revenues rose 6%
Orders of $2.17 billion increased 4% year over year on both reported and organic basis.
XYL's Segmental Details
Revenues in the Water Infrastructure segment totaled $650 million, up 3% year over year. Organic sales increased 4% year over year, buoyed by the solid demand for its products and solutions for the treatment of water, including pumps, filtration and treatment equipment. The Zacks Consensus Estimate was pegged at $640 million.
The Applied Water segment generated revenues of $483 million, up 6% year over year. Organic sales were up 5% on a year-over-year basis. The segmental performance was driven by strength in the commercial building solutions market. The consensus estimate was pegged at $459 million.
Quarterly revenues of the Measurement & Control Solutions segment totaled $540 million, up 12% year over year. The Zacks Consensus Estimate was pegged at $509 million. Organic sales were up 10% year over year, driven by energy metering demand.
Quarterly revenues at the Water Solutions and Services segment totaled $628 million, up 5% year over year. Organic sales were up 5% year over year, supported by increase in service and capital projects. The consensus estimate was pegged at $605 million.
Xylem’s adjusted EBITDA was $502 million, up 11.1% from the year-ago quarter’s level. The margin improved to 21.8% from 20.8% in the prior-year quarter.
Adjusted operating income was $401 million, up 13.9% year over year. Adjusted operating margin increased to 17.4% from 16.2% in the year-earlier quarter.
Xylem’s Balance Sheet and Cash Flow
Exiting the second quarter, Xylem had cash and cash equivalents of $1.17 billion compared with $1.12 billion at the end of December 2024. Long-term debt was $1.93 billion at the end of the quarter compared with $1.98 billion at the end of December 2024.
In the first six months of 2025, XYL generated net cash of $338 million from operating activities compared with $377 million in the year-ago period. Capital expenditure was $169 million, up 15% from the year-earlier period.
Rewards to Shareholders
In the second quarter, Xylem paid dividends of $196 million, up 12% year over year. The company also bought back shares worth $13 million in the same period compared with $18 million in the year-ago period.
XYL's 2025 Guidance
Xylem has raised its 2025 outlook. The company now expects revenues to be in the range of $8.9 – $9.0 billion for 2025 compared with $8.7-$8.8 billion anticipated earlier. This indicates an increase of 4-5% from the prior-year level on a reported basis and approximately 4% on an organic basis.
Adjusted EBITDA margin is estimated to be approximately 21.3-21.8%, indicating an expansion of 70-120 basis points from the year-earlier actual.
XYL forecasts adjusted earnings to be in the range of $4.70 – $4.85 per share compared with $4.50–$4.70 expected earlier. This metric indicates an increase from earnings of $4.27 per share in 2024.
XYL’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
Dover Corporation (DOV - Free Report) reported earnings of $2.44 per share in second-quarter 2025, beating the Zacks Consensus Estimate of $2.39. This compares with earnings of $2.36 per share a year ago.
Dover posted revenues of $2.05 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $2.18 billion.
Teck Resources Limited (TECK - Free Report) came out with earnings of $0.27 per share in the second quarter of 2025, beating the Zacks Consensus Estimate of $0.2. This compares with earnings of $0.58 per share a year ago.
Teck Resources posted revenues of $1.46 billion in the quarter, missing the Zacks Consensus Estimate by 8.7%. This compares with year-ago revenues of $2.83 billion.
Packaging Corporation of America (PKG - Free Report) reported earnings of $2.48 per share, beating the Zacks Consensus Estimate of $2.44. This compares with earnings of $2.2 per share a year ago.
Packaging Corp. posted revenues of $2.17 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.5%. This compares with year-ago revenues of $2.08 billion.
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Xylem Tops Q2 Earnings & Revenue Estimates, Raises '25 Outlook
Key Takeaways
Xylem Inc.’s (XYL - Free Report) second-quarter 2025 adjusted earnings of $1.26 per share beat the Zacks Consensus Estimate of $1.14. The bottom line increased 16% year over year.
XYL’s revenues of $2.30 billion beat the consensus estimate of $2.21 billion. The top line increased 6% year over year, driven by resilient demand reflected by solid order growth across segments. Organic revenues rose 6%
Orders of $2.17 billion increased 4% year over year on both reported and organic basis.
XYL's Segmental Details
Revenues in the Water Infrastructure segment totaled $650 million, up 3% year over year. Organic sales increased 4% year over year, buoyed by the solid demand for its products and solutions for the treatment of water, including pumps, filtration and treatment equipment. The Zacks Consensus Estimate was pegged at $640 million.
The Applied Water segment generated revenues of $483 million, up 6% year over year. Organic sales were up 5% on a year-over-year basis. The segmental performance was driven by strength in the commercial building solutions market. The consensus estimate was pegged at $459 million.
Quarterly revenues of the Measurement & Control Solutions segment totaled $540 million, up 12% year over year. The Zacks Consensus Estimate was pegged at $509 million. Organic sales were up 10% year over year, driven by energy metering demand.
Quarterly revenues at the Water Solutions and Services segment totaled $628 million, up 5% year over year. Organic sales were up 5% year over year, supported by increase in service and capital projects. The consensus estimate was pegged at $605 million.
Xylem Inc. Price, Consensus and EPS Surprise
Xylem Inc. price-consensus-eps-surprise-chart | Xylem Inc. Quote
XYL’s Margin Profile
Xylem’s adjusted EBITDA was $502 million, up 11.1% from the year-ago quarter’s level. The margin improved to 21.8% from 20.8% in the prior-year quarter.
Adjusted operating income was $401 million, up 13.9% year over year. Adjusted operating margin increased to 17.4% from 16.2% in the year-earlier quarter.
Xylem’s Balance Sheet and Cash Flow
Exiting the second quarter, Xylem had cash and cash equivalents of $1.17 billion compared with $1.12 billion at the end of December 2024. Long-term debt was $1.93 billion at the end of the quarter compared with $1.98 billion at the end of December 2024.
In the first six months of 2025, XYL generated net cash of $338 million from operating activities compared with $377 million in the year-ago period. Capital expenditure was $169 million, up 15% from the year-earlier period.
Rewards to Shareholders
In the second quarter, Xylem paid dividends of $196 million, up 12% year over year. The company also bought back shares worth $13 million in the same period compared with $18 million in the year-ago period.
XYL's 2025 Guidance
Xylem has raised its 2025 outlook. The company now expects revenues to be in the range of $8.9 – $9.0 billion for 2025 compared with $8.7-$8.8 billion anticipated earlier. This indicates an increase of 4-5% from the prior-year level on a reported basis and approximately 4% on an organic basis.
Adjusted EBITDA margin is estimated to be approximately 21.3-21.8%, indicating an expansion of 70-120 basis points from the year-earlier actual.
XYL forecasts adjusted earnings to be in the range of $4.70 – $4.85 per share compared with $4.50–$4.70 expected earlier. This metric indicates an increase from earnings of $4.27 per share in 2024.
XYL’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Dover Corporation (DOV - Free Report) reported earnings of $2.44 per share in second-quarter 2025, beating the Zacks Consensus Estimate of $2.39. This compares with earnings of $2.36 per share a year ago.
Dover posted revenues of $2.05 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $2.18 billion.
Teck Resources Limited (TECK - Free Report) came out with earnings of $0.27 per share in the second quarter of 2025, beating the Zacks Consensus Estimate of $0.2. This compares with earnings of $0.58 per share a year ago.
Teck Resources posted revenues of $1.46 billion in the quarter, missing the Zacks Consensus Estimate by 8.7%. This compares with year-ago revenues of $2.83 billion.
Packaging Corporation of America (PKG - Free Report) reported earnings of $2.48 per share, beating the Zacks Consensus Estimate of $2.44. This compares with earnings of $2.2 per share a year ago.
Packaging Corp. posted revenues of $2.17 billion in the quarter, surpassing the Zacks Consensus Estimate by 0.5%. This compares with year-ago revenues of $2.08 billion.