Xylem Exceeds Q1 Expectations Amid Tariff Challenges

Published 6 hours agoXYL

Xylem Exceeds Q1 Expectations Amid Tariff Challenges

Xylem Inc. has posted its first-quarter 2025 financial results, delivering numbers that surpassed market expectations and reinforcing its financial outlook for the year. The company reported an adjusted earnings per share (EPS) of $0.72, which is significantly above the $0.62 predicted by analysts, representing a 53% increase from the previous year, as detailed by finance.yahoo.com.

Xylem's revenue for the quarter reached $1.448 billion, marking a 13.8% year-on-year increase, with organic sales seeing a substantial 17% growth. Revenue from specific segments also rose: Water Infrastructure increased 11% to $589 million, Applied Water grew by 7% to $453 million, and Measurement & Control Solutions soared by 29% with $406 million in revenue. This growth was driven by factors like improved chip supply and rising demand for water quality testing.

The company achieved a higher adjusted EBITDA margin of 16.3% and improved its adjusted operating margin to 6.7%. Despite some challenges posed by tariffs, Xylem's strategy and operational efficiencies have helped it maintain its 2025 outlook. The company reaffirmed its full-year organic revenue growth guidance of 8% to 9% and raised its adjusted EPS guidance to between $3.15 and $3.35. Xylem's confident stance reflects its resilience and adaptability in a challenging economic environment.

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