Xylem reports Q1 adjusted EPS $1.03, consensus 95c

Reports Q1 revenue $2.1B, consensus $2.04B. “The team’s Q1 results exceeded expectations, continuing our momentum and delivering a strong start to 2025,” said Matthew Pine, Xylem’s (XYL) 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.”