Xylem's earnings call reflects a strong overall performance for the second quarter, with record adjusted EBITDA margins, robust revenue growth, and increased adjusted EPS. The company is raising its full-year guidance, reflecting confidence in continued strong performance. However, challenges such as economic issues in China, funding delays in the UK and Canada, and tariff impacts present some headwinds. Despite these challenges, the company shows resilience through successful simplification efforts and strong order growth in key segments.

Company Guidance -

Q3 2025

During Xylem's Second Quarter 2025 Results Conference Call, the company reported strong performance and provided updated guidance. The quarter saw a 6% revenue growth driven by outperformance in Measurement and Control Solutions (MCS), with an adjusted EBITDA margin reaching a record 21.8%, up 100 basis points year-over-year. Adjusted EPS grew by 16%, bolstered by resilient demand, particularly in smart metering, which saw double-digit growth. Consequently, Xylem raised its full-year guidance, expecting revenue between $8.9 billion and $9 billion, representing 4% to 5% total growth, with adjusted EPS guidance increased to $4.70 to $4.85. The company maintained its adjusted EBITDA margin guidance at 21.3% to 21.8%, despite expecting a slight margin dilution due to tariffs. Xylem's strategic focus on simplification and targeted acquisitions, such as Vacom and Envirex, is expected to drive further growth and efficiency.

Record Adjusted EBITDA Margin

Achieved a quarterly record adjusted EBITDA margin of 21.8%, up 100 basis points year-over-year.

Strong Revenue Growth

Revenue growth was strong at 6% in the quarter, driven by measurement and control solutions and contributions from all segments.

Increase in Adjusted EPS

Adjusted EPS grew in the mid-teens, with Q2 EPS of $1.26, $0.12 above the midpoint of guidance and up 16% versus the prior year.

Raising Full-Year Guidance

Raising full year guidance for revenue to $8.9 billion to $9 billion and adjusted EPS guide to $4.70 to $4.85.

Order Growth in Measurement and Control Solutions

Orders grew 12% organically with strength across water and energy metering, with backlog remaining healthy at $1.7 billion.

Successful Simplification and 80/20 Initiatives

Simplification efforts are driving measurable improvements in productivity and customer responsiveness, contributing to margin expansion.

Xylem (XYL) Earnings, Revenues Date & History

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XYL Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 04, 2025	2025 (Q3)	1.23 / -	1.11	―	―	―
Jul 31, 2025	2025 (Q2)	1.15 / 1.26	1.09	15.60% (+0.17)
Apr 29, 2025	2025 (Q1)	0.95 / 1.03	0.9	14.44% (+0.13)
Feb 04, 2025	2024 (Q4)	1.13 / 1.18	0.99	19.19% (+0.19)
Oct 31, 2024	2024 (Q3)	1.11 / 1.11	0.99	12.12% (+0.12)
Jul 30, 2024	2024 (Q2)	1.05 / 1.09	0.98	11.22% (+0.11)
May 02, 2024	2024 (Q1)	0.84 / 0.90	0.72	25.00% (+0.18)
Feb 06, 2024	2023 (Q4)	0.95 / 0.99	0.92	7.61% (+0.07)
Oct 31, 2023	2023 (Q3)	0.89 / 0.99	0.79	25.32% (+0.20)
Aug 02, 2023	2023 (Q2)	0.82 / 0.98	0.66	48.48% (+0.32)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

XYL Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jul 31, 2025	$130.60	$144.62	+10.74%
Apr 29, 2025	$115.55	$118.24	+2.33%
Feb 04, 2025	$122.03	$128.43	+5.24%
Oct 31, 2024	$129.04	$120.68	-6.48%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.