Xylem (XYL) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $2.3 billion, up 6% year-over-year, with strong organic growth across all segments, especially Measurement & Control Solutions.

• Adjusted EBITDA margin hit a record 21.8%, up 100 bps year-over-year, and adjusted EPS grew 16% to $1.26.

• Net income attributable to shareholders was $226 million, with a net income margin of 9.8%.

• Order strength was led by developed markets, particularly North America, with a backlog above $5 billion.

• Full-year 2025 revenue and adjusted EPS guidance were raised, reflecting confidence in continued strong performance.

Financial highlights

• Q2 2025 revenue rose 6% year-over-year to $2.3 billion; organic revenue up 6%.

• Adjusted EBITDA for Q2 2025 was $502 million (21.8% margin), up 11.1% year-over-year.

• Q2 2025 net income was $226 million, up 16.5% year-over-year; adjusted net income was $307 million.

• Operating income for Q2 2025 was $305 million (13.3% margin); adjusted operating income was $401–402 million (17.4–17.5% margin).

• Year-to-date free cash flow was $169 million, down due to outsourced water projects and tax timing.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $8.9–$9.0 billion (4–5% total growth, ~4% organic).

• Adjusted EBITDA margin expected at 21.3–21.8%, up 70–120 bps from 2024.

• Adjusted EPS guidance increased to $4.70–$4.85.

• Free cash flow margin projected at 9–10%.

• Guidance reflects ongoing macroeconomic, geopolitical, and regulatory uncertainties.