Core Insights - Xylem Inc. reported first-quarter 2025 adjusted earnings of $1.03 per share, exceeding the Zacks Consensus Estimate of 95 cents, marking a 14% year-over-year increase [1] - Revenues for the quarter reached $2.07 billion, surpassing the consensus estimate of $2.04 billion, with a 2% year-over-year growth driven by strong order growth across segments [1] - Orders totaled $2.16 billion, reflecting a 4% decrease year-over-year on a reported basis and a 2% decline on an organic basis [2] Segment Performance - Water Infrastructure segment revenues were $581 million, up 1% year-over-year, with organic sales increasing by 5% due to strong demand for water transportation and treatment solutions [2] - Applied Water segment generated revenues of $435 million, remaining flat year-over-year, with organic sales up 1% driven by the building solutions market [3] - Measurement & Control Solutions segment revenues totaled $490 million, a 6% year-over-year increase, with organic sales also up 6% due to energy metering demand [4] - Water Solutions and Services segment revenues were $563 million, flat year-over-year, with organic sales increasing by 1% supported by service offerings [4] Financial Metrics - Adjusted EBITDA for the quarter was $423 million, an 8.2% increase from the previous year, with the margin improving to 20.4% from 19.2% [5] - Adjusted operating income rose to $325 million, up 10.5% year-over-year, with the adjusted operating margin increasing to 15.7% from 14.5% [5] - Cash and cash equivalents at the end of the quarter were $1.06 billion, down from $1.12 billion at the end of December 2024, while long-term debt slightly decreased to $1.97 billion [6] Cash Flow and Shareholder Returns - Net cash generated from operating activities was $33 million, down from $89 million in the prior year, with capital expenditure at $71 million, a 4.1% decrease [7] - Xylem paid dividends of $98 million in the first quarter, an 11.4% increase year-over-year, and repurchased shares worth $12.9 million [8] 2025 Guidance - Xylem expects revenues for 2025 to be in the range of $8.7-$8.8 billion, indicating a 1-2% increase from the prior year on a reported basis and 3-4% on an organic basis [10] - Adjusted EBITDA margin is projected to be approximately 21.3-21.8%, reflecting an expansion of 70-120 basis points from the previous year [10] - Adjusted earnings are forecasted to be between $4.50 and $4.70 per share, up from $4.27 per share in 2024 [10]

2025 First Quarter Results and Earnings April 29, 2025 Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Generally, the words "anticipate," "estimate," "expect," "project," "intend," "plan," "contemplate," "predict," "forecast," "likely," "believe," "target," "will," "could," "would," "should," "potential," "may" and similar express ...

Commission file number: 1-35229 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (I.R.S. Employer Identification No.) 301 Water Street SE, Washington, DC 20003 (Address of principal executive offices) (Zi ...

Core Insights - Xylem reported $2.07 billion in revenue for Q1 2025, a year-over-year increase of 1.8% and an EPS of $1.03 compared to $0.90 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] - The company delivered a revenue surprise of +1.26% and an EPS surprise of +8.42% compared to analyst expectations [1] Revenue Breakdown - Measurement & Control Solutions generated $490 million, exceeding the average estimate of $466.09 million, reflecting a year-over-year increase of +6.1% [4] - Applied Water revenue was $435 million, slightly below the average estimate of $428.62 million, showing a year-over-year decrease of -0.2% [4] - Water Infrastructure revenue reached $581 million, surpassing the average estimate of $575.20 million, with a year-over-year increase of +1.2% [4] - Water Solutions and Services reported $563 million, slightly below the estimated $564.67 million [4] Stock Performance - Xylem's shares have returned -3% over the past month, compared to a -0.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Xylem reported quarterly earnings of $1.03 per share, exceeding the Zacks Consensus Estimate of $0.95 per share, and showing an increase from $0.90 per share a year ago, indicating a positive earnings surprise of 8.42% [1][2] Financial Performance - The company achieved revenues of $2.07 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.26% and showing a year-over-year increase from $2.03 billion [2] - Over the last four quarters, Xylem has exceeded consensus EPS estimates three times and has also topped consensus revenue estimates three times [2] Stock Performance and Outlook - Xylem shares have experienced a slight decline of about 0.1% since the beginning of the year, contrasting with the S&P 500's decline of 6% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $1.14 on revenues of $2.21 billion, while the estimate for the current fiscal year is $4.64 on revenues of $8.75 billion [7] - The estimate revisions trend for Xylem is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Waste Removal Services industry, to which Xylem belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Xylem's stock may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - The company reported a strong start to Q1 2025, with revenue growth of 3% driven by operational discipline and a 120 basis points EBITDA margin expansion, resulting in a 14% increase in EPS compared to the prior year [6][11][12] - Ending backlog stood at $5.1 billion, with a book-to-bill ratio above one, indicating solid demand [10][11] - Net debt to adjusted EBITDA ratio is at 0.5 times, reflecting a strong balance sheet [12] Business Line Data and Key Metrics Changes - **Measurement and Control Solutions (MCS)**: Revenue grew by 6%, driven by energy growth, although orders were down 8% due to tough comparisons in smart metering [12][13] - **Water Infrastructure**: Orders increased by 1%, with revenue up 5% driven by strong demand in treatment and transport, despite declines in China [13][14] - **Applied Water**: Orders rose by 3%, marking the fifth consecutive quarter of growth, with revenues up 1% primarily due to strength in Building Solutions [14] - **Water Solutions and Services**: Orders decreased by 5% due to a tough comparison from a large order last year, but revenue grew by 1% [15] Market Data and Key Metrics Changes - The company noted a significant decline in imports from China, with a net increased cost from tariffs on Mexico estimated at $30 million [17][18] - The impact of tariffs is being managed through pricing and supply chain actions, with expectations to offset costs with incremental pricing [16][19] Company Strategy and Development Direction - The company is focused on simplifying its operating model, integrating Evoqua, and optimizing its portfolio for long-term growth [23][24] - There is an emphasis on maintaining a high-impact culture and driving productivity through simplification efforts, which have already shown positive results in margin expansion [24][25] - The company is actively pursuing M&A opportunities to complement its core capabilities, particularly in advanced treatment and intelligent solutions [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage potential demand softening due to tariffs, with a strong start to the year providing a buffer [9][22] - The outlook for Q2 and full year 2025 remains positive, with reaffirmed guidance for revenue and EPS despite potential market volatility [19][20] Other Important Information - The company has exceeded its 2025 customer sustainability goals ahead of schedule and is committed to sustainability leadership [26][27] - The annual sustainability report is set to be released, highlighting the company's impact on customers and communities [26] Q&A Session Summary Question: Did the company benefit from customers prepositioning inventory? - Management indicated that there was no significant increase in orders to get ahead of tariffs, with only a small impact noted in applied water [32][33] Question: What are the assumptions regarding price increases and demand? - Management anticipates some demand decline in the second half of the year but feels confident in managing any impacts due to strong Q1 performance and favorable FX [34][35] Question: How is the company managing pricing in relation to tariffs? - The company is implementing a mix of surcharges and price increases, with actions taken in Q1 and early Q2 [44][45] Question: What is the outlook for M&A activity? - The company remains active in pursuing M&A opportunities, with a robust pipeline and a focus on strategic fit and financial hurdles [56][59] Question: How does the Water Solutions and Services segment perform? - This segment is considered lumpy, with significant backlog growth year-over-year, indicating strong fundamentals despite recent performance [61][63]

Exhibit 99.1 Xylem Inc. 301 Water Street SE, Suite 200 Washington, DC 20003 Tel +1.202.869.9150 Contacts: Media Investors Houston Spencer +1 (914) 240-3046 Keith Buettner +1 (724) 772-1531 Houston.Spencer@xylem.com Keith.Buettner@xylem.com Xylem Reports First Quarter 2025 Results Washington, D.C., Apr. 29,2025 – Xylem (NYSE: XYL), a leading global water solutions company dedicated to solving the world's most challenging water issues, today reported first-quarter 2025 results. The Company delivered total rev ...

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Core Viewpoint - Xylem Inc. is expected to report first-quarter 2025 results on April 29, with revenue estimates of $2.04 billion, reflecting a 0.5% growth year-over-year, and earnings per share estimated at 95 cents, indicating a 5.6% increase from the previous year [1] Revenue Estimates by Segment - The Measurement & Control Solutions (M&CS) segment is projected to generate revenues of $466 million, a 0.9% increase from the prior year [3] - The Water Infrastructure segment's revenues are estimated at $575 million, consistent with the year-ago figure [4] - The Water Solutions and Services segment is expected to report revenues of $565 million, driven by strong demand in emerging markets [5] - The Applied Water segment's revenues are forecasted at $429 million, reflecting a 1.6% decline from the previous year due to lower demand for industrial applications [6] Growth Drivers - Robust demand for advanced technology solutions, particularly smart metering, is likely to enhance the M&CS segment's performance [3] - Growth in the transport application business, supported by a strong pipeline of capital projects in the U.S., is anticipated to benefit the Water Infrastructure segment [4] - The acquisition of a majority stake in Idrica and the Evoqua acquisition are expected to provide growth opportunities and strengthen Xylem's market position [7] Cost Pressures - The company's bottom line may be impacted by raw material cost inflation, high labor, freight, and overhead costs, as well as integration expenses from recent acquisitions [8] Earnings Prediction - Xylem is predicted to beat earnings estimates, supported by a positive Earnings ESP of +0.25% and a Zacks Rank of 3 [9]

Wall Street expects a year-over-year increase in earnings on higher revenues when Xylem (XYL) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 29. On the oth ...