10-Q - Xylem Inc. (0001524472) (Filer)

Tue, Apr 29, 3:29 PM (23 days ago)

**Xylem Inc. (XYL) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $2,069 million, up 1.8% YoY, driven by organic growth of 3.3%. - **Net Income:** $169 million, up 10.5% YoY, with a net margin of 8.2%. - **Earnings per Share (EPS):** $0.69, up 9.5% YoY. - **Gross Margin:** 37.1%, a slight increase from 37.0% in Q1 2024. - **Operating Margin:** 11.2%, up from 10.3% in Q1 2024. - **Adjusted EBITDA Margin:** 20.4%, up from 19.2% in Q1 2024. **Segment Performance:** - **Water Infrastructure:** Revenue up 1.2% to $581 million, driven by organic growth and partially offset by foreign currency impacts. - **Applied Water:** Revenue down 0.2% to $435 million, impacted by foreign currency translation. - **Measurement and Control Solutions:** Revenue up 6.1% to $490 million, driven by organic growth and acquisitions. - **Water Solutions and Services:** Revenue up 0.4% to $563 million, driven by organic growth. **Cash Flow:** - **Operating Cash Flow:** $33 million, down from $89 million in Q1 2024. - **Capital Expenditures:** $71 million, down from $74 million in Q1 2024. - **Free Cash Flow:** Negative $38 million, compared to positive $15 million in Q1 2024. **Trends and Uncertainties:** - **Orders:** Down 3.9% YoY to $2,158 million, with organic orders down 2.4%. - **Backlog:** Down 3.4% YoY to $5,095 million, with approximately 50% expected to be recognized as revenue in the remainder of 2025. - **Restructuring Charges:** $17 million in Q1 2025, expected to total $60-$70 million for the full year. - **Acquisitions and Divestitures:** Completed acquisitions of Simply Clean and Heusser, and divestiture of Evoqua Magneto business. **Future Operations Impact:** - Xylem maintains a total revenue growth outlook of 1-2% and organic revenue growth of 3-4% for 2025. - The company expects to continue generating significant revenue from non-U.S. operations and manage global cash requirements effectively. - Xylem has available liquidity of approximately $2.1 billion, consisting of $1.1 billion in cash and $1 billion in available credit facilities.