Shares of Xylem (XYL), a leading water technology firm, surged 7.20% in pre-market trading on Thursday following the release of its impressive second-quarter results and an upward revision of its full-year 2025 guidance. The company's performance exceeded Wall Street expectations, demonstrating resilient demand for its water solutions and strong operational execution.
Xylem reported adjusted earnings per share of $1.26 for Q2, surpassing the analyst consensus estimate of $1.15. This represents a 15.6% increase from the $1.09 per share reported in the same period last year. The company's quarterly revenue also beat expectations, coming in at $2.301 billion, up 6.09% year-over-year and above the estimated $2.206 billion.
Buoyed by these strong results, Xylem raised its full-year 2025 forecasts. The company now expects adjusted earnings per share to range between $4.70 and $4.85, up from its previous guidance of $4.50 to $4.70. Additionally, Xylem projected 2025 sales of $8.90 billion to $9.00 billion, exceeding its earlier expectations of $8.70 billion to $8.80 billion. CEO Matthew Pine highlighted the company's robust organic revenue growth across all segments and record-high adjusted EBITDA margin of 21.8%, driven by productivity savings and strong price realization that offset inflationary pressures.