Xylem Inc.
For the period ended Jun 30, 2025. Filed Jul 31, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 31, 2025
XYL$97.83-2.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-29.
0001524472-25-000022
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-31.
0001524472-25-000037
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 116 previous paragraphs and 136 current paragraphs.
75 unchanged; 35 reworded; 23 added; 6 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 14 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (23)
Current report
•Water Infrastructure serves the water infrastructure sector with transportation and treatment of water, offering a range of products including water, wastewater and storm water pumps, controls and systems; treatment equipment: filtration and separation, disinfection, wastewater solutions for municipal and industrial applications.
Current report
(a)Foreign currency translation impact for the year due to the strengthening in value of various currencies against the U.S. Dollar, the largest being the Euro, British Pound and the Swedish Krona.
Current report
Water Infrastructure revenue increased $26 million, or 2.2%, for the six months ended June 30, 2025 as compared to the prior year. Revenue growth included organic revenue growth of $54 million, or 4.5% and $1 million of favorable impacts from foreign currency translation partially offset by a loss of $29 million of revenue from divestitures. The treatment application contributed $31 million of organic revenue growth, led by strong volume and backlog execution in the emerging markets and the U.S. Organic growth for the transport application was $23 million, led by strong backlog execution and order intake in western Europe and emerging markets, and higher volume in the U.S.
Current report
Applied Water revenue increased $26 million, or 2.9%, for the six months ended June 30, 2025 as compared to the prior year, consisting entirely of organic growth. Organic growth was driven by growth in the building solutions applications of $23 million, led by price and increased sales volume in the U.S., partially offset by order softness in the emerging markets. The industrial application had organic growth of $3 million due to price and volume in north America and western Europe, partially offset by order softness in the emerging markets.
Current report
Measurement and Control Solutions revenue increased $58 million, or 11.9%, for the second quarter of 2025 as compared to the prior year. The revenue growth was primarily driven by organic growth of $46 million, or 9.4%, with an additional increase from acquisitions of $8 million, and $4 million of favorable foreign currency translation. Organic revenue growth during the quarter was driven by $45 million from the smart metering and other applications, due primarily to backlog execution from energy in north America, partially offset by declines in water, in the U.S.
Current report
Water Solutions and Services revenue increased $28 million, or 4.7%, for the second quarter of 2025 as compared to the prior year. The revenue growth was primarily driven by organic revenue growth of $27 million, or 4.6% and $1 million of favorable impacts from foreign currency translation. Organic revenue growth was led by service growth of $16 million, primarily due to increased volume and price realization in the U.S. Organic revenue from the capital and other applications increased by $11 million due to increased capital project revenue in the U.S. and volume in the emerging markets.
Current report
(a)Foreign currency translation impact for the year due to the strengthening in value of various currencies against the U.S. Dollar, the largest being the Euro, British Pound and the Swedish Krona.
Current report
SG&A expenses increased by $18 million to $503 million, or 21.9% of revenue, in the second quarter of 2025, as compared to $485 million, or 22.4% of revenue, in the comparable 2024 period and increased $4 million to $963 million, or 22.0% of revenue, in the six-month period ended June 30, 2025. The increase in SG&A in the second quarter of 2025 as compared to the prior year primarily consisted of $16 million of inflation, $10 million in increased spending on strategic investments, and $7 million in unfavorable foreign exchange, partially offset by $20 million in productivity savings. The increase in SG&A in the six-month period ended June 30, 2025 as compared to the prior year primarily consisted of $29 million of inflation, $12 million of increased spending on strategic investments, $6 million of acquired intangible amortization, partially offset by of $44 million of productivity savings.
Current report
Operating income was $305 million (operating margin of 13.3%) during the second quarter of 2025, an increase of $52 million, or 20.6%, when compared to operating income of $253 million (operating margin of 11.7%) during the prior year. Operating margin increased 160 basis points, which included 30 basis points of favorable impacts from decreased acquired intangible amortization and flat restructuring, realignment and special charges relative to increasing revenue. Additionally, operating margin expansion included 560 basis points of favorable operational impacts driven by 330 basis points of productivity savings, 180 basis points of price realization, and 40 basis points of increased volume. These favorable impacts were partially offset by 430 basis points of unfavorable operational impacts, driven by 240 basis points of inflation, 60 basis points of unfavorable mix, and 50 basis points of increased spending on strategic investments. Excluding acquired intangible asset amortization, restructuring and realignment costs, and special charges, adjusted operating income was $402 million (adjusted operating margin of 17.5%) for the second quarter of 2025 as compared to adjusted operating income of $352 million (adjusted operating margin of 16.2%) during the comparable quarter in the prior year.
Current report
Operating income was $536 million (operating margin of 12.3%) during the six months ended June 30, 2025, an increase of $74 million, or 16.0%, when compared to operating income of $462 million (operating margin of 11.0%) during the prior year. Operating margin increased 130 basis points, which included net favorable impacts of 10 basis points from increasing revenue more than offsetting the impact of increased restructuring and realignment costs, as well as decreases in acquired intangible amortization and in special charges compared to the prior year. Additionally, operating margin expansion included 530 basis points of favorable operational impacts driven by 340 basis points of productivity savings and 160 basis points of price realization. These favorable impacts were partially offset by 410 basis points of unfavorable operational impacts, driven by 240 basis points of inflation, 80 basis points of unfavorable mix, and 40 basis points of increased spending on strategic investments. Excluding acquired intangible asset amortization, restructuring and realignment costs, and special charges, adjusted operating income was $727 million (adjusted operating margin of 16.6%) for the six months ended June 30, 2025 as compared to adjusted operating income of $646 million (adjusted operating margin of 15.4%) during the comparable period in the prior year.
Current report
Adjusted EBITDA was $925 million (adjusted EBITDA margin of 21.2%) during the six months ended June 30, 2025, an increase of $82 million, or 9.7%, when compared to adjusted EBITDA of $843 million (adjusted EBITDA margin of 20.1%) during the comparable prior year period, an increase in adjusted EBITDA margin of 110 basis points. Adjusted EBITDA margin was impacted by the same offsetting factors impacting the adjusted operating margin.
Current report
Operating income for our Water Infrastructure segment was $103 million (operating margin of 15.8%) during the second quarter of 2025, an increase of $25 million, or 32.1%, when compared to operating income of $78 million (operating margin of 12.4%) during the prior year, or a total increase in operating margin of 340 basis points. Operating margin expansion was slightly offset by net unfavorable impacts of 10 basis points from increased restructuring and realignment costs and decreased acquired intangible asset amortization and special charges as compared to the prior year. Additionally, operating margin expansion included 790 basis points driven by favorable operating impacts driven by 350 basis points of productivity savings and 220 basis points of price realization. Margin expansion was partially offset by 440 basis points of unfavorable operational impacts, driven by 240 basis points of inflation, 90 basis points of inventory management costs, and 80 basis points of unfavorable foreign currency impacts. Excluding amortization of acquired intangibles, restructuring and realignment costs and special charges, adjusted operating income was $127 million (adjusted operating margin of 19.5%) for the second quarter of 2025 as compared to adjusted operating income of $101 million (adjusted operating margin of 16.0%) for the second quarter of 2024.
Current report
Operating income for our Water Infrastructure segment was $183 million (operating margin of 14.9%) during the six months ended June 30, 2025, an increase of $45 million, or 32.6%, when compared to operating income of $138 million (operating margin of 11.5%) during the prior year, or a total increase in operating margin of 340 basis points. Operating margin expansion included net favorable impacts of 10 basis points from decreases in acquired intangible amortization and special charges as increases, largely offset by increases in restructuring and realignment costs as compared to the prior year. Additionally, operating margin expansion included 740 basis points of favorable operational impacts, driven by 420 basis points of productivity savings and 190 basis points of price realization. Margin expansion was partially offset by 410 basis points of unfavorable operating impacts driven by 270 basis points of inflation and 50 basis points of unfavorable mix. Excluding amortization of acquired intangibles, restructuring and realignment cost and special charges, adjusted operating income was $234 million (adjusted operating margin of 19.0%) for the six months ended June 30, 2025 as compared to adjusted operating income of $189 million (adjusted operating margin of 15.7%) for the six months ended June 30, 2024.
Current report
Adjusted EBITDA was $262 million (adjusted EBITDA margin of 21.3%) for the six months ended June 30, 2025, an increase of $35 million, or 15.4%, when compared to adjusted EBITDA of $227 million (adjusted EBITDA margin of 18.8%) during the prior year. Adjusted EBITDA margin was impacted by the same offsetting factors impacting the adjusted operating margin; however, adjusted EBITDA margin did not benefit from the relative impact of decreased depreciation and software amortization and share-based compensation.
Current report
Adjusted EBITDA was $105 million (adjusted EBITDA margin of 21.7%) for the second quarter of 2025, an increase of $25 million, or 31%, when compared to adjusted EBITDA of $80 million (adjusted EBITDA margin of 17.5%) during the prior year. The increase in adjusted EBITDA margin was primarily due to the same factors impacting the increase in adjusted operating margin; however, adjusted EBITDA margin was not negatively impacted by the relative impact of depreciation and software amortization expense and was favorably impacted by increased other non-operating income versus prior year.
Current report
Operating income for our Applied Water segment was $156 million (operating margin of 17.0%) during the six months ended June 30, 2025, an increase of $24 million, or 18.2%, when compared to operating income of $132 million (operating margin of 14.8%) during the prior year, or a total increase in operating margin of 220 basis points. Operating margin expansion was negatively impacted by 120 basis points from an increase in restructuring and realignment costs as compared to the prior year. Operating margin expansion included 830 basis points of favorable operational impacts driven by 590 basis points of productivity savings and 130 basis points of price realization. Margin expansion was partially offset by 490 basis points of unfavorable operational impacts driven by 310 basis points of inflation and 50 basis points of increased spending on strategic investments. Excluding restructuring and realignment costs, adjusted operating income was $171 million (adjusted operating margin of 18.6%) for the six months ended June 30, 2025 as compared to adjusted operating income of $136 million (adjusted operating margin of 15.2%) for the six months ended June 30, 2024.
Current report
Adjusted EBITDA was $125 million (adjusted EBITDA margin of 23.1%) for the second quarter of 2025, a decrease of $12 million, or 11%, when compared to adjusted EBITDA of $113 million (adjusted EBITDA margin of 23.4%) during the prior year. The decrease in adjusted EBITDA margin was due to the same factors as those impacting the decrease in adjusted operating margin; however, adjusted EBITDA margin was not negatively impacted by the relative impact of increases in depreciation and software amortization expense and share-based compensation.
Current report
Operating income for our Measurement and Control Solutions segment was $124 million (operating margin of 12.0%) during the six months ended June 30, 2025, a decrease of $25 million, or 16.8%, when compared to operating income of $149 million (operating margin of 15.8%) during the prior year, or a total decrease in operating margin of 380 basis points. Operating margin declines included unfavorable impacts of 200 basis points from increased acquired intangible amortization, special charges, and restructuring and realignment costs as compared to the prior year. Additionally, operating margin declines included 740 basis points of unfavorable operational impacts including 240 basis points of unfavorable mix, 210 basis points of inflation, 80 basis points of negative operating impact from acquisitions, and 50 basis points of increased spending on strategic investments. Margin declines were partially offset by favorable operational impacts of 560 basis points consisting of 360 basis points of productivity savings, 110 basis points of price realization, and 90 basis points of increased volume. Excluding acquired intangible asset amortization, restructuring and realignment costs and special charges, adjusted operating income was $180 million (adjusted operating margin of 17.5%) for the six months ended June 30, 2025 as compared to adjusted operating income of $182 million (adjusted operating margin of 19.3%) for the six months ended June 30, 2024.
Current report
Adjusted EBITDA was $228 million (adjusted EBITDA margin of 22.1%) for the six months ended June 30, 2025, an increase of $10 million, or 5%, when compared to adjusted EBITDA of $218 million (adjusted EBITDA margin of 23.1%) during the prior year. The decrease in adjusted EBITDA margin was due to the same factors as those impacting the decrease in adjusted operating margin; however, adjusted EBITDA margin was not negatively impacted by the relative impact of increases in depreciation and software amortization expense and share-based compensation.
Current report
Adjusted EBITDA was $153 million (adjusted EBITDA margin of 24.4%) for the second quarter of 2025, an increase of $10 million, or 7%, when compared to adjusted EBITDA of $143 million (adjusted EBITDA margin of 23.8%) during the prior year. The increase in adjusted EBITDA margin was primarily due to the same factors as those impacting the increase in adjusted operating margin.
Current report
Operating income for our Water Solutions and Services segment was $122 million (operating margin of 10.2%) during the six months ended June 30, 2025, an increase of $25 million, or 25.8%, when compared to operating income of $97 million (operating margin of 8.4%) during the prior year, or a total increase in operating margin of 180 basis points. Operating margin expansion included net favorable impacts of 210 basis points due to decreases in restructuring and realignment costs and special charges, partially offset by increases in acquired intangible asset amortization as compared to the prior year. Additionally, operating margin expansion included 380 basis points of favorable operational impacts, driven by 190 basis points of price realization and 140 basis points of productivity savings. Margin expansion was offset by negative operational impacts of 410 basis points driven by 160 basis points of inflation, 70 basis points of unfavorable mix, 40 basis points of inventory management costs, and 30 basis points of increased spending on strategic investments. Excluding acquired intangible asset amortization, special charges, and restructuring and realignment costs, adjusted operating income was $184 million (adjusted operating margin of 15.4%) for the six months ended June 30, 2025 as compared to adjusted operating income of $182 million (adjusted operating margin of 15.7%) for the six months ended June 30, 2024.
Current report
Adjusted EBITDA was $275 million (adjusted EBITDA margin of 23.1%) for the six months ended June 30, 2025, an increase of $7 million, or 3%, when compared to adjusted EBITDA of $268 million (adjusted EBITDA margin of 23.1%) during the prior year. Adjusted EBITDA margin remained flat due to the same factors as those impacting the decrease in adjusted operating margin; however, adjusted EBITDA margin was not negatively impacted by the relative impact of increased depreciation and software amortization expense.
Current report
Operating loss for corporate and other increased $6 million, or 27%, during the second quarter of 2025 compared to the prior year period. The increase in operating loss was primarily due to increased spending on strategic investments and inflation. Excluding special charges and restructuring and realignment costs, adjusted operating loss for corporate and other increased $6 million, or 35.3%, for the three months ended June 30, 2025, driven by the same factors as those driving the increase in operating loss.
Removed paragraphs (6)
Previous report
•Water Infrastructure serves the water infrastructure sector with pump systems that transport water from aquifers, lakes, rivers and seas; with filtration, ultraviolet and ozone systems that provide treatment, making the water fit to use; and pumping solutions that move the wastewater and storm water to treatment facilities where our mixers, biological treatment, monitoring and control systems provide the primary functions in the treatment process.
Previous report
SG&A expenses decreased by $14 million to $460 million, or 22.2% of revenue, in the first quarter of 2025, as compared to $474 million, or 23.3% of revenue, in the comparable 2024 period. The decrease in SG&A in the first quarter of 2025 as compared to the prior year primarily consisted of $27 million of productivity savings, $6 million lower special charges and $6 million of favorable foreign currency exchange, partially offset by increased expense due to inflation of $13 million and $5 million of acquired intangible amortization.
Previous report
Operating income was $231 million (operating margin of 11.2%) during the first quarter of 2025, an increase of $22 million, or 10.5%, when compared to operating income of $209 million (operating margin of 10.3%) during the prior year. Operating margin increased 90 basis points. Increased operating margin was partially offset by unfavorable impacts of 30 basis points from increases in restructuring and realignment costs and acquired intangible amortization, partially offset by decreased special charges compared to the prior year. Additionally, operating margin expansion included 540 basis points of favorable operational impacts consisting of 400 basis points of productivity savings and 140 basis points of price realization. These favorable impacts were partially offset by 410 basis points of unfavorable operational impacts, driven by 240 basis points of inflation and 110 basis points of unfavorable mix. Excluding acquired intangible asset amortization, restructuring and realignment costs, and special charges, adjusted operating income was $325 million (adjusted operating margin of 15.7%) for the first quarter of 2025 as compared to adjusted operating income of $294 million (adjusted operating margin of 14.5%) during the comparable quarter in the prior year.
Previous report
Operating income for our Water Infrastructure segment was $80 million (operating margin of 13.8%) during the first quarter of 2025, an increase of $20 million, or 33.3%, when compared to operating income of $60 million (operating margin of 10.5%) during the prior year, or a total increase in operating margin of 330 basis points. Operating margin expansion included favorable impacts of 20 basis points from decreases in acquired intangible asset amortization, largely offset by increased restructuring and realignment costs as compared to the prior year. Additionally, operating margin expansion included 760 basis points from favorable operating impacts driven by 500 basis points of productivity savings and 150 basis points of price realization. Margin expansion was partially offset by 450 basis points of unfavorable operational impacts, driven by 290 basis points of inflation and 100 basis points of unfavorable mix. Excluding amortization of acquired intangibles, restructuring and realignment costs and special charges, adjusted operating income was $107 million (adjusted operating margin of 18.4%) for the first quarter of 2025 as compared to adjusted operating income of $88 million (adjusted operating margin of 15.3%) for the first quarter of 2024.
Previous report
Adjusted EBITDA was $85 million (adjusted EBITDA margin of 19.5%) for the first quarter of 2025, an increase of $13 million, or 18.1%, when compared to adjusted EBITDA of $72 million (adjusted EBITDA margin of 16.5%) during the prior year. The increase in adjusted EBITDA margin was primarily due to the same factors impacting the increase in adjusted operating margin.
Previous report
Adjusted EBITDA was $103 million (adjusted EBITDA margin of 21.0%) for the first quarter of 2025, a decrease of $2 million, or 1.9%, when compared to adjusted EBITDA of $105 million (adjusted EBITDA margin of 22.7%) during the prior year. The decrease in adjusted EBITDA margin was due to the same factors as those impacting the decrease in adjusted operating margin.
Reworded paragraphs (35)
Previous wording
Xylem reported revenue for the first quarter of 2025 of $2,069 million, an increase of 1.8% compared to $2,033 million reported in the first quarter of 2024. The revenue increase consisted primarily of organic growth of 3.3% driven by strong volume in our Measurement and Control Solutions segment and organic growth in our Water Infrastructure segment.
Current wording
Xylem reported revenue for the second quarter of 2025 of $2,301 million, an increase of 6.1% compared to $2,169 million reported in the second quarter of 2024. The revenue increase consisted primarily of organic growth of 5.5% across all of our segments, led by strong volume in our Measurement and Control Solutions segment.
Previous wording
•Orders of $2,158 million, down 3.9% from $2,246 million in the prior year period, and down 2.4% on an organic basis.
Current wording
•Orders of $2,174 million, up 4.1% from $2,087 million in the prior year period, and up 3.7% on an organic basis.
Previous wording
•Earnings per share of $0.69, up 9.5% compared to prior year ($1.03, up 14.4% versus prior year, on an adjusted basis).
Current wording
•Earnings per share of $0.93, up 16.3% compared to prior year ($1.26, up 15.6% versus prior year, on an adjusted basis).
Previous wording
•Net income attributable to Xylem as a percent of revenue of 8.2%, up 70 basis points compared to 7.5% in the prior year. Adjusted EBITDA margin of 20.4%, up 120 basis points when compared to 19.2% in the prior year.
Current wording
•Net income attributable to Xylem as a percent of revenue of 9.8%, up 90 basis points compared to 8.9% in the prior year. Adjusted EBITDA margin of 21.8%, up 100 basis points when compared to 20.8% in the prior year.
Previous wording
Revenue generated during the three months ended March 31, 2025 and 2024 was $2,069 million and $2,033 million, respectively, reflecting an increase of $36 million, or 1.8%, compared to the prior year. Revenue growth contributed by acquisitions and divestitures, net, was $5 million for the three months ended March 31, 2025. Organic revenue increased $67 million, or 3.3% for the three months ended March 31, 2025. Foreign currency translation had an unfavorable impact on revenue of $26 million for the three months ended March 31, 2025. The increase in organic revenue reflects strong organic growth in the U.S. and Canada, driven by increased volume and partially offset by organic declines in western Europe and the emerging markets for the three months ended March 31, 2025.
Current wording
Revenue generated during the three and six months ended June 30, 2025 was $2,301 million and $4,370 million, respectively, reflecting an increase of $132 million, or 6.1%, and an increase of $168 million, or 4.0% compared to the prior year. Organic revenue increased $120 million, or 5.5%, and $187 million, or 4.5% for the three and six months ended June 30, 2025, respectively. Foreign currency translation had a favorable impact on revenue of $23 million for the three months ended June 30, 2025, and an unfavorable impact on revenue of $3 million for the six months ended June 30, 2025. Revenue growth was negatively impacted by $11 million, and $16 million due to acquisitions and divestitures, net, for the three and six months ended June 30, 2025, respectively. The increase in organic revenue primarily reflects strength in the U.S. and Canada, driven by price realization and increased volume for the three months ended June 30, 2025 and increased volume and backlog execution for the six months ended June 30, 2025.
Previous wording
The following table illustrates the impact from organic growth, recent acquisitions and divestitures, and foreign currency translation in relation to revenue during the three months ended March 31, 2025:
Current wording
The following table illustrates the impact from organic growth, recent acquisitions and divestitures, and foreign currency translation in relation to revenue during the three and six months ended June 30, 2025:
Previous wording
(a)Foreign currency translation impact for the year due to the weakening in value of various currencies against the U.S. Dollar, the largest being the Euro, Canadian Dollar, Mexican Peso, Australian Dollar and the Hungarian Forint.
Current wording
(a)Foreign currency translation impact for the year due to the weakening in value of various currencies against the U.S. Dollar, the largest being the Canadian Dollar, Mexican Peso and the Australian Dollar partially offset by the strengthening of the Euro and the British Pound.
Previous wording
Water Infrastructure revenue increased $7 million, or 1.2%, for the first quarter of 2025 as compared to the prior year. Revenue growth for the quarter included organic revenue growth of $28 million, or 4.9% partially offset by $11 million of unfavorable impacts from foreign currency translation and loss of $10 million of revenue from divestitures. The transport application contributed $16 million of organic revenue growth, led by increased project revenue and strong backlog execution in western Europe and the emerging markets. Organic growth for the treatment applications was $12 million, led by strong backlog execution in the emerging markets and the U.S., partially offset by a decline in western Europe.
Current wording
Water Infrastructure revenue increased $19 million, or 3.1%, for the second quarter of 2025 as compared to the prior year. Revenue growth for the quarter included organic revenue growth of $26 million, or 4.1% and $12 million of favorable impacts from foreign currency translation partially offset by a loss of $19 million of revenue from divestitures. The treatment application contributed $19 million of organic revenue growth, driven by backlog execution and capital projects in the emerging markets and price realization in the U.S. Organic growth for the transport applications was $7 million, led by increased sales volume in the U.S.
Previous wording
Applied Water revenue decreased $1 million, or 0.2%, for the first quarter of 2025 as compared to the prior year. Revenue was negatively impacted by $6 million of foreign currency translation, partially offset by organic growth of $5 million, or 1.1%. Organic growth was driven by growth in the building solutions applications of $10 million, led by price in the U.S., offset by organic declines in the industrial applications of $5 million due to lapping of project deliveries in the U.S.
Current wording
Applied Water revenue increased $27 million, or 5.8%, for the second quarter of 2025 as compared to the prior year. Revenue growth for the quarter included organic revenue growth of $21 million, or 4.7% and $6 million of favorable foreign currency translation. Organic growth was driven by growth in the building solutions applications of $13 million, led by price and increased sales volume in the U.S, partially offset by lapping of project orders in western Europe. The industrial application had organic growth of $9 million primarily due to price realization in the U.S and western Europe.
Previous wording
Measurement and Control Solutions revenue increased $28 million, or 6.1%, for the first quarter of 2025 as compared to the prior year. The revenue increase was primarily driven by organic growth of $27 million, or 5.8%, with an additional increase from acquisitions of $5 million, mostly offset $4 million of unfavorable foreign currency translation. Organic revenue growth during the quarter was driven by $25 million in the smart metering and other applications, due primarily to increased energy demand in the U.S, partially offset by organic declines in water due to lower demand in the U.S. and backlog execution and timing of capital projects in western Europe and the emerging markets. The analytics application was up $2 million organically, driven by increased demand in the U.S.
Current wording
Measurement and Control Solutions revenue increased $86 million, or 9.1%, for the six months ended June 30, 2025 as compared to the prior year. The revenue increase was primarily driven by organic growth of $73 million, or 7.7%, with an additional increase from acquisitions of $13 million. Organic revenue increased by $70 million in the smart metering and other applications, due primarily to backlog execution from energy in north America and water project deliveries in the emerging markets. These increases were partially offset by organic declines in water due to lower demand in the U.S. following strong prior year backlog execution. The analytics application was up $3 million organically, driven by increased demand in the U.S.
Previous wording
Water Solutions and Services revenue increased $2 million, or 0.4%, for the first quarter of 2025 as compared to the prior year. The revenue growth was primarily driven by organic revenue growth of $7 million, or 1.2%, partially offset by $5 million of unfavorable impacts from foreign currency translation. Organic revenue growth was led by service growth of $8 million, primarily due to increased volume in the emerging markets. Organic revenue from the capital and other applications decreased by $1 million due to lapping of capital project revenue in the emerging markets, which was partially offset by increased capital project revenue in the U.S.
Current wording
Water Solutions and Services revenue increased $30 million, or 2.6%, for the six months ended June 30, 2025 as compared to the prior year. The revenue growth was primarily driven by organic revenue growth of $34 million, or 3.0%, partially offset by $4 million of unfavorable impacts from foreign currency translation. Organic revenue growth was led by service growth of $24 million, primarily due to increased volume and price realization in the U.S. and emerging markets. Organic revenue from the capital and other applications increased by $10 million due to increased project revenue in the U.S., partially offset by lapping of capital project revenue in the emerging markets.
Previous wording
The following tables illustrate the impact from organic decline/growth, recent acquisitions and divestitures, and foreign currency translation in relation to orders during the three months ended March 31, 2025:
Current wording
The following tables illustrate the impact from organic decline/growth, recent acquisitions and divestitures, and foreign currency translation in relation to orders during the three and six months ended June 30, 2025:
Previous wording
(a)Foreign currency translation impact for the year due to the weakening in value of various currencies against the U.S. Dollar, the largest being the Euro, Canadian Dollar, Mexican Peso, Australian Dollar and the Hungarian Forint.
Current wording
(a)Foreign currency translation impact for the year due to the weakening in value of various currencies against the U.S. Dollar, the largest being the Canadian Dollar, Mexican Peso and the Australian Dollar partially offset by the strengthening of the Euro and the British Pound.
Previous wording
Backlog includes orders on hand as well as contractual customer agreements at the end of the period. Delivery schedules vary from customer to customer based on their requirements. Annual or multi-year contracts are subject to rescheduling and cancellation by customers due to the long-term nature of the contracts. As such, beginning total backlog, plus orders, minus revenues, will not equal ending total backlog due to contract adjustments, foreign currency fluctuations, and other factors. Typically, capital projects require longer lead production cycles and deployment schedules and delays occur from time to time. Total backlog was $5,095 million at March 31, 2025, a decrease of $177 million or 3.4%, as compared to March 31, 2024 backlog of $5,272 million. The decrease in backlog was driven by increased revenue outpacing order intake and contract wins in the current period, as well as unfavorable impacts from foreign currency translation. Backlog decreased in the Measurement and Control Solutions segment due to strong backlog execution and improved lead times, partially offset by backlog growth in the Water Solutions and Services, Water Infrastructure, and Applied Water segments primarily due to order growth. Backlog increased $25 million or 0.5%, as compared to December 31, 2024 backlog of $5,070 million. We anticipate that approximately 50% of the backlog as of March 31, 2025 will be recognized as revenue in the remainder of 2025. There were no significant order cancellations during the quarter.
Current wording
Backlog includes orders on hand as well as contractual customer agreements at the end of the period. Delivery schedules vary from customer to customer based on their requirements. Annual or multi-year contracts are subject to rescheduling and cancellation by customers due to the long-term nature of the contracts. As such, beginning total backlog, plus orders, minus revenues, will not equal ending total backlog due to contract adjustments, foreign currency fluctuations, and other factors. Typically, capital projects require longer lead production cycles and deployment schedules and delays occur from time to time. Total backlog was $5,018 million at June 30, 2025, a decrease of $138 million or 2.7%, as compared to June 30, 2024 backlog of $5,156 million. The decrease in backlog was driven by increased revenue outpacing order intake and contract wins in the current period, partially offset by favorable impacts from foreign currency translation. Backlog decreased in the Measurement and Control Solutions segment due to strong backlog execution and improved lead times, partially offset by backlog growth in the Water Infrastructure, Water Solutions and Services, and Applied Water segments primarily due to orders and contract wins outpacing revenue. Backlog decreased $52 million or 1.0% at June 30, 2025, as compared to December 31, 2024 backlog of $5,070 million. We anticipate that approximately 40% of the backlog as of June 30, 2025 will be recognized as revenue in the remainder of 2025. There were no significant order cancellations during the quarter.
Previous wording
Gross margin as a percentage of revenue increased 10 basis points to 37.1% for the three months ended March 31, 2025, as compared to 37.0% for the three months ended March 31, 2024. The gross margin increase of 10 basis points was driven by favorable impacts of 350 basis points, driven almost entirely by 240 basis points of productivity savings and 100 basis points of price realization. These increases in gross margin were offset by 340 basis points of unfavorable operational impacts driven by 170 basis points of inflation and 110 basis points of unfavorable mix.
Current wording
Gross margin as a percentage of revenue increased 100 basis points to 38.8% for the three months ended June 30, 2025, as compared to 37.8% for the three months ended June 30, 2024. The gross margin increase included favorable impacts of 30 basis points from decreases in acquired intangible amortization and special charges as compared to the prior year, and 360 basis points of favorable operational impacts, driven almost entirely by 210 basis points of productivity savings and 130 basis points of price realization. These increases in gross margin were offset by 330 basis points of unfavorable operational impacts driven by 180 basis points of inflation and 60 basis points of unfavorable mix.
Previous wording
The following table presents operating expenses for the three months ended March 31, 2025 and 2024:
Current wording
The following table presents operating expenses for the three and six months ended June 30, 2025 and 2024:
Previous wording
R&D expense was $56 million, or 2.7% of revenue, in the first quarter of 2025, as compared to $59 million, or 2.9% of revenue in the first quarter of 2024. There was no significant change in R&D expense year over year.
Current wording
R&D expense was $58 million, or 2.5% of revenue, in the second quarter of 2025, as compared to $58 million, or 2.7% of revenue in the second quarter of 2024, and was $114 million, or 2.6% of revenue, in the six months ended June 30, 2025, as compared to $117 million, or 2.8% of revenue, in the six months ended June 30, 2024. R&D expense was fairly consistent year over year.
Previous wording
During the three months ended March 31, 2025 and 2024, we incurred restructuring charges of $17 million and $9 million, respectively. For the three months ended March 31, 2025, the incurred charges primarily related to actions taken to further streamline our organization through simplification efforts in order to strengthen our competitive positioning and ability to better serve our customers.
Current wording
During the three and six months ended June 30, 2025, we incurred restructuring charges of $22 million and $39 million, respectively. During the three and six months ended June 30, 2024, we incurred restructuring charges of $23 million and $32 million, respectively For the three and six months ended June 30, 2025, the incurred charges primarily related to actions taken to further streamline our organization through simplification efforts in order to strengthen our competitive positioning and ability to better serve our customers.
Previous wording
The following is a roll-forward for the three months ended March 31, 2025 and 2024 of employee position eliminations associated with restructuring activities:
Current wording
The following is a roll-forward for the six months ended June 30, 2025 and 2024 of employee position eliminations associated with restructuring activities:
Previous wording
Net income attributable to Xylem for the first quarter was $169 million (net income margin of 8.2%), an increase of $16 million as compared to net income attributable to Xylem in the prior year of $153 million (net income margin of 7.5%). The increase in net income attributable to Xylem was driven by increased operating income of $22 million, decreased interest expense of $6 million, and the net loss attributable to non-controlling interest of $2 million, partially offset by increased income tax expense of $7 million, decreased non-operating income of $2 million and increased loss from sale of businesses of $5 million.
Current wording
Net income attributable to Xylem for the second quarter was $226 million (net income margin of 9.8%), an increase of $32 million as compared to net income attributable to Xylem in the prior year of $194 million (net income margin of 8.9%). The increase in net income attributable to Xylem was driven by increased operating income of $52 million, decreased interest expense of $2 million, and the net loss attributable to non-controlling interest of $2 million, partially offset by increased income tax expense of $22 million, decreased non-operating income of $1 million and decreased gain from sale of businesses of $1 million.
Previous wording
Adjusted EBITDA was $423 million (adjusted EBITDA margin of 20.4%) during the first quarter of 2025, an increase of $32 million, or 8.2%, when compared to adjusted EBITDA of $391 million (adjusted EBITDA margin of 19.2%) during the comparable quarter in the prior year, an increase to adjusted EBITDA margin of 120 basis points. The increase to adjusted EBITDA margin was primarily driven by the same offsetting factors impacting the adjusted operating margin increase.
Current wording
Adjusted EBITDA was $502 million (adjusted EBITDA margin of 21.8%) during the second quarter of 2025, an increase of $50 million, or 11.1%, when compared to adjusted EBITDA of $452 million (adjusted EBITDA margin of 20.8%) during the comparable quarter in the prior year, an increase to adjusted EBITDA margin of 100 basis points. The increase in adjusted EBITDA margin was primarily driven by the same factors impacting the adjusted operating margin increase.
Previous wording
Adjusted EBITDA was $122 million (adjusted EBITDA margin of 21.7%) for the first quarter of 2025, a decrease of $3 million, or 2.4%, when compared to adjusted EBITDA of $125 million (adjusted EBITDA margin of 22.3%) during the prior year. The decrease in adjusted EBITDA margin was primarily due to the same factors as those impacting the decrease in adjusted operating margin.
Current wording
Adjusted EBITDA was $142 million (adjusted EBITDA margin of 21.8%) for the second quarter of 2025, an increase of $17 million, or 14%, when compared to adjusted EBITDA of $125 million (adjusted EBITDA margin of 19.8%) during the prior year. The increase in adjusted EBITDA margin was primarily driven by the same factors impacting the increase in adjusted operating margin; however, adjusted EBITDA margin did not benefit from the decreases in depreciation and software amortization expense and share-based compensation.
Previous wording
Operating income for our Applied Water segment was $72 million (operating margin of 16.6%) during the first quarter of 2025, an increase of $11 million, or 18.0%, when compared to operating income of $61 million (operating margin of 14.0%) during the prior year, or a total increase in operating margin of 260 basis points. Operating margin expansion was partially offset by unfavorable impacts of 70 basis points from increases in restructuring and realignment costs as compared to the prior year. Operating margin expansion included 830 basis points of favorable operational impacts, driven by 570 basis points of productivity savings, 130 basis points of price realization, and 100 basis points of favorable mix. Operating margin expansion was offset by 500 basis points of unfavorable operational impacts driven primarily by 330 basis points of inflation and 70 basis points of increased spending on strategic investments. Excluding restructuring and realignment costs, adjusted operating income was $77 million (adjusted operating margin of 17.7%) for the first quarter of 2025 as compared to adjusted operating income of $63 million (adjusted operating margin of 14.4%) for the first quarter of 2024.
Current wording
Operating income for our Applied Water segment was $84 million (operating margin of 17.4%) during the second quarter of 2025, an increase of $13 million, or 18.3%, when compared to operating income of $71 million (operating margin of 15.6%) during the prior year, or a total increase in operating margin of 180 basis points. Operating margin expansion was negatively impacted by 170 basis points from increases in restructuring and realignment costs as compared to the prior year. Operating margin expansion included 830 basis points of favorable operational impacts, driven by 600 basis points of productivity savings and 140 basis points of price realization. Operating margin expansion was offset by 480 basis points of unfavorable operational impacts driven primarily by 280 basis points of inflation, 40 basis points of increased spending on strategic investments, and 30 basis points of inventory management costs. Excluding restructuring and realignment costs, adjusted operating income was $94 million (adjusted operating margin of 19.5%) for the second quarter of 2025 as compared to adjusted operating income of $73 million (adjusted operating margin of 16.0%) for the second quarter of 2024.
Previous wording
Adjusted EBITDA was $120 million (adjusted EBITDA margin of 20.7%) for the first quarter of 2025, an increase of $18 million, or 17.6%, when compared to adjusted EBITDA of $102 million (adjusted EBITDA margin of 17.8%) during the prior year. Adjusted EBITDA margin increased 290 basis points, primarily driven by the same factors impacting the increase in adjusted operating margin.
Current wording
Adjusted EBITDA was $190 million (adjusted EBITDA margin of 20.7%) for the six months ended June 30, 2025, an increase of $38 million, or 25%, when compared to adjusted EBITDA of $152 million (adjusted EBITDA margin of 17.0%) during the prior year. The increase in adjusted EBITDA margin was primarily due to the same factors impacting the decrease in adjusted operating margin.
Previous wording
Operating income for our Measurement and Control Solutions segment was $56 million (operating margin of 11.4%) during the first quarter of 2025, a decrease of $14 million, or 20.0%, when compared to operating income of $70 million (operating margin of 15.2%) during the prior year, or a total decrease in operating margin of 380 basis points. The operating margin decline included unfavorable impacts of 190 basis points from an increase in acquired intangible asset amortization, special charges, and restructuring and realignment costs as compared to the prior year. Additionally, operating margin declines included 680 basis points of unfavorable operational impacts, primarily consisting of 320 basis points of unfavorable mix, 160 basis points of inflation, and 70 basis points of negative operating impact from acquisitions. The decline in margin was partially offset by positive operational impacts of 490 basis points consisting of 330 basis points of productivity savings, 110 basis points of price realization, and 50 basis points of increased volume. Excluding acquired intangible asset amortization, restructuring and realignment costs and special charges, adjusted operating income was $82 million (adjusted operating margin of 16.7%) for the first quarter of 2025 as compared to adjusted operating income of $86 million (adjusted operating margin of 18.6%) for the first quarter of 2024.
Current wording
Operating income for our Measurement and Control Solutions segment was $68 million (operating margin of 12.6%) during the second quarter of 2025, a decrease of $11 million, or 13.9%, when compared to operating income of $79 million (operating margin of 16.4%) during the prior year, or a total decrease in operating margin of 380 basis points. The operating margin decline included unfavorable impacts of 200 basis points from an increase in acquired intangible asset amortization, special charges, and restructuring and realignment costs as compared to the prior year. Additionally, operating margin declines included 810 basis points of unfavorable operational impacts, primarily consisting of 260 basis points of inflation, 190 basis points of unfavorable mix, 80 basis points of negative operating impact from acquisitions, 60 basis points of increased spending on strategic investments and 60 basis points of inventory management costs. The decline in margin was partially offset by positive operational impacts of 630 basis points consisting of 390 basis points of productivity savings, 130 basis points of increased volume, and 110 basis points of price realization. Excluding acquired intangible asset amortization, restructuring and realignment costs and special charges, adjusted operating income was $98 million (adjusted operating margin of 18.1%) for the second quarter of 2025 as compared to adjusted operating income of $96 million (adjusted operating margin of 19.9%) for the second quarter of 2024.
Previous wording
Operating income for our Water Solutions and Services segment was $44 million (operating margin of 7.8%) during the first quarter of 2025, a decrease of $6 million, or 12.0%, when compared to operating income of $50 million (operating margin of 8.9%) during the prior year, or a total decrease in operating margin of 110 bps. The operating margin decline included unfavorable impacts of 20 basis points from increased acquired intangible asset amortization and restructuring and realignment costs, partially offset by decreased special charges as compared to the prior year. Additionally, operating margin declines included 510 basis points of unfavorable operational impacts, including 170 basis points of inflation, 80 basis points of unfavorable mix, 50 basis points of decreased volume, 50 basis points increased spending on strategic investments, and 40 basis points of increased inventory management costs. Margin declines were offset by favorable operational impacts of 420 basis points driven by driven by 220 basis points of productivity savings and 160 basis points of price realization. Excluding acquired intangible asset amortization, restructuring and realignment costs, and special charges, adjusted operating income was $78 million (adjusted operating margin of 13.9%) for the first quarter of 2025 as compared to adjusted operating income of $83 million (adjusted operating margin of 14.8%) for the first quarter of 2024.
Current wording
Operating income for our Water Solutions and Services segment was $78 million (operating margin of 12.4%) during the second quarter of 2025, an increase of $31 million, or 66.0%, when compared to operating income of $47 million (operating margin of 7.8%) during the prior year, or a total increase in operating margin of 460 basis points. The operating margin expansion included favorable impacts of 420 basis points from decreased restructuring and realignment costs, special charges, and acquired intangible asset amortization as compared to the prior year. Additionally, operating margin expansion included 350 basis points of favorable operational impacts, including 220 basis points of price realization and 70 basis points of productivity savings. Margin expansion was partially offset by unfavorable operational impacts of 310 basis points driven by driven by 190 basis points of inflation and 50 basis points of unfavorable mix. Excluding acquired intangible asset amortization, restructuring and realignment costs, and special charges, adjusted operating income was $106 million (adjusted operating margin of 16.9%) for the second quarter of 2025 as compared to adjusted operating income of $99 million (adjusted operating margin of 16.5%) for the second quarter of 2024.
Previous wording
Operating loss for corporate and other decreased $11 million, or 34%, during the first quarter of 2025 compared to the prior year period. The decrease in operating loss was primarily due to decreased special charges and restructuring and realignment costs, as compared to the prior year. Excluding special charges and restructuring and realignment costs, adjusted operating loss for corporate and other decreased $7 million, or 26.9%, for the three months ended March 31, 2025 due to a decrease in prior year employee related expenses that were non-recurring.
Current wording
Operating loss for corporate and other decreased $5 million, or 9%, during six months ended June 30, 2025 compared to the prior year period. The decrease in operating loss was primarily due to decreased special charges. Excluding special charges and restructuring and realignment costs, adjusted operating loss for corporate and other decreased $1 million, or 2.3%, for the six months ended June 30, 2025.
Previous wording
Interest expense was $8 million for the three months ended March 31, 2025, compared to $14 million for the comparable prior year period. The decrease in interest expense was primarily driven by lower debt due to the repayment of the term loan entered into in May 2023 for use in funding the acquisition of Evoqua, which was repaid on April 19, 2024, as well as increased interest income generated on cross currency swaps offsetting interest expense, and a reduction of interest on commercial paper.
Current wording
Interest expense was $17 million for the six months ended June 30, 2025, compared to $25 million for the six months ended June 30, 2024. The decrease in interest expense was primarily driven by lower debt due to the repayment of the term loan entered into in May 2023 for use in funding the acquisition of Evoqua, which was repaid on April 19, 2024, as well as increased interest income generated on cross currency swaps offsetting interest expense.
Previous wording
The income tax provision for the three months ended March 31, 2025 was $50 million resulting in an effective tax rate of 23.1%, compared to $43 million of expense resulting in an effective tax rate of 21.8% for the same period in 2024. The effective tax rate for the three month period ended March 31, 2025 was higher than the effective tax rate for the same period in 2024, primarily due to the mix of earnings and the impact of discrete tax benefits recognized in the prior period.
Current wording
The income tax provision for the three months ended June 30, 2025 was $75 million resulting in an effective tax rate of 25.0%, compared to $53 million of expense resulting in an effective tax rate of 21.4% for the same period in 2024. The income tax provision for the six months ended June 30, 2025 was $125 million resulting in an effective tax rate of 24.2%, compared to $96 million of expense resulting in an effective tax rate of 21.6% for the same period in 2024. The effective tax rate for the three and six month period ended June 30, 2025 was higher than the effective tax rate for the same period in 2024, primarily due to the mix of earnings and the impact of discrete tax benefits recognized in the prior period.
Previous wording
(a)The impact is primarily due to strengthening of the Euro, Canadian Dollar, Chilean Peso and various other currencies against the U.S. Dollar.
Current wording
(a)The impact is primarily due to strengthening of the Euro, Canadian Dollar and the Chinese Yuan against the U.S. Dollar.
Previous wording
Cash generated by operating activities was $33 million for the three months ended March 31, 2025 as compared to cash generated by operating activities of $89 million in the comparable prior year period. The decrease in cash provided was primarily driven by increased use of cash for accounts payable, including payments for strategic initiatives, higher accounts receivable balances reflecting increased volume and timing of customer payments, and increased investment in other assets reflecting progress on large projects. Increased cash earnings and reduced inventory levels, reflecting inventory management initiatives, partially offset these items.
Current wording
Cash generated by operating activities was $338 million for the six months ended June 30, 2025 as compared to cash generated by operating activities of $377 million in the comparable prior year period. The decrease in cash provided was primarily driven by the recognition of receivables on long term contracts, increased payments for infrastructure costs and higher tax payments. Increased cash earnings and lower working capital, reflecting inventory management initiatives, partially offset these items.
Previous wording
Cash used in investing activities was $15 million for the three months ended March 31, 2025 as compared to $51 million used in the comparable prior year period. The decrease in cash used primarily reflects cash received from proceeds from the sale of the former Evoqua Magneto business, partially offset by cash paid for an acquisition in the current year.
Current wording
Cash used in investing activities was $140 million for the six months ended June 30, 2025 as compared to $128 million used in the comparable prior year period. The increase in cash used primarily reflects cash paid for an asset acquisition and higher capital expenditures as compared to the prior year. Increased proceeds from the sale of businesses, including the sale of the former Evoqua Magneto business, and cash received from cross currency swaps partially offset these items.
Previous wording
Cash used in financing activities was $116 million for the three months ended March 31, 2025 as compared to cash used of $82 million in the comparable prior year period. The increase in cash used reflects lower proceeds from employee stock options and higher dividend payments.
Current wording
Cash used in financing activities was $244 million for the six months ended June 30, 2025 as compared to cash used of $419 million in the comparable prior year period. The decrease in cash used reflects the repayment of a term loan in 2024, partially offset by lower proceeds from employee stock option exercises, higher dividend payments and increased repayments of equipment financing debt.
Previous wording
Based on our current global cash positions, cash flows from operations and access to the capital markets, we believe there is sufficient liquidity to meet our funding requirements and service debt and other obligations in both the U.S. and outside of the U.S. during the year. Currently, we have available liquidity of approximately $2.1 billion, consisting of $1.1 billion of cash and $1 billion of available credit facilities as disclosed in Note 12, "Credit Facilities and Debt", of our condensed consolidated financial statements.
Current wording
Based on our current global cash positions, cash flows from operations and access to the capital markets, we believe there is sufficient liquidity to meet our funding requirements and service debt and other obligations in both the U.S. and outside of the U.S. during the year. Currently, we have available liquidity of approximately $2.2 billion, consisting of $1.2 billion of cash and $1 billion of available credit facilities as disclosed in Note 12, "Credit Facilities and Debt", of our condensed consolidated financial statements.
Previous wording
We are maintaining our total revenue growth outlook at 1% to 2%, and organic revenue growth at 3% to 4% in 2025. Our outlook is being provided in the context of the current volatility, including due to geopolitical, trade, macroeconomic and regulatory uncertainty and is consistent with the outlook provided in our 2024 Annual Report. Our ability to meet our expectations is subject to a number of risks, including, but not limited to, those described in "Item 1A. Risk Factors" in our 2024 Annual Report.
Current wording
We are raising our total revenue growth outlook to 4% to 5%, and organic revenue growth to approximately 4% in 2025. Our outlook is being provided in the context of the current volatility, including due to geopolitical, trade, macroeconomic and regulatory uncertainty. Our ability to meet our expectations is subject to a number of risks, including, but not limited to, those described in "Item 1A. Risk Factors" in our 2024 Annual Report.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Gross margin as a percentage of revenue increased 60 basis points to 38.0% for the six months ended June 30, 2025, as compared to 37.4% for the six months ended June 30, 2024. The gross margin increase included favorable impacts of 20 basis points from decreases in acquired intangible amortization and special charges as compared to the prior year and favorable operational impacts of 380 basis points, driven almost entirely by 240 basis points of productivity savings and 130 basis points of price realization. These increases in gross margin were offset by 340 basis points of unfavorable operational impacts driven by 170 basis points of inflation and 80 basis points of unfavorable mix.
Current report — wording carried from elsewhere
Net income attributable to Xylem for the six months ended June 30, 2025 was $395 million (net income margin of 9.0%), an increase of $48 million as compared to net income attributable to Xylem in the prior year of $347 million (net income margin of 8.3%). The increase in net income attributable to Xylem was driven by increased operating income of $74 million and decreased interest expense of $8 million partially offset by decreased non-operating income of $3 million, increased loss from sale of businesses of $6 million, and increased income tax expense of $29 million.
Current report — wording carried from elsewhere
Interest expense was $9 million for the three months ended June 30, 2025, compared to $11 million for the comparable prior year period. The decrease in interest expense was primarily driven by increased interest income generated on cross currency swaps offsetting interest expense.