Total Revenue

+1.8% (from $2,033M in Q1 2024 to $2,069M in Q1 2025)

The modest revenue gain reflects continued organic and acquisition-driven growth initiatives from prior periods. Although robust drivers in FY 2024 (e.g., acquisitions and organic increases) are still contributing, the growth pace has moderated compared to earlier strong performance. " "

Operating Income

+10.5% (from $209M in Q1 2024 to $231M in Q1 2025)

A larger percentage increase in operating income versus revenue indicates improved operational efficiency, driven by productivity savings, better price realization, and cost management initiatives that were established in FY 2024 and are continuing into Q1 2025. " "

Net Income

+9.2% (from $153M in Q1 2024 to $167M in Q1 2025)

The net income improvement mirrors the rise in operating income. The higher earnings, supported by controlled non-operating expenses and continued margin expansion strategies from the previous periods, have boosted net income despite modest revenue growth. " "

Gross Profit

+2.1% (from $752M in Q1 2024 to $768M in Q1 2025)

A slightly higher gross profit is achieved through maintained cost controls and stable gross margins. Although revenue increased only modestly, efficient cost management, similar to FY 2024 experiences, helped deliver a positive, albeit small, increase in gross profit. " "

Measurement and Control Solutions (MCS)

+6% (from $462M in Q1 2024 to $490M in Q1 2025)

The MCS segment outperformed overall revenue growth, driven by strong smart metering demand and robust backlog execution. This segment's performance, which showed significant momentum in FY 2024, continued into Q1 2025, resulting in a higher percentage growth compared to total revenue. " "

Water Infrastructure

+1.2% (from $574M in Q1 2024 to $581M in Q1 2025)

The modest increase in Water Infrastructure revenue reflects a combination of organic and acquisition contributions similar to FY 2024, though the impact has been tempered by factors like foreign currency translation, keeping growth subdued. " "

Net Cash from Operating Activities

-63% (from $89M in Q1 2024 to $33M in Q1 2025)

The pronounced drop in operating cash flow is largely attributable to adverse working capital changes. A significant decline in accounts payable (a $64M drop) coupled with larger negative adjustments in other current assets and liabilities (e.g., restructuring payments and timing issues) has offset improved earnings trends seen in FY 2024. " "

Total Assets

+4% (up to $16,559M in Q1 2025)

Asset growth is driven by improved cash balances, higher receivables, and the continuing impact from acquisitions in earlier periods. These factors reflect ongoing investments and stronger operating cash flows carried over from FY 2024. " "

Total Equity

+6% (up to $10,822M in Q1 2025)

The increase in equity results from improved net income and retained earnings generated by positive operational performance. This is consistent with the upward trend from FY 2024, albeit partially offset by dividend payments and certain comprehensive loss entries. " "

Long-Term Debt

Slight decline (to $1,974M in Q1 2025)

A modest reduction in long-term debt points to effective debt management and deleveraging strategies initiated in prior periods, with ongoing repayments and careful monitoring of financing costs contributing to a slightly lower debt level compared to previous figures. " "

Revenue ($USD Billions)

FY 2025

"$8.6 to $8.7 billion" "

"$8.7 to $8.8 billion" "

raised

EBITDA Margin (%)

FY 2025

"21.3% to 21.8%, representing 70 to 120 basis points expansion" "

"21.3% to 21.8%, representing 70 to 120 basis points expansion YoY" "

no change

EPS ($USD)

FY 2025

"$4.50 to $4.70, up 8% at the midpoint" "

"$4.50 to $4.70 (unchanged from prior guidance)" "

no change

Free Cash Flow Margin (%)

FY 2025

"Committed to a low double-digit free cash flow margin, with 2025 cash flow impacted by restructuring actions" "

"9% to 10%, impacted by restructuring actions" "

lowered

Revenue Growth (%)

FY 2025

"0% to 2% on a reported basis" "

"1% to 2%" "

raised

Organic Revenue Growth (%)

FY 2025

"3% to 4% organic growth" "

"3% to 4% (unchanged from prior guidance)" "

no change

Tariff Assumptions

FY 2025

no prior guidance

"Current tariff scheme remains in place; pricing and supply chain actions offset costs" "

no prior guidance

Segment-Specific Organic Revenue Growth

FY 2025

"MCS: high single-digit growth (driven by ~40% growth on energy meters and low single-digit on water meters); Water Infrastructure: mid-single-digit; Applied Water: low single-digit; WSS: mid-single-digit backed by a $1 billion backlog" " "

no current guidance

no current guidance

FX Impact

FY 2025

"Foreign exchange (FX) will be a meaningful headwind; excluding FX, EPS growth would be in the double digits" "

no current guidance

no current guidance

MCS Performance and Margin Dynamics

Consistently discussed across Q2–Q4 2024: Strong revenue growth (up to 26% in Q2), impressive EBITDA margins in Q3, and challenges from a negative energy‐water mix in Q4 impacting margins. " " "

Q1 2025 highlighted sequential margin improvement via productivity and cost initiatives, but margins remain pressured by the energy-water mix. " " "

Recurring and mixed sentiment: While robust revenue and margin improvements are consistently noted, the ongoing energy-water mix challenge has kept margins under pressure. The focus on productivity initiatives is steady, but mix dynamics continue to drive volatility.

Water Solutions & Infrastructure Growth

Q2–Q4 2024: Water Solutions showed robust demand with strong orders and revenue growth in parts (e.g., 8–11% growth in orders in Q4), and Water Infrastructure benefited from strong orders and significant margin improvements. " " " "

Q1 2025: Water Solutions revenue grew modestly (+1%) with orders down 5% (due to tough comps), whereas Water Infrastructure maintained revenue gains and strong margin improvement. "

Steady growth with region-specific variations: Overall strong demand persists with healthy backlogs. However, Q1 2025 reflects slightly softer order trends in Water Solutions, even as Water Infrastructure continues to perform robustly.

Order Pipeline & Backlog Robustness

Q2–Q4 2024: Consistent strong backlog reported in the range of $5.2–$5.3 billion, with healthy book‑to‑bill ratios and robust orders across segments, signaling strong demand despite normalization in MCS. " " " "

Q1 2025: Backlog was reported at $5.1 billion with a strong book‑to‑bill ratio. MCS backlog normalization is noted, and overall pipeline remains healthy. "

Stable and resilient: Despite slight quarterly fluctuations (e.g. MCS backlog normalization), the overall order pipeline and backlog remain robust and provide a buffer against near-term demand cyclicality.

Tariff Mitigation and Pricing Strategy

Q3–Q4 2024: Detailed discussion on proactive pricing measures, cost controls and supply chain diversifications (second sourcing) to mitigate tariffs. The Q2 call had only brief mentions of pricing and inflation offset measures. " " " "

Q1 2025: Emphasized incremental pricing and supply chain actions to fully offset additional tariff costs, maintaining full‐year guidance. " "

Consistent and proactive: The strategy to manage tariffs via pricing actions and supply chain adjustments is consistently refined. Detailed actions in Q1 2025 build on previous quarters, indicating a sustained and tactical approach to offset tariff impacts.

Operational Efficiency & Strategic Simplification

Q2–Q4 2024: Repeated emphasis on 80/20 initiatives, restructuring, and portfolio optimization that led to significant EBITDA margin expansion and improved operational metrics. Strong discussions on cost synergies and simplification of the operating model were evident. " " " " "

Q1 2025: Continued record EBITDA margin expansion through productivity improvements and organizational simplification, including ongoing 80/20 initiatives and cost synergy fulfillment. " " "

Consistently positive: Efficiency and simplification efforts have been a continuous focus, with measurable margin improvements and cost synergies. The narrative remains upbeat across periods, reinforcing long-term profitability and operational agility.

Digital Transformation & Strategic Acquisitions

Q2 2024 touched on Evoqua integration and smart metering; Q3–Q4 2024 provided strong emphasis on digital transformation via the Idrica platform and increased digital capabilities, alongside strategic acquisitions (e.g. Vacom, divestitures) to optimize the portfolio. " " " "

Q1 2025: Focus remains on strategic acquisitions such as Evoqua integration and the Vacom acquisition, but explicit digital transformation mentions are less pronounced. "

Shift in emphasis: Early quarters highlighted digital transformation (notably through Idrica), while Q1 2025 leans more on strategic acquisitions to drive growth. The digital narrative has been integrated into the broader transformation strategy, signaling a maturation of the initiative.

Global Market Conditions & Regional Challenges

Q2–Q4 2024: Discussions included resilient demand amid macro volatility, with regional challenges such as softness in Europe, economic headwinds in China, and emerging market variability. Tariff concerns and geopolitical factors were also noted. " " " " "

Q1 2025: Similar regional challenges are noted—China experiencing declines, tariff impacts with Mexico and EU issues—yet overall demand remains resilient and full-year guidance is reaffirmed. " " "

Cautiously optimistic: Persistent regional challenges continue (especially in China and parts of Europe), yet the overall market outlook is stable due to strong underlying demand, diversified exposure, and proactive management of trade issues.

Applied Water Segment Weaknesses

Q2–Q4 2024: Consistent challenges were noted including cyclical revenue declines, softness in emerging markets and developed markets, margin compression due to higher inflation and unfavorable mix, with 80/20 actions and leadership transitions attempted to mitigate these issues. " " " " "

Q1 2025: The segment continues to face weaknesses from the 80/20 walkaway impacts and higher inflation, although some offsetting productivity and pricing gains are noted. "

Persistent challenges: The Applied Water segment has struggled over multiple quarters. Although mitigation efforts are in place, the cyclical nature and structural issues yield a consistently cautious sentiment across periods.

Supply Chain Optimization & Lead Time Reduction

Q3 2024: Notable progress reported with dramatic lead time reduction from 52 weeks to 5 weeks, and improved on‑time delivery. Q4 2024 mentioned further on‑time performance improvements, while Q2 2024 did not provide detailed updates. " "

Q1 2025: Limited details provided—mentions are confined to supply chain actions used to mitigate tariffs rather than renewed focus on lead time reduction. "

Early gains stabilizing: The impressive lead time improvements highlighted in Q3 seem to have stabilized by Q1 2025, where the focus shifts towards using the optimized supply chain to manage tariff impacts rather than further lead time reduction initiatives.

High-Growth Vertical Contracts & Green Hydrogen Opportunities

Q2 2024: Emerged as a new topic with emphasis on momentum in high-growth verticals (e.g. pharma, life sciences, microelectronics, power) and a significant green hydrogen win over a 20‑year contract; these opportunities were highlighted as potential growth areas. " "

Q1 2025: No mention of these topics, indicating they have dropped out of the conversation in the current period.

New topic then de-prioritized: Introduced in Q2 2024 with optimism around long-term contracts, the absence in later periods (Q3, Q4, Q1) suggests a potential de-prioritization or lower material impact relative to other strategic areas in the near term.