April 29 (Reuters) -

Water technology firm Xylem on Tuesday raised its

annual revenue forecast, after beating sales estimates for some

of its key equipment used for water treatment.

The company, which provides water sanitation and related

services to utilities, expects its 2025 revenue to be in the

range of $8.7 billion to $8.8 billion, compared with a prior

view of $8.6 billion to $8.7 billion.

Analysts on average were estimating annual revenue of $8.74

billion, according to data compiled by LSEG.

Xylem expects its sales volumes to be resilient despite the

escalating U.S.-China trade war, citing "the essential nature of

our customers' services".

The company, which generated about 43% of its sales from

outside the U.S. last year, imports components from countries

such as Mexico, Canada and China, making its global supply chain

vulnerable to President Donald Trump's tariffs.

However, Xylem said it will counter potential tariff impacts

through "strategic pricing and proactive supply chain

management."

The company reported quarterly sales of $581 million at its

water infrastructure unit, which includes products such as water

and wastewater pumps, beating estimates of $576.31 million.

Sales at its applied water unit, which sells pumps, valves

and other equipment, came in at $435 million for the quarter,

topping expectations of $427.62 million.

The company's first-quarter revenue stood at $2.1 billion,

compared with estimates of $2.04 billion.

Its quarterly profit was $1.03 per share on an adjusted

basis, surpassing estimates of 95 cents per share.

Xylem reaffirmed its annual profit forecast of $4.50 to

$4.70 per share.