Large language models deliver strong reasoning and tool-use skills, yet their computational demands make them impractical for edge or cost-sensitive deployments. We present \textbf{Xmodel-2.5}, a 1.3-billion-parameter small language model designed as a \emph{drop-in agent core}. Training with maximal-update parameterization ($μ$P) allows hyper-parameters tuned on a 20M-parameter proxy to transfer directly to the full model, even under the parameter-tied \emph{tie-word-embedding} architecture. A 1.4T-token Warmup--Stable--Decay curriculum is used, and we further show that \textbf{switching from AdamW to Muon during the decay phase} improves the 13-task reasoning average by 4.58\,\% while keeping every other hyper-parameter fixed, verifying that early AdamW stability can be paired with late Muon sharpening for better downstream performance. FP8-mixed-precision training balances accuracy and throughput. All checkpoints, recipes, and evaluation code are released under the Apache-2.0 license.\footnote{https://huggingface.co/XiaoduoAILab/Xmodel-2.5 and https://huggingface.co/XiaoduoAILab/Xmodel-2.5-history (training checkpoints).} Training code and evaluation harness: https://github.com/XiaoduoAILab/Xmodel-2.5.