Water services provider Xylem beats Q3 profit estimates, hikes FY forecast

Xylem

28/10/2025 11:02

Overview

Xylem Q3 revenue of $2.3 bln beats analyst expectations, up 8% yr/yr

Adjusted EPS of $1.37 for Q3 beats consensus, up 23% yr/yr

Company raises full-year 2025 revenue and adjusted EPS guidance

Outlook

Xylem raises full-year 2025 revenue guidance to $9.0 bln, up 5-6% reported

Company expects full-year 2025 adjusted EPS of $5.03 to $5.08

Xylem anticipates 2025 adjusted EBITDA margin of 22.0 to 22.3%

Result Drivers

SEGMENT GROWTH - Revenue growth driven by double-digit gains in Measurement and Control Solutions and Water Solutions and Services

MARGIN EXPANSION - Record adjusted EBITDA margin achieved through simplification initiatives, productivity savings, and strong price realization

OPERATIONAL PERFORMANCE - Strong operational performance and decreased interest expense drove results, offset by increased tax expense and losses from business sales

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$2.30 bln
$2.22 bln (16 Analysts)
Q3 Adjusted EPS
Beat
$1.37
$1.23 (16 Analysts)
Q3 EPS
$0.93
Q3 Adjusted Net Income
Beat
$333 mln
$297.33 mln (13 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

Wall Street's median 12-month price target for Xylem Inc is $165.50, about 9.7% above its October 27 closing price of $149.40

The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nBw4SpqkKa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)