Core Insights - Xylem Inc. reported third-quarter 2025 adjusted earnings of $1.37 per share, exceeding the Zacks Consensus Estimate of $1.24, representing a 23% year-over-year increase [1] - Revenues reached $2.27 billion, surpassing the consensus estimate of $2.22 billion, with a year-over-year growth of 7.8% driven by strong demand across segments [1] - Orders totaled $2.18 billion, reflecting a decrease of 0.9% year over year on a reported basis and 2% on an organic basis [1] Segment Performance - Water Infrastructure segment revenues were $656 million, up 5% year over year, with organic sales also increasing by 5%, exceeding the consensus estimate of $647 million [2] - Applied Water segment generated revenues of $456 million, a 2% year-over-year increase, with organic sales up 1%, slightly below the consensus estimate of $464 million [3] - Measurement & Control Solutions segment revenues totaled $522 million, up 14% year over year, with organic sales increasing by 11%, surpassing the consensus estimate of $503 million [3] - Water Solutions and Services segment revenues reached $634 million, a 10% year-over-year increase, with organic sales also up 10%, exceeding the consensus estimate of $605 million [4] Financial Metrics - Adjusted EBITDA was $527 million, a 17.9% increase from the previous year, with the margin improving to 23.2% from 21.2% [5] - Adjusted operating income rose to $429 million, up 22.6% year over year, with the adjusted operating margin increasing to 18.9% from 16.6% [5] Balance Sheet and Cash Flow - As of the end of the third quarter, Xylem had cash and cash equivalents of $1.19 billion, up from $1.12 billion at the end of December 2024, while long-term debt decreased to $1.91 billion from $1.98 billion [6] - In the first nine months of 2025, net cash generated from operating activities was $698 million, compared to $688 million in the prior year, with capital expenditure increasing by 12.2% to $248 million [7] Shareholder Returns - Xylem paid dividends of $293 million in the first nine months, an 11.4% increase year over year, and repurchased shares worth $14 million, down from $19 million in the previous year [8] 2025 Guidance - The company updated its 2025 revenue outlook to approximately $9.0 billion, indicating a 5-6% increase from the prior year, with adjusted EBITDA margin expected to be around 22-22.3% [10] - Adjusted earnings are forecasted to be in the range of $5.03–$5.08 per share, up from the previous expectation of $4.70 – $4.85, reflecting an increase from $4.27 per share in 2024 [11]

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Revenue and Income - Revenue for Q3 2025 reached $2,268 million, a 7.8% increase from $2,104 million in Q3 2024[9] - Net income for the nine months ended September 30, 2025, was $617 million, up 9.4% from $564 million in the same period of 2024[10] - Revenue from contracts with customers for the nine months ended September 30, 2025, was $6,406 million, representing an increase of 8% compared to $5,920 million for the same period in 2024[49] - Total revenue for the three months ended September 30, 2025, was $2,268 million, an increase from $2,104 million in the same period of 2024, representing a growth of approximately 7.8%[129] - For the nine months ended September 30, 2025, total revenue reached $6,638 million, compared to $6,306 million for the same period in 2024, marking an increase of 5.3%[131] - Net income attributable to Xylem for the nine months ended September 30, 2025, was $622 million, a 10% increase from $564 million in the prior year[180] Profitability and Margins - Gross profit for Q3 2025 was $883 million, representing a gross margin of 38.9%, compared to $784 million in Q3 2024[9] - Operating income for the nine months ended September 30, 2025, was $870 million, an increase of 17.3% from $742 million in 2024[9] - Adjusted EBITDA margin improved to 23.2%, up 200 basis points from 21.2% in the prior year[144] - Operating income for Q3 2025 was $334 million, a 19.3% increase from $280 million in Q3 2024, with an operating margin of 14.7%[176] - Adjusted EBITDA for Q3 2025 was $527 million, an 18.0% increase from $447 million in Q3 2024, with an adjusted EBITDA margin of 23.2%[178] Expenses and Costs - Research and development expenses for the nine months ended September 30, 2025, totaled $166 million, a decrease of 3.5% from $172 million in 2024[9] - Total operating expenses for the three months were $549 million, an 8.9% increase year-over-year, resulting in an expense to revenue ratio of 24.2%[150] - SG&A expenses increased by $29 million to $474 million, or 20.9% of revenue, in Q3 2025, driven by $15 million in strategic investments and $13 million in inflation[170] - Restructuring charges for Q3 2025 were $23 million, significantly higher than $4 million in Q3 2024, reflecting efforts to streamline operations[172] Acquisitions and Divestitures - The company acquired Vacom Systems, LLC for a total cash consideration of $42 million, with $37 million paid at closing and the remainder to be paid over the next 12 to 18 months[25] - The company acquired Simply Clean Air and Water, Inc. for a net cash acquisition price of $7 million[27] - The acquisition of EMX Holdings, Inc. was completed for a total fair value of consideration transferred of $106 million, paid in cash[29] - The company divested its Evoqua Magneto business for a cash selling price of $61 million, resulting in a loss of $8 million[34] - The company acquired a 25.1% equity interest in Global Omnium Idrica, S.L. for $51 million, later increasing its stake to 61.0% for $154 million[38][39] Assets and Liabilities - Total assets increased to $17,295 million as of September 30, 2025, compared to $16,493 million at the end of 2024[12] - Cash and cash equivalents at the end of Q3 2025 were $1,191 million, up from $1,121 million at the end of 2024[12] - As of September 30, 2025, total debt outstanding was $1,962 million, with long-term debt amounting to $1,913 million[84] - The balance of stockholders' equity as of September 30, 2025, is $11,219 million, reflecting an increase from previous periods due to net income and other comprehensive income[103] Shareholder Information - Basic earnings per share for Q3 2025 were $0.93, an increase from $0.89 in Q3 2024[66] - Dividends declared for the nine months ended September 30, 2024, totaled $261 million, with a consistent rate of $0.36 per share[104] - The company repurchased 0.1 million shares of common stock for $14 million during the nine months ended September 30, 2025[116] - The company has up to $182 million in shares that may still be purchased under its share repurchase program as of September 30, 2025[116] Segment Performance - Segment operating income for Water Infrastructure was $113 million for Q3 2025, compared to $96 million in Q3 2024, reflecting a year-over-year increase of 17.7%[130] - Operating income for the Water Infrastructure segment increased by 26.5% to $296 million, with an operating margin of 15.7%[182] - Measurement and Control Solutions segment reported a 9.8% increase in adjusted operating income to $270 million, with an adjusted operating margin of 17.4%[182] - Water Solutions and Services segment's adjusted operating income increased by 12.7% to $311 million, with an adjusted operating margin of 17.0%[182] Future Outlook - The company anticipates continued growth in revenue and operating margins, supported by strategic investments in new technologies and market expansion initiatives[138] - The company faces risks including supply chain disruptions, inflation, and geopolitical events that could impact future performance[139]

Xylem (NYSE:XYL) Q3 2025 Earnings Call October 28, 2025 09:00 AM ET Company ParticipantsKeith Buettner - VP of Investor Relations and FP&ABill Grogan - CFOMatthew Pine - CEOScott Davis - Chairman and CEOWilliam Grippin - Director of Equity ResearchDeane Dray - Managing DirectorConference Call ParticipantsNathan Jones - Senior Equity AnalystNone - AnalystMike Halloran - Associate Director of Research and Senior AnalystAndy Kaplowitz - Research Analyst in IndustrialsOperatorWelcome to Xylem Inc.'s third quart ...

Xylem (NYSE:XYL) Q3 2025 Earnings Call October 28, 2025 09:00 AM ET Company ParticipantsKeith Buettner - VP of Investor Relations and FP&ABill Grogan - CFOMatthew Pine - CEOScott Davis - Chairman and CEOWilliam Grippin - Director of Equity ResearchDeane Dray - Managing DirectorConference Call ParticipantsNathan Jones - Senior Equity AnalystNone - AnalystMike Halloran - Associate Director of Research and Senior AnalystAndy Kaplowitz - Research Analyst in IndustrialsOperatorWelcome to Xylem's third quarter 20 ...

Xylem (NYSE:XYL) Q3 2025 Earnings Call October 28, 2025 09:00 AM ET Speaker2Welcome to Xylem Inc.'s third quarter 2025 results conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please ...

Core Insights - Xylem reported quarterly earnings of $1.37 per share, exceeding the Zacks Consensus Estimate of $1.24 per share, and showing an increase from $1.11 per share a year ago, resulting in an earnings surprise of +10.48% [1] - The company achieved revenues of $2.27 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.98% and up from $2.1 billion year-over-year [2] - Xylem's stock has increased by approximately 28.8% since the beginning of the year, outperforming the S&P 500's gain of 16.9% [3] Earnings Outlook - The future performance of Xylem's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - Current consensus EPS estimate for the upcoming quarter is $1.31 on revenues of $2.37 billion, and for the current fiscal year, it is $4.84 on revenues of $8.96 billion [7] Industry Context - The Waste Removal Services industry, to which Xylem belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, indicating potential challenges ahead [8] - Another company in the same industry, Select Water Solutions, is expected to report a significant decline in earnings, with a projected EPS of $0.05, reflecting a year-over-year change of -66.7% [9]

2025 Third Quarter Results and Earnings October 28, 2025 Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Generally, the words "anticipate," "estimate," "expect," "project," "intend," "plan," "contemplate," "predict," "forecast," "likely," "believe," "target," "will," "could," "would," "should," "potential," "may" and similar expre ...

Exhibit 99.1 Houston.Spencer@xylem.com Keith.Buettner@xylem.com Xylem Reports Third Quarter 2025 Results WASHINGTON, D.C., October 28, 2025 -- Xylem Inc. (NYSE: XYL), a leading global water solutions company dedicated to solving the world's most challenging water issues, today reported third-quarter 2025 results. The Company delivered total revenue of $2.3 billion, on strong execution and demand. Third-quarter earnings per share were up 4 percent on a reported basis and 23 percent on an adjusted basis. "The ...

Core Viewpoint - Xylem Inc. is preparing to announce its third-quarter 2025 earnings, with investors focused on performance metrics in water infrastructure and smart metering [1][6] Financial Performance Expectations - Wall Street estimates an earnings per share (EPS) of $1.24, reflecting an 11.7% increase year-over-year [2][6] - Projected revenue is approximately $2.22 billion, indicating a 5.7% growth compared to the same quarter last year, driven by strong demand in key sectors [2][6] Challenges and Market Performance - Xylem faces challenges such as high material and labor costs, which may affect profit margins [3] - The company has a history of exceeding market expectations, surpassing the Zacks Consensus Estimate in three of the last four quarters, with an average earnings surprise of 6.1% [3][6] Financial Metrics - Xylem's market valuation includes a price-to-earnings (P/E) ratio of approximately 38.46, a price-to-sales ratio of about 4.13, and an enterprise value to sales ratio of around 4.24 [4] - The company's debt-to-equity ratio is relatively low at 0.19, indicating a conservative approach to debt usage [5] - Xylem maintains a current ratio of approximately 1.90, demonstrating its ability to cover short-term liabilities with short-term assets [5]