Financial Performance - Total revenue for Q3 2025 was $2.3 billion, representing an 8% increase on a reported basis and a 7% increase organically[5] - Adjusted earnings per share (EPS) for Q3 2025 were $1.37, up 23% compared to the previous year, while reported EPS was $0.93, up 4%[5] - Net income attributable to Xylem for the quarter was $227 million, with a net income margin of 10.0%, a decline of 30 basis points year-over-year[3] - The company reported a gross profit of $883 million for Q3 2025, compared to $784 million in Q3 2024[16] - Net income for the nine months ended September 30, 2025, was $617 million, an increase of 9.4% compared to $564 million in 2024[18] - Total revenue for the nine months ended September 30, 2025, was $6,638 million, reflecting a 5% increase from $6,306 million in 2024[30] - Operating income for Q3 2025 was $429 million, up from $350 million in Q3 2024, reflecting an increase of 22.6%[31] - Net income attributable to Xylem for Q3 2025 was $333 million, compared to $269 million in Q3 2024, marking a 23.8% increase[31] Guidance and Projections - Xylem raised its full-year 2025 revenue guidance to approximately $9.0 billion, an increase of 5 to 6% on a reported basis[6] - Full-year adjusted EPS guidance for 2025 is now projected to be between $5.03 and $5.08, up from the previous range of $4.70 to $4.85[7] Margins and Profitability - Adjusted EBITDA margin for Q3 2025 was 23.2%, reflecting a year-over-year increase of 200 basis points driven by productivity savings and strong price realization[4] - Adjusted EBITDA for Q3 2025 reached $527 million, representing a 17.9% increase compared to $447 million in Q3 2024[35] - Adjusted EBITDA margin improved to 23.2% in Q3 2025 from 21.2% in Q3 2024[35] - The company reported a net income margin of 10.0% for Q3 2025, compared to 10.3% in Q3 2024[35] Cash Flow and Assets - Cash and cash equivalents increased to $1.191 billion from $1.121 billion year-over-year[17] - Operating cash flow for the same period was $698 million, slightly up from $688 million in 2024[18] - The company reported a free cash flow of $450 million for the nine months ended September 30, 2025, after accounting for capital expenditures[27] - The company’s total cash and cash equivalents at the end of the period were $1,191 million, compared to $989 million at the end of the previous year[18] - Total assets as of September 30, 2025, were $17.295 billion, an increase from $16.493 billion at the end of 2024[17] Expenses and Costs - The company experienced a decrease in interest expense, contributing to improved net income despite increased losses from the sale of businesses[3] - The interest expense decreased to $6 million in Q3 2025 from $10 million in Q3 2024[31] - Restructuring and realignment costs for Q3 2025 amounted to $30 million, compared to $11 million in Q3 2024[33] - The company’s adjusted operating income for the nine months ended September 30, 2025, was significantly impacted by restructuring and realignment costs[25] Dividends and Shareholder Returns - Dividends paid during the nine months ended September 30, 2025, amounted to $293 million, an increase from $263 million in 2024[18] Business Sales and Losses - The company experienced a loss from the sale of business amounting to $47 million in 2025, compared to $6 million in 2024[18] - The company experienced a gain from the sale of business of $37 million in Q3 2025, compared to a loss of $2 million in Q3 2024[31]

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]

Core Insights - Xylem Inc. (XYL) is set to release its third-quarter 2025 results on October 28, with expected revenues of $2.22 billion, reflecting a year-over-year growth of 5.7% and earnings estimated at $1.24 per share, indicating an 11.7% increase from the previous year [1][10] Revenue Estimates by Segment - The Water Infrastructure segment is projected to generate revenues of $647 million, representing a 3.9% growth compared to the prior year [3] - The Measurement & Control Solutions (M&CS) segment is expected to report revenues of $503 million, reflecting a 9.8% increase year-over-year [4] - The Water Solutions and Services segment's revenues are estimated at $605 million, indicating a 5% growth from the previous year [5] - The Applied Water segment is anticipated to achieve revenues of $464 million, showing a 3.8% increase from the year-ago figure [6] Factors Influencing Performance - Strength in the transport application business due to increased infrastructure projects in the U.S. is likely to support the Water Infrastructure segment [3] - Robust demand for advanced metering infrastructure solutions and strong backlog execution are expected to enhance the M&CS segment's performance [4] - The dewatering applications business is anticipated to benefit from strong rental demand and capital projects, positively impacting the Water Solutions and Services segment [5] - A recovery in the Applied Water segment is expected, driven by higher demand for commercial building solutions [6] Strategic Acquisitions - The acquisition of Vacom Systems in April 2025 is expected to enhance Xylem's capabilities in sustainable water solutions [7] - The majority stake acquisition in Idrica in December 2024 is anticipated to boost growth opportunities and market penetration [7] Cost Pressures - High raw material costs, labor, freight, and overhead costs are likely to impact the bottom line in the third quarter [8] - Business integration expenses related to the Vacom Systems acquisition are expected to pressure margins [8] Earnings Prediction - The current Earnings ESP for Xylem is -0.13%, indicating uncertainty regarding an earnings beat this quarter [9][11]

Core Thesis - Xylem Inc. is positioned as a leading pure-play water technology company, focusing on providing clean and reliable water solutions, with a current share price of $146.00 and trailing and forward P/E ratios of 38.80 and 27.78 respectively [1][2] Company Overview - Xylem designs and sells a comprehensive range of water solutions, including pumps, treatment systems, meters, and digital platforms, generating recurring revenue through maintenance contracts, software subscriptions, analytics, and equipment rentals [2] - The company originated from ITT Corporation, which spun off its water businesses in 2011, and has since established itself as a global leader in water technology [4] Market Position and Growth - Xylem is strategically positioned to benefit from long-term global trends such as urbanization, climate change, water scarcity, and tightening environmental regulations, which increase demand for advanced water infrastructure [3] - The company significantly enhanced its capabilities through the $7.5 billion acquisition of Evoqua Water Technologies in 2023, solidifying its position as the world's largest pure-play water technology firm [4] Innovation and Revenue - Innovation is central to Xylem's strategy, exemplified by projects like Reuse Brew in Germany, showcasing modern water reuse technologies [5] - By 2024, Xylem is projected to generate $8.56 billion in revenue, with a diversified geographic footprint across the U.S., Western Europe, Emerging Markets, and other regions [5] Addressing Global Challenges - The company addresses critical global water challenges, including scarcity, quality, affordability, and resilience, through products and services that improve efficiency, reduce waste, and extend infrastructure life [6] - With strong market leadership and diversified offerings, Xylem represents a compelling investment opportunity in the water technology sector [6]

Core Insights - Conestoga Capital Advisors reported that equity markets reached new all-time highs in Q3 2025, but their Mid Cap Composite underperformed the Russell Midcap Growth Index, returning -3.2% net-of-fees compared to a 2.8% gain for the index [1] Company Overview - Xylem Inc. (NYSE:XYL) specializes in designing, manufacturing, and servicing engineered products and solutions for utility, industrial, and residential sectors [2][3] - As of October 21, 2025, Xylem's stock closed at $147.19 per share, with a market capitalization of $35.827 billion [2] Performance Metrics - Xylem Inc. achieved a one-month return of 4.05% and a 52-week gain of 11.74% [2] - The company has seen strong demand for water infrastructure and utility solutions, leading to improved order momentum in wastewater, analytics, and smart metering segments [3] Strategic Developments - Margin improvements have been noted due to cost synergies from the Evoqua acquisition, enhancing earnings visibility for Xylem [3] Hedge Fund Interest - Xylem Inc. was held by 45 hedge fund portfolios at the end of Q2 2025, an increase from 39 in the previous quarter, indicating growing interest among institutional investors [4]

In the current session, the stock is trading at $145.99, after a 0.05% spike. Over the past month, Xylem Inc. (NYSE:XYL) stock increased by 2.01%, and in the past year, by 11.13%. With performance like this, long-term shareholders are optimistic but others are more likely to look into the price-to-earnings ratio to see if the stock might be overvalued.Xylem P/E Ratio Analysis in Relation to Industry PeersThe P/E ratio measures the current share price to the company's EPS. It is used by long-term investors t ...

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Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum characteristics [2][3] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on their value, growth, and momentum, with higher scores indicating better performance potential [3] - The Style Scores are categorized into Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score targets value investors by identifying stocks trading below their true value using various financial ratios [3] Growth Score - The Growth Score emphasizes a company's future prospects and financial health, analyzing earnings, sales, and cash flow [4] Momentum Score - The Momentum Score assists traders in capitalizing on price trends, utilizing recent price changes and earnings estimate shifts [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors seeking attractive value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank, based on earnings estimate revisions, has shown a strong historical performance, with 1 (Strong Buy) stocks yielding an average annual return of +23.81% since 1988 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] Stock Highlight: Xylem Inc. (XYL) - Xylem Inc. is a leading global provider of water solutions, involved in the entire water process cycle [11] - Xylem holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong investment potential [11] - The company has a Momentum Style Score of B, with shares increasing by 3% over the past four weeks, and upward revisions in earnings estimates for fiscal 2025 [12]

Core Insights - Xylem Inc. is valued at a market cap of $35.5 billion and specializes in engineered products and solutions for various sectors, with Q3 earnings announcement scheduled for October 28, 2025 [1] Financial Performance - Analysts expect Xylem to report a profit of $1.24 per share for Q3 2025, reflecting an 11.7% increase from $1.11 per share in the same quarter last year [2] - For the current fiscal year ending in December, the expected profit is $4.83 per share, up 13.1% from $4.27 per share in fiscal 2024, with further growth anticipated to $5.33 in fiscal 2026 [3] Recent Stock Performance - Xylem's stock has increased by 6.7% over the past 52 weeks, underperforming compared to the S&P 500 Index's 14.4% return and the Industrial Select Sector SPDR Fund's 9.4% increase [4] - Following stronger-than-expected Q2 results, Xylem's shares surged by 10.7% on July 31, with Q2 revenue rising 6.1% year-over-year to $2.3 billion, exceeding consensus estimates by 4.1% [5] Analyst Ratings - Wall Street analysts maintain a "Moderate Buy" rating for Xylem, with 13 out of 21 analysts recommending "Strong Buy," one suggesting "Moderate Buy," and seven advising "Hold" [6] - The mean price target for Xylem is set at $162.81, indicating an 11.5% potential upside from current levels [6]

Core Insights - Xylem Inc. is recognized as one of the 20 Best Stocks to Buy and Hold for a Lifetime, showcasing consistent revenue and dividend growth [1] Company Performance - Mizuho has maintained a Neutral rating on Xylem Inc. and raised its price target from $125 to $140, attributing this to the company's restructuring and efficiency improvements [2] Strategic Initiatives - Xylem Inc. partnered with Amazon to implement smart water technology in Mexico City and Monterrey, aiming to recover approximately 1.3 billion liters of water annually through the use of Xylem Vue, a software platform for optimizing municipal water systems [3] - The company's initiatives highlight its ability to deploy scalable, data-driven solutions that enhance sustainability and efficiency in global water management [4] Market Position - Xylem Inc. serves a diverse range of sectors, including utility, industrial, and residential and commercial building services, with engineered products and solutions [4]