Xylem(US:XYL)2025-10-28 11:03Financial 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]