Xylem Gears Up to Report Q3 Earnings: What's in the Offing?

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]