Xylem(US:XYL) ZACKS·2025-10-28 18:16Core 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]