Xylem Inc. has reported its third-quarter 2025 results, showcasing impressive growth and performance. The company's revenue stood at $2.3 billion, marking an 8% increase on a reported basis and a 7% organic growth. Earnings per share (EPS) saw a 4% increase on a reported basis, amounting to $0.93, and a substantial 23% surge on an adjusted basis, reaching $1.37.
Net income attributable to Xylem for the quarter was $227 million, equivalent to $0.93 per share. However, the net income margin experienced a decline of 30 basis points, settling at 10.0 percent. On an adjusted basis, the net income was $333 million, or $1.37 per share, excluding specific impacts.
The company's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) margin saw a significant year-over-year increase of 200 basis points, reaching 23.2 percent. This exceptional margin expansion was attributed to productivity savings, strong price realization, and volume growth, surpassing the impact of inflation, investments, and mix.
Looking ahead, Xylem has raised its full-year 2025 revenue guidance to approximately $9.0 billion, reflecting a 5 to 6 percent increase on a reported basis and a 4 to 5 percent rise on an organic basis. Additionally, the adjusted EBITDA margin is expected to be around 22.0 to 22.3 percent, indicating an increase of 140 to 170 basis points from the previous year.
The company has also adjusted its full-year adjusted earnings per share to $5.03 to $5.08, up from the previous guidance of $4.70 to $4.85. Xylem's solid performance and confidence in its long-term financial framework indicate a positive trajectory for sustainable growth and value creation.
Following these announcements, the company's shares moved 0.78%, and are now trading at a price of $149.40. For the full picture, make sure to review Xylem's 8-K report.
