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Sep 30, 2025
Xylem Q3 2025 Earnings Report
Xylem delivered strong Q3 2025 performance with revenue growth across all segments and record adjusted EBITDA margin.
Key Takeaways
Xylem reported Q3 2025 revenue of $2.27 billion and net income of $227 million. Adjusted EPS surged 23% to $1.37, driven by strong demand, pricing, and operational efficiency. Net income margin was 10.0%.
Revenue reached $2.27 billion, up 8% year-over-year, with all segments contributing to growth.
Adjusted EBITDA margin expanded to a record 23.2%, supported by pricing and productivity gains.
Net income was $227 million, with EPS at $0.93; adjusted EPS rose to $1.37.
Free cash flow for the quarter was negative due to $248 million in capital expenditures.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Xylem raised its full-year 2025 guidance, expecting higher revenue and adjusted EPS based on strong Q3 execution and demand.
Positive Outlook
- Full-year 2025 revenue now expected to reach $9.0 billion.
- Adjusted EPS guidance raised to $5.03–$5.08.
- Expected adjusted EBITDA margin of 22.0%–22.3%.
- Momentum in Measurement and Control Solutions and Water Solutions segments.
- Continued operational discipline and commercial execution.
Challenges Ahead
- Loss from sale of businesses impacted net income.
- Free cash flow pressured by high capital expenditures.
- Ongoing restructuring and special charges.
- Macroeconomic and geopolitical uncertainties remain.
- Continued tax expense pressure on GAAP earnings.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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