Overview

* Xylem Q3 revenue of $2.3 bln beats analyst expectations, up 8% yr/yr

* Adjusted EPS of $1.37 for Q3 beats consensus, up 23% yr/yr

* Company raises full-year 2025 revenue and adjusted EPS guidance

Outlook

* Xylem raises full-year 2025 revenue guidance to $9.0 bln, up 5-6% reported

* Company expects full-year 2025 adjusted EPS of $5.03 to $5.08

* Xylem anticipates 2025 adjusted EBITDA margin of 22.0 to 22.3%

Result Drivers

* SEGMENT GROWTH - Revenue growth driven by double-digit gains in Measurement and Control Solutions and Water Solutions and Services

* MARGIN EXPANSION - Record adjusted EBITDA margin achieved through simplification initiatives, productivity savings, and strong price realization

* OPERATIONAL PERFORMANCE - Strong operational performance and decreased interest expense drove results, offset by increased tax expense and losses from business sales

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $2.30 $2.22

Revenue bln bln (16

Analysts

)

Q3 Beat $1.37 $1.23

Adjusted (16

EPS Analysts

)

Q3 EPS $0.93

Q3 Beat $333 mln $297.33

Adjusted mln (13

Net Analysts

Income )

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

* Wall Street's median 12-month price target for Xylem Inc ( XYL ) is $165.50, about 9.7% above its October 27 closing price of $149.40

* The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)