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/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $2.30 bln | $2.22 bln (16 Analysts) |
Q3 Adjusted EPS | Beat | $1.37 | $1.23 (16 Analysts) |
Q3 EPS | $0.93 | ||
Q3 Adjusted Net Income | Beat | $333 mln | $297.33 mln (13 Analysts) |
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 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: ID:nBw4SpqkKa
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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.)