Xylem Inc. has announced its financial results for the third quarter of 2025, achieving revenue of $2.3 billion, which represents an 8% increase compared to the same quarter last year (with 7% attributed to organic growth). The adjusted earnings per share (EPS) reached $1.37, marking a 23% improvement year-over-year.
The adjusted EBITDA margin was reported at 23.2%, reflecting a 200 basis point increase from the previous year, driven by effective cost management, enhanced productivity, and increased volumes across all business divisions.
All divisions performed well. The Measurement & Control Solutions segment (smart metering) achieved 11% organic growth, while Water Solutions & Services saw a 10% organic increase. In infrastructure-related sectors, Water Infrastructure reported a 5% rise (approximately 3% organic), and Applied Water posted a 2% increase (around 1% organic). Collectively, these results contributed to the overall margin growth of the group during the quarter.
Xylem’s President and CEO, Matthew Pine, noted, “The team delivered another robust quarter, surpassing expectations through disciplined execution and ongoing commercial momentum.” He also mentioned, “Revenue increased across all segments, with double-digit growth in Measurement & Control Solutions and Water Solutions & Services. The record adjusted EBITDA margin reflects the success of our simplification initiatives, resulting in strong margin expansion that contributed to a 23% growth in adjusted EPS.”
Pine further stated, “The strong market demand for our solutions and the team’s accelerating performance gives us confidence to elevate our full-year guidance. We are well-positioned to achieve our long-term financial objectives and promote sustainable growth and value creation throughout the cycle.”
Xylem Raises Full-Year 2025 Forecast
Following these impressive results, the company has updated its full-year forecast for 2025. Xylem now anticipates achieving revenue of around $9 billion, which indicates a reported growth of 5–6% and an organic growth of 4–5%.
The adjusted EBITDA margin is expected to fall between 22.0% and 22.3%, an increase from the previous estimate of 21.3% to 21.7%. Additionally, the company projects adjusted EPS to be between $5.03 and $5.08, a rise from the earlier guidance of $4.70 to $4.85.
Xylem continues to target a free cash flow conversion rate of 9–10%, highlighting its robust financial health and effective transformation of operating profit into cash.
Outlook: Ongoing Growth and Digital Transformation in Water Management
The quarterly results bolster Xylem’s status as a leading global entity in water technology, showcasing significant growth in smart metering solutions and digital services for water cycle management.
The company emphasizes that stable demand for water solutions and ongoing improvements in operational efficiency enhance its confidence in maintaining growth in the years ahead. However, it also warns of potential challenges due to macroeconomic conditions, geopolitical issues, and fluctuations in supply chains or currency.
With these outcomes, Xylem is committed to progressing towards a business model centered on innovation, operational streamlining, and the creation of long-term sustainable value.
Source: Xylem
