Xylem Inc. Earnings Recaps
Q3 2026
Oct 28, 2026
Xylem shares fell 14.2% after earnings, as revenue came in below management’s expectations and the near-term outlook was pressured by slower project timing and cautious utility spending. Strong orders and earnings in line with the company’s guide were not enough to offset the revenue shortfall.
Key takeaways
- Organic revenue was roughly flat year over year; management said results fell short of expectations, citing lower MCS book-and-ship volume and delayed WSS capital projects.
- Orders rose 10%, driven by water and gas metering strength in MCS and data center orders in AW; ending backlog increased 13% to $5.5 billion, up about $200 million sequentially.
- Book-to-bill was above one, while earnings were in line with the company’s guide.
- Xylem announced plans to divest Applied Water International and Specialty Flow Control and move from four segments to three beginning in 2027, citing a focus on higher-growth, higher-margin markets.
Q3 2025
Oct 28, 2025
Xylem delivered strong third-quarter results, achieving a 7% revenue growth driven by strong demand across segments and record EBITDA margins exceeding 23%. The company raised its full-year guidance for revenue, margin, and EPS, reflecting continued operational momentum.
Key takeaways
- Revenue grew 7% year-over-year, with particularly strong performances in Measurement and Control Solutions and Water Solutions and Services.
- EBITDA margin expanded by 200 basis points to a record 23%, reflecting successful simplification efforts and pricing strategies.
- While orders decreased slightly by 2%, backlog remains robust at approximately $5 billion, supporting future revenue visibility.
- The divestiture of the international metering business is expected to enhance operational focus and improve margins significantly.
- With a net debt to adjusted EBITDA ratio of 0.4x, Xylem maintains a strong balance sheet, enabling continued investment in growth initiatives.