Xylem Inc. Q3 2025 Earnings Recap

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.