Xylem Raises FY25 Guidance; Orders Dip

Xylem topped third-quarter expectations with adjusted EPS of $1.37 (consensus ~ $1.23–$1.24), revenue of $2.27 billion (up 7.8% year‑over‑year) and net income of $227 million. By segment, Water Infrastructure revenue was $656 million (+5%), Measurement & Control Solutions was $522 million (+14%), Water Solutions & Services was $634 million (+10%), and Applied Water was $456 million (+2%). Orders softened, falling 0.9% on a reported basis and about 2% organically, even as organic revenues grew roughly 7%. Profitability improved materially: adjusted EBITDA was $527 million (23.2% margin) and adjusted operating income was $429 million (18.9% margin). Management raised full‑year 2025 guidance to adjusted EPS of $5.03–$5.08 (from $4.70–$4.85) and forecast roughly $9 billion in sales; the company maintained its free cash flow margin guidance of about 9–10%. CEO Matthew Pine highlighted disciplined execution, and shares rose in premarket trading following the results.