Xylem Inc. Reports $2.268 Billion Revenue in Q3 2025, Up 7.8% Year-Over-Year

Xylem Inc. reported a revenue of $2.268 billion for the third quarter of 2025, marking a 7.8% increase from $2.104 billion in the same period last year. The growth was primarily driven by organic revenue growth of 6.9%, with notable contributions from the Measurement and Control Solutions and Water Solutions and Services segments, which experienced double-digit growth. For the nine months ending September 30, 2025, total revenue reached $6.638 billion, up 5.3% from $6.306 billion in the prior year. The company's net income attributable to Xylem for the quarter was $227 million, or $0.93 per share, compared to $217 million, or $0.89 per share, in the previous year.

In terms of operational performance, Xylem's gross profit for the third quarter was $883 million, reflecting a gross margin of 38.9%, an increase from 37.3% in the prior year. The company reported total operating expenses of $549 million, which represented 24.2% of revenue, slightly up from 24.0% in the previous year. The operating income for the quarter was $334 million, with an operating margin of 14.7%, up from 13.3% in the same quarter last year. The increase in operating income was attributed to productivity savings and price realization, although it was partially offset by rising inflation and increased strategic investment spending.

Xylem has also been active in strategic acquisitions, including the purchase of Vacom Systems, LLC, a wastewater treatment company, for $42 million, and Simply Clean Air and Water, Inc. for $7 million. Additionally, the company acquired EMX Holdings, Inc. for $106 million, enhancing its offerings in the Water Infrastructure segment. These acquisitions are expected to contribute to future revenue growth and operational synergies. However, the company also recorded a loss of $37 million from the sale of its Evoqua Magneto business, which was completed in February 2025.

The company’s total assets increased to $17.295 billion as of September 30, 2025, up from $16.493 billion at the end of 2024. This growth was supported by an increase in cash and cash equivalents, which rose to $1.191 billion from $1.121 billion. Xylem's employee headcount has also seen a rise, reflecting its expansion efforts. The company reported a backlog of $4.819 billion, a decrease from $5.253 billion a year earlier, primarily due to revenue growth outpacing order intake.

Looking ahead, Xylem has raised its total revenue growth outlook for 2025 to between 5% and 6%, with organic revenue growth projected at 4% to 5%. This optimistic outlook is tempered by ongoing geopolitical and macroeconomic uncertainties, which could impact the company's performance. The management remains focused on executing its strategic initiatives while navigating the challenges posed by the current market environment.