WALTHAM, Mass., July 10, 2025 /PRNewswire/ -- Veralto Corporation (NYSE: VLTO), a global leader in essential water and product quality solutions dedicated to Safeguarding the World's Most Vital Resources™, announced that it will webcast its second quarter 2025 earnings conference call on Tuesday, July 29, 2025, beginning at 8:30 a.m. ET. A registration link to the webcast and a link to the accompanying slide presentation will be available on the "Investors" section of Veralto's website, www.veralto.com, und ...

Company Overview - Veralto Corporation (NYSE: VLTO) is an American company specializing in water analytics, water treatment, marking and coding, packaging, and color solutions [1] - The company was previously a division within DHR and was spun off in 2023 [1] Investment Insights - The article reflects an independent analyst's interest in investing at the intersection of value and growth, focusing on small-cap companies [1] - The analyst employs a qualitative approach to identify long-term compounders and special situations [1]

Core Insights - Veralto (VLTO) reported revenue of $1.33 billion for the quarter ended March 2025, reflecting a year-over-year increase of 6.9% and surpassing the Zacks Consensus Estimate by 3.79% [1] - The company's EPS for the quarter was $0.95, up from $0.84 in the same quarter last year, exceeding the consensus estimate of $0.87 by 9.20% [1] Financial Performance Metrics - Sales in Product Quality & Innovation reached $538 million, exceeding the average estimate of $512.40 million by analysts, marking an 8.3% year-over-year increase [4] - Water Quality sales amounted to $794 million, surpassing the average estimate of $772 million, with a year-over-year growth of 6% [4] - Operating profit for Water Quality was reported at $198 million, slightly above the average estimate of $195.20 million [4] - Operating profit for Other segments was -$22 million, better than the average estimate of -$25 million [4] - Operating profit in Product Quality & Innovation was $146 million, exceeding the average estimate of $141.15 million [4] Stock Performance - Over the past month, Veralto's shares have returned -4.6%, compared to a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - Veralto Corporation (VLTO) reported strong first-quarter 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1] - The stock has underperformed compared to the industry and the Zacks S&P 500 Composite over the past year [2] Financial Performance - Adjusted earnings per share for the quarter were 95 cents, surpassing the consensus by 9.2% and increasing 13.1% year over year [1] - Total revenues reached $1.33 billion, beating the consensus by 3.8% and growing 6.9% from the previous year [1] - The Water Quality segment generated revenues of $794 million, remaining flat year over year and exceeding the estimate of $772 million [3] - The Product, Quality & Innovation segment saw revenues of $538 million, an 8.3% year-over-year increase, outperforming the projection of $512.4 million [3] - Adjusted EBITDA was $343 million, reflecting an 8.9% rise from the year-ago quarter, with an adjusted operating EBITDA margin improvement of 50 basis points to 25.8% [3] Cash Flow and Balance Sheet - Veralto ended the quarter with cash and cash equivalents of $1.24 billion, up from $827 million in the prior year [4] - Long-term debt was reported at $2.63 million, slightly up from $2.62 billion at the end of the previous quarter [4] - The company generated $157 million in cash from operating activities, with capital expenditures of $15 million, resulting in free cash flow of $142 million [4] Future Guidance - For Q2 2025, Veralto anticipates revenue growth in the low-to-mid single-digit range year over year, with adjusted diluted earnings per share projected between 84 cents and 88 cents, below the Zacks Consensus Estimate of 92 cents [5] - For the full year 2025, the company reaffirms its adjusted earnings per share guidance of $3.60 to $3.70, with a midpoint of $3.65, slightly below the current year's Zacks Consensus Estimate of $3.66 [6] - The outlook assumes core sales growth in the low-to-mid single-digit range and adjusted operating profit margins to expand by up to 50 basis points year over year or remain flat [6]

Financial Data and Key Metrics Changes - Total sales grew 6.9% year over year to over $1.3 billion, with core sales growth at 7.8% driven by broad-based volume gains across both segments [25][26] - Adjusted earnings per share (EPS) increased 13% year over year to $0.95, exceeding guidance primarily due to better-than-expected sales volumes [11][27] - Adjusted operating profit margin expanded 50 basis points year over year to 25%, marking an all-time high [11][27] Business Line Data and Key Metrics Changes - Water Quality segment sales increased 6% year over year to $794 million, with core sales growing 7.4% driven by strong demand for water treatment solutions [28][29] - PQI segment sales grew 8.3% year over year to $538 million, with core sales growth led by volume growth of 6.7% and price increases contributing 1.6% [30][31] Market Data and Key Metrics Changes - Sales growth in Western Europe was robust at nearly 11%, with double-digit growth in both segments [13] - North America saw sales growth of approximately 8%, with high single-digit growth in both segments [13][15] - High growth markets experienced a 6% year-over-year increase, with strong growth in Latin America, India, and the Middle East [17] Company Strategy and Development Direction - The company is actively deploying countermeasures to mitigate changes in the global trade and tariff landscape, enhancing operational flexibility [8][19] - The acquisition of AquaFetus for $20 million is expected to expand the company's UV treatment portfolio and enhance service capabilities in Europe [12] - The company aims to leverage its enterprise system to drive continuous improvement and agility in navigating macroeconomic challenges [22][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic macroeconomic environment, citing the essential nature of their products and durable business model [19][38] - The company anticipates steady growth in the Water Quality segment due to the critical nature of its products and high levels of recurring sales [29] - Management reaffirmed full-year 2025 adjusted EPS guidance of $3.6 to $3.7 per share, with core sales growth expected to remain in the low to mid-single digits [34][36] Other Important Information - The company generated $142 million in free cash flow, an increase of $40 million year over year, driven by growth in earnings [27][32] - The company opened its first U.S. factory in Grand Rapids, Michigan, to support domestic UV water treatment customers, enhancing supply chain flexibility [20][21] Q&A Session Summary Question: Can you provide more color on the sequencing of tariff mitigation? - Management indicated confidence in mitigating tariffs, with gross exposure estimated at 3.5% of sales, and emphasized ongoing optimization efforts [44][45] Question: Have you seen any changes in demand indicators for Videojet? - Management reported strong demand remains for the PQI business, with no indications of softening in order patterns [48][49] Question: Can you discuss price elasticity regarding consumables versus equipment? - Management noted a surgical approach to pricing, with 80% of sales tied to essential goods, indicating a sticky relationship with customers [55][57] Question: What are the implications of the recent EPA announcement regarding PFAS? - Management expressed excitement about opportunities in PFAS analysis and treatment, emphasizing their commitment to innovation in this area [59][60] Question: How do you view the impact of tariffs on your competitive positioning? - Management sees potential advantages in market dislocations, leveraging their asset-light manufacturing model to navigate tariff impacts effectively [88][89]

Veralto (VLTO) Q1 2025 Earnings Call April 30, 2025 08:30 AM ET Company Participants Ryan Taylor - Vice President - IRJennifer Honeycutt - President & CEOSameer Ralhan - Senior VP & CFOScott Davis - CEO & ChairmanDeane Dray - Managing DirectorMichael Halloran - Associate Director of ResearchNathan Jones - Managing DirectorJeffrey Sprague - Founder and Managing PartnerAndrew Buscaglia - Executive DirectorNatalia Bak - Equity Research AssociateBrian Lee - Vice President Conference Call Participants John McNul ...

First Quarter 2025 Results April 29, 2025 Forward Looking Statements Certain statements in this presentation, including statements regarding the Company's second quarter and full year 2025 financial performance and guidance, the Company's differentiation and positioning to continue delivering sustainable, long-term shareholder value and any other statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward-looking" statements within the meaning of th ...

Veralto, which belongs to the Zacks Waste Removal Services industry, posted revenues of $1.33 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.79%. This compares to year-ago revenues of $1.25 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on th ...

Exhibit 99.1 Veralto Reports First Quarter 2025 Results WALTHAM, Mass., (April 29, 2025) – Veralto (NYSE: VLTO) (the "Company"), a global leader in essential water and product quality solutions dedicated to Safeguarding the World's Most Vital Resources™ announced results for the first quarter ended April 4, 2025. Key First Quarter 2025 Results 2025 Guidance The Company provides forecasted sales only on a non-GAAP basis because of the difficulty in estimating the other components of GAAP sales, such as curre ...

Core Insights - Veralto reported strong first quarter results for 2025, highlighting disciplined execution across its segments, leading to core sales growth, margin expansion, and double-digit adjusted earnings per share growth [3][4][5] Financial Performance - Total sales increased by 6.9% year-over-year to $1,332 million, with non-GAAP core sales growth of 7.8% [9] - Operating profit margin was 24.2%, while non-GAAP adjusted operating profit margin was 25.0% [9] - Net earnings reached $225 million, translating to $0.90 per diluted common share, with non-GAAP adjusted net earnings at $237 million or $0.95 per diluted common share [9][15] Segment Performance - Core sales growth was broad-based across Product Quality and Innovation (PQI) and Water Quality, with PQI benefiting from positive trends in consumer-packaged goods markets [4] - Water Quality saw robust growth in water treatment solutions in North America and double-digit growth in Europe for water analytics [4] Guidance and Outlook - For Q2 2025, Veralto anticipates non-GAAP core sales growth in the low-to-mid single digits, with adjusted diluted earnings per share projected between $0.84 and $0.88 [7][23] - The full year 2025 adjusted earnings per share guidance is reaffirmed in the range of $3.60 to $3.70, with free cash flow conversion expected between 90% to 100% [8][22] Cash Flow - Operating cash flow for the first quarter was $157 million, with non-GAAP free cash flow at $142 million, reflecting a 39% increase year-over-year [25]