Financial Data and Key Metrics Changes - Total sales grew 6% year-over-year to $5.5 billion, marking an all-time high [8] - Adjusted earnings per share (EPS) was $3.90, up 10% year-over-year, indicating the second consecutive year of double-digit EPS growth [8] - Generated over $1 billion of free cash flow, strengthening the financial position [9] - In Q4, total sales grew 3.8% year-over-year to nearly $1.4 billion, with core sales growing 1.6% [22] Business Line Data and Key Metrics Changes - Water Quality segment delivered $846 million in total sales, up 4.3% year-over-year, with core sales growth of 1.4% [24] - PQI segment total sales grew 3% year-over-year to $550 million, with core sales growth of 1.8% [25] - Both segments experienced steady underlying demand, with pricing increases contributing to sales growth [22][24][25] Market Data and Key Metrics Changes - Core sales in North America grew 5.3%, while Western Europe saw a growth of 3.8% [9] - High-growth markets experienced a core sales increase of 5.1% year-over-year, led by Latin America, India, and the Middle East [12] - Core sales growth in China was modest, primarily driven by PQI [12] Company Strategy and Development Direction - The company aims for mid- to high-single-digit adjusted EPS growth in 2026, with a focus on strategic growth and disciplined capital allocation [17][30] - Recent acquisitions, including In-Situ, are expected to enhance the water analytics portfolio and drive growth in environmental markets [18][19] - The company is committed to leveraging its Veralto Enterprise System to drive continuous improvement and support customer needs [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in steady demand for products and services due to the ongoing need for clean water and safe food [7][17] - The company anticipates another year of core sales growth and continued margin expansion, despite potential macroeconomic challenges [30] - Management highlighted the importance of recurring revenue, which comprises 60% of total sales, providing stability against fluctuations in capital expenditure [40] Other Important Information - The company established a $750 million share repurchase program and announced an 18% increase in its dividend [7][29] - Free cash flow conversion was reported at 115% of GAAP net income for Q4 [22] Q&A Session Summary Question: Expectations on municipal CapEx and demand trends - Management sees steady demand across municipal and industrial markets, with government funding continuing to flow [40] Question: Impact of DRAM supply on business - Management indicated minimal exposure to DRAM, expecting no material impact [42] Question: Margin expansion guidance and cost considerations - Management expects 50 basis points of margin expansion, driven by pricing and the rolling off of tariff-related headwinds [50] Question: Data center growth potential - Management noted that while data center sales are growing, they remain a small part of the overall business and not expected to be a significant contributor in 2026 [54] Question: Performance in PQI related to high protein boom - Management reported stable demand in CPG markets, with opportunities arising from changes in dietary requirements and packaging [60] Question: Geographic performance in Western Europe - Management explained that fluctuations in Western Europe were primarily due to fewer shipping days impacting year-over-year comparisons [62] Question: EPS growth guidance and market conditions - Management indicated that while top-line growth is expected, EPS growth is forecasted to be more modest due to various factors, including the In-Situ acquisition [70] Question: Integration plans for In-Situ acquisition - Management expressed excitement about the In-Situ acquisition, highlighting opportunities for top-line and cost synergies [82]

Financial Data and Key Metrics Changes - Total sales for 2025 grew 6% year-over-year to $5.5 billion, marking an all-time high [6] - Adjusted earnings per share (EPS) was $3.90, up 10% year-over-year, indicating the second consecutive year of double-digit EPS growth [7] - Free cash flow exceeded $1 billion, strengthening the company's financial position [8] Business Line Data and Key Metrics Changes - Water Quality segment delivered $846 million in total sales for Q4, up 4.3% year-over-year, with core sales growth of 1.4% [22][23] - PQI segment total sales grew 3% year-over-year to $550 million in Q4, with core sales growth of 1.8% [24][25] - Both segments showed strong operating profit growth, with Water Quality's adjusted operating profit increasing 5.8% and PQI's adjusted operating profit up $13 million year-over-year [22][25] Market Data and Key Metrics Changes - Core sales in North America grew 5.3% and in Western Europe by 3.8% in 2025, with high-growth markets seeing a 5.1% increase [8][12] - Core sales growth in Water Quality was driven by strong demand in chemical processing, power generation, mining, and data centers [9] - In high-growth markets, core sales increased 5.1% year-over-year, led by Latin America, India, and the Middle East [11] Company Strategy and Development Direction - The company aims for continued core sales growth and margin expansion, with a focus on strategic growth and disciplined capital allocation [5][16] - Recent acquisitions, including In-Situ, are expected to enhance the company's water analytics portfolio and address freshwater challenges [17][19] - The company is committed to leveraging its Veralto Enterprise System to drive continuous improvement and support customer needs [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in steady demand for products and services due to the ongoing need for clean water and safe food [5][16] - The company anticipates another year of core sales growth in 2026, with adjusted EPS growth projected in the mid- to high single digits [29][30] - Management noted that underlying demand remains steady, despite some macroeconomic uncertainties [67] Other Important Information - The company established a $750 million share repurchase program and announced an 18% increase in its dividend [5][27] - The acquisition of In-Situ was completed early in 2026, funded with cash on hand, and is expected to contribute significantly to growth [26][29] Q&A Session Summary Question: Expectations on municipal CapEx and demand trends - Management sees steady demand across both municipal and industrial markets, with strong growth in industrial sectors like data centers [39] Question: Impact of DRAM supply on business - The company's exposure to DRAM is minimal, and no material impact is expected [40] Question: Margin expansion guidance and inflation concerns - Management expects 50 basis points of margin expansion, driven by pricing and the rolling off of tariff-related headwinds [48][49] Question: Data center growth potential - Data centers represent a small but growing segment, with expectations for continued double-digit growth [52] Question: Geographic performance in Western Europe - The year-over-year performance was impacted by fewer shipping days, but overall execution remains strong [61] Question: Guidance range for sales growth - The company aims for low to mid-single-digit growth, with various factors influencing the range [101]

Fourth Quarter and Full Year 2025 Results February 3, 2026 Forward Looking Statements Certain statements in this presentation, including the statement regarding the Company's first quarter and full year 2026 financial performance, 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 ...

分组1 - Veralto reported quarterly earnings of $1.04 per share, exceeding the Zacks Consensus Estimate of $0.98 per share, and showing an increase from $0.95 per share a year ago, resulting in an earnings surprise of +6.01% [1] - The company posted revenues of $1.4 billion for the quarter ended December 2025, which was 0.53% below the Zacks Consensus Estimate, but an increase from $1.35 billion year-over-year [2] - Over the last four quarters, Veralto has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] 分组2 - The stock has gained approximately 1.7% since the beginning of the year, compared to the S&P 500's gain of 1.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.04 on revenues of $1.42 billion, and for the current fiscal year, it is $4.20 on revenues of $5.86 billion [7] 分组3 - The Waste Removal Services industry, to which Veralto belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - GFL Environmental Inc., another company in the same industry, is expected to report quarterly earnings of $0.14 per share, reflecting a year-over-year decline of 12.5%, with revenues anticipated to be $1.19 billion, down 16.2% from the previous year [9][10]

Sales Performance - Fourth quarter 2025 sales increased by 3.8% year-over-year to $1,396 million, with non-GAAP core sales growth of 1.6%[7] - Full year 2025 sales reached $5,503 million, reflecting a 6.0% year-over-year increase, with non-GAAP core sales growth of 4.7%[7] - Total sales for the three-month period ended December 31, 2025, reached $1,396 million, a 3.8% increase compared to $1,345 million in the same period of 2024[24] - For the year ended December 31, 2025, total sales were $5,503 million, representing a 6.0% growth compared to $5,193 million in 2024[29] - Water Quality segment sales increased to $846 million, while Product Quality & Innovation segment sales rose to $550 million, reflecting growth rates of 4.3% and 3.0% respectively[35] - Core sales growth for the three-month period was 1.6%, with Water Quality at 1.4% and Product Quality & Innovation at 1.8%[35] - The impact of currency exchange rates negatively affected total sales growth by 2.5% for the three-month period ended December 31, 2025[35] Earnings and Profitability - Adjusted diluted earnings per share for the full year 2025 were $3.90, up from $3.34 in 2024, representing a growth of 16.7%[7] - Operating profit for the same period was $316 million, with an operating profit margin of 22.6%, slightly down from 22.9% in the previous year[26] - Adjusted operating profit for the year was $1,337 million, with an adjusted operating profit margin of 24.3%[29] - The company reported a diluted net earnings per share of $1.01 for the three-month period ended December 31, 2025, up from $0.91 in the same period of 2024[26] - The adjusted (non-GAAP) diluted net earnings per share for the year ended December 31, 2025, was $3.90, compared to $3.54 in 2024[29] - Adjusted diluted net earnings per share for the three-month period is estimated to be between $0.97 and $1.01[42] - For the year ending December 31, 2026, adjusted diluted net earnings per share is expected to range from $4.10 to $4.20[42] Cash Flow and Financial Management - The company generated over $1 billion in free cash flow for the full year 2025[4] - Operating cash flow for 2025 was $1,077 million, with non-GAAP free cash flow at $1,014 million[7] - Net cash provided by operating activities for the three-month period ended December 31, 2025, was $311 million, a year-over-year increase of ~9.0%[44] - Free cash flow for the same period was $291 million, reflecting a year-over-year increase of ~10.5%[44] - The operating cash flow to net earnings conversion ratio for the year ended December 31, 2025, was 1.22[44] - Free cash flow to net earnings conversion ratio for the year ended December 31, 2025, was 1.15[44] - The company expects adjusted diluted earnings per share in the range of $4.10 to $4.20 for 2026, with free cash flow conversion of approximately 100% of GAAP net earnings[9] - Free cash flow to net earnings conversion ratio is projected to be approximately 100%[42] Future Guidance and Strategic Initiatives - For Q1 2026, the company anticipates non-GAAP core sales growth to be flat to low-single digits year-over-year, with adjusted operating profit margin around 24.5%[5] - Full year 2026 guidance projects non-GAAP core sales growth in the low-to-mid-single digits and an adjusted operating profit margin expansion of approximately 25 basis points[6] - Forecasted core sales growth for the three-month period ending April 3, 2026, is expected to be approximately flat to low-single digits compared to the comparable 2025 period[42] - For the year ending December 31, 2026, core sales growth is anticipated to be in the low-to-mid-single digits compared to the 2025 period[42] - The company completed the acquisition of In-Situ in January 2026, enhancing its water analytics portfolio[4] - A $750 million share repurchase program was established, alongside an 18% increase in the dividend[4] - The company incurred $4 million in costs related to strategic initiatives during the three-month period ended December 31, 2025[32]

Core Viewpoint - Veralto (VLTO) is expected to report its fourth-quarter 2025 results on February 3, with a strong earnings surprise history, having exceeded the Zacks Consensus Estimate in the last four quarters with an average surprise of 6.5% [2][8]. Group 1: Q4 Expectations - The Zacks Consensus Estimate for VLTO's revenues in the upcoming quarter is $1.4 billion, reflecting a year-over-year increase of 4.3% [3][9]. - The Water Quality segment is projected to generate revenues of $836.3 million and operating income of $218.3 million, indicating year-over-year increases of 3.1% and 9.4%, respectively [4][9]. - The Product Quality & Innovation segment is expected to report revenues of $555.2 million and operating income of $145.2 million, representing year-over-year growth of 4% and 17%, respectively [5][9]. Group 2: Growth Drivers - The growth in the Water Quality segment is attributed to rising demand for innovative products and services, including analytical measurement instruments and tailored chemical treatment plans, driven by brands like Hach and Trojan Technologies [4]. - The Product Quality & Innovation segment's growth is supported by VLTO's marking and coding, packaging, and color services, particularly through the Esko brand, which has expanded its software solutions in the mid-market consumer-packaged goods segment [5]. - The recent acquisition of TraceGains is expected to enhance VLTO's growth by integrating its supply chain traceability and compliance expertise into the Veralto Enterprise System, improving market presence and operational efficiency [6]. Group 3: Earnings Outlook - The consensus estimate for VLTO's earnings is 98 cents per share, indicating a year-over-year growth of 3.2% [7]. - The company's Earnings ESP is currently at 0.00%, and it holds a Zacks Rank of 2 (Buy), suggesting that the odds of an earnings beat are not conclusive this time [8].

Core Viewpoint - Veralto Corporation will host a webcast for its fourth quarter 2025 earnings conference call on February 4, 2026, at 8:30 a.m. ET, highlighting its commitment to transparency and investor engagement [1]. Group 1: Earnings Call Details - The earnings conference call can be accessed by dialing 1-800-267-6316 within the U.S. or +1 203-518-9783 internationally, with a Conference ID of VLTO4Q25 [3]. - A replay of the conference call will be available until February 18, 2026, providing investors with continued access to the information shared [3]. - Veralto's earnings news release and related materials will be posted on its website after market close on February 3, 2026 [3]. Group 2: Company Overview - Veralto has annual sales of $5 billion and is recognized as a global leader in essential technology solutions [4]. - The company employs nearly 17,000 associates and is dedicated to addressing complex societal challenges, particularly in providing access to clean water, safe food, and trusted essential goods [4]. - Veralto's mission is encapsulated in its purpose statement: "Safeguarding the World's Most Vital Resources" [4].

Core Insights - Veralto Corporation (VLTO) is a global provider of water analytics, treatment, marking and coding, packaging, and color solutions, with a market capitalization of approximately $25.5 billion [1] Financial Performance - Analysts project diluted EPS of $0.98 for fiscal 2025 Q4, reflecting a 3.2% increase from $0.95 in the previous year, with Veralto having exceeded EPS estimates in the last four quarters [2] - For fiscal 2025, Wall Street forecasts diluted EPS of $3.84, indicating an 8.5% year-over-year growth, with expectations for EPS to reach $4.20 in fiscal 2026, a 9.4% increase from the prior year [3] Stock Performance - VLTO stock has shown marginal gains over the past 52 weeks, up nearly 3% year-to-date, while the S&P 500 Index has increased by 17.7% over the same period [4] - The First Trust Water ETF (FIW) has gained nearly 12% over the past 52 weeks, further highlighting the relative underperformance of Veralto [4] Strategic Developments - On November 25, 2025, Veralto's shares rose 5.9% intraday following the announcement of its acquisition of In-Situ for $435 million, expected to close in Q1 2026 [5] - The acquisition is anticipated to add scale and profitability, with In-Situ projected to generate about $80 million in revenue for 2025, alongside gross margins near 50% and mid-teens EBITDA margins [6] - Veralto expects approximately $11 million in pre-tax run-rate cost synergies by year three from the acquisition, along with significant commercial and operational benefits [6] Capital Return Strategy - Veralto has authorized a share repurchase program of up to $750 million, allowing for flexibility in executing buybacks over time [7]

Core Insights - Veralto Corporation (VLTO) is experiencing rapid growth primarily due to its Water Quality (WQ) and Product Quality & Innovation (PQI) segments [1] Group 1: Water Quality Segment - The WQ segment is benefiting from innovative products and services that enhance water quality and reliability, driven by the CHIPS Act of 2022, increased demand for digital tools, AI, and government funding for water infrastructure [2] Group 2: Product Quality & Innovation Segment - The PQI segment is growing quickly by catering to consumer-packaged goods (CPG), life sciences, and pharmaceutical companies, with the Marketing & Coding (M&C) sub-segment being vital for digitalization and customer engagement [3] Group 3: Recent Developments - The acquisition of TraceGains enhances VLTO's capabilities in supply chain traceability and compliance, further supporting its growth trajectory [4] Group 4: Financial Performance - VLTO holds a Zacks Rank 2 (Buy), indicating strong investment potential, with a history of positive earnings surprises averaging 6.5% over the last four quarters [5][6] - The consensus estimate for Q4 2025 revenues is $1.40 billion, reflecting a 4.4% increase year-over-year, while the full-year estimate for 2025 is $5.5 billion, indicating a 6.1% rise [6] - Earnings estimates for Q4 2025 are projected at 98 cents per share, showing a 3.2% growth year-over-year, with a full-year estimate of $3.8 per share, implying an 8.5% increase from the previous year [7] Group 5: Market Position - VLTO's growth is supported by rising demand for digital and AI solutions, with the TraceGains acquisition strengthening its market position [10]

Company Overview - Veralto Corporation (VLTO) is an industrial-technology company based in Waltham, Massachusetts, operating globally in two main segments: Water Quality (WQ) and Product Quality & Innovation (PQI) [1] - The company has a market capitalization of approximately $24.4 billion, classifying it as a large-cap stock, which highlights its size and influence in the pollution and treatment controls industry [2] Stock Performance - The stock is currently trading 10.6% below its 52-week high of $110.11, which was reached on August 22, and has declined 7.1% over the past three months, underperforming the S&P 500 Index's 5% gains during the same period [3] - Over the past 52 weeks, VLTO has fallen 7.9% and 3.8% year-to-date (YTD), significantly underperforming the S&P 500's 13.3% rise over the past year and 16.3% gains this year [4] Market Sentiment and Challenges - The stock has faced pressure due to a mix of investor caution and structural concerns, including scrutiny over a recent acquisition plan for In-Situ and worries about demand weakness in regions like China, which may hinder growth prospects [5] - VLTO has underperformed compared to its rival, CECO Environmental Corp., which has surged 70.5% over the past 52 weeks and 89.8% YTD [5] Analyst Ratings - The stock has a consensus rating of "Moderate Buy" from 18 analysts, with a mean price target of $115.31, indicating a potential 17.2% premium to its current price levels [6]