Financial Performance - Total assets increased to $6,406 million in 2024, up from $5,693 million in 2023, representing a growth of 12.5%[282] - Sales for 2024 reached $5,193 million, a 3.4% increase from $5,021 million in 2023[284] - Gross profit improved to $3,105 million in 2024, compared to $2,901 million in 2023, marking an increase of 7.0%[284] - Net earnings for 2024 were $833 million, slightly down from $839 million in 2023, reflecting a decrease of 0.7%[288] - Research and development expenses rose to $253 million in 2024, up from $225 million in 2023, indicating an increase of 12.4%[284] - Retained earnings significantly increased to $917 million in 2024, compared to $178 million in 2023, showing a growth of 415.7%[290] - Total equity grew to $2,045 million in 2024, up from $1,389 million in 2023, representing a rise of 47.3%[282] - The company reported a comprehensive income of $716 million in 2024, down from $839 million in 2023, a decrease of 14.7%[288] - Long-term debt decreased slightly to $2,599 million in 2024 from $2,629 million in 2023, a reduction of 1.1%[282] - Cash and equivalents increased to $1,101 million in 2024, up from $762 million in 2023, reflecting a growth of 44.5%[282] - Net cash provided by operating activities was $875 million in 2024, down from $963 million in 2023, while cash used in investing activities increased to $434 million from $55 million in 2023[293] - The company reported total revenues of $5.193 billion for the year ended December 31, 2024, a 3.4% increase from $5.021 billion in 2023[354] - Recurring revenue for 2024 was $3.149 billion, while nonrecurring revenue was $2.044 billion[354] Goodwill and Acquisitions - As of December 31, 2024, Veralto's total goodwill was $2.7 billion, with no impairment recorded during the year[276] - The Company acquired TraceGains for approximately $349 million, resulting in $240 million of goodwill recorded[339][340] - In 2024, the Company completed three additional acquisitions for a total consideration of approximately $14 million, recording $3 million of goodwill[341] - Goodwill as of December 31, 2024, amounted to $2.693 billion, an increase from $2.533 billion in 2023[391] Internal Control and Compliance - The company assessed the effectiveness of its internal control over financial reporting as of December 31, 2024, concluding it was effective[255] - The independent auditor issued an unqualified opinion on the effectiveness of Veralto's internal control over financial reporting as of December 31, 2024[260] - The company’s management used the COSO framework for assessing internal control effectiveness[255] - TraceGains, acquired in 2024, represented less than 1% of total consolidated amounts and was excluded from the internal control assessment[256] - The company maintains compliance with various U.S. regulations, including the International Traffic in Arms Regulations and Export Administration Regulations[10] Segment Performance - The company operates through two segments: Water Quality and Product Quality & Innovation, focusing on essential technology solutions for global challenges[295] - Water Quality segment sales increased to $3,138 million in 2024, up 3.3% from $3,039 million in 2023[362] - Product Quality & Innovation segment sales rose to $2,055 million in 2024, a 3.7% increase from $1,982 million in 2023[362] - The total operating profit for the company was $1,208 million in 2024, up 6.0% from $1,140 million in 2023[362] - Operating profit for the Water Quality segment improved to $768 million in 2024, a 5.2% increase from $730 million in 2023[362] Debt and Financing - The Company issued approximately $2.1 billion in senior unsecured notes in September 2023, with maturity dates ranging from 2026 to 2033[401] - The Company entered into a five-year unsecured revolving credit facility with a committed amount of $1.5 billion, with no outstanding amounts as of December 31, 2024[407] - The carrying amount of long-term debt as of December 31, 2024, was $2,599 million, with a fair value of $2,638 million, compared to a carrying amount of $2,629 million and a fair value of $2,710 million in 2023[397] - The Company’s current credit rating as of December 31, 2024, is Baa1/BBB, with a facility fee of 9.0 basis points under the credit facility[408] Tax and Legal Matters - The effective income tax rate for 2024 was 23.3%, slightly lower than 23.4% in 2023[369] - The Company reported a net deferred tax liability of $12 million as of December 31, 2024, down from $73 million in 2023[370] - As of December 31, 2024, unrecognized tax benefits totaled $156 million, up from $97 million in 2023, reflecting a significant increase[375] - The Company recognized approximately $7 million of net tax expense from potential interest and penalties during 2024, compared to a net tax benefit of $1 million in 2023[375] - The company did not believe that ongoing legal proceedings would materially affect its business or financial statements[64] Stock-Based Compensation - The Company recorded a stock-based compensation expense of $65 million in 2024, compared to $55 million in 2023[293] - A total of 22 million shares of Veralto common stock have been authorized for issuance under the Stock Plan, with approximately 14 million shares remaining available as of December 31, 2024[443] - Stock options under the Stock Plan generally vest pro rata over a four to five-year period and terminate 10 years from the grant date[444] - RSUs granted under the Stock Plan vest pro rata over a four to five-year period, with certain senior management receiving performance-based RSUs[445] - PSUs issued under the Stock Plan can vest at 0% to 200% of the target share amount based on performance targets over a three-year period[446] Pension and Retirement Plans - The Company measures its pension and postretirement plans' funded status at the end of the fiscal year, recognizing any changes in funded status in comprehensive income[331] - The projected benefit obligation (PBO) decreased from $171 million in 2023 to $162 million in 2024, reflecting a year-over-year change in benefit plans with PBOs exceeding plan assets[419] - The fair value of plan assets decreased from $135 million in 2023 to $127 million in 2024, indicating a decline in the funded status of the pension plans[427] - The accumulated benefit obligation (ABO) decreased from $157 million in 2023 to $149 million in 2024, also showing a reduction in obligations exceeding plan assets[420] - The net periodic pension cost decreased from $4 million in 2023 to $2 million in 2024, reflecting changes in service and interest costs[422]

Group 1 - The core investment thesis for Veralto (NYSE: VLTO) remains positive, driven by favorable market conditions that are expected to enhance core sales growth and improve margins [1] - The investment strategy focuses on long-term positions while also utilizing short-term shorts to identify alpha opportunities, emphasizing a bottom-up analysis of individual companies' fundamentals [1] - The investment horizon is medium to long-term, targeting companies with strong fundamentals, sustainable competitive advantages, and growth potential [1]

Financial Performance - Total sales for 2024 grew 3.4% year-over-year to just under $5.2 billion, marking an all-time high [28] - Adjusted earnings per share increased 11% to $3.54 per share, exceeding initial guidance [28][29] - Free cash flow generation was strong at $820 million, with a cash balance of $1.1 billion and net leverage at 1.2 times [29] Business Segment Performance - Water Quality segment delivered $3 billion in annual sales with 3.9% core sales growth and an adjusted operating profit margin of 25% [30] - PQI segment achieved over $2 billion in sales with 3.3% core sales growth and an adjusted operating profit margin of 27% [30] - In Q4, Water Quality sales grew 3.7% year-over-year, while PQI sales increased 5.4% [49] Market Performance - North America and Western Europe, which comprise about 70% of total sales, grew nearly 6% [32] - Core sales in North America grew 5.8% across both segments, driven by strong demand in food & beverage, chemical processing, and power generation [33][36] - High growth markets saw low-single-digit growth year-over-year, with Latin America and India leading the way [38] Company Strategy and Industry Competition - The company executed disciplined capital allocation, acquiring TraceGains and investing in Axine Water Technologies while divesting AVT [19][24] - The focus remains on enhancing the portfolio and driving future value creation through strategic acquisitions [26] - The company anticipates low to mid-single-digit core sales growth for 2025, supported by strong demand trends in key end-markets [27] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the durability of the business model, supported by the Veralto Enterprise System [27][66] - Positive trends in end-markets, particularly in industrial water treatment and consumer packaged goods, were highlighted [27] - The company expects to continue leveraging its competitive advantages to drive growth even in dynamic macro environments [27][66] Other Important Information - R&D expenses increased to about 5% of sales, reflecting a 40 basis point year-over-year increase [15][44] - The company approved a 22% increase in its quarterly dividend, aligning with its growth strategy [56] Q&A Session Summary Question: Can you break down margin expansion expectations for segments? - Management indicated similar margin expansion contributions from both segments, with core growth expected in the low to mid-single-digit range [72][73] Question: What initiatives under VES are driving margin enhancement? - Management noted a focus on commercial execution and factory discipline, with tools from VES being effectively utilized [74][75] Question: How are growth investments impacting margins? - Management acknowledged that investments, particularly in TraceGains, have a dilutive effect on margins but are expected to set up for growth in 2025 [86][87] Question: What is the outlook for the CPG market recovery? - Management indicated that the CPG market is recovering, with six consecutive quarters of mid to high-single-digit recurring revenue growth [130] Question: How does the company view the impact of tariffs? - Management stated that current guidance does not reflect sustained impacts from tariffs, emphasizing a robust global supply chain [146]

Fourth Quarter and Full Year 2024 Results February 4, 2025 Opening Remarks Jennifer L. Honeycutt President and Chief Executive Officer Q4 2024 Results | February 4, 2025 Veralto / Full Year 2024 key consolidated financial results SALES ADJUSTED OPERATING PROFIT* ADJUSTED EPS* ADJUSTED EBITDA* FREE CASH FLOW* $1,251m 24.1% adjusted operating margin* +80 basis points year-over-year $3.54 +11% year-over-year $820m 98% free cash flow conversion* $1,291m 24.9% adjusted EBITDA margin* +80 basis points year-over-y ...

For the quarter ended December 2024, Veralto (VLTO) reported revenue of $1.35 billion, up 4.4% over the same period last year. EPS came in at $0.95, compared to $0.87 in the year-ago quarter.The reported revenue represents a surprise of +0.20% over the Zacks Consensus Estimate of $1.34 billion. With the consensus EPS estimate being $0.88, the EPS surprise was +7.95%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ne ...

Veralto (VLTO) came out with quarterly earnings of $0.95 per share, beating the Zacks Consensus Estimate of $0.88 per share. This compares to earnings of $0.87 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.95%. A quarter ago, it was expected that this water and product quality services provider would post earnings of $0.86 per share when it actually produced earnings of $0.89, delivering a surprise of 3.49%.Over the last f ...

Core Insights - Veralto reported steady growth in Q4 2024, with revenue of $1.345 billion, a 4.4% increase year-over-year, and adjusted earnings per share of $0.95, reflecting a 9.2% rise from the previous year [1][2] Financial Performance - Diluted EPS (non-GAAP) increased to $0.95 from $0.87, marking a 9.2% growth [2] - Revenue rose to $1.345 billion from $1.288 billion, a 4.4% increase [2] - Net earnings grew to $227 million from $200 million, a 13.5% increase [2] - Free cash flow increased to $263 million from $241 million, a 9.1% rise [2] - Operating margin remained stable at 23.8%, consistent with the prior year [2][6] Business Segments - Veralto operates in two main segments: water treatment solutions and printing and coding solutions [3] - Water treatment solutions generated $811 million in revenue, up from $782 million, indicating strong demand in North America [5] - Printing and coding solutions saw revenue increase to $534 million from $506 million, partly due to the acquisition of TraceGains [5] Strategic Initiatives - The company has focused on strategic acquisitions, including the purchase of TraceGains to enhance compliance software offerings [4][6] - R&D expenditures increased by approximately 21% year-over-year to $69 million, reflecting a technology-driven approach [6] Challenges and Outlook - Long-term debt remained approximately $2.599 billion, unchanged from 2023 [7] - Geopolitical tensions have negatively impacted sales in China, posing potential risks to future growth [7] - For 2025, Veralto anticipates core sales growth in the low- to mid-single-digit percentages and expects earnings per share between $3.60 and $3.70 [8]

Sales Performance - Fourth quarter sales increased by 4.4% year-over-year to $1,345 million, with non-GAAP core sales growth of 4.6%[6] - Full year sales rose 3.4% year-over-year to $5,193 million, with non-GAAP core sales growth of 3.7%[6] - Total sales for the three-month period ended December 31, 2024, reached $1,345 million, a 4.4% increase compared to $1,288 million in the same period of 2023[22] - For the year ended December 31, 2024, total sales were $5,193 million, a 3.4% increase from $5,021 million in 2023[26] - Core sales growth (non-GAAP) for the total company was 4.6% for the three-month period ended December 31, 2024, compared to the same period in 2023[32] - The impact of currency exchange rates contributed positively by 0.5% to total sales growth for the three-month period ended December 31, 2024[32] - Forecasted core sales growth for the three-month period ending April 4, 2025, is expected to be in the low-to-mid single digits compared to the comparable 2024 period[36] Earnings and Profitability - Adjusted diluted earnings per share for the fourth quarter were $0.95, compared to $0.81 in the same period last year[6] - The company reported a diluted net earnings per share of $0.91 for Q4 2024, up from $0.81 in Q4 2023[24] - The company is targeting adjusted diluted earnings per share in the range of $3.60 to $3.70 for the full year 2025[6] - Adjusted diluted net earnings per share for the year ending December 31, 2025, is forecasted to be between $3.60 and $3.70, with a range of $0.84 to $0.88 for the three-month period ending April 4, 2025[36] Cash Flow and Investments - The company generated operating cash flow of $875 million for the full year 2024, with non-GAAP free cash flow of $820 million[6] - Net cash provided by operating activities for the three-month period ended December 31, 2024, was $285 million, an increase of approximately 8.5% from $263 million in 2023[38] - Free cash flow for the three-month period ended December 31, 2024, was $263 million, reflecting a year-over-year increase of approximately 9.0% from $241 million in 2023[38] - Total cash used in investing activities for the year ended December 31, 2024, was $(434) million, compared to $(55) million in 2023[38] - The operating cash flow to net earnings conversion ratio for the three-month period ended December 31, 2024, was 1.26, compared to 1.32 in 2023[38] - Free cash flow to net earnings conversion ratio is expected to be between 90% and 100% for the year ending December 31, 2025[36] Operating Margins - Operating profit margin for the fourth quarter was 22.9%, with non-GAAP adjusted operating profit margin at 23.8%[6] - Operating profit for the same period was $308 million, reflecting an increase from $286 million year-over-year, resulting in an operating profit margin of 22.9%[22] - Adjusted (Non-GAAP) operating profit for the year ended December 31, 2024, was $1,251 million, with an adjusted operating profit margin of 24.1%[26] - The Water Quality segment's operating profit margin improved to 24.5% for the year ended December 31, 2024, compared to 24.0% in 2023[22] - Adjusted operating profit margin for the year ending December 31, 2025, is projected to increase by 25 to 50 basis points compared to the comparable 2024 period, reaching 24.0% to 24.5% for the three-month period ending April 4, 2025[36] - The company expects margin expansion of 25 to 50 basis points year-over-year for 2025[6] Strategic Initiatives - Veralto completed the acquisition of TraceGains, contributing to robust cash generation and strategic priorities[4] - Management emphasizes the importance of non-GAAP measures to provide additional insights into the company's operating and financial performance[40] - Exclusions from non-GAAP measures include amortization of intangible assets, restructuring charges, and other adjustments to facilitate consistent comparisons of operating results over time[42] Asset Management - Veralto's total assets increased to $6,406 million as of December 31, 2024, up from $5,693 million in 2023[13]

WALTHAM, Mass., Feb. 4, 2025 /PRNewswire/ -- 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 fourth quarter ended December 31, 2024.Key Fourth Quarter 2024 Results Sales increased 4.4% year-over-year to $1,345 million, with non-GAAP core sales growth of 4.6% Operating profit margin was 22.9% and non-GAAP adjusted operating profit margin was 23.8% Net earnings were $227 ...

WALTHAM, Mass., Jan. 15, 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 fourth quarter 2024 earnings conference call on Wednesday, February 5, 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.co ...