Headlines: , /PRNewswire/ -- Waters Corporation (NYSE: WAT) today unveiled the Waters Xevo Charge Detection Mass Spectrometer (CDMS), delivering unmatched measurement and characterization for the broadest range of mega-mass biomolecules central to next-generation therapeutics and structural biology. With the rapid growth of cell and gene therapies, mRNA, and complex protein therapeutics, scientists face significant challenges in analyzing increasingly large and heterogeneous drug modalities – yet existing ...

Core Points - Waters Corporation (NYSE: WAT) will hold its Q3 2025 financial results conference call on November 4th, 2025 at 8:00 a.m. Eastern Time [1] - A live webcast of the presentation will be available on Waters Investor Relations website, with a replay accessible until December 2nd, 2025 [1] - Waters Corporation is a global leader in analytical instruments, separations technologies, and software, serving various sectors for over 65 years [1] - The company operates in over 100 countries with more than 7,600 employees, focusing on the efficacy of medicines, safety of food, purity of water, and sustainability of products [1] Financial Performance - The company reported its financial results for the second quarter of 2025, with sales amounting to $771 million [3]

"3i奖-科学仪器行业优秀新品奖"评选活动，2025年上半年提名奖评审已经顺利结束。在2025年2月15日至7月15日期间，国内外仪器厂商 共申报了243台仪器新品，其中包含2024年和2025年上市的新品。 各位评审专家按照严格的评审程序，对申报的新品进行网上、网下的评议，逐一进行打分并给出评审意见。"技术评审委员会主席团"承担各个 阶段评审工作的监督、检查工作，对"提名奖"名录、年度"优秀新品奖"名录拥有最终裁决。"3i奖-科学仪器行业优秀新品奖"评审团队由300 余位业内资深专家组成，分别来自高校、研究所和企业，从事仪器研制、制造和应用相关工作，并热心仪器事业、办事公正，具有研究员、教 授等高级职称的专家所占比例超过了90%。 经专业编辑团初审、网络评审团评审、技术评审委员会主席团审核，现已确定2025年上半年"提名奖"名单。荣获2025年上半年"提名奖"的新 品共有40台，比例约为16%。 其中，质谱类共有4款新品获得"提名奖"。 "3i奖-科学仪器优秀新品奖"2025年上半年"提名奖"名单(排名不分先后) 摘要 ： 经专业编辑团初审、网络评审团评审、技术评审委员会主席团审核，现已确定2025年上半年 ...

With a market cap of $18.2 billion, Waters Corporation (WAT) is a leading global provider of analytical instruments and workflow solutions. The company operates through two segments, Waters and TA, offering technologies in liquid chromatography, mass spectrometry, thermal analysis, rheometry, and calorimetry, along with software and consumables. Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Waters fits this criterion perfectly. Serving pharmaceutical, life sci ...

Core Insights - The company reported a quarter with high single-digit instrumentation growth, indicating strong performance in its base business [1] - There was a slight softness in the TA segment, but overall results were better than expected across various areas [1] - The company continues to experience momentum similar to Q1, suggesting a consistent growth trajectory [1] Business Performance - The base business is described as going from strength to strength, with ongoing positive momentum [1] - The company acknowledges a repetitive success pattern, indicating a stable operational strategy [1] Instrument Replacement Cycle - Discussion around the instrument replacement cycle is anticipated, suggesting it is a significant factor for future growth [1]

Financial Data and Key Metrics Changes - The company reported high single-digit growth in instrumentation, with a notable performance in the base business, continuing momentum from previous quarters [3][4] - Service attachment rates have reached 52%, and e-commerce penetration is above 45% [4] - The company experienced a 20% decline in TA in the U.S., primarily due to R&D testing in material science, while international markets, particularly China, showed strong growth [7][8] Business Line Data and Key Metrics Changes - New product launches contributed significantly to the overall growth, with the Alliance IS achieving three times the sales compared to last year and TQ Absolute XR setting new standards in its category [5][18] - PFAS testing grew by 30% this quarter, although it slowed from 90% growth in Q1, with year-to-date growth close to 50% [6] - GLP-one testing saw a 70% increase in the first half of the year, and India generics experienced growth in the high teens to low twenties [6] Market Data and Key Metrics Changes - The U.S. market for TA declined, but outside the U.S., growth was robust, particularly in China, which saw double-digit growth driven by CDMO activity [7][8] - The LCMS segment maintained high single-digit growth, indicating a healthy replacement cycle still in progress [9][10] Company Strategy and Development Direction - The company aims to build a biologics QC domain, focusing on acquiring technologies and capabilities to enhance its portfolio, particularly in mass spectrometry and flow cytometry [21][24] - Strategic synergies from the recent acquisition are expected to yield significant operational improvements, with a target of $200 million in synergies identified [26][39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth in China, particularly in the pharma segment, despite a cautious outlook for the remainder of the year [70][71] - The company is focused on maintaining its base business performance while preparing for the integration of the new acquisition [53][54] Other Important Information - The company plans to raise $4 billion in debt to fund the acquisition, with an expected leverage ratio of about 2.5 to 2.6 [63] - Management emphasized the importance of cultural integration and maintaining operational efficiency during the merger process [56][58] Q&A Session Summary Question: What is the state of the instrument replacement cycle? - Management indicated that the replacement cycle is progressing well, with high single-digit growth in LCMS, suggesting that there is still significant room for growth beyond the average [9][10] Question: How is the CapEx approval process evolving? - The company noted that while the replacement cycle is strong, the velocity of the CapEx approval process has not improved post-pandemic [14][15] Question: What are the competitive dynamics in the LC market? - Management highlighted that displacing competitors in the replacement segment is challenging, but new product offerings have been well received, leading to significant growth in that area [16][17] Question: How will the company integrate with BD post-acquisition? - The integration plan involves securing the base business, validating plans developed pre-announcement, and identifying key individuals accountable for delivering synergies [53][56] Question: What is the outlook for the generics industry amidst tariff discussions? - Management indicated that the generics industry is exempt from tariffs, and there are no significant concerns regarding the impact of tariffs on the business [64][66]

Financial Data and Key Metrics Changes - The company reported high single-digit growth in instrumentation, with a notable performance in the base business, continuing momentum from previous quarters [3][4] - Service attachment rate reached 52%, and e-commerce penetration exceeded 45% [4] - The company experienced a 20% decline in TA in the U.S., primarily due to R&D testing in material science, while international markets, particularly China, showed strong growth [7][8] Business Line Data and Key Metrics Changes - New products contributed significantly to the overall growth, with Alliance IS sales tripling compared to the previous year and TQ Absolute XR setting new standards in its category [5][6] - PFAS testing grew by 30% this quarter, although it slowed from 90% growth in Q1, with year-to-date growth close to 50% [6] - The generics market in India showed growth in the high teens to low twenties percentage range [7] Market Data and Key Metrics Changes - The U.S. experienced a decline in TA, while China reported high single-digit to double-digit growth driven by CDMO activity [8] - The company noted that the LCMS growth remained strong, indicating that the replacement cycle is still ongoing, with significant growth potential in segments that have not yet participated [9][12] Company Strategy and Development Direction - The company aims to build a biologics QC domain, focusing on acquiring bioanalytical instruments and reagents, particularly antibodies [22][24] - The strategic fit of the recent acquisition was emphasized, with plans to enhance operational improvements and synergies [26][28] - The company is focused on maintaining its base business while integrating the new acquisition, ensuring that cultural elements from both organizations are respected [58][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth in China, particularly in the pharma and CDMO segments, despite some challenges in the generics market [70][72] - The company is cautious about future growth, projecting low to mid-single-digit growth in China for the remainder of the year [71][72] - Management highlighted the importance of operational improvements and synergies from the acquisition, with a focus on execution and accountability [61][63] Other Important Information - The company plans to raise $4 billion in debt to fund the acquisition, with an expected leverage ratio of about 2.5 to 2.6 [64] - There is a focus on cultural integration and ensuring that the strengths of both companies are leveraged effectively [59][60] Q&A Session Summary Question: What are the growth drivers in the current market? - Management highlighted the ongoing replacement cycle in the LCMS market and the strong performance of new products as key growth drivers [9][10] Question: How does the company plan to integrate the new acquisition? - The integration will focus on maintaining the base business while validating plans developed prior to the acquisition announcement, with a clean team to oversee the process [56][58] Question: What are the expected synergies from the acquisition? - The company anticipates $200 million in cost synergies, with potential for additional savings based on operational improvements [26][38] Question: How is the company addressing cultural integration post-acquisition? - Management emphasized the importance of respecting the existing cultures of both organizations and focusing on execution and accountability [59][60]

Core Viewpoint - Waters Corporation reported strong second-quarter earnings, surpassing estimates and showing year-over-year growth in both earnings and revenue, indicating positive momentum leading into the next earnings release [2][9]. Financial Performance - Non-GAAP earnings for Q2 2025 were $2.95 per share, exceeding the Zacks Consensus Estimate by 0.68% and reflecting a 12% increase year-over-year [2]. - Net sales reached $771.33 million, surpassing estimates by 3.63%, with a 9% increase on a reported basis and 8% on a constant currency basis year-over-year [2]. - The adjusted operating margin was 29.1%, a slight contraction of 10 basis points year-over-year [7]. Segment Performance - The Waters segment accounted for 89.3% of net sales, generating $688.8 million, up 11% year-over-year [3]. - Instruments sales (40% of net sales) were $308.4 million, increasing 5% year-over-year, while Services (38.6% of net sales) saw sales of $297.9 million, climbing 9% [4]. - Chemistry sales (21.4% of net sales) grew 17% year-over-year to $165 million [4]. Market Breakdown - The Pharmaceutical market, representing 59.9% of net sales, generated $462 million, up 11% year-over-year [5]. - The Industrial market (30.8% of net sales) reported sales of $237.7 million, a 7.3% increase year-over-year [5]. - The Academic & Government market (9.3% of net sales) remained flat year-over-year at $71.7 million [5]. Geographic Performance - Asia accounted for 34.5% of net sales with $265.9 million, up 12% year-over-year [6]. - Sales in the Americas (36.4% of net sales) were $280.7 million, increasing 2% year-over-year [6]. - Europe (29.1% of net sales) generated $224.6 million, reflecting a 14% year-over-year increase [6]. Guidance and Outlook - For Q3 2025, Waters expects non-GAAP earnings of $3.15-$3.25 per share, indicating year-over-year growth of approximately 8% to 11% [9]. - For the full year 2025, non-GAAP earnings are anticipated to be between $12.95 and $13.05 per share, reflecting a year-over-year growth of approximately 9% to 10% [10]. - Total sales growth for 2025 is projected to be in the range of 5% to 7% [10].

Core Insights - The domestic liquid chromatography-mass spectrometry (LC-MS) market in China is experiencing a "dual increase" in both volume and value, with 396 units awarded in tenders amounting to 1.252 billion yuan in the first half of 2025, indicating a shift towards high-end products [5][10][25] - The global mass spectrometry market reached $7.46 billion in sales in 2024 and is expected to grow at a compound annual growth rate (CAGR) of 6.5%, potentially reaching $10.91 billion by 2031 [3] Market Demand Expansion - In the first half of 2025, the LC-MS market showed a total of 396 units awarded, a year-on-year increase of 27.74%, with a total tender amount of 1.252 billion yuan, reflecting a 33.33% increase, indicating a clear trend towards high-end product procurement [5][10] - Monthly trends reveal a "wave-like" progression, with significant spikes in January and June due to budget releases and project initiations [8] - The average tender price for LC-MS equipment rose to 3.162 million yuan, up from 3.029 million yuan in the previous year, indicating a growing demand for high-end products [5] Procurement Unit Analysis - Higher education research institutions and the healthcare system are the main drivers of the market, with universities purchasing 152 units (38.4% of total) worth 538 million yuan (43.0% of total) [10] - The healthcare system procured 105 units (26.5% of total) for 308 million yuan (24.6% of total), driven by the expansion of clinical mass spectrometry applications [10] Regional Tender Analysis - The procurement landscape shows a "strong East, weak West" pattern, with East China, Central South, and North China accounting for 74.8% of total tenders [13] - East China remains the most active region, benefiting from the construction of national medical centers, with Guangdong province leading in procurement across various sectors [13] Brand Landscape - The market is dominated by seven major imported brands, with imported LC-MS instruments accounting for 86.39% of total tenders, significantly outpacing domestic brands [14][18] - Thermo Fisher and SCIEX lead the market, together holding over 60% of the market share, with Thermo Fisher achieving a tender amount of 318 million yuan [18] Domestic Brand Development - Domestic manufacturers are showing rapid growth, with nearly 25 companies entering the market, demonstrating significant advantages in specific application areas [21] - Notable domestic brands like Hangzhou Kailai and Shandong Yingsheng have made significant inroads in the clinical testing market [22][24] - The increasing demand for high-end equipment in research institutions indicates a shift in market dynamics, with domestic brands gaining recognition [25]

Financial Performance - Sales revenue increased by 4% to $249.4 million[16, 17, 18] - Underlying EBITDA decreased by 2% to $33.2 million[16, 17, 18] - Underlying EBIT decreased by 8% to $20.6 million[16, 17, 18] - Statutory NPAT decreased significantly by 31% to $9.6 million[16, 17, 18] - Underlying EPS decreased by 12% to 35.2 cents[17, 18] - Total dividend remained consistent at 15 cents per share fully franked[16, 18] Regional Performance - Australia and New Zealand EBIT decreased by 15% to $13 million[17] - North America and Europe EBIT increased by 25% to $4.3 million[17] - Asia EBIT decreased by 9% to $3.3 million[17] Balance Sheet - Net debt decreased by $8 million, improving the gearing ratio from 25% to 17%[48] - Cash and cash equivalents increased to $24.5 million from $16.8 million[58, 60]