Financial Performance - Fourth quarter 2025 sales reached $932 million, a 7% increase from $873 million in Q4 2024[3] - Non-GAAP EPS for Q4 2025 grew 10% to $4.53, compared to $4.10 in Q4 2024[4] - Full-year 2025 sales totaled $3,165 million, reflecting a 7% increase from $2,958 million in 2024[10] - Recurring revenue increased 10% in Q4 2025, driven by strong demand in precision chemistries[9] - The pharmaceutical market saw an 8% sales increase in Q4 2025, while the industrial market also grew by 8%[8] - For the three months ended December 31, 2025, total net sales increased by 7% to $932,362 thousand compared to $872,714 thousand in the same period of 2024, with a constant currency growth rate of 6%[27] - For the twelve months ended December 31, 2025, total net sales reached $3,165,286 thousand, marking a 7% increase from $2,958,387 thousand in 2024, with a constant currency growth rate also at 7%[29] - Pharmaceutical market sales increased by 9% to $1,873,362 thousand, while the Industrial market grew by 6% to $961,154 thousand[29] - The total recurring revenue for the twelve months was $1,819,644 thousand, reflecting an 8% increase compared to the previous year[29] Future Projections - The company expects full-year 2026 organic constant currency revenue growth of 5.5% to 7.0%, translating to reported revenue of $3.355 billion to $3.405 billion[14] - Total company revenue for full-year 2026, including expected revenue synergies, is projected to be between $6.405 billion and $6.455 billion[15] - First quarter 2026 organic constant currency revenue growth is anticipated to be in the range of 7.0% to 9.0%[17] - The acquisition of BD Biosciences and Diagnostic Solutions is expected to contribute approximately $3.000 billion to reported revenue in 2026[14] - Non-GAAP EPS for full-year 2026 is projected to be between $14.30 and $14.50, representing year-over-year growth of approximately 8.9% to 10.4%[16] - Projected revenue for the twelve months ending December 31, 2026, is estimated to be between $6.405 billion and $6.455 billion, with organic reported revenue growth expected to be between 6.0% and 7.5%[41] - The company anticipates an impact of $3.0 billion from acquired business contributions to projected revenue for the twelve months ending December 31, 2026[41] - GAAP earnings per diluted share for the twelve months ending December 31, 2026, is projected to be between $6.63 and $6.83, while adjusted non-GAAP earnings per diluted share is expected to be between $14.30 and $14.50[41] Operational Highlights - Waters segment net sales rose by 8% to $823,937 thousand, while TA segment sales remained flat at $108,425 thousand[27] - Service revenue grew by 9% to $329,156 thousand, and Chemistry sales increased by 13% to $170,356 thousand, reflecting strong demand in these areas[27] - In terms of geography, Europe saw a significant increase of 13% in net sales, reaching $315,971 thousand, while Asia's sales grew by 4% to $283,967 thousand[27] - Asia's total net sales for the twelve months were $1,040,397 thousand, a 7% increase, with a constant currency growth rate of 13%[29] - The company emphasizes the importance of constant currency growth rates as a measure of underlying performance, excluding foreign currency impacts[27] - The overall performance indicates a solid growth trajectory across various segments and geographies, positioning the company favorably for future expansion[29] Financial Position - Total assets increased to $5,083,977 thousand as of December 31, 2025, up from $4,553,795 thousand in 2024[36] - Cash and cash equivalents rose to $587,831 thousand, compared to $325,355 thousand in the previous year[36] - Accounts receivable increased to $828,844 thousand, up from $733,365 thousand year-over-year[36] - Total liabilities decreased to $2,522,735 thousand from $2,725,288 thousand in 2024[36] - The company’s total stockholders' equity increased to $2,561,242 thousand as of December 31, 2025, compared to $1,828,507 thousand in 2024[36] Income and Cash Flow - The company reported a net income of $225,214 thousand for the three months ended December 31, 2025, with diluted earnings per share of $3.77[31] - Net income for the three months ended December 31, 2025, was $225.2 million, a decrease of 2.5% compared to $231.4 million for the same period in 2024[38] - Net cash provided by operating activities for the twelve months ended December 31, 2025, was $652.6 million, down 14.3% from $762.1 million in 2024[38] - Free Cash Flow - Adjusted Non-GAAP for the twelve months ended December 31, 2025, was $677.3 million, compared to $744.3 million in 2024, reflecting a decrease of 9%[38] - The company reported a net cash used in investing activities of $152.3 million for the twelve months ended December 31, 2025, compared to $144.0 million in 2024[38] - Stock-based compensation increased to $54.1 million for the twelve months ended December 31, 2025, from $44.7 million in 2024, representing a growth of 21.5%[38] - The company made business acquisitions totaling $35.1 million net of cash acquired during the twelve months ended December 31, 2025[38] - The effect of exchange rate changes on cash and cash equivalents resulted in an increase of $2.96 million for the three months ended December 31, 2025[38] Operating Income - For the three months ended December 31, 2025, GAAP operating income was $270,516 thousand, representing a 29.0% operating margin[31] - Adjusted non-GAAP operating income for the same period was $328,431 thousand, with a 35.2% operating margin[31] - The company incurred acquisition-related costs of $36,771 thousand, which accounted for 3.9% of total expenses in the three months ended December 31, 2025[31] - The adjusted non-GAAP net income for the twelve months ended December 31, 2025, was $929,890 thousand, with diluted earnings per share of $13.13[31]

Waters Corporation (NYSE: WAT) Reports Fourth Quarter and Full-Year 2025 Financial Results [Accessibility Statement] Skip NavigationHighlightsFourth Quarter 2025- GAAP EPS of $3.77; non-GAAP EPS of $4.53 grew double digits- Instruments grew 3% in constant currency, with high single-digit LC-MS growth partially offset by TA and transition to subscription model for Empower- Chemistry grew 12% in constant currency as new bioseparations products continued to experience significant customer demand- Growth led by ...

Company Overview - Waters Corporation (WAT) is an American manufacturer specializing in chromatography and mass spectrometry systems, along with a comprehensive suite of after-sale services and specialized laboratory supplies [1] Historical Background - The company was founded in 1958 and has since become publicly traded [1]

We came across a bullish thesis on Waters Corporation on The Wealth Dynasty Report’s Substack. In this article, we will summarize the bulls’ thesis on WAT. Waters Corporation's share was trading at $370.72 as of January 30th. WAT’s trailing and forward P/E were 34.48 and 26.39 respectively according to Yahoo Finance. Astera Labs (ALAB) Declines 13% on Profit-Taking Waters Corporation is a leading provider of high-tech laboratory equipment, serving pharmaceutical, industrial, and academic clients worldwid ...

摘要 ： "3i奖-优秀新品"二十年来，累计评选出年度优秀新品429台，质谱类以76台获奖位列第一。 高分辨质谱技术在很大程度上解决了传统质谱技术在蛋白质分析中面临灵敏度不足、分辨率有 限、通量低下三大瓶颈，能够实现复杂生物样本中数千种蛋白质组成解析、低丰度蛋白识别、 翻译后修饰（如磷酸化、糖基化）准确测定。 2011 年 赛 默 飞 推 出 Orbitrap El ite ， 将 扫 描 速 度 提 升 至 每 秒 12 张 高 分 辨 谱 图 。 2014 年 SCIEX的TripleTOF 6600系统则通过超快扫描技术实现了数据非依赖采集，使单次进样可定 量数千种蛋白质；该仪器也将代谢物鉴定从几百种扩展到数千种，覆盖了氨基酸、有机酸、脂 质 、 激 素 等 几 乎 所 有 代 谢 物 类 别 。 2018 年 SCIEX 的 M5 Microflow LC - OptiFlow™Turbo V源集成化高灵敏度质谱系统将纳流色谱与质谱联用，显著提高了蛋白质 序列覆盖率和修饰位点鉴定准确性。2019年赛默飞的Orbitrap Ecl ipse引入了实时搜索、智 能 碎 裂 等 AI 算 法 ， 将 质 谱 ...

Core Viewpoint - Waters Corporation has received overwhelming shareholder approval for the issuance of shares to Becton, Dickinson and Company in connection with the proposed combination of BD's Biosciences & Diagnostic Solutions business with Waters, with the transaction expected to close on February 9, 2026 [1][2][3] Group 1: Shareholder Approval and Transaction Details - Approximately 99% of shares present at the Special Meeting voted in favor of the share issuance to BD shareholders [3] - The transaction has received all required regulatory approvals and a favorable Private Letter Ruling from the IRS regarding U.S. federal income tax consequences [2] - The expected closing date for the transaction is February 9, 2026, subject to customary closing conditions [2] Group 2: Future Outlook and Company Vision - The company aims to create meaningful value for patients, customers, employees, and shareholders as it transitions into a leader in life sciences and diagnostics [2] - The upcoming Q4 2025 financial results will be released on February 9, 2026, coinciding with the expected transaction close [4] - Waters Corporation has been a global leader in analytical instruments and technologies for over 65 years, serving various scientific fields [5]

Core Viewpoint - BD (Becton, Dickinson and Company) is set to spin off its Biosciences & Diagnostic Solutions business to shareholders, followed by a merger with Waters Corporation, with the transaction expected to close on February 9, 2026 [1][2]. Transaction Details - The transaction will involve BD receiving $4 billion in cash, while BD shareholders will obtain 39.2% of the combined company on a fully diluted basis, with existing Waters shareholders owning 60.8% [2]. - BD shareholders do not need to take any action other than holding their shares as of the record date to receive Waters common stock [3]. - Following the transaction, BD shareholders will retain the same number of BD shares they held prior to the transaction [3]. Regulatory and Approval Status - BD has received a favorable Private Letter Ruling from the IRS regarding the U.S. federal income tax implications of the transaction, and Waters shareholders have approved the issuance of shares in the merger [4]. - The transaction is subject to customary closing conditions [4]. Trading Information - From February 5, 2026, BD common stock will trade with "due bills" representing the right to receive the SpinCo common stock distribution, which will convert into shares of Waters common stock upon closing [5]. - After the transaction closes, BD common stock is expected to be quoted "Ex-Distribution," meaning it will no longer include the entitlement to receive the SpinCo common stock distribution [5].

Company Overview - Waters Corporation (NYSE:WAT) is a global leader in analytical instruments, separations technologies, and software, serving various sectors including life sciences, materials, food, and environmental sciences for over 65 years [2] - The company ensures the efficacy of medicines, safety of food, purity of water, and quality and sustainability of everyday products [2] - Waters Corporation operates in over 100 countries with a workforce of more than 7,600 employees who collaborate with customers in laboratories, manufacturing sites, and hospitals [2] Financial Results Announcement - Waters Corporation will hold its Q4 2025 financial results conference call on February 12, 2026, at 8:00 a.m. Eastern Time [1] - A live webcast of the presentation will be available on the Waters Investor Relations website, with a replay accessible until at least March 12, 2026 [1]

Core Insights - The article discusses the strategic execution, value creation, and future planning of Waters Corporation, highlighting its transformation over the past five years and its focus on high-growth adjacent areas such as bioreagents and professional diagnostics [3][19]. Financial Performance Analysis - Adjusted operating profit margin over the past 12 months is industry-leading, exceeding the next competitor by approximately 180-80 basis points [4]. - Revenue growth for the past 12 months is around 8%, significantly higher than the industry average of 5%, with a weighted average growth rate three times that of other companies [4]. - Earnings per share (EPS) achieved double-digit growth, driven by factors such as GLP1 testing (contributing approximately $30 million in 2025), PFAS testing ($20 million), and Indian genetic testing ($30 million), collectively contributing over 250 basis points to growth [4]. Key Growth Drivers - Revenue growth is driven by instrument replacement (incremental sales exceeding $40 million within two years), increased service attach rates (from 43% in 2019 to 54% currently, a 2.2% annual increase), expansion of e-commerce channels (sales of chromatography columns through e-commerce increased from 20% to 45%, a 5% annual growth), growth in contract organization business (from 15% to 25%), and R&D investment (10% of product sales allocated to R&D) [5]. - Cost control achieved through optimization of manufacturing and supply chain, enhancing commercial and service efficiency [5]. Business Operations Overview - Core markets (pharmaceutical QA/QC, food environmental safety, etc.) have a scale of approximately $110 billion, with single-digit annual growth, slightly above industry growth [7]. - Adjacent areas (bioreagents, professional diagnostics, battery testing) have a scale of about $70 billion, with annual growth rates ranging from high single digits to low double digits, particularly with bioprocessing business growing at 50% [7]. - The Indian market shows a high teens growth rate, contributing approximately $30 million in revenue [8]. R&D Investment and Outcomes - R&D investment is about 10% of product sales [9]. - Innovative products include the Alliance liquid chromatography system (reducing errors by 40%, with a year-on-year growth of 270%), Xevo TQ Absolute mass spectrometer (PFAS testing, 40% annual growth), Max Peak Premier chromatography column (biologically inert, 35% annual growth), and charge detection mass spectrometer [9]. Future Outlook and Planning - Short-term goals for 2026 include a revenue growth framework with a mid-cycle instrument replacement period (6-year cycle), low single-digit compound annual growth rate, and special growth drivers contributing approximately 200 basis points [11]. - Long-term strategy focuses on high-growth end markets (bioreagents, diagnostics, battery testing) with a total addressable market (TAM) of approximately $1900-$2000 billion, and a projected revenue compound annual growth rate of 7% over the next five years [12]. Q&A Highlights - The 2026 growth expectation is influenced by the mid-cycle instrument replacement and special growth drivers, with new products further driving growth [14]. - The impact of manufacturing reshoring on TAM and revenue is anticipated to begin affecting product mix by the end of 2026, with expected high single-digit growth for instruments [15]. - The chemical business is driven by price, volume growth, and new products, with long-term growth reliant on innovation [16]. - Cost and revenue synergies from the BD business are expected to start in 2026, with specific quantification pending post-transaction completion [17]. Summary Remarks - Waters Corporation is executing its strategy from a position of strength, accelerating entry into high-growth adjacent areas through the acquisition of BD's life sciences and diagnostics business [19]. - The company aims to focus on building QC systems for bioreagents, optimizing microbiology business, and achieving cost and revenue synergies [19]. - Long-term goals include achieving industry-leading financial prospects, with a 7% revenue compound growth, margin expansion, and double-digit EPS growth [19].

Core Insights - Waters Corporation is acquiring Becton Dickinson's Biosciences and Diagnostic Solutions business to enhance its growth profile and expand its exposure to biologics, diagnostics, and regulated laboratory workflows [1] - The acquisition is expected to drive above-market growth and margin expansion over the coming years, as detailed at the JP Morgan Healthcare Conference [2] Financial Overview - BD's biosciences and diagnostic solutions unit is valued at approximately $3.3 billion, with an annual growth rate of roughly 5% from 2019 to 2024, and about 80% of its revenue is recurring [3] - Waters anticipates around $200 million in cost synergies within three years post-acquisition, with potential to exceed $300 million based on historical integrations [5] Strategic Rationale - The acquisition aligns with Waters' strategy to shift towards faster-growing and more defensible end markets, complementing its core strengths in analytical science [4] - The integration of BD's infrastructure is expected to enhance Waters' diagnostics strategy and expand its reach in therapeutic drug monitoring and clinical applications [4] Synergy Opportunities - Revenue synergies are projected from commercial execution, expansion into higher-growth adjacencies, and cross-selling, with high-growth adjacencies expected to generate about $150 million in incremental revenue by year five [6]