Waters(WAT) - 2024 Q4 - Annual Results

Sales Performance - Fourth quarter 2024 sales were $873 million, a 6$819 million in Q4 2023, with a 2% decrease due to currency translation[4]. - Full-year 2024 sales were $2,958 million, flat compared to$2,956 million in 2023, with a 1% decrease from currency translation and a 1% increase from acquisitions[10]. - Sales in the pharmaceutical market increased 10% in constant currency during Q4 2024, while sales in the academic and government market increased 16%[8]. - Instrument system sales increased 8% in constant currency during Q4 2024, while recurring revenues grew 9% in constant currency[6]. - The pharmaceutical market generated $498,807,000 in net sales, an 8$463,698,000, with a constant currency growth rate of 10%[27]. - For the twelve months ended December 31, 2024, total net sales remained flat at $2,958,387,000 compared to$2,956,416,000 in 2023, with a 0% change[29]. - The service segment experienced a 6% increase in net sales for the twelve months, totaling $1,114,211,000, compared to$1,053,366,000 in the previous year[29]. - The academic and government market saw a 6% decrease in net sales, totaling $331,002,000 compared to$350,538,000 in 2023[29]. Earnings and Profitability - Non-GAAP EPS for Q4 2024 was $4.10, a 13$3.62 in Q4 2023, while GAAP EPS was $3.88 compared to$3.65 in Q4 2023[5]. - Non-GAAP EPS for full-year 2024 was $11.86, a 1$11.75 in 2023, while GAAP EPS was $10.71 compared to$10.84 in 2023[11]. - For the three months ended December 31, 2024, GAAP operating income was $292,263 thousand, representing a 33.5$264,223 thousand and a 32.2% margin for the same period in 2023[31]. - The company’s operating income for the twelve months ended December 31, 2024, was $826,353 thousand, with a margin of 27.9$817,676 thousand and a margin of 27.7% for 2023[31]. - Adjusted Non-GAAP diluted earnings per share for Q4 2024 was $4.10, up from$3.62 in Q4 2023, reflecting a 13.2% increase[31]. Cash Flow and Financial Health - Operating cash flow for full-year 2024 was $762 million, with free cash flow of$744 million, representing 25% of full-year sales[6]. - Net cash provided by operating activities for the twelve months ended December 31, 2024, was $762,123, up from$602,809 in 2023, representing a growth of about 26.4%[40]. - Free Cash Flow - Adjusted Non-GAAP for the twelve months ended December 31, 2024, was $744,307, compared to$554,040 in 2023, indicating an increase of approximately 34.4%[42]. - The company reported a significant reduction in total liabilities from $3,476,513 thousand in 2023 to$2,725,288 thousand in 2024, indicating improved financial health[38]. - The company reported a net cash used in investing activities of $144,023 for the twelve months ended December 31, 2024, compared to$1,442,265 in 2023, showing a significant reduction in cash outflow[40]. - The company experienced a net change in debt of $(730,000) for the twelve months ended December 31, 2024, compared to a net increase of$779,600 in 2023[40]. Future Projections - The company expects full-year 2025 constant currency sales growth of 4.5% to 7.0%, with reported sales growth expected to be 2.5% to 5.0%[13]. - First quarter 2025 non-GAAP EPS is projected to be between $2.17 and$2.25, including an estimated 7% headwind from unfavorable foreign exchange[17]. - Projected sales growth rate for the twelve months ending December 31, 2025, is expected to be 2.5% to 5.0%, with a constant currency sales growth rate of 4.5% to 7.0%[46]. - GAAP earnings per diluted share for the twelve months ending December 31, 2025, is projected to be between $11.83 and$12.13, with adjusted non-GAAP earnings per diluted share expected to range from $12.70 to$13.00[46]. - The company expects a currency translation impact of (2.0%) on sales growth for the twelve months ending December 31, 2025[46]. Assets and Equity - Total assets decreased from $4,626,854 thousand as of December 31, 2023, to$4,553,795 thousand as of December 31, 2024[38]. - Cash, cash equivalents, and investments decreased from $395,974 thousand in 2023 to$325,355 thousand in 2024, reflecting a decline of approximately 18%[38]. - The company’s total stockholders' equity increased from $1,150,341 thousand in 2023 to$1,828,507 thousand in 2024, showing a growth of 59%[38]. Research and Development - Research and development expenses for Q4 2024 were $46,914 thousand, slightly higher than$44,386 thousand in Q4 2023, indicating continued investment in innovation[31]. - The company incurred restructuring costs of $1,480 thousand in Q4 2024, compared to$1,036 thousand in Q4 2023, reflecting ongoing operational adjustments[31]. - The company plans to continue its ERP implementation and transformation, which involves one-time costs that do not represent ongoing business expenses[36]. Regional Performance - In the geographical breakdown, Europe saw the highest growth at 10%, with net sales reaching $278,806,000, up from$253,835,000 in 2023[27]. - The Asia region reported a 4% decline in net sales for the twelve months, totaling $969,222,000, down from$1,007,825,000[29].