Waters(US:WAT)2025-08-04 10:08Financial Performance - Sales for Q2 2025 were $771 million, a 9% increase from $709 million in Q2 2024[3] - GAAP EPS for Q2 2025 was $2.47, up from $2.40 in Q2 2024; non-GAAP EPS grew 12% to $2.95 from $2.63[4] - Recurring revenue increased by 11% in constant currency, with service growth at 9% and double-digit growth in chemistry[6] - Pharma sales grew 11% and Industrial sales grew 6% in constant currency; Academic & Government declined 3%[6] - Net sales for the three months ended June 28, 2025, were $771,332, an increase of 9% compared to $708,529 for the same period in 2024[22] - For the six months ended June 28, 2025, net sales reached $1,433,037, reflecting a 7% growth from $1,345,368 in the prior year[26] - Operating income for the three months ended June 28, 2025, was $188,213, slightly down from $189,112 in the same quarter of 2024[22] - Net income for the three months ended June 28, 2025, was $147,111, compared to $142,737 for the same period in 2024, marking a 3% increase[22] - The company reported a diluted net income per share of $2.47 for the three months ended June 28, 2025, up from $2.40 in the prior year[22] - Total recurring sales for the three months ended June 28, 2025, were $462,917, representing a 12% increase from $414,470 in the same period last year[24] Guidance and Projections - Full-year 2025 constant currency sales growth guidance raised to +5.5% to +7.5%[8] - Full-year 2025 non-GAAP EPS guidance raised to $12.95 to $13.05, reflecting a year-over-year growth of approximately +9% to +10%[9] - Q3 2025 constant currency sales growth expected in the range of +5.0% to +7.0%[10] - Q3 2025 non-GAAP EPS expected to be in the range of $3.15 to $3.25, indicating year-over-year growth of approximately +8% to +11%[10] - Projected sales growth rate in constant currency is estimated at 5.5% for the twelve months ended December 31, 2025, and 7.5% for the three months ended September 27, 2025[41] - The company anticipates a sales growth rate of 4.5% for the three months ended September 27, 2025, and 6.5% for the twelve months[41] Regional Performance - Sales in the Asia region for the three months ended June 28, 2025, increased by 12% to $265,940, compared to $237,431 in the same period last year[24] - The pharmaceutical market generated $461,968 in sales for the three months ended June 28, 2025, an 11% increase from $415,747 in the previous year[24] - The company experienced a 10% growth in the Waters segment for the three months ended June 28, 2025, with sales of $688,837 compared to $622,561 in the prior year[24] Expenses and Costs - Research and development expenses for the three months ended June 28, 2025, were $48,548, up from $46,182 in the same quarter of 2024[22] - The company incurred $14,284,000 in acquisition-related costs during the three months ended June 28, 2025[37] - Adjusted Non-GAAP income for the same period was $224,628,000, with a margin of 29.1%, compared to $207,084,000 and 29.2% in the prior year[37] - Operating income for the six months ended June 28, 2025, was $339,958,000, with a margin of 23.7%[37] Assets and Equity - Total assets increased to $4,718,075,000 as of June 28, 2025, up from $4,553,795,000 at the end of 2024[35] - Cash and cash equivalents rose to $367,215,000 from $325,355,000, indicating improved liquidity[35] - The company reported a total stockholders' equity of $2,159,812,000 as of June 28, 2025, up from $1,828,507,000 at the end of 2024[35] - The company’s accounts receivable stood at $730,074,000, slightly down from $733,365,000 at the end of 2024[35] Integration and Strategy - The integration planning with BD Biosciences & Diagnostic Solutions is underway, led by Chris Ross, SVP of Global Operations[5] - The company is focused on driving value creation through synergies from the combination with BD, targeting high-growth adjacencies[5] Earnings Adjustments - GAAP earnings per diluted share projected at $11.45 for the twelve months and $2.70 for the three months, with adjusted non-GAAP earnings per diluted share at $12.95 and $3.15 respectively[41] - Adjustments to earnings include $0.60 for purchased intangibles amortization and $0.53 for acquisition-related costs for the twelve months[41] - Restructuring costs and certain other items account for $0.07 in both the twelve and three-month periods[41] - ERP implementation and transformation costs are projected at $0.25 for the twelve months and $0.08 for the three months[41] - Retention bonus obligation is estimated at $0.05 for the twelve months, with no amount for the three months[41] Miscellaneous - The estimates for future gains and charges are inherently difficult to predict due to unknown timing and significance[42] - Constant currency growth rates are a non-GAAP financial measure that excludes the impact of foreign currency exchange rates[41]