Waters(US:WAT)2025-11-04 12:00Financial Performance - Sales for Q3 2025 were $800 million, an increase of 8% compared to $740 million in Q3 2024[2] - GAAP diluted EPS for Q3 2025 was $2.50, down from $2.71 in Q3 2024; non-GAAP EPS grew 16% to $3.40 from $2.93[3] - Net income for the three months ended September 27, 2025, was $148,923 thousand, compared to $161,503 thousand for the same period in 2024, reflecting a decline of 8%[21] - For the nine months ended September 27, 2025, total net sales were $2,232,924 thousand, representing a 7% increase from $2,085,673 thousand in the same period of 2024[25] - The company reported a net income per diluted common share of $2.50 for the three months ended September 27, 2025, down from $2.71 in the prior year[21] - The company reported a GAAP net income of $532,072 for the nine months ended September 27, 2025, with a 23.8% net income margin[27] - Adjusted Non-GAAP net income for the nine months ended September 27, 2025, was $635,989, reflecting a 28.5% net income margin[27] Revenue Growth - Pharma segment grew 11% in constant currency, with double-digit growth in the Americas[5] - Recurring revenue increased by 9% in constant currency, driven by strong uptake of new bioseparation products[5] - The pharmaceutical market segment saw a 12% increase in net sales, reaching $479,776 thousand for the three months ended September 27, 2025[23] - The Asia region reported net sales of $269,714 thousand for the three months ended September 27, 2025, a 7% increase from $251,329 thousand in the prior year[23] - The company experienced a constant currency growth rate of 8% for total net sales in the three months ended September 27, 2025, compared to the same period in 2024[23] Guidance and Projections - The company raised its full-year 2025 constant currency sales growth guidance to +6.7% to +7.3%[7] - Full-year 2025 non-GAAP EPS guidance was raised to $13.05 to $13.15, reflecting approximately +10% to +11% year-over-year growth[8] - Q4 2025 constant currency sales growth is expected to be in the range of +5.0% to +7.0%[9] - Q4 2025 non-GAAP EPS is projected to be between $4.45 and $4.55, indicating a year-over-year growth of approximately +9% to +11%[9] - Projected sales growth rate for the twelve months ending December 31, 2025, is expected to be 6.5% as reported, with a constant currency sales growth rate of 6.7%[38] - Projected GAAP earnings per diluted share for the twelve months ending December 31, 2025, is estimated to be between $11.10 and $11.20, with adjusted non-GAAP earnings per diluted share projected between $13.05 and $13.15[38] Expenses and Costs - Operating income for the three months ended September 27, 2025, was $192,114 thousand, a decrease from $211,132 thousand in the prior year[21] - Research and development expenses for the three months ended September 27, 2025, were $53,643 thousand, up from $45,336 thousand in the same period of 2024, indicating an increase of 18%[21] - The company incurred acquisition-related costs of $30,544 for the three months ended September 27, 2025, which accounted for 3.8% of total operating income[27] Cash Flow and Assets - Net cash provided by operating activities for the nine months ended September 27, 2025, was $488.002 million, down from $521.984 million in the prior year, reflecting a decrease of 6.5%[35] - Free cash flow for the nine months ended September 27, 2025, was $552.113 million, slightly down from $556.272 million in the same period of the previous year[35] - Cash and cash equivalents rose to $459,118, compared to $325,355 at the end of 2024[33] - Total assets increased to $4,862,564 as of September 27, 2025, up from $4,553,795 at the end of 2024[33] - Accounts receivable increased to $748,519, up from $733,365 at the end of 2024[33] - Cash and cash equivalents at the end of the period on September 27, 2025, were $459.118 million, an increase from $330.514 million at the end of the same period in 2024[35] Debt and Equity - The company experienced a net change in debt of $(242.986) million for the nine months ended September 27, 2025, compared to $(530.000) million in the previous year[35] - Total stockholders' equity increased to $2,330,693 as of September 27, 2025, compared to $1,828,507 at the end of 2024[33] New Products and Innovations - New product developments include the Xevo™ Charge Detection Mass Spectrometer, which uses up to 100-fold less sample volume than current techniques[5] - The company is confident in achieving significant cost and revenue synergies from the integration with BD's Biosciences & Diagnostic Solutions business[6]