Waters(US:WAT)2026-02-09 12:00Financial 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]