Core Insights - Veralto reported steady growth in Q4 2024, with revenue of $1.345 billion, a 4.4% increase year-over-year, and adjusted earnings per share of $0.95, reflecting a 9.2% rise from the previous year [1][2] Financial Performance - Diluted EPS (non-GAAP) increased to $0.95 from $0.87, marking a 9.2% growth [2] - Revenue rose to $1.345 billion from $1.288 billion, a 4.4% increase [2] - Net earnings grew to $227 million from $200 million, a 13.5% increase [2] - Free cash flow increased to $263 million from $241 million, a 9.1% rise [2] - Operating margin remained stable at 23.8%, consistent with the prior year [2][6] Business Segments - Veralto operates in two main segments: water treatment solutions and printing and coding solutions [3] - Water treatment solutions generated $811 million in revenue, up from $782 million, indicating strong demand in North America [5] - Printing and coding solutions saw revenue increase to $534 million from $506 million, partly due to the acquisition of TraceGains [5] Strategic Initiatives - The company has focused on strategic acquisitions, including the purchase of TraceGains to enhance compliance software offerings [4][6] - R&D expenditures increased by approximately 21% year-over-year to $69 million, reflecting a technology-driven approach [6] Challenges and Outlook - Long-term debt remained approximately $2.599 billion, unchanged from 2023 [7] - Geopolitical tensions have negatively impacted sales in China, posing potential risks to future growth [7] - For 2025, Veralto anticipates core sales growth in the low- to mid-single-digit percentages and expects earnings per share between $3.60 and $3.70 [8]
Veralto: Revenue and Earnings Rise in Q4