Veralto (US:VLTO) ZACKS·2025-10-29 16:46Core Insights - Veralto Corporation (VLTO) reported strong third-quarter 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1][6] - Adjusted earnings per share (EPS) reached 99 cents, surpassing estimates by 4.2% and increasing 11.2% year over year [1][6] - Total revenues amounted to $1.4 billion, beating the consensus estimate by 0.6% and rising 6.9% from the previous year [1][6] Financial Performance - The Water Quality segment generated revenues of $856 million, reflecting a 6.9% year-over-year growth [3] - The Product, Quality & Innovation segment saw revenues increase by 6.8% year over year to $548 million [3] - Adjusted EBITDA was reported at $347 million, marking a 6.12% increase from the year-ago quarter, although the adjusted operating EBITDA margin decreased by 20 basis points to 24.7% [3] Cash Flow and Debt - At the end of Q3, Veralto had cash and cash equivalents of $1.78 billion, up from $1.1 billion at the end of the previous year [4] - Long-term debt stood at $2.67 million, a slight increase from $2.60 billion at the end of Q4 2024 [4] - The company generated $270 million in cash from operating activities during the quarter, with capital expenditures of $12 million [4] Guidance - For Q4 2025, Veralto anticipates low single-digit revenue growth year over year and adjusted diluted EPS between 95 cents and 98 cents, aligning with the Zacks Consensus Estimate of 95 cents [7] - The full-year 2025 adjusted EPS guidance has been raised to $3.82-$3.85, up from the previous range of $3.72-$3.80, with the current Zacks Consensus Estimate at $3.80 [8] - The company also expects approximately 100% cash flow conversion for the full year, with mid-single-digit core sales growth and adjusted operating profit margin expansion projected [8]