Veralto (US:VLTO) ZACKS·2025-11-27 17:36Core Insights - Veralto reported strong Q3 2025 results, with adjusted earnings of 99 cents per share, exceeding estimates by 4.2% and increasing 11.2% year-over-year. Total revenues reached $1.4 billion, surpassing estimates by 0.6% and rising 6.9% from the previous year [2][3]. Financial Performance - The Water Quality segment generated revenues of $856 million, reflecting a 6.9% year-over-year growth. The Product, Quality & Innovation segment saw revenues of $548 million, up 6.8% year-over-year. Adjusted EBITDA was $347 million, a 6.12% increase from the prior year, although the adjusted operating EBITDA margin decreased by 20 basis points to 24.7% [3]. - Veralto ended Q3 with cash and cash equivalents of $1.78 billion, up from $1.1 billion at the end of the previous year. Long-term debt was reported at $2.67 million, a slight increase from $2.60 billion at the end of Q4 2024. The company generated $270 million in cash from operating activities, with capital expenditures of $12 million [4]. Guidance and Estimates - For Q4 2025, Veralto anticipates low single-digit revenue growth year-over-year and projects adjusted diluted earnings per share between 95 cents and 98 cents. The full-year 2025 adjusted earnings per share guidance has been raised to a range of $3.82 to $3.85, up from $3.72 to $3.80. The company also expects cash flow conversion to be approximately 100% for the full year [5][6]. - Since the earnings release, there has been an upward trend in estimates revisions for Veralto, indicating positive investor sentiment [7][10]. Industry Context - Veralto operates within the Zacks Waste Removal Services industry. Competitor Waste Management reported revenues of $6.44 billion for the quarter ended September 2025, marking a year-over-year increase of 14.9%. Waste Management's EPS for the same period was $1.98, compared to $1.96 a year ago [11].