Financial Data and Key Metrics Changes - Total sales for 2025 grew 6% year-over-year to $5.5 billion, marking an all-time high [8] - Adjusted earnings per share (EPS) was $3.90, up 10% year-over-year, indicating the second consecutive year of double-digit EPS growth [8] - Free cash flow exceeded $1 billion, strengthening the company's financial position [9] - In Q4, total sales grew 3.8% year-over-year to nearly $1.4 billion, with core sales growing 1.6% [22] Business Line Data and Key Metrics Changes - Water Quality segment delivered $846 million in total sales, up 4.3% year-over-year, with core sales growth of 1.4% [24] - PQI segment total sales grew 3% year-over-year to $550 million, with core sales growth of 1.8% [25] - Both segments experienced steady underlying demand, with price increases contributing to sales growth [22][24] Market Data and Key Metrics Changes - Core sales in North America grew 5.3%, while Western Europe saw a 3.8% increase [9] - High-growth markets experienced a 5.1% increase in core sales year-over-year, led by Latin America, India, and the Middle East [12] - Core sales growth in China was modest, primarily driven by PQI [12] Company Strategy and Development Direction - The company aims for continued core sales growth and margin expansion, targeting mid- to high-single-digit adjusted EPS growth for 2026 [17][30] - Strategic acquisitions, such as In-Situ, are expected to enhance the company's water analytics portfolio and address freshwater challenges [18][20] - The focus remains on disciplined capital allocation and creating long-term shareholder value through M&A opportunities [29][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in steady demand for products and services due to the essential need for clean water and safe food [7][33] - The company anticipates another year of core sales growth in 2026, supported by a durable business model and strong secular growth drivers [33] - Management noted that underlying demand remains steady across both municipal and industrial markets, with government funding continuing to flow [41] Other Important Information - The company established a $750 million share repurchase program and announced an 18% increase in its dividend [7][29] - The acquisition of In-Situ was completed early in 2026, funded with cash on hand [28] Q&A Session Summary Question: Expectations on municipal CapEx and demand trends - Management sees steady demand across municipal and industrial markets, with strong growth in industrial sectors like data centers and government funding supporting municipal demand [40][41] Question: Impact of DRAM supply and pricing - The company's exposure to DRAM is minimal, and no material impact is expected [42] Question: Margin expansion guidance and cost considerations - Management expects 50 basis points of margin expansion, driven by pricing and the rolling off of tariff-related headwinds [50][52] Question: Data center growth potential - Data center sales are still a small part of the business but are growing double digits; however, they are not expected to be a meaningful contributor to core growth in 2026 [54] Question: PQI performance related to high protein boom - Demand in CPG markets remains stable, with opportunities arising from changes in packaged foods and dietary requirements [61] Question: Geographic performance in Western Europe - The year-over-year performance was impacted by three fewer shipping days, but overall execution was strong [62] Question: EPS growth guidance and market conditions - Management is being prudent with EPS growth guidance due to macro uncertainties, but underlying demand remains solid [70] Question: Integration plans for In-Situ acquisition - The company is excited about top-line synergies and plans to leverage complementary product portfolios to accelerate growth [82]

Financial Data and Key Metrics Changes - Total sales grew 6% year-over-year to $5.5 billion, marking an all-time high [8] - Adjusted earnings per share (EPS) was $3.90, up 10% year-over-year, indicating the second consecutive year of double-digit EPS growth [8] - Generated over $1 billion of free cash flow, strengthening the financial position [9] - In Q4, total sales grew 3.8% year-over-year to nearly $1.4 billion, with core sales growing 1.6% [22] Business Line Data and Key Metrics Changes - Water Quality segment delivered $846 million in total sales, up 4.3% year-over-year, with core sales growth of 1.4% [24] - PQI segment total sales grew 3% year-over-year to $550 million, with core sales growth of 1.8% [25] - Both segments experienced steady underlying demand, with pricing increases contributing to sales growth [22][24][25] Market Data and Key Metrics Changes - Core sales in North America grew 5.3%, while Western Europe saw a growth of 3.8% [9] - High-growth markets experienced a core sales increase of 5.1% year-over-year, led by Latin America, India, and the Middle East [12] - Core sales growth in China was modest, primarily driven by PQI [12] Company Strategy and Development Direction - The company aims for mid- to high-single-digit adjusted EPS growth in 2026, with a focus on strategic growth and disciplined capital allocation [17][30] - Recent acquisitions, including In-Situ, are expected to enhance the water analytics portfolio and drive growth in environmental markets [18][19] - The company is committed to leveraging its Veralto Enterprise System to drive continuous improvement and support customer needs [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in steady demand for products and services due to the ongoing need for clean water and safe food [7][17] - The company anticipates another year of core sales growth and continued margin expansion, despite potential macroeconomic challenges [30] - Management highlighted the importance of recurring revenue, which comprises 60% of total sales, providing stability against fluctuations in capital expenditure [40] Other Important Information - The company established a $750 million share repurchase program and announced an 18% increase in its dividend [7][29] - Free cash flow conversion was reported at 115% of GAAP net income for Q4 [22] Q&A Session Summary Question: Expectations on municipal CapEx and demand trends - Management sees steady demand across municipal and industrial markets, with government funding continuing to flow [40] Question: Impact of DRAM supply on business - Management indicated minimal exposure to DRAM, expecting no material impact [42] Question: Margin expansion guidance and cost considerations - Management expects 50 basis points of margin expansion, driven by pricing and the rolling off of tariff-related headwinds [50] Question: Data center growth potential - Management noted that while data center sales are growing, they remain a small part of the overall business and not expected to be a significant contributor in 2026 [54] Question: Performance in PQI related to high protein boom - Management reported stable demand in CPG markets, with opportunities arising from changes in dietary requirements and packaging [60] Question: Geographic performance in Western Europe - Management explained that fluctuations in Western Europe were primarily due to fewer shipping days impacting year-over-year comparisons [62] Question: EPS growth guidance and market conditions - Management indicated that while top-line growth is expected, EPS growth is forecasted to be more modest due to various factors, including the In-Situ acquisition [70] Question: Integration plans for In-Situ acquisition - Management expressed excitement about the In-Situ acquisition, highlighting opportunities for top-line and cost synergies [82]

Fourth Quarter and Full Year 2025 Results February 3, 2026 Forward Looking Statements Certain statements in this presentation, including the statement regarding the Company's first quarter and full year 2026 financial performance, the Company's differentiation and positioning to continue delivering sustainable, long-term shareholder value and any other statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward-looking" statements within the meaning ...