Did Veralto beat or miss consensus estimates last quarter?

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What is the market's earnings forecast for Veralto next quarter?

What were the key takeaways from Veralto's earnings call?

What is the revenue and EPS growth rate for Veralto year over year?

What factors drove the changes in Veralto's revenue and profit?

What does Veralto do and what are its main business segments?

What were the key takeaways from Veralto’s earnings call?

- **Record Financials**: 2025 sales of $5.5 billion (+6%), EPS of $3.90 (+10%), and $1 billion free cash flow. 2026 EPS guidance of $4.10-$4.20 (+mid to high single digits).
- **Strategic Acquisitions**: $427M In-Situ acquisition expands environmental water analytics, with 2025 sales of $80M and 50% gross margins.
- **Growth Drivers**: 60% recurring revenue, 80% tied to essential goods. 2026 core sales growth of 1-3%.
- **Margin Expansion**: 25 basis points YoY, driven by pricing and tariff roll-offs, offset by In-Situ integration costs.
- **Data Center Growth**: Liquid cooling adoption increases need for chemical treatment and monitoring, supporting Water Quality segment.
- **M&A Pipeline**: Active pursuit of bolt-on deals in Water Quality and PQI, with disciplined valuation approach.


**【CEO Summary Section】**
- **2025 Financial Highlights**: Total sales reached $5.5 billion (6% YoY growth), adjusted EPS of $3.90 (10% YoY), and $1 billion in free cash flow. Core sales growth was 4.7%, driven by both Water Quality and PQI segments.
- **Strategic Acquisitions**: Completed the acquisition of In-Situ for $427 million, expanding environmental water analytics capabilities. In-Situ contributed $80 million in 2025 sales with 50% gross margins.
- **Growth Drivers**: 60% of revenue is recurring, with 80% tied to essential goods (water, food). 2026 guidance includes low to mid-single-digit core sales growth and mid- to high single-digit EPS growth.
- **Innovation**: Launched new products like the ammonia analyzer, UV laser marking systems, and AI-enabled packaging software, driving double-digit growth in key areas.

**【CFO Financial Commentary】**
- **Q4 2025 Results**: Total sales of $1.4 billion (3.8% YoY), adjusted EPS of $1.04 (9% YoY). Free cash flow of $291 million (115% of GAAP net income).
- **Segment Performance**: Water Quality delivered $846 million in sales (4.3% YoY), PQI reached $550 million (3% YoY). Both segments saw margin expansion (25.9% and 26.5% respectively).
- **2026 Guidance**: Core sales growth of 1-3%, adjusted EPS of $4.10-$4.20 (mid- to high single-digit growth). Margin expansion of 25 basis points, offset by 25 basis points dilution from In-Situ.
- **Balance Sheet**: $2 billion in cash, $642 million net debt (0.5x leverage). Share buyback program of $750 million and 18% dividend increase.

**【Q&A Highlights】**
- **Demand Trends**: Municipal and industrial water treatment demand steady. Data centers (semiconductor, mining, power) driving industrial growth, though still small (~10% of Water Quality).
- **Margin Expansion**: 50 basis points from core business (pricing, tariff roll-offs), offset by 25 basis points from In-Situ. Full-year margin expansion of 25 basis points.
- **M&A Activity**: Strong pipeline in Water Quality and PQI. In-Situ integration focuses on top-line synergies (e.g., combining OTT flow meters with In-Situ water quality sensors).
- **Supply Chain**: Regionalized manufacturing lines (e.g., Videojet moving from China to UK) to mitigate tariffs. No absorption issues, but ongoing optimization for efficiency.


Veralto Corporation (VLTO) Q4 2025 Earnings Call Transcript

- **Revenue & Profit Growth**: Q3 core sales +5.1%, adjusted EPS +11% to $0.99, with full-year EPS guidance raised to $3.82-$3.85.
- **Segment Strength**: Water Quality up 5.3% YoY, PQI up 4.6% YoY, with North America leading at 6.9% growth.
- **AI & Data Center Expansion**: Double-digit revenue growth from hyperscalers, driven by water treatment solutions for AI infrastructure.
- **Free Cash Flow Excellence**: Q3 free cash flow of $258 million (108% of net income), with 100% conversion guidance for 2025.
- **Sustainability Impact**: Provided clean water access for 3.4 billion people and saved 85 billion gallons of water annually.
- **M&A Pipeline**: Active deals in Water Quality and PQI, with disciplined capital allocation framework.


**【CEO Summary Section】**
- Delivered 5.1% core sales growth and 11% adjusted EPS growth in Q3, driven by strong execution in both Water Quality and PQI segments.
- Water Quality segment grew 5.3% year-over-year, with North America leading at 6.9% due to AI-driven infrastructure demand and municipal water analytics.
- PQI segment grew 4.6% year-over-year, with Videojet marking and coding solutions outperforming expectations in North America.
- Raised full-year adjusted EPS guidance to $3.82-$3.85 and free cash flow conversion to 100% of GAAP net income.
- Emphasized sustainability efforts, including providing clean water access for 3.4 billion people and reducing 85 billion gallons of water waste annually.

**【CFO Financial Commentary】**
- Total revenue of $1.4 billion (+6.9% YoY), with Water Quality at $856 million (+7% YoY) and PQI at $548 million (+6.9% YoY).
- Adjusted EPS of $0.99 (+11% YoY), exceeding high end of guidance by $0.04.
- Free cash flow of $258 million (108% of net income), with $1.8 billion cash on hand and net leverage of 0.7x.
- Q4 guidance: total sales growth in mid-single digits, adjusted EPS of $0.95-$0.98, and 30bps margin expansion YoY.
- Full-year core sales growth expected at mid-single digits, with 23.9% operating margin and 100% free cash flow conversion.

**【Q&A Key Highlights】**
- **Tariffs & Pricing**: Teams offset tariff impacts through strategic pricing, supply chain shifts, and product line localization, with no material pull-forward effects.
- **Data Center Growth**: Double-digit revenue growth from hyperscalers, driven by water treatment solutions for AI infrastructure and chip manufacturing.
- **M&A Pipeline**: Active pipeline in Water Quality and PQI, with focus on market company valuations and long-term value creation.
- **China Performance**: Sequential stability in China sales, with team execution maintaining mid-single-digit growth despite macro challenges.
- **Recurring Revenue**: High single-digit growth in consumables and software, driven by Esko-TraceGains integration and digital workflow adoption.
- **Sustainability Momentum**: Expansion of UV laser marking systems for sustainable packaging and AI-driven water conservation solutions.


Veralto Corporation (VLTO) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: 4.8% core sales growth, 9.4% EPS growth, and raised 2025 EPS guidance to $3.72-$3.80.
- **Margin Expansion**: Water Quality operating margin +120 bps to 25.9%, PQI flat at 25.6% due to investments.
- **Strategic Moves**: $20M investment in Emerald Water Fund, Michigan manufacturing expansion for data center compliance.
- **Free Cash Flow**: $323M in Q2, 90-100% conversion target, supporting M&A pipeline.
- **Regional Strength**: Europe Water Quality +11.4%, North America +5.6%, High Growth Markets +6.1%.

**【CEO Summary Section】**
- Veralto delivered 4.8% core sales growth in Q2 2025, marking the fourth consecutive quarter of mid-single-digit growth. Adjusted EPS rose 9.4% to $0.93, exceeding guidance due to higher sales volumes.
- The company raised full-year adjusted EPS guidance to $3.72-$3.80, up from $3.60-$3.70, citing strong demand and secular growth drivers. Free cash flow for the first half was $646 million, supporting M&A opportunities.
- Water Quality segment grew 5% year-over-year, driven by water analytics and treatment solutions. North America core sales rose 5.6%, with strong demand in chemical processing and data centers.
- A $20 million investment in Emerald Technology Ventures' Global Water Fund II was announced to accelerate innovation in water-focused ventures.

**【CFO Financial Commentary】**
- Total sales reached $1.37 billion (6.4% YoY), with Water Quality contributing $825 million (6.2% YoY) and PQI $546 million (6.8% YoY). Adjusted operating profit margin was 23.7%, stable year-over-year.
- Adjusted EPS of $0.93 ($0.05 above high end of guidance) reflected better-than-expected sales. Free cash flow of $323 million (83% YoY increase) supported net leverage of under 1x.
- Water Quality operating profit margin expanded 120 basis points to 25.9%, while PQI margin remained flat at 25.6% due to acquisition investments and tariff-related costs.
- Full-year core sales growth updated to mid-single digits, with a 1% currency tailwind and modest acquisition contributions.

**【Q&A Key Highlights】**
- **Water Quality Growth**: Europe's 11.4% growth in water analytics reflects commercial execution improvements. North America's 5.7% growth driven by chemical treatment in data centers and municipalities.
- **PQI Margins**: 200 basis points of margin pressure from TraceGains investments, tariff timing, and supply chain shifts. Sequential improvement expected in Q3/Q4 as pricing actions offset costs.
- **Tariffs & Trade**: Neutral net impact on 2025 EPS. Michigan manufacturing expansion supports Build America Buy America compliance for data center projects.
- **M&A Pipeline**: Active pipeline in both segments, with focus on high-margin, secular-growth targets. Disciplined approach to valuation and integration.
- **China Market**: Flat year-over-year sales, with PQI outperforming Water Quality. No recovery expected in 2025, but team executing well within opportunities.
- **Data Centers**: ChemTreat's chemical solutions protect heat exchangers, with growing demand from hyperscalers. TrojanUV's UVSigna technology wins large municipal reuse projects.

Veralto Corporation (VLTO) Q2 2025 Earnings Call Transcript

- **Record Growth**: 7.8% core sales growth, 50 bps margin expansion to 25%, and $0.95 EPS beat driven by volume and operational efficiency.
- **Tariff Resilience**: 3.5% sales exposure to tariffs mitigated via pricing, supply chain shifts, and new U.S. manufacturing capacity.
- **Strategic Acquisitions**: $20M AQUAFIDES deal expands UV portfolio, while TraceGains integration on track for high-single-digit sales growth.
- **Cash Generation**: $142M free cash flow (+59% YoY), supporting disciplined capital deployment.
- **2025 Outlook**: Confident in low-mid single-digit core sales growth and flat to +50 bps margin expansion, despite macro headwinds.

**【CEO Summary Section】**
- Core sales grew 7.8% YoY, driven by volume across both segments (PQI: 8.3%, Water Quality: 4%).
- Adjusted operating margin expanded 50 bps to 25%, an all-time high, supported by high-quality sales growth and operational leverage.
- Acquired AQUAFIDES for $20M to expand UV treatment capabilities in Europe, complementing the February launch of Trojan's U.S. manufacturing facility in Michigan.
- Implemented countermeasures to mitigate 3.5% of annual sales exposure to tariffs, including strategic pricing, supply chain shifts, and manufacturing flexibility.

**【CFO Financial Commentary】**
- Total sales: $1.3B (+6.9% YoY), with core sales up 7.8% and recurring revenue at 61% of total sales.
- Gross profit: $805M (+8% YoY), margin improved 40 bps to 60.4%.
- Adjusted EPS: $0.95 (+13% YoY), exceeding guidance due to higher sales volumes.
- Free cash flow: $142M (+59% YoY), driven by earnings growth.
- Full-year 2025 EPS guidance reaffirmed at $3.60-$3.70, with operating margin target flat to +50 bps.

**【Q&A Key Highlights】**
- **Tariff Mitigation**: 3.5% of sales exposed to tariffs, countermeasures (pricing, supply chain, manufacturing) expected to fully offset impacts. Trojan's U.S. factory reduced Canadian tariff exposure.
- **Demand Resilience**: PQI consumables and software growth sustained in CPG, no softening in order patterns noted.
- **Margin Management**: 2025 margin target expansion cautious due to macro uncertainties, but confident in long-term VES-driven improvements.
- **M&A Pipeline**: Active in both segments, disciplined in valuation and strategic fit.
- **PFAS Opportunity**: Excited about PFS treatment/destruction solutions, no material sales impact in near term.


Veralto (VLTO)-30 Apr 25-2025 Q1 Earnings call transcript

- **Record 2024 Performance**: $5.2B sales, 11% EPS growth, $820M free cash flow. Water Quality and PQI hit all-time highs.
- **Strategic Momentum**: 14+ new product launches, TraceGains acquisition (+20% Q4 sales), and $15M water innovation investment.
- **2025 Outlook**: 5-7% EPS growth, 25-50bps margin expansion, and $3.60-$3.70 EPS. Strong North America industrial water and CPG demand.
- **Resilient Supply Chain**: 78% China sales region-for-region, global diversification limits tariff impact. Trojan UV systems lead in water reuse.

**【CEO Summary Section】**
- **2024 Financial Highlights**: Core sales grew 3.7% to $5.2 billion, adjusted EPS rose 11% to $3.54, and free cash flow reached $820 million. Water Quality and PQI segments achieved all-time highs in sales and margins.
- **Strategic Investments**: Increased R&D to 5% of sales, expanded salesforce, and launched 14+ new products, including the UV laser system for sustainable packaging.
- **Portfolio Optimization**: Acquired TraceGains (+20% Q4 core sales) and divested AVT, enhancing PQI's growth rate and gross margin. Invested in water innovation to address PFAS contamination.
- **2025 Outlook**: Target low-mid single-digit core sales growth, 25-50bps margin expansion, and $3.60-$3.70 EPS. Strong demand in North America industrial water and CPG markets.

**【CFO Financial Commentary】**
- **Q4 2024 Results**: Total sales $1.3B (+4.4% YoY), adjusted EPS $0.95 (+9% YoY). Free cash flow $263M (116% of GAAP net income). Water Quality and PQI segments delivered 4.9% and 4.1% core sales growth, respectively.
- **2025 Guidance**: Core sales growth 100-200bps from pricing, 25-50bps margin expansion, and $3.60-$3.70 EPS. FX headwind of 2% on sales, offset by strong operating leverage.
- **Balance Sheet**: $1.1B cash, net debt 1.2x, supporting M&A and dividend growth (22% increase Q4 2024).

**【Q&A Key Themes】**
- **Margin Expansion Drivers**: VES tools, cost optimization, and pricing contributed 170bps gross margin improvement. 2025 targets 40% incremental margins despite R&D and sales investments.
- **China Strategy**: 78% of China sales are region-for-region, with diversified supply chains mitigating tariff risks. Stable demand but no 2025 growth expectations.
- **Tariff Resilience**: Global supply chain diversification limits impact, with Trojan's U.S. localization reducing Canadian exposure.
- **Water Market Growth**: Industrial water treatment in North America (+high single digits) driven by data centers, power generation, and water reuse. Trojan UV systems lead in municipal reuse projects.
- **M&A Approach**: Pipeline active in both segments, focusing on accretive acquisitions like TraceGains. Minority investments (e.g., vaccine Water Tech) balance R&D risk with growth potential.

Actual	0.75	0.87	0.84	0.85	0.89	0.95	0.95	0.93	0.99	1.04
Forecast	0.7136	0.8068	0.7636	0.8001	0.8585	0.8983	0.8668	0.8819	0.9472	0.9785
Surprise	+5.10%	+7.83%	+10.01%	+6.24%	+3.67%	+5.76%	+9.60%	+5.45%	+4.52%	+6.29%

Actual	1.25B	1.29B	1.25B	1.29B	1.31B	1.34B	1.33B	1.37B	1.40B	1.40B
Forecast	1.21B	1.25B	1.23B	1.28B	1.31B	1.35B	1.28B	1.34B	1.40B	1.41B
Surprise	+4.15%	+3.08%	+1.65%	+0.86%	+0.66%	-0.02%	+4.10%	+2.04%	+0.40%	-0.69%

VLTO

VLTO fundamentals

VLTO Q4 2025 Earnings

Earnings Call

You can ask Aime

VLTO

VLTO fundamentals

VLTO Q4 2025 Earnings

Earnings Call

VLTO Earnings Call Summary for Q4/20258:30 AM on Feb 4, 2026

VLTO Earnings Call Summary for Q3/20258:30 AM on Oct 29, 2025

VLTO Earnings Call Summary for Q2/20258:30 AM on Jul 29, 2025

VLTO Earnings Call Summary for Q1/20258:30 AM on Apr 30, 2025

VLTO Earnings Call Summary for Q4/20248:30 AM on Feb 5, 2025

You can ask Aime