Veralto 2025 Q1 Earnings Strong Performance as Net Income Surges 22.3%

Veralto (VLTO) reported its fiscal 2025 Q1 earnings on Apr 29th, 2025. The company surpassed analysts' expectations with a notable increase in net income, reaching $225 million, which represents a 22.3% growth from the previous year. This robust performance was driven by strategic initiatives and favorable market conditions across its key segments. Veralto's guidance for the second quarter remains in-line with prior projections, anticipating adjusted diluted earnings per share of $0.84 to $0.88. For the full year, the company reaffirmed its adjusted earnings per share guidance of $3.60 to $3.70.

Revenue
Veralto reported a total revenue increase of 6.9% to $1.33 billion in 2025 Q1, compared to $1.25 billion in 2024 Q1.

Earnings/Net Income
Veralto's EPS rose 21.3% to $0.91 in 2025 Q1 from $0.75 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $225 million in 2025 Q1, marking 22.3% growth from $184 million in 2024 Q1. The Company has sustained profitability for 3 years over the corresponding fiscal quarter, reflecting stable business performance.

Price Action
The stock price of Veralto has edged up 1.27% during the latest trading day, has climbed 4.38% during the most recent full trading week, and has dropped 4.90% month-to-date.

Post-Earnings Price Action Review
Following earnings report disclosures, Veralto (VLTO) has historically seen positive short-to-medium-term gains. The 3-Day, 10-Day, and 30-Day win rates are all at 57.14%, indicating favorable stock performance post-earnings. The maximum return observed over 30 days was 11.09%, highlighting the potential for significant price appreciation after earnings releases.

CEO Commentary
“Building off the operating momentum generated last year, we achieved strong core sales growth, solid margin expansion and double-digit adjusted earnings per share growth,” said Jennifer L. Honeycutt, President and Chief Executive Officer. Core sales growth was broad-based across Product Quality and Innovation and Water Quality. Positive trends in consumer-packaged goods markets supported growth in the marking and coding business, while robust growth in water treatment solutions was noted in North America. The team has implemented countermeasures to mitigate tariff impacts, reaffirming confidence in their ability to navigate the macroeconomic environment effectively.

Guidance
For the second quarter of 2025, Veralto anticipates non-GAAP core sales growth in low-to-mid single digits year-over-year, with adjusted diluted earnings per share expected in the range of $0.84 to $0.88. For the full year 2025, the Company reaffirmed its adjusted earnings per share guidance of $3.60 to $3.70, with free cash flow conversion projected at 90% to 100%. This reflects expectations of core sales growth in the low-to-mid single digits and adjusted operating profit margin expansion of flat to +50 basis points year-over-year.

Additional News
Veralto recently acquired TraceGains, bolstering its capabilities in food safety and quality solutions. This acquisition aligns with the company's strategic focus on enhancing its offerings in clean water and food safety sectors, aiming for improved efficiency and market share. Additionally, President Jennifer Honeycutt sold US$1.0m worth of stock, indicating potential insider confidence in the company's future performance. Furthermore, Veralto announced a quarterly cash dividend of US$0.11 per share, payable on April 30, 2025, demonstrating a commitment to returning value to shareholders.