Veralto Reports Fourth Quarter and Full Year 2025 Results

WALTHAM, Mass., Feb. 3, 2026 /PRNewswire/ -- Veralto (NYSE: VLTO) (the "Company"), a global leader in essential water and product quality solutions dedicated to Safeguarding the World's Most Vital Resources™, announced results for the fourth quarter ended December 31, 2025.

Key Fourth Quarter 2025 Results

• Sales increased 3.8% year-over-year to $1,396 million, with non-GAAP core sales growth of 1.6%
• Operating profit margin was 22.6% and non-GAAP adjusted operating profit margin was 24.6%
• Net earnings were $254 million, or $1.01 per diluted common share
• Non-GAAP, adjusted net earnings were $261 million, or $1.04 per diluted common share
• Operating cash flow was $311 million and non-GAAP free cash flow was $291 million

Key Full Year 2025 Results

• Sales increased 6.0% year-over-year to $5,503 million, with non-GAAP core sales growth of 4.7%
• Operating profit margin was 23.2% and non-GAAP adjusted operating profit margin was 24.3%
• Net earnings were $940 million, or $3.76 per diluted common share
• Non-GAAP, adjusted net earnings were $977 million, or $3.90 per diluted common share
• Operating cash flow was $1,077 million and non-GAAP free cash flow was $1,014 million

"Our team finished 2025 with another strong quarter, capping off an outstanding year for Veralto.  Throughout 2025, our rigorous, VES-driven execution helped us serve customers in a dynamic macro-economic environment with increased operating efficiency across Veralto," said Jennifer L. Honeycutt, President and Chief Executive Officer.  "For the full year, we delivered mid-single-digit core sales growth, double-digit adjusted earnings per share growth and over one billion dollars of free cash flow."

Honeycutt continued, "In late January, we completed the acquisition of In-Situ, expanding our world-class water analytics portfolio into the high growth environmental water and hydrology markets. In addition, during the fourth quarter we established a $750 million share repurchase program and announced an 18% increase in our dividend. Going forward, we remain excited about numerous opportunities to create value for shareholders through strategic growth and disciplined capital allocation."   

"Entering 2026, we are confident that the enduring need to safeguard the global supply of clean water and safe food will continue to underpin steady demand for our products and services across our key industrial, municipal and consumer packaged goods end markets. Combined with our durable business model and rigorous deployment of VES, we expect to deliver another year of core sales growth and continued margin expansion, with mid-to-high single digit adjusted earnings per share growth," concluded Honeycutt.

2026 Guidance

The Company provides forecasted sales guidance on a non-GAAP basis because of the difficulty in estimating the other components of GAAP sales, such as currency translation, acquisitions, and divestitures. 

For the first quarter of 2026, Veralto anticipates that non-GAAP core sales growth will be flat to low-single digits year-over-year with adjusted operating profit margin of approximately 24.5% and adjusted diluted earnings per share in the range of $0.97 to $1.01 per share.

For the full year 2026, the Company anticipates that non-GAAP core sales will grow low-to-mid-single digits year-over-year and that adjusted operating profit margin will expand by approximately 25 basis points year-over-year.  The Company is targeting adjusted diluted earnings per share in the range of $4.10 to $4.20 with free cash flow conversion of approximately ~100% of GAAP net earnings.

Conference Call and Webcast Information

Veralto will discuss its fourth quarter results and financial guidance for 2026 during its quarterly investor conference call tomorrow starting at 8:30 a.m. (ET). Access to the call, webcast and an accompanying slide presentation will be available on the "Investors" section of Veralto's website, www.veralto.com, under the subheading "News & Events" and additional materials will be posted to the same section of Veralto's website.  A replay of the webcast will be available in the same section of Veralto's website shortly after the conclusion of the call and will remain available until the next quarterly earnings call.

The conference call can be accessed by dialing +1 (800) 267-6316 (U.S.) or +1 (203) 518-9783 (INTL) (Conference ID:  VLTO4Q25).  A replay of the conference call will be available shortly after the conclusion of the call and until February 18, 2026.  You can access the replay dial-in information on the "Investors" section of Veralto's website under the subheading "News & Events."

ABOUT VERALTO

With annual sales of approximately $5.5 billion, Veralto is a global leader in essential technology solutions with a proven track record of solving some of the most complex challenges we face as a society.  Our industry-leading companies with globally recognized brands help billions of people around the world access clean water, safe food and trusted essential goods.  Headquartered in Waltham, Massachusetts, our global team of approximately 17,000 associates is committed to making an enduring positive impact on our world and united by a powerful purpose: Safeguarding the World's Most Vital Resources™.

NON-GAAP MEASURES AND SUPPLEMENTAL MATERIALS

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains non-GAAP financial measures.  Calculations of these measures, the reasons why we believe these measures provide useful information to investors, a reconciliation of these measures to the most directly comparable GAAP measures, as applicable, and other information relating to these non-GAAP measures are included in the supplemental reconciliation schedule attached.

In addition, this earnings release, the slide presentation accompanying the related earnings call, non-GAAP reconciliations and a note containing details of historical and anticipated, future financial performance have been posted to the "Investors" section of Veralto's website (www.veralto.com) under the subheading "Quarterly Earnings."

FORWARD-LOOKING STATEMENTS

Certain statements in this release, including the statement regarding the Company's anticipated 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 of the federal securities laws.  All statements other than historical factual information are forward-looking statements, including, without limitation, statements regarding: projections of revenue, expenses, profit, profit margins, asset values, pricing, tax rates, tax provisions, cash flows, pension and benefit obligations and funding requirements, Veralto's liquidity position or other projected financial measures; Veralto's management's plans and strategies for future operations, including statements relating to anticipated operating performance, customer demand, cost reductions, restructuring activities, new product and service developments, competitive strengths or market position, acquisitions and the integration thereof, divestitures, spin-offs, split-offs, initial public offerings, other securities offerings or other distributions, strategic opportunities, stock repurchases, dividends and executive compensation; growth, declines and other trends in markets Veralto sells into; the impact of global trade policies, tariffs, restrictions on imports, related countermeasures and reciprocal tariffs; future new or modified laws, regulations, accounting pronouncements or public policy changes; regulatory approvals and the timing and conditionality thereof; outstanding claims, legal proceedings, tax audits and assessments and other contingent liabilities; future foreign currency exchange rates and fluctuations in those rates; results of operations and/or financial condition; general economic and capital markets conditions; the anticipated timing of any of the foregoing; assumptions underlying any of the foregoing; and any other statements that address events or developments that Veralto intends or believes will or may occur in the future. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings.  These forward-looking statements speak only as of the date of this release and except to the extent required by applicable law, the Company does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.

This information is presented for reference only.  Final audited financial statements will include footnotes, which should be referenced when available, to more fully understand the contents of this information.

This information is presented for reference only.  Final audited financial statements will include footnotes, which should be referenced when available, to more fully understand the contents of this information.

This information is presented for reference only.  Final audited financial statements will include footnotes, which should be referenced when available, to more fully understand the contents of this information.