01—Abstract
Summary
Summary of the 10-K filed February 20, 2026. Cited figures are marked; the original filing is the authoritative source.
Veralto Corporation (NYSE: VLTO) reported 2025 sales of $5.50 billiona, up from $5.19 billion in 2024, with core sales growth of 4.7% and currency exchange rates adding 1.2% to reported sales.
Operating profit rose to $1.28 billionb from $1.21 billion, while the operating profit margin was 23.2% versus 23.3% in 2024. Net earnings were $940 million, or $3.76 per diluted share, compared with $833 million, or $3.34 per diluted share, in 2024. The Water Quality segment generated $3.32 billion in sales and a 25.4% operating margin, and the Product Quality & Innovation segment generated $2.18 billion in sales and a 25.2% operating margin.
Approximately 61% of total sales were recurring. Cash flow and balance sheet were strong. Net cash provided by operating activities was $1.08 billionc, up from $875 million, and cash and cash equivalents reached $2.03 billion at year end.
Total debt was $2.67 billiond, including a $700 million note due in September 2026. The company paid $109 million in dividends during 2025 and raised its quarterly dividend to $0.13 per share from $0.11. The Board approved a $750 million share repurchase program in November 2025, but no shares were repurchased during 2025.
On January 22, 2026, the company completed the acquisition of In-Situ, Inc. for approximately $427 million in cash, net of cash acquired, which will be included in the Water Quality segment. The filing identifies tariffs, trade policy, competition, and foreign currency as the principal risks. Approximately 56% of 2025 sales came from customers outside the United States.
Management concluded that internal control over financial reporting was effective as of December 31, 2025, and Ernst & Young LLP issued an unqualified opinion. The auditor's critical audit matter was goodwill impairment, and no impairment was recorded in 2025.
02—Key points
Key Highlights
- Sales rose to $5.50 billion in 2025 from $5.19 billion, a 6.0% increase, with core sales up 4.7%.
- Net earnings increased to $940 million ($3.76 diluted EPS) from $833 million ($3.34 diluted EPS).
- Operating cash flow increased to $1.08 billion from $875 million; cash and equivalents ended the year at $2.03 billion.
- Recurring revenue represented approximately 61% of total sales in 2025.
- Total debt was $2.67 billion, including a $700 million note due in 2026; the company has a $1.5 billion revolving credit facility with no borrowings outstanding.
- A $750 million share repurchase program was authorized in November 2025, with no repurchases made in 2025.
- Completed the $427 million acquisition of In-Situ, Inc. on January 22, 2026, expanding the Water Quality segment.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Veralto kept $0.17.
- Revenue$4.11B100.0%
- Cost of revenue−$1.64B39.8%
- Gross profit$2.47B60.2%
- Operating costs−$1.51B36.8%
- Operating income$961.0M23.4%
- Interest, other & tax−$275.0M6.7%
- Net income$686.0M16.7%
Where FY2025 revenue went
$4.11B- Cost of revenue: $1.64B, 40% of revenue
- SG&A: $1.31B, 32% of revenue
- Net income: $686.0M, 17% of revenue
- R&D: $198.0M, 4.8% of revenue
- Interest, other & tax: $275.0M, 6.7% of revenue
Kept 17% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 20, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $4.11B$5.19B | −20.9% |
| Cost of Revenue | $1.64B$2.09B | −21.6% |
| Gross Profit | $2.47B$3.10B | −20.4% |
| R&D Expenses | $198.00M$253.00M | −21.7% |
| SG&A Expenses | $1.31B$1.64B | −20.2% |
| Operating Income | $961.00M$1.21B | −20.4% |
| Net Income | $686.00M$833.00M | −17.6% |
| EPS (Basic) | $2.76$3.37 | −18.1% |
| EPS (Diluted) | $2.74$3.34 | −18.0% |
| Shares Outstanding (Basic) | 248.20M247.30M | +0.4% |
| Shares Outstanding (Diluted) | 250.20M249.60M | +0.2% |
05—Questions
Frequently Asked Questions
How did Veralto perform financially in 2025?
Sales increased 6.0% to $5.50 billion, driven by a 4.7% increase in core sales, with currency exchange rates adding 1.2%. Operating profit increased to $1.28 billion, and net earnings rose to $940 million, or $3.76 per diluted share, from $833 million, or $3.34 per diluted share, in 2024. The operating profit margin was 23.2%, compared with 23.3% in 2024.
What drove growth in the two business segments?
Water Quality sales increased 5.9% to $3.32 billion, with core sales up 4.7%, driven mainly by the ultraviolet water disinfection and filtration business and the chemical treatment solutions business. Product Quality & Innovation sales increased 6.2% to $2.18 billion, with core sales up 4.8%, led by marking and coding and packaging and color solutions.
What is Veralto's balance sheet and capital allocation position?
At year end, the company held $2.03 billion of cash and cash equivalents and $2.67 billion of total debt, including a $700 million note due September 2026. It paid $109 million in dividends in 2025 and declared a quarterly dividend of $0.13 per share, up from $0.11. The Board authorized a $750 million share repurchase program, but no shares were repurchased during 2025.
What key risks does the filing highlight?
The filing highlights U.S. tariffs and retaliatory trade measures, intense competition, the need to develop new products, uncertainty around artificial intelligence, and foreign currency movements. Approximately 56% of 2025 sales came from customers outside the United States. Goodwill and intangible assets totaled approximately $3.4 billion, and the company notes impairment risk.
What recent acquisition did Veralto complete?
On January 22, 2026, Veralto completed the acquisition of In-Situ, Inc. for a cash purchase price of approximately $427 million, net of cash acquired. In-Situ is a provider of environmental water measurement and monitoring solutions, and it will be included in the Water Quality segment. The initial purchase price allocation is incomplete.
06—Continue