01—Abstract
Summary
Summary of the 10-Q filed April 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Veralto Corporation (VLTO) reported its first-quarter 2025 results for the three-month period ended April 4, 2025, in this Form 10-Q filed April 30, 2025.
Sales rose to $1,332 milliona from $1,246 million in the prior-year period, and the filing states total sales growth of 6.9%, with core sales growth of 7.8% (excluding a 1.3% currency headwind and a 0.4% acquisitions/divestitures benefit). Gross profit was $805 million (60.4% gross margin, versus 60.0%), operating profit was $322 million (24.2% operating margin, versus 23.5%), and net earnings were $225 million, or $0.90 diluted EPS, compared with $184 million, or $0.74 diluted EPS, a year earlier. The filing attributes the earnings increase mainly to higher sales from volume and pricing, and notes that three extra days in the fiscal first quarter benefited year-over-year comparisons.
Both segments grew. Water Quality sales rose to $794 millionb from $749 million, with operating profit of $198 million, and Product Quality & Innovation sales rose to $538 million from $497 million, with operating profit of $146 million. Operating cash flow increased to $157 million from $115 million, and cash and cash equivalents ended at $1,239 million, up from $1,101 million at December 31, 2024.
Long-term debt was $2,630 millionc. Management expects positive secular growth drivers in industrial water markets and steady demand in consumer-packaged goods, while noting it is evaluating the impact of tariffs and trade policy changes.
The filing adds a new risk factor on U.S. tariffs and related foreign countermeasures. The quarter's balance sheet and cash flow were stable: total assets were $6,645 milliond, the company paid $27 million in dividends ($0.11 per share declared for the quarter), and it reported no amounts outstanding under its credit facility or commercial paper program as of April 4, 2025.
02—Key points
Key Highlights
- Sales increased to $1,332 million from $1,246 million, a 6.9% total sales growth, with core sales growth of 7.8%.
- Net earnings rose to $225 million from $184 million; diluted EPS was $0.90 versus $0.74.
- Operating profit was $322 million, a 24.2% operating margin compared with 23.5% in the prior-year period.
- Water Quality sales rose to $794 million (operating profit $198 million); Product Quality & Innovation sales rose to $538 million (operating profit $146 million).
- Net cash provided by operating activities increased to $157 million from $115 million, and cash and cash equivalents reached $1,239 million.
- Long-term debt totaled $2,630 million, with no amounts outstanding under the credit facility or commercial paper program.
- The filing adds a new risk factor on U.S. tariffs and foreign retaliatory measures that could affect demand and costs.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Veralto kept $0.17.
- Revenue$1.33B100.0%
- Cost of revenue−$527.0M39.6%
- Gross profit$805.0M60.4%
- Operating costs−$483.0M36.3%
- Operating income$322.0M24.2%
- Interest, other & tax−$97.0M7.3%
- Net income$225.0M16.9%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed April 30, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $1.33B$1.29B | +3.4% |
| Cost of Revenue | $527.00M$514.00M | +2.5% |
| Gross Profit | $805.00M$774.00M | +4.0% |
| R&D Expenses | $64.00M$61.00M | +4.9% |
| SG&A Expenses | $419.00M$414.00M | +1.2% |
| Operating Income | $322.00M$299.00M | +7.7% |
| Net Income | $225.00M$203.00M | +10.8% |
| EPS (Basic) | $0.91$0.82 | +11.0% |
| EPS (Diluted) | $0.90$0.81 | +11.1% |
| Shares Outstanding (Basic) | 247.90M247.20M | +0.3% |
| Shares Outstanding (Diluted) | 250.10M249.30M | +0.3% |
05—Questions
Frequently Asked Questions
How did Veralto perform in the first quarter of 2025?
Sales grew 6.9% to $1,332 million, with core sales up 7.8%. Net earnings increased to $225 million from $184 million, and diluted EPS rose to $0.90 from $0.74. The filing notes that three additional days in the fiscal first quarter helped year-over-year comparisons.
Which segment contributed most to growth?
Both segments grew. Water Quality sales increased to $794 million from $749 million, with operating profit of $198 million. Product Quality & Innovation sales increased to $538 million from $497 million, with operating profit of $146 million. Water Quality's core sales growth was driven mainly by the chemical treatment solutions business.
What is the company's liquidity and debt position?
Cash and cash equivalents were $1,239 million as of April 4, 2025, up from $1,101 million at year-end 2024. Long-term debt was $2,630 million, and there were no amounts outstanding under the credit facility or commercial paper program. Operating cash flow was $157 million, and the company paid $27 million in dividends during the quarter.
What risks does management highlight?
The filing adds a new risk factor on U.S. tariffs and restrictions on foreign imports, along with retaliatory measures by other countries. Management says these could raise product costs and reduce demand. It is also evaluating tariff and trade policy impacts and mitigation countermeasures.
What is the outlook for 2025?
Management expects positive secular growth drivers across industrial markets, particularly in North America, and steady municipal demand in Water Quality. It expects steady demand in consumer-packaged goods markets in Product Quality & Innovation as the year progresses, while continuing to evaluate tariff and trade policy effects.
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