01—Abstract
Summary
Summary of the 10-Q filed July 28, 2025. Cited figures are marked; the original filing is the authoritative source.
Veralto Corporation's Form 10-Q for the quarter ended July 4, 2025 reports second-quarter sales of $1,371 milliona, up 6.4% from $1,288 million a year earlier, with core sales growth of 4.8%.
Net earnings were $222 millionb (diluted EPS $0.89) versus $203 million (diluted EPS $0.81). For the six months, sales were $2,703 million, up 6.6%, and net earnings were $447 million (diluted EPS $1.79) versus $387 million. Management attributes the earnings increase primarily to higher sales from volume growth and positive pricing actions.
Operating profit margin was 22.8% for the quarter, down from 23.2%, which management attributes partly to acquisition and divestiture dilution and strategic initiative costs. Cash generation strengthened: operating cash flow for the six months was $496 millionc, up from $366 million, and cash and cash equivalents rose to $1,559 million from $1,101 million at year-end 2024. Long-term debt increased to $2,672 million from $2,599 million, with the company stating it was in compliance with all debt covenants and had no amounts outstanding under its credit facility or commercial paper program.
A regular quarterly dividend of $0.11d per share was declared, payable July 31, 2025. By segment, Water Quality sales rose 6.2% in the quarter and Product Quality & Innovation sales rose 6.8%. Management expects continued secular growth in municipal and industrial water markets, particularly in North America, and steady demand in consumer-packaged goods markets, while continuing to evaluate the impact of tariffs and trade policy changes.
02—Key points
Key Highlights
- Q2 2025 sales of $1,371 million, up 6.4% year over year; core sales growth of 4.8%
- Q2 2025 net earnings of $222 million ($0.89 diluted EPS) vs. $203 million ($0.81) in Q2 2024
- Six-month sales of $2,703 million, up 6.6%; six-month net earnings of $447 million ($1.79 diluted EPS)
- Operating profit margin of 22.8% in Q2 2025 vs. 23.2% in Q2 2024, pressured by acquisition/divestiture dilution and strategic initiative costs
- Six-month operating cash flow of $496 million, up from $366 million; cash and equivalents of $1,559 million at July 4, 2025
- Long-term debt of $2,672 million; company in compliance with all debt covenants with no borrowings under its credit facility or commercial paper program
- Quarterly dividend of $0.11 per share declared, payable July 31, 2025
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Veralto kept $0.16.
- Revenue$1.37B100.0%
- Cost of revenue−$549.0M40.0%
- Gross profit$822.0M60.0%
- Operating costs−$509.0M37.1%
- Operating income$313.0M22.8%
- Interest, other & tax−$91.0M6.6%
- Net income$222.0M16.2%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed July 28, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $1.37B$1.31B | +4.3% |
| Cost of Revenue | $549.00M$531.00M | +3.4% |
| Gross Profit | $822.00M$783.00M | +5.0% |
| R&D Expenses | $67.00M$63.00M | +6.3% |
| SG&A Expenses | $442.00M$412.00M | +7.3% |
| Operating Income | $313.00M$308.00M | +1.6% |
| Net Income | $222.00M$219.00M | +1.4% |
| EPS (Basic) | $0.89$0.89 | 0.0% |
| EPS (Diluted) | $0.89$0.88 | +1.1% |
| Shares Outstanding (Basic) | 248.20M247.40M | +0.3% |
| Shares Outstanding (Diluted) | 249.90M250.00M | 0.0% |
05—Questions
Frequently Asked Questions
How did Veralto's revenue perform in the second quarter of 2025?
Sales rose 6.4% to $1,371 million from $1,288 million in the second quarter of 2024. Core sales, which exclude currency and acquisition/divestiture effects, grew 4.8%. Currency exchange rates increased reported sales by 1.5%, and price increases contributed 1.7% to sales growth.
What drove the change in profitability?
Net earnings increased to $222 million from $203 million, primarily due to higher sales from volume growth and positive pricing actions. Operating profit margin, however, declined to 22.8% from 23.2%, reflecting net dilution from acquisitions and dispositions (30 basis points) and costs related to strategic initiatives (20 basis points).
How is Veralto's cash position and debt structure?
Cash and cash equivalents were $1,559 million at July 4, 2025, up from $1,101 million at December 31, 2024. Long-term debt was $2,672 million. The company held approximately $676 million of cash in the United States and $883 million outside it, and reported no amounts outstanding under its credit facility or commercial paper program.
How did the two business segments perform?
Water Quality sales increased 6.2% to $825 million in the quarter, with operating profit margin of 25.6%. Product Quality & Innovation sales increased 6.8% to $546 million, with operating profit margin of 24.5%, down from 26.4%, mainly due to incremental labor costs and research and development growth initiatives.
What is management's outlook for the rest of 2025?
Management expects continued positive secular growth drivers in municipal and industrial water markets, particularly in North America, and steady demand in consumer-packaged goods markets as the year progresses. It continues to evaluate the potential impact of tariffs and trade policy changes and states that its outlook is subject to the risks described in its filings.
06—Continue