How did Veralto's revenue and profitability trend in the third quarter of 2025?

Sales increased to $1,404 million from $1,314 million, and operating profit rose to $326 million from $308 million. Net earnings were $239 million, compared with $219 million a year earlier, and diluted EPS was $0.95 versus $0.88. The filing attributes the growth primarily to higher volumes and positive pricing actions.

What is driving growth in each of Veralto's segments?

In Water Quality, core sales grew 5.3% in the quarter, led by the chemical treatment solutions business. In Product Quality & Innovation, core sales grew 4.6%, with the marking and coding business up 5.9% for both the quarter and the nine months. Management expects positive secular growth drivers in Water Quality, particularly in North America, and steady consumer-packaged goods demand in the Product Quality & Innovation segment.

How strong is Veralto's liquidity and debt position?

Cash and cash equivalents were $1,775 million as of October 3, 2025, up from $1,101 million at December 31, 2024. Total debt was $2,672 million, with $700 million classified as current, and the company was in compliance with all debt covenants. Management believes operating cash flow and other sources of liquidity are sufficient to meet its cash requirements.

What dividend is Veralto paying, and how much has it returned to shareholders?

The company declared a regular quarterly dividend of $0.11 per share, payable October 31, 2025 to holders of record as of September 30, 2025. Aggregate dividend payments were $82 million during the nine months ended October 3, 2025.

Are there any material changes to risk factors or significant tax developments?

The filing states there were no material changes to risk factors from the 2024 Form 10-K. The effective tax rate was 21.9% for the quarter and 22.0% for the nine months. The company also concluded that the enactment of the One Big Beautiful Bill Act on July 4, 2025 had an immaterial impact on its financial statements.

VLTO 10-Q Filed Oct 29, 2025

01—Abstract

Summary

Summary of the 10-Q filed October 29, 2025. Cited figures are marked; the original filing is the authoritative source.

Veralto Corporation's Form 10-Q for the quarter ended October 3, 2025 reports third-quarter sales of $1,404 million^a, up from $1,314 million a year earlier, and nine-month sales of $4,107 million versus $3,848 million.

Net earnings were $239 million^b for the quarter (diluted EPS $0.95, versus $0.88) and $686 million for the nine months (diluted EPS $2.74, versus $2.43). The company attributes the growth primarily to core sales increases driven by higher volumes and positive pricing, with core sales growth of 5.1% for the quarter and 5.9% for the nine months. Operating profit was $326 million in the quarter and $961 million year to date, with operating margins of 23.2% and 23.4%, respectively.

The balance sheet strengthened over the period. Cash and cash equivalents rose to $1,775 million^c from $1,101 million at year-end 2024, and total debt was $2,672 million, including a $700 million current portion due in 2026. Nine-month operating cash flow was $766 million, compared with $590 million in the prior-year period.

Management reports that the company paid $82 million^d in dividends during the nine months and declared a quarterly dividend of $0.11 per share payable October 31, 2025. The filing also notes that no amounts were outstanding under the credit facility or commercial paper program as of October 3, 2025.

Management cites positive secular growth drivers in Water Quality, particularly in North America, and expects steady demand in consumer-packaged goods markets for Product Quality & Innovation. The company continues to monitor tariffs and trade policy changes, and it reports no material changes to its risk factors from the 2024 Form 10-K.

02—Key points

Key Highlights

Third-quarter sales rose to $1,404 million from $1,314 million; nine-month sales reached $4,107 million versus $3,848 million.
Core sales grew 5.1% in the quarter and 5.9% for the nine months, with price increases contributing 2.4% and 1.8% to sales growth, respectively.
Net earnings were $239 million for the quarter and $686 million for the nine months, with diluted EPS of $0.95 and $2.74.
Cash and cash equivalents increased to $1,775 million, and nine-month operating cash flow was $766 million.
Total debt was $2,672 million, including a $700 million current portion of long-term debt, and no borrowings were outstanding under the credit facility or commercial paper program.
The Water Quality segment's operating profit margin reached 25.9% in the quarter, compared with 24.3% a year earlier.
The company completed an acquisition of TraceGains in 2024, and it recorded a $6 million loss on the disposition of a product line during the nine months ended October 3, 2025.

03—Questions

Frequently Asked Questions

How did Veralto's revenue and profitability trend in the third quarter of 2025?
Sales increased to $1,404 million from $1,314 million, and operating profit rose to $326 million from $308 million. Net earnings were $239 million, compared with $219 million a year earlier, and diluted EPS was $0.95 versus $0.88. The filing attributes the growth primarily to higher volumes and positive pricing actions.
What is driving growth in each of Veralto's segments?
In Water Quality, core sales grew 5.3% in the quarter, led by the chemical treatment solutions business. In Product Quality & Innovation, core sales grew 4.6%, with the marking and coding business up 5.9% for both the quarter and the nine months. Management expects positive secular growth drivers in Water Quality, particularly in North America, and steady consumer-packaged goods demand in the Product Quality & Innovation segment.
How strong is Veralto's liquidity and debt position?
Cash and cash equivalents were $1,775 million as of October 3, 2025, up from $1,101 million at December 31, 2024. Total debt was $2,672 million, with $700 million classified as current, and the company was in compliance with all debt covenants. Management believes operating cash flow and other sources of liquidity are sufficient to meet its cash requirements.
What dividend is Veralto paying, and how much has it returned to shareholders?
The company declared a regular quarterly dividend of $0.11 per share, payable October 31, 2025 to holders of record as of September 30, 2025. Aggregate dividend payments were $82 million during the nine months ended October 3, 2025.
Are there any material changes to risk factors or significant tax developments?
The filing states there were no material changes to risk factors from the 2024 Form 10-K. The effective tax rate was 21.9% for the quarter and 22.0% for the nine months. The company also concluded that the enactment of the One Big Beautiful Bill Act on July 4, 2025 had an immaterial impact on its financial statements.

04—Continue

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