01—Abstract
Summary
Summary of the 8-K filed May 6, 2025. Cited figures are marked; the original filing is the authoritative source.
Waters Corporation (NYSE: WAT) reported first quarter 2025 results for the quarter ended March 29, 2025, per Exhibit 99.1 press release furnished with this Item 2.02 8-K.
Net sales were $661.7 milliona, up 4% as reported and 7% in constant currency, compared with $636.8 million a year earlier. GAAP diluted EPS was $2.03 versus $1.72 in the prior-year quarter, and non-GAAP EPS was $2.25, which the company said reflected growth of 2% and included approximately five percentage points of unfavorable foreign exchange. Instrument sales grew 11% in constant currency, led by Pharmaceutical and Industrial end markets.
GAAP net income was $121.4 millionb, compared with $102.2 million. Management raised full-year 2025 guidance. Constant currency sales growth is now expected at +5.0% to +7.0% (reported +4.0% to +6.0%), and non-GAAP EPS is now expected at $12.75 to $13.05, versus GAAP EPS guidance of $11.88 to $12.18.
The CEO stated the company reaffirmed its expectation of high single-digit adjusted EPS growth for the year and cited operational actions and foreign exchange improvements as offsets to recently announced tariffs and policy changes. For the second quarter 2025, the company guided constant currency sales growth of +5.0% to +7.0% and non-GAAP EPS of $2.88 to $2.98c. Balance sheet items show cash and cash equivalents of $382.9 million and notes payable and debt of $1.46 billion at March 29, 2025, down from $1.63 billion at December 31, 2024.
Net cash provided by operating activities was $259.6 milliond, and adjusted free cash flow was $233.8 million. The company also repaid $170.0 million of net debt during the quarter.
02—Key points
Key Highlights
- Q1 2025 sales of $661.7 million, up 4% as reported and 7% in constant currency, at the high end of guidance
- Instrument sales grew 11% in constant currency, driven by Pharma and Industrial end markets
- GAAP diluted EPS of $2.03 (vs. $1.72 prior year); non-GAAP EPS of $2.25, at the high end of guidance
- Full-year 2025 constant currency sales growth guidance raised to +5.0% to +7.0%
- Full-year 2025 non-GAAP EPS guidance raised to $12.75 to $13.05, net of tariff impact, operational actions and FX
- Second quarter 2025 non-GAAP EPS guided to $2.88 to $2.98
- Net debt reduced by $170.0 million in the quarter; free cash flow (adjusted non-GAAP) of $233.8 million
03—Questions
Frequently Asked Questions
How did Waters perform in the first quarter of 2025?
Net sales were $661.7 million, up 4% as reported and 7% in constant currency from $636.8 million. GAAP diluted EPS was $2.03, and non-GAAP EPS was $2.25, which the company said landed at the high end of its guidance range.
What changed in the full-year 2025 guidance?
The company raised constant currency sales growth guidance to +5.0% to +7.0% (reported +4.0% to +6.0%) and raised non-GAAP EPS guidance to $12.75 to $13.05, compared with GAAP EPS guidance of $11.88 to $12.18. The CEO said the company reaffirmed its expectation of high single-digit adjusted EPS growth for the year.
What drove the quarter's results?
The company attributed the results to instrument growth of 11% in constant currency, driven by strong momentum in Pharma and Industrial end markets, along with the traction of its product portfolio.
How does management view the impact of tariffs and currency?
Management said operational actions and improvements in foreign exchange position the company to mitigate the impact of recently announced tariffs and policy changes. Foreign exchange was an unfavorable impact of about five percentage points on non-GAAP EPS growth in the quarter.
What is the company's second quarter 2025 outlook?
Second quarter 2025 constant currency sales growth is expected at +5.0% to +7.0% (reported +4.0% to +6.0%), and non-GAAP EPS is expected at $2.88 to $2.98, compared with GAAP EPS guidance of $2.66 to $2.76.
04—Continue