Veralto Reports Third Quarter 2025 Results

Rhea-AI Summary

Veralto (NYSE: VLTO) reported third-quarter 2025 results for the period ended October 3, 2025: sales $1,404M (+6.9% YoY) with non-GAAP core sales +5.1%. Operating profit margin was 23.2% and non-GAAP adjusted operating margin was 23.9%. GAAP net earnings were $239M or $0.95 per diluted share; non-GAAP adjusted net earnings were $247M or $0.99 per diluted share. Operating cash flow was $270M and non-GAAP free cash flow was $258M.

For Q4 2025 the company expects non-GAAP core sales to grow low-single-digits and adjusted diluted EPS of $0.95–$0.98. Full-year 2025 adjusted EPS guidance was raised to $3.82–$3.85 (from $3.72–$3.80) with assumed mid-single-digit core sales growth and adjusted operating margin expansion of flat to +25 bps; full-year free cash flow conversion was raised to ~100%.

Positive

• Sales of $1,404M representing +6.9% YoY
• Raised full-year adjusted EPS guidance to $3.82–$3.85
• Operating cash flow $270M and non-GAAP free cash flow $258M
• Full-year free cash flow conversion guidance raised to ~100%

Negative

• Q4 2025 non-GAAP core sales guide at only low-single-digit growth
• Adjusted operating profit margin expansion guided at flat to +25 bps (limited improvement)

Insights

Equity Analyst

Veralto reported modest top-line growth, stronger margins, higher EPS guidance, and improved cash conversion — a constructive operational quarter.

Sales rose 6.9% year‑over‑year to $1,404 million with non‑GAAP core sales growth of 5.1%, operating margin at 23.2% and adjusted margin at 23.9%. Net earnings were $239 million or $0.95 per diluted share, while adjusted EPS was $0.99; operating cash flow and non‑GAAP free cash flow were $270 million and $258 million respectively. These metrics show revenue expansion paired with steady profitability and healthy cash generation.

The company raised full‑year adjusted EPS guidance to $3.82–$3.85 and expects fourth‑quarter non‑GAAP core sales to grow low‑single‑digits with adjusted diluted EPS of $0.95–$0.98. The firm also increased full‑year free cash flow conversion guidance to approximately 100%. These changes indicate management sees sustainable margin leverage and stronger cash conversion, but outcomes depend on execution against cost discipline, currency and M&A impacts explicitly noted as drivers of GAAP variance.

Watch the company’s announced items closely over the next quarter: reported Q4 non‑GAAP core sales growth and adjusted EPS guidance versus actual results on or around the next quarterly report; full‑year free cash flow conversion realization through year‑end; and any disclosed effects from currency translation, acquisitions, or divestitures that could shift GAAP-to-non‑GAAP reconciliation. Expect relevant updates at the upcoming conference call on tomorrow and in quarterly disclosures through Q4 2025.

WALTHAM, Mass., Oct. 28, 2025 /PRNewswire/ -- Veralto (NYSE: VLTO) (the "Company"), a global leader in essential water and product quality solutions dedicated to Safeguarding the World's Most Vital Resources™, announced results for the third quarter ended October 3, 2025.

Key Third Quarter 2025 Results

• Sales increased 6.9% year-over-year to $1,404 million, with non-GAAP core sales growth of 5.1%
• Operating profit margin was 23.2% and non-GAAP adjusted operating profit margin was 23.9%
• Net earnings were $239 million, or $0.95 per diluted common share
• Non-GAAP, adjusted net earnings were $247 million, or $0.99 per diluted common share
• Operating cash flow was $270 million and non-GAAP free cash flow was $258 million

"In both the third quarter and the first nine months of 2025, we delivered mid-single digit core sales growth and double-digit earnings per share growth through strong commercial performance, disciplined operating execution and rigorous deployment of the Veralto Enterprise System.  These results underscore our ability to successfully navigate a dynamic macro environment, particularly with respect to changes in global trade policies.  Our consistent growth this year is also a testament to our durable business model and the critical role our technologies and services play in supporting the daily operations of our customers," said Jennifer L. Honeycutt, President and Chief Executive Officer.

"Broadly speaking, customer demand across our key end markets was as expected in the third quarter.  Our financial position continued to strengthen, and we have ample flexibility to invest in organic and inorganic opportunities, in-line with our disciplined approach to capital allocation.  Looking back at our first two years as a public company, I'm extremely proud of our global team for the steady growth and improvement we've achieved, a reflection of our high-performance culture at Veralto," concluded Honeycutt.

2025 Guidance

The Company provides forecasted sales only on a non-GAAP basis because of the difficulty in estimating the other components of GAAP sales, such as currency translation, acquisitions, and divestitures. 

For the fourth quarter of 2025, Veralto anticipates that non-GAAP core sales will grow low-single-digits year-over-year with adjusted diluted earnings per share in the range of $0.95 to $0.98 per share.

For the full year 2025, the Company raised its adjusted earnings per share guidance range to $3.82 to $3.85 per share, up from its prior guidance range of $3.72 to $3.80 per share.  This full year guidance assumes mid-single-digit core sales growth, with adjusted operating profit margin expansion in the range of flat to +25 basis points year-over-year.  The Company also raised its full-year free cash flow conversion guidance to approximately 100%.

Conference Call and Webcast Information

Veralto will discuss its third quarter results and financial guidance for 2025 during its quarterly investor conference call tomorrow starting at 8:30 a.m. (ET).  Access to the call, webcast and an accompanying slide presentation will be available on the "Investors" section of Veralto's website, www.veralto.com, under the subheading "News & Events" and additional materials will be posted to the same section of Veralto's website.  A replay of the webcast will be available in the same section of Veralto's website shortly after the conclusion of the call and will remain available until the next quarterly earnings call.

The conference call can be accessed by dialing +1 (833) 316-2483 (U.S.) or +1 (785) 838-9284 (INTL) (Conference ID:  VLTO3Q25).  A replay of the conference call will be available shortly after the conclusion of the call and until November 7, 2025.  You can access the replay dial-in information on the "Investors" section of Veralto's website under the subheading "News & Events."

ABOUT VERALTO

With annual sales of over $5 billion, Veralto is a global leader in essential technology solutions with a proven track record of solving some of the most complex challenges we face as a society.  Our industry-leading companies with globally recognized brands help billions of people around the world access clean water, safe food and trusted essential goods.  Headquartered in Waltham, Massachusetts, our global team of nearly 17,000 associates is committed to making an enduring positive impact on our world and united by a powerful purpose: Safeguarding the World's Most Vital Resources™.

NON-GAAP MEASURES AND SUPPLEMENTAL MATERIALS

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains non-GAAP financial measures.  Calculations of these measures, the reasons why we believe these measures provide useful information to investors, a reconciliation of these measures to the most directly comparable GAAP measures, as applicable, and other information relating to these non-GAAP measures are included in the supplemental reconciliation schedule attached.

In addition, this earnings release, the slide presentation accompanying the related earnings call, non-GAAP reconciliations and a note containing details of historical and anticipated, future financial performance have been posted to the "Investors" section of Veralto's website (www.veralto.com) under the subheading "Quarterly Earnings."

FORWARD-LOOKING STATEMENTS

Certain statements in this release, including the statement regarding the Company's anticipated fourth quarter and full year 2025 financial performance, the Company's differentiation and positioning to continue delivering sustainable, long-term shareholder value and any other statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward-looking" statements within the meaning of the federal securities laws.  All statements other than historical factual information are forward-looking statements, including, without limitation, statements regarding: projections of revenue, expenses, profit, profit margins, asset values, pricing, tax rates, tax provisions, cash flows, pension and benefit obligations and funding requirements, Veralto's liquidity position or other projected financial measures; Veralto's management's plans and strategies for future operations, including statements relating to anticipated operating performance, customer demand, cost reductions, restructuring activities, new product and service developments, competitive strengths or market position, acquisitions and the integration thereof, divestitures, spin-offs, split-offs, initial public offerings, other securities offerings or other distributions, strategic opportunities, stock repurchases, dividends and executive compensation; growth, declines and other trends in markets Veralto sells into, including the impact of changes to global trade policies, restrictions on imports, related countermeasures and reciprocal tariffs; future new or modified laws, regulations, accounting pronouncements or public policy changes; regulatory approvals and the timing and conditionality thereof; outstanding claims, legal proceedings, tax audits and assessments and other contingent liabilities; future foreign currency exchange rates and fluctuations in those rates; results of operations and/or financial condition; general economic and capital markets conditions; the anticipated timing of any of the foregoing; assumptions underlying any of the foregoing; and any other statements that address events or developments that Veralto intends or believes will or may occur in the future. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings.  These forward-looking statements speak only as of the date of this release and except to the extent required by applicable law, the Company does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.

VERALTO CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
($ and shares in millions, except per share amounts)
(unaudited)
	Three-Month Period Ended				Nine-Month Period Ended
	October 3, 2025		September 27, 2024		October 3, 2025		September 27, 2024
Sales	$          1,404		$               1,314		$          4,107		$               3,848
Cost of sales	(560)		(531)		(1,636)		(1,544)
Gross profit	844		783		2,471		2,304
Operating costs:
Selling, general and administrative expenses	(451)		(412)		(1,312)		(1,220)
Research and development expenses	(67)		(63)		(198)		(184)
Operating profit	326		308		961		900
Nonoperating income (expense):
Other income (expense), net	1		5		(5)		(9)
Interest expense, net	(21)		(27)		(76)		(85)
Earnings before income taxes	306		286		880		806
Income taxes	(67)		(67)		(194)		(200)
Net earnings	$            239		$                 219		$            686		$                 606
Net earnings per common share:
Basic	$           0.96		$                0.89		$           2.76		$                2.45
Diluted	$           0.95		$                0.88		$           2.74		$                2.43
Average common stock and common equivalent shares outstanding:
Basic	248.5		247.4		248.2		247.2
Diluted	250.6		250.0		250.2		249.4

This information is presented for reference only.

 

VERALTO CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Reconciliation of GAAP to Non-GAAP Financial Measures
($ in millions)
	Three-Month Period Ended October 3, 2025
	Sales		Operating profit		Operating profit margin		Net earnings for calculation of diluted net earnings per common share		Diluted net earnings per common share
Reported (GAAP)	$      1,404		$         326		23.2 %		$                239		$          0.95
Amortization of acquisition-related intangible assets A	—		9		0.6		9		0.04
Other items B	—		1		0.1		1		—
Tax effect of the above adjustments D	—		—		—		(2)		(0.01)
Rounding	—		—		—		—		0.01
Adjusted (Non-GAAP)	$      1,404		$         336		23.9 %		$                247		$          0.99
	Three-Month Period Ended September 27, 2024
	Sales		Operating profit		Operating profit margin		Net earnings for calculation of diluted net earnings per common share		Diluted net earnings per common share
Reported (GAAP)	$      1,314		$         308		23.4 %		$                219		$          0.88
Amortization of acquisition-related intangible assets A	—		7		0.5		7		0.03
Gain on disposition of certain product lines C	—		—		—		(5)		(0.02)
Other items B	—		2		0.2		2		0.01
Tax effect of the above adjustments D	—		—		—		(1)		—
Discrete tax adjustments E	—		—		—		1		—
Rounding	—		—		—		—		(0.01)
Adjusted (Non-GAAP)	$      1,314		$         317		24.1 %		$                223		$          0.89

 

VERALTO CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Notes to Reconciliation of GAAP to Non-GAAP Financial Measures
($ in millions)
A	Amortization of acquisition-related intangible assets in the following historical periods (only the pretax amounts set forth below are reflected in the amortization line item above):

	Three-Month Period Ended
	October 3, 2025		September 27, 2024
Pretax	$                9		$                     7
After-tax	7		5

B	Costs incurred in the three-month period ended October 3, 2025 related to certain strategic initiatives ($1 million pretax and after-tax as reported in this line item).
C	Gain on the disposition of certain product lines in the three-month period ended September 27, 2024 ($5 million pretax and after-tax as reported in this line item)
D	This line item reflects the aggregate tax effect of all nontax adjustments reflected in the preceding line items of the table.  In addition, the footnotes above indicate the after-tax amount of each individual adjustment item.  Veralto estimates the tax effect of each adjustment item by applying Veralto's overall estimated effective tax rate to the pretax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.
E	Discrete tax matters relate to changes in estimates associated with prior period uncertain tax positions, audit settlements and excess tax benefits from stock-based compensation.

 

VERALTO CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Sales Growth by Segment, Core Sales Growth by Segment
	% Change Three-Month Period Ended October 3, 2025 vs. Comparable 2024 Period
			Segments
	Total Company		Water Quality		Product Quality and Innovation
Total sales growth (GAAP)	6.9 %		7.0 %		6.9 %
Impact of:
Acquisitions/divestitures	(0.3) %		(0.3) %		(0.3) %
Currency exchange rates	(1.5) %		(1.4) %		(2.0) %
Core sales growth (non-GAAP)	5.1 %		5.3 %		4.6 %

VERALTO CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

Forecasted Core Sales Growth, Adjusted Operating Profit Margin, Adjusted Diluted Net Earnings per Share and Free Cash Flow to Net Earnings Conversion Ratio

The Company provides forecasted sales only on a non-GAAP basis because of the difficulty in estimating the other components of GAAP revenue, such as currency translation, acquisitions and divested product lines.  Additionally, we do not reconcile adjusted operating profit margin (or components thereof), adjusted diluted earnings per share or free cash flow to net earnings conversion ratio to the comparable GAAP measures because of the difficulty in estimating the other unknown components such as investment gains and losses, impairments and separation costs, which would be reflected in any forecasted GAAP operating profit, forecasted diluted earnings per share or forecasted net earnings ratio.

	% Change Three-Month Period Ending December 31, 2025 vs. Comparable 2024 Period
Core sales growth (non-GAAP)	+Low-single-digits
	Three-Month Period Ending December 31, 2025
Adjusted Diluted Net Earnings per Share (non-GAAP)	$0.95 to $0.98
	% Change Year Ending December 31, 2025 vs. Comparable 2024 Period
Core sales growth (non-GAAP)	+Mid-single-digits
	Year Ending December 31, 2025
Adjusted Operating Profit Margin (non-GAAP)	flat to +25 basis points
Adjusted Diluted Net Earnings per Share (non-GAAP)	$3.82 to $3.85
Free cash flow to net earnings conversion ratio (non-GAAP)	~100%

 

VERALTO CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Cash Flow and Free Cash Flow
($ in millions)
	Three-Month Period Ended				Year-over-Year Change
	October 3, 2025		September 27, 2024
Total Cash Flows:
Net cash provided by operating activities (GAAP)	$            270		$                 224
Total cash used in investing activities (GAAP)	$             (12)		$                    (6)
Total cash used in financing activities (GAAP)	$             (36)		$                  (16)
Free Cash Flow:
Total cash provided by operating activities (GAAP)	$            270		$                 224		~ 20.5  %
Less: payments for additions to property, plant & equipment (capital expenditures) (GAAP)	(12)		(9)
Free cash flow (non-GAAP)	$            258		$                 215		~ 20.0  %

We define free cash flow as operating cash flows, less payments for additions to property, plant and equipment ("capital expenditures") plus the proceeds from sales of plant, property and equipment ("capital disposals").

Statement Regarding Non-GAAP Measures

Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies.  Management believes that these measures provide useful information to investors by offering additional ways of viewing Veralto Corporation's ("Veralto" or the "Company") results that, when reconciled to the corresponding GAAP measure, help our investors:

• with respect to the profitability-related non-GAAP measures, understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers;
• with respect to core sales and related sales measures, identify underlying growth trends in our business and compare our sales performance with prior and future periods and to our peers; and
• with respect to free cash flow and related cash flow measures (the "FCF Measure"), understand Veralto's ability to generate cash without external financings, strengthen its balance sheet, invest in its business and grow its business through acquisitions and other strategic opportunities (although a limitation of free cash flow is that it does not take into account the Company's non-discretionary expenditures, and as a result the entire free cash flow amount is not necessarily available for discretionary expenditures).

Management uses these non-GAAP measures to measure the Company's operating and financial performance.

• The items excluded from the non-GAAP measures set forth above have been excluded for the following reasons:
  • Amortization of Intangible Assets: We exclude the amortization of acquisition-related intangible assets because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate. While we have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition's purchase price allocated to intangible assets and related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition. Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly acquired and long-held businesses, and with both acquisitive and non-acquisitive peer companies. We believe however that it is important for investors to understand that such intangible assets contribute to sales generation and that intangible asset amortization related to past acquisitions will recur in future periods until such intangible assets have been fully amortized.
  • Restructuring Charges: We exclude costs incurred pursuant to discrete restructuring plans that are fundamentally different (in terms of the size, strategic nature and planning requirements, as well as the inconsistent frequency, of such plans) from the ongoing productivity improvements that result from application of the Veralto Enterprise System. Because these restructuring plans are incremental to the core activities that arise in the ordinary course of our business and we believe are not indicative of Veralto's ongoing operating costs in a given period, we exclude these costs to facilitate a more consistent comparison of operating results over time.
  • Other Adjustments: With respect to the other items excluded from the profitability-related non-GAAP measures, we exclude these items because they are of a nature and/or size that occur with inconsistent frequency, occur for reasons that may be unrelated to Veralto's commercial performance during the period and/or we believe that such items may obscure underlying business trends and make comparisons of long-term performance difficult.
  • With respect to core operating profit margin changes, in addition to the explanation set forth in the bullets above relating to "restructuring charges" and "other adjustments", we exclude the impact of businesses owned for less than one year (or disposed of during such period and not treated as discontinued operations) because the timing, size, number and nature of such transactions can vary significantly from period to period and may obscure underlying business trends and make comparisons of long-term performance difficult.
• With respect to core sales related measures, (1) we exclude the impact of currency translation because it is not under management's control, is subject to volatility and can obscure underlying business trends, and (2) we exclude the effect of acquisitions and divested product lines because the timing, size, number and nature of such transactions can vary significantly from period-to-period and between us and our peers, which we believe may obscure underlying business trends and make comparisons of long-term performance difficult.
• With respect to the FCF Measure, we exclude payments for additions to property, plant and equipment (net of the proceeds from capital disposals) to demonstrate the amount of operating cash flow for the period that remains after accounting for the Company's capital expenditure requirements.

 

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SOURCE Veralto

FAQ

What were Veralto (VLTO) third-quarter 2025 sales and growth?

Veralto reported $1,404M in sales for Q3 2025, a +6.9% year-over-year increase.

How much did Veralto (VLTO) earn per share in Q3 2025?

GAAP net earnings were $0.95 per diluted share; non-GAAP adjusted earnings were $0.99 per diluted share.

What guidance did Veralto (VLTO) give for Q4 2025 adjusted EPS?

Veralto guided Q4 2025 adjusted diluted EPS in the range of $0.95 to $0.98.

How did Veralto (VLTO) change its full-year 2025 guidance?

The company raised full-year adjusted EPS guidance to $3.82–$3.85 from $3.72–$3.80.

What free cash flow metrics did Veralto (VLTO) report for Q3 2025 and full year guidance?

Veralto reported non-GAAP free cash flow of $258M in Q3 and raised full-year free cash flow conversion guidance to approximately 100%.

When is Veralto (VLTO) discussing its Q3 2025 results with investors?

The company will hold a quarterly investor conference call and webcast on the day after the release, starting at 8:30 a.m. ET.