Waters Corporation (NYSE: WAT) Reports Fourth Quarter and Full-Year 2025 Financial Results
Rhea-AI Summary
Waters Corporation (NYSE: WAT) reported Q4 2025 sales of $932 million, up 7% as reported (6% constant currency), with GAAP EPS $3.77 and non-GAAP EPS $4.53 (+10%). Full-year 2025 sales were $3,165 million (+7%) and non-GAAP EPS was $13.13 (+11%).
The company closed its acquisition of BD Biosciences and Diagnostic Solutions, expecting an owned-period contribution of approximately $3.0 billion and total 2026 reported revenue of $6.405–6.455 billion. 2026 non-GAAP EPS guidance is $14.30–14.50.
AI-generated analysis. Not financial advice.
Positive
- Recurring revenue growth of 8% for full-year 2025
- Chemistry sales up 12% in constant currency in Q4 2025
- Acquired business contribution of approximately $3.0B for 2026
- Company guidance implies total 2026 reported revenue of $6.405–6.455B
- Full-year 2025 non-GAAP EPS increased to $13.13 (+11%)
Negative
- Q4 2025 GAAP EPS declined to $3.77 from $3.88 year-ago
- Instrument system sales grew only 3% in Q4 2025
- Academic and government sales were flat/declining (Q4 down 2–3%)
- Q1 2026 non-GAAP EPS guidance shows modest growth of 0.0%–4.4%
News Market Reaction – WAT
On the day this news was published, WAT declined 13.94%, reflecting a significant negative market reaction. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $3.68B from the company's valuation, bringing the market cap to $22.70B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
WAT was up 1.17% while key peers like DGX (-1.29%), ILMN (-4.98%), LH (-1.00%) and MTD (-0.76%) were down, indicating stock-specific strength rather than a sector-wide move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 04 | Q3 2025 earnings | Positive | +6.3% | Q3 sales up 8% and non-GAAP EPS up 16%, guidance raised. |
| Aug 04 | Q2 2025 earnings | Positive | -1.6% | Q2 sales up 9% with EPS above guidance and guidance raised. |
| May 06 | Q1 2025 earnings | Positive | -2.7% | Q1 sales and EPS grew, instruments up 11% and guidance lifted. |
| Feb 12 | Q4 2024 earnings | Positive | -5.8% | Strong Q4 growth and stable full-year EPS with 2025 outlook issued. |
| Nov 01 | Q3 2024 earnings | Positive | +19.8% | Q3 beat across metrics, all markets grew and guidance was raised. |
Earnings releases have generally been positive, but price reactions were mixed, with more instances of selloffs on good results than rallies.
Over the last five earnings cycles from Q3 2024 through Q3 2025, Waters consistently reported sales growth, expanding non‑GAAP EPS and often raised full‑year guidance. Q3 and Q2 2025, as well as Q1 2025, all featured guidance increases. Despite this, shares only rose meaningfully after Q3 2024 and Q3 2025, while other strong quarters saw negative next‑day moves, underscoring uneven trading responses to solid execution.
Historical Comparison
In the past five earnings releases, WAT moved an average of about 3.21% the next day, with reactions split between sharp rallies and post-earnings pullbacks despite consistently positive fundamentals.
Earnings updates from late 2024 through 2025 show steady sales growth, recurring revenue strength and repeated guidance raises, building a pattern of operational momentum into the latest Q4 and full-year results.
Market Pulse Summary
The stock dropped -13.9% in the session following this news. A negative reaction despite strong Q4 and full‑year 2025 results would fit past patterns where positive earnings sometimes preceded selloffs. Prior reports show several quarters with higher sales and EPS but mixed next‑day performance. In that context, pressure after this release could reflect concerns about integrating the BD businesses or skepticism around the 2026 outlook, even as fundamentals and guidance trends remained constructive.
Key Terms
non-gaap eps financial
constant currency financial
organic constant currency revenue growth financial
p&l financial
AI-generated analysis. Not financial advice.
Highlights
Fourth Quarter 2025
- Sales of
$932 million 7% as reported and6% in constant currency - Growth led by high single-digit constant currency growth in Pharma and Industrial end-markets, with broad-based growth across all regions
- Chemistry grew
12% in constant currency as new bioseparations products continued to experience significant customer demand - Instruments grew
3% in constant currency, with high single-digit LC-MS growth partially offset by TA and transition to subscription model for Empower - GAAP EPS of
$3.77 $4.53
Full-Year 2025
- Sales of
$3,165 million 7% as reported and7% in constant currency - Instruments grew
5% in constant currency, led by strong LC-MS growth - Recurring Revenue grew
8% in constant currency, led by12% Chemistry growth - GAAP EPS of
$10.76 $13.13
Sales for the fourth quarter of 2025 were
On a GAAP basis, diluted earnings per share (EPS) for the fourth quarter of 2025 were
"Our team delivered industry-leading results in 2025, achieving high single-digit revenue growth and double-digit adjusted EPS growth. We expect this momentum to continue into 2026, driven by strong execution of the multi-year instrument replacement cycle, continued contribution from pioneering innovation, and our Waters-specific idiosyncratic growth drivers," said Udit Batra, Ph.D., President & Chief Executive Officer, Waters Corporation.
"As we enter 2026, the addition of BD Biosciences and Diagnostic Solutions marks a transformative step forward for Waters. Today, we will close the transaction and are launching commercial excellence initiatives tied to instrument replacement, e-commerce, and service attachment that will build momentum and drive the first phase of our stated revenue synergies. Within the P&L, we also expect to make decisive progress towards realizing our stated cost synergies in the months ahead. Our starting 2026 guidance calls for an attractive
Fourth Quarter 2025
During the fourth quarter of 2025, sales into the pharmaceutical market increased
During the quarter, instrument system sales increased
Geographically, sales in
Full-Year 2025
Sales for the fiscal year 2025 were
On a GAAP basis, EPS for fiscal year 2025 was
During the fiscal year 2025, sales into the pharmaceutical market increased
During the year, instrument system sales increased
Geographically, sales in
Unless otherwise noted, sales growth and decline percentages are presented on an as-reported basis. A description and reconciliation of GAAP to non-GAAP results appear in the tables below and can be found on the Company's website www.waters.com in the Investor Relations section.
Full-Year and First Quarter 2026 Financial Guidance
Full-Year 2026 Financial Guidance
The Company expects full-year 2026 organic constant currency revenue growth to be in the range of +
The Company expects an acquired business contribution in full-year 2026 of approximately
Including the positive impact of expected revenue synergies, total Company revenue for full-year 2026 is expected to be in the range of
The Company expects full-year 2026 non-GAAP EPS to be in the range of
First Quarter 2026 Financial Guidance
The Company expects first quarter 2026 organic constant currency revenue growth to be in the range of +
The Company expects an acquired business contribution in the first quarter of 2026 of approximately
Total Company revenue for the first quarter of 2026 is expected to be in the range of
The Company expects first quarter 2026 non-GAAP EPS to be in the range of
Please refer to the tables below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the full-year and first quarter.
Conference Call Details
Waters Corporation will webcast its fourth quarter 2025 financial results conference call today, February 9, 2026, at 8:30 a.m. Eastern Time. To listen to the call and see the accompanying slide presentation, please visit www.waters.com, select "Investor Relations" under the "About Waters" section, navigate to "Events & Presentations," and click on the "Webcast." A replay will be available through at least March 9, 2026.
About Waters Corporation
Waters Corporation (NYSE:WAT) is a global leader in analytical instruments, separations technologies, and software, serving the life, materials, food, and environmental sciences for over 65 years. Our Company helps ensure the efficacy of medicines, the safety of food and the purity of water, and the quality and sustainability of products used every day. In over 100 countries, our 7,900+ passionate employees collaborate with customers in laboratories, manufacturing sites, and hospitals to accelerate the benefits of pioneering science.
Non-GAAP Financial Measures
This release contains financial measures, such as organic constant currency growth rates, constant currency growth rates and adjusted earnings per diluted share, among others, which are considered "non-GAAP" financial measures under applicable
Cautionary Statement
This release contains "forward-looking" statements regarding future results and events. For this purpose, any statements that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words "feels", "believes", "anticipates", "plans", "expects", "intends", "suggests", "appears", "estimates", "projects" and similar expressions, whether in the negative or affirmative, are intended to identify forward-looking statements. Our actual results may differ significantly from the results discussed in the forward-looking statements within this release for a variety of reasons, including and without limitation, risks or uncertainties related to our acquisition of Becton, Dickinson and Company's Biosciences and Diagnostic Solutions business, the impact of this acquisition on the Company's business and future results, including unexpected costs, charges or expenses resulting from this acquisition as well as difficulties and delays in achieving expected revenue and cost synergies related to this acquisition, the increased indebtedness of the Company as a result of this acquisition, our future financial and operational performance, future economic and market conditions, including our expectations about the growth rates of certain markets, our strategic initiatives, including our instrument replacement initiatives, respond and adapt to changing global dynamics, including the potential impacts of tariffs and supply chain challenges, our ability to retain and attract customers in various geographies and market segments, our market size and growth opportunities, our competitive positioning, projected costs, technological capabilities and plans, and objectives of management, and other risk factors detailed from time to time in Waters' reports filed with the Securities and Exchange Commission ("SEC"). Such factors and others are discussed more fully in the sections entitled "Forward-Looking Statements" and "Risk Factors" of the Company's annual report on Form 10-K for the year ended December 31, 2024, as filed with the SEC, which discussions are incorporated by reference in this release, as updated by the Company's subsequent filings with the SEC. The forward-looking statements included in this release represent the Company's estimates or views as of the date of this release and should not be relied upon as representing the Company's estimates or views as of any date subsequent to the date of this release. Except as required by law, the Company does not assume any obligation to update any forward-looking statements.
Waters Corporation and Subsidiaries | |||||||
Consolidated Statements of Operations | |||||||
(In thousands, except per share data) | |||||||
(Unaudited) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
December 31, | December 31, | December 31, | December 31, | ||||
Net sales | $ 932,362 | $ 872,714 | $ 3,165,286 | $ 2,958,387 | |||
Costs and operating expenses: | |||||||
Cost of sales | 362,864 | 348,516 | 1,288,822 | 1,200,201 | |||
Selling and administrative expenses | 240,007 | 173,268 | 830,374 | 690,148 | |||
Research and development expenses | 46,898 | 46,914 | 195,711 | 183,027 | |||
Purchased intangibles amortization | 12,077 | 11,753 | 47,791 | 47,090 | |||
Litigation provision | - | - | - | 11,568 | |||
Operating income | 270,516 | 292,263 | 802,588 | 826,353 | |||
Other income (expense), net | 2,283 | (843) | 3,061 | 776 | |||
Interest expense, net | (8,618) | (14,437) | (50,771) | (72,261) | |||
Income from operations before income taxes | 264,181 | 276,983 | 754,878 | 754,868 | |||
Provision for income taxes | 38,967 | 45,585 | 112,249 | 117,034 | |||
Net income | $ 225,214 | $ 231,398 | $ 642,629 | $ 637,834 | |||
Net income per basic common share | $ 3.78 | $ 3.90 | $ 10.80 | $ 10.75 | |||
Weighted-average number of basic common shares | 59,546 | 59,386 | 59,509 | 59,333 | |||
Net income per diluted common share | $ 3.77 | $ 3.88 | $ 10.76 | $ 10.71 | |||
Weighted-average number of diluted common shares and equivalents | 59,763 | 59,645 | 59,706 | 59,552 | |||
Waters Corporation and Subsidiaries | ||||||||||||
Reconciliation of GAAP to Adjusted Non-GAAP | ||||||||||||
Net Sales by Operating Segments, Products & Services, Geography and Markets | ||||||||||||
Three Months Ended December 31, 2025 and December 31, 2024 | ||||||||||||
(In thousands) | ||||||||||||
Constant | ||||||||||||
Three Months Ended | Percent | Impact of | Currency | |||||||||
December 31, 2025 | December 31, 2024 | Change | Currency | Growth Rate (a) | ||||||||
NET SALES - OPERATING SEGMENTS | ||||||||||||
Waters | $ | 823,937 | $ | 764,309 | 8 % | 1 % | 7 % | |||||
TA | 108,425 | 108,405 | 0 % | 0 % | 0 % | |||||||
Total | $ | 932,362 | $ | 872,714 | 7 % | 1 % | 6 % | |||||
NET SALES - PRODUCTS & SERVICES | ||||||||||||
Instruments | $ | 432,850 | $ | 419,616 | 3 % | 1 % | 3 % | |||||
Service | 329,156 | 301,844 | 9 % | 1 % | 8 % | |||||||
Chemistry | 170,356 | 151,254 | 13 % | 1 % | 12 % | |||||||
Total Recurring | 499,512 | 453,098 | 10 % | 1 % | 9 % | |||||||
Total | $ | 932,362 | $ | 872,714 | 7 % | 1 % | 6 % | |||||
NET SALES - GEOGRAPHY | ||||||||||||
$ | 283,967 | $ | 272,903 | 4 % | (7 %) | 11 % | ||||||
332,424 | 321,005 | 4 % | 0 % | 4 % | ||||||||
315,971 | 278,806 | 13 % | 9 % | 4 % | ||||||||
Total | $ | 932,362 | $ | 872,714 | 7 % | 1 % | 6 % | |||||
NET SALES - MARKETS | ||||||||||||
Pharmaceutical | $ | 540,567 | $ | 498,807 | 8 % | 1 % | 7 % | |||||
Industrial | 284,465 | 264,027 | 8 % | 0 % | 8 % | |||||||
Academic & Government | 107,330 | 109,880 | (2 %) | 1 % | (3 %) | |||||||
Total | $ | 932,362 | $ | 872,714 | 7 % | 1 % | 6 % | |||||
(a) | The Company believes that referring to comparable constant currency growth rates is a useful way to evaluate the underlying performance of Waters Corporation's net sales. Constant currency growth, a non-GAAP financial measure, measures the change in net sales between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period. See description of non-GAAP financial measures contained in this release. | |||||||||||
Waters Corporation and Subsidiaries | |||||||||||||
Reconciliation of GAAP to Adjusted Non-GAAP | |||||||||||||
Net Sales by Operating Segments, Products & Services, Geography and Markets | |||||||||||||
Twelve Months Ended December 31, 2025 and December 31, 2024 | |||||||||||||
(In thousands) | |||||||||||||
Constant | |||||||||||||
Twelve Months Ended | Percent | Impact of | Currency | ||||||||||
December 31, 2025 | December 31, 2024 | Change | Currency | Growth Rate (a) | |||||||||
NET SALES - OPERATING SEGMENTS | |||||||||||||
Waters | $ | 2,813,446 | $ | 2,604,421 | 8 % | 0 % | 8 % | ||||||
TA | 351,840 | 353,966 | (1 %) | 0 % | (1 %) | ||||||||
Total | $ | 3,165,286 | $ | 2,958,387 | 7 % | 0 % | 7 % | ||||||
NET SALES - PRODUCTS & SERVICES | |||||||||||||
Instruments | $ | 1,345,642 | $ | 1,278,695 | 5 % | 0 % | 5 % | ||||||
Service | 1,188,186 | 1,114,211 | 7 % | 0 % | 7 % | ||||||||
Chemistry | 631,458 | 565,481 | 12 % | 0 % | 12 % | ||||||||
Total Recurring | 1,819,644 | 1,679,692 | 8 % | 0 % | 8 % | ||||||||
Total | $ | 3,165,286 | $ | 2,958,387 | 7 % | 0 % | 7 % | ||||||
NET SALES - GEOGRAPHY | |||||||||||||
$ | 1,040,397 | $ | 969,222 | 7 % | (5 %) | 13 % | |||||||
1,161,513 | 1,115,780 | 4 % | 0 % | 4 % | |||||||||
963,376 | 873,385 | 10 % | 6 % | 5 % | |||||||||
Total | $ | 3,165,286 | $ | 2,958,387 | 7 % | 0 % | 7 % | ||||||
NET SALES - MARKETS | |||||||||||||
Pharmaceutical | $ | 1,873,362 | $ | 1,718,899 | 9 % | 0 % | 9 % | ||||||
Industrial | 961,154 | 908,486 | 6 % | 0 % | 6 % | ||||||||
Academic & Government | 330,770 | 331,002 | 0 % | 1 % | (1 %) | ||||||||
Total | $ | 3,165,286 | $ | 2,958,387 | 7 % | 0 % | 7 % | ||||||
(a) | The Company believes that referring to comparable constant currency growth rates is a useful way to evaluate the underlying performance of Waters Corporation's net sales. Constant currency growth, a non-GAAP financial measure, measures the change in net sales between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period. See description of non-GAAP financial measures contained in this release. | |||||||||||
Waters Corporation and Subsidiaries | |||||||||||||||||||||||||||||||
Reconciliation of GAAP to Adjusted Non-GAAP Financials | |||||||||||||||||||||||||||||||
Three and Twelve Months Ended December 31, 2025 and December 31, 2024 | |||||||||||||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||||||||||
Income from | |||||||||||||||||||||||||||||||
Operations | |||||||||||||||||||||||||||||||
Selling & | Research & | Operating | Other | Interest | before | Provision for | Diluted | ||||||||||||||||||||||||
Administrative | Development | Operating | Income | Income | Expense, | Income | Income | Net | Earnings | ||||||||||||||||||||||
Expenses(a) | Expenses | Income | Percentage | (Expense) | Net | Taxes | Taxes | Income | per Share | ||||||||||||||||||||||
Three Months Ended December 31, 2025 | |||||||||||||||||||||||||||||||
GAAP | $ | 252,084 | $ | 46,898 | $ | 270,516 | 29.0 % | $ | 2,283 | $ | (8,618) | $ | 264,181 | $ | 38,967 | $ | 225,214 | $ | 3.77 | ||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||
Purchased intangibles amortization (b) | (12,077) | - | 12,077 | 1.3 % | - | - | 12,077 | 2,930 | 9,147 | 0.15 | |||||||||||||||||||||
Restructuring costs and certain other items (c) | (3,290) | - | 3,290 | 0.4 % | (2,398) | - | 892 | 216 | 676 | 0.01 | |||||||||||||||||||||
ERP implementation and transformation costs (d) | (5,777) | - | 5,777 | 0.6 % | - | - | 5,777 | 1,386 | 4,391 | 0.07 | |||||||||||||||||||||
Acquisition related costs (e) | (39,975) | 3,204 | 36,771 | 3.9 % | - | - | 36,771 | 6,589 | 30,182 | 0.51 | |||||||||||||||||||||
Financing Costs (h) | - | - | - | - | - | 1,518 | 1,518 | 364 | 1,154 | 0.02 | |||||||||||||||||||||
Adjusted Non-GAAP | $ | 190,965 | $ | 50,102 | $ | 328,431 | 35.2 % | $ | (115) | $ | (7,100) | $ | 321,216 | $ | 50,452 | $ | 270,764 | $ | 4.53 | ||||||||||||
Three Months Ended December 31, 2024 | |||||||||||||||||||||||||||||||
GAAP | $ | 185,021 | $ | 46,914 | $ | 292,263 | 33.5 % | $ | (843) | $ | (14,437) | $ | 276,983 | $ | 45,585 | $ | 231,398 | $ | 3.88 | ||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||
Purchased intangibles amortization (b) | (11,753) | - | 11,753 | 1.3 % | - | - | 11,753 | 2,813 | 8,940 | 0.15 | |||||||||||||||||||||
Restructuring costs and certain other items (c) | (1,480) | - | 1,480 | 0.2 % | - | - | 1,480 | 354 | 1,126 | 0.02 | |||||||||||||||||||||
ERP implementation and transformation costs (d) | (1,346) | - | 1,346 | 0.2 % | - | - | 1,346 | 337 | 1,009 | 0.02 | |||||||||||||||||||||
Retention bonus obligation (g) | (1,911) | (636) | 2,547 | 0.3 % | - | - | 2,547 | 612 | 1,935 | 0.03 | |||||||||||||||||||||
Adjusted Non-GAAP | $ | 168,531 | $ | 46,278 | $ | 309,389 | 35.5 % | $ | (843) | $ | (14,437) | $ | 294,109 | $ | 49,701 | $ | 244,408 | $ | 4.10 | ||||||||||||
Twelve Months Ended December 31, 2025 | |||||||||||||||||||||||||||||||
GAAP | $ | 878,165 | $ | 195,711 | $ | 802,588 | 25.4 % | $ | 3,061 | $ | (50,771) | $ | 754,878 | $ | 112,249 | $ | 642,629 | $ | 10.76 | ||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||
Purchased intangibles amortization (b) | (47,791) | - | 47,791 | 1.5 % | - | - | 47,791 | 11,476 | 36,315 | 0.61 | |||||||||||||||||||||
Restructuring costs and certain other items (c) | (9,036) | - | 9,036 | 0.3 % | (2,398) | - | 6,638 | 1,560 | 5,078 | 0.09 | |||||||||||||||||||||
ERP implementation and transformation costs (d) | (19,588) | - | 19,588 | 0.6 % | - | - | 19,588 | 4,701 | 14,887 | 0.25 | |||||||||||||||||||||
Acquisition related costs (e) | (81,068) | (531) | 81,599 | 2.6 % | - | - | 81,599 | 11,318 | 70,281 | 1.18 | |||||||||||||||||||||
Retention bonus obligation (g) | (2,864) | (954) | 3,818 | 0.1 % | - | - | 3,818 | 916 | 2,902 | 0.05 | |||||||||||||||||||||
Financing Costs (h) | - | - | - | - | - | 15,578 | 15,578 | 3,738 | 11,840 | 0.20 | |||||||||||||||||||||
Adjusted Non-GAAP | $ | 717,818 | $ | 194,226 | $ | 964,420 | 30.5 % | $ | 663 | $ | (35,193) | $ | 929,890 | $ | 145,958 | $ | 783,932 | $ | 13.13 | ||||||||||||
Twelve Months Ended December 31, 2024 | |||||||||||||||||||||||||||||||
GAAP | $ | 748,806 | $ | 183,027 | $ | 826,353 | 27.9 % | $ | 776 | $ | (72,261) | $ | 754,868 | $ | 117,034 | $ | 637,834 | $ | 10.71 | ||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||
Purchased intangibles amortization (b) | (47,090) | - | 47,090 | 1.6 % | - | - | 47,090 | 11,269 | 35,821 | 0.60 | |||||||||||||||||||||
Restructuring costs and certain other items (c) | (12,160) | - | 12,160 | 0.4 % | - | - | 12,160 | 2,971 | 9,189 | 0.15 | |||||||||||||||||||||
ERP implementation and transformation costs (d) | (1,346) | - | 1,346 | 0.0 % | - | - | 1,346 | 337 | 1,009 | 0.02 | |||||||||||||||||||||
Litigation provision and settlement (f) | (11,568) | - | 11,568 | 0.4 % | - | - | 11,568 | 2,776 | 8,792 | 0.15 | |||||||||||||||||||||
Retention bonus obligation (g) | (13,362) | (4,453) | 17,815 | 0.6 % | - | - | 17,815 | 4,276 | 13,539 | 0.23 | |||||||||||||||||||||
Adjusted Non-GAAP | $ | 663,280 | $ | 178,574 | $ | 916,332 | 31.0 % | $ | 776 | $ | (72,261) | $ | 844,847 | $ | 138,663 | $ | 706,184 | $ | 11.86 | ||||||||||||
(a) | Selling & administrative expenses include purchased intangibles amortization and litigation provisions and settlements. | ||||||||||||||||||||||||||||||
(b) | The purchased intangibles amortization, a non-cash expense, was excluded to be consistent with how management evaluates the performance of its core business against historical operating results and the operating results of competitors over periods of time. | ||||||||||||||||||||||||||||||
(c) | Restructuring costs and certain other items were excluded as the Company believes that the cost to consolidate operations, reduce overhead, and certain other income or expense items are not normal and do not represent future ongoing business expenses of a specific function or geographic location of the Company. | ||||||||||||||||||||||||||||||
(d) | ERP implementation and transformation costs represent costs related to the Company's initiative to transition from its legacy enterprise resource planning (ERP) system to a new global ERP solution with a cloud-based infrastructure. These costs, which do not represent normal or future ongoing business expenses, are one-time, non-recurring costs related to the establishment of our new global ERP solution that were determined to be non-capitalizable in accordance with accounting standards. | ||||||||||||||||||||||||||||||
(e) | Acquisition related costs include all incremental costs incurred to effect the business combination, such as advisory, legal, accounting, tax, valuation, other professional fees, and integration costs. The Company believes that these costs are not normal and do not represent future ongoing business expenses. | ||||||||||||||||||||||||||||||
(f) | Litigation provisions and settlement gains were excluded as these items are isolated, unpredictable and not expected to recur regularly. | ||||||||||||||||||||||||||||||
(g) | In connection with the Wyatt acquisition, the Company recognized a two-year retention bonus obligation that is contingent upon the employee's providing future service and continued employment with Waters. The Company believes that these costs are not normal and do not represent future ongoing business expenses. | ||||||||||||||||||||||||||||||
(h) | Financing costs relate to certain financing fees incurred by the Company to secure access to certain debt facilities in connection with the agreement Waters entered into to acquire the Biosciences and Diagnostics Solutions business of Becton, Dickinson & Company. The Company believes that these costs are not normal and do not represent future ongoing business expenses. | ||||||||||||||||||||||||||||||
Waters Corporation and Subsidiaries | ||||
Preliminary Condensed Unclassified Consolidated Balance Sheets | ||||
(In thousands and unaudited) | ||||
December 31, 2025 | December 31, 2024 | |||
Cash and cash equivalents | $ 587,831 | $ 325,355 | ||
Accounts receivable | 828,844 | 733,365 | ||
Inventories | 572,371 | 477,261 | ||
Property, plant and equipment, net | 642,046 | 651,200 | ||
Intangible assets, net | 558,179 | 567,906 | ||
Goodwill | 1,340,081 | 1,295,720 | ||
Other assets | 554,625 | 502,988 | ||
Total assets | $ 5,083,977 | $ 4,553,795 | ||
Notes payable and debt | $ 1,407,445 | $ 1,626,488 | ||
Other liabilities | 1,115,290 | 1,098,800 | ||
Total liabilities | 2,522,735 | 2,725,288 | ||
Total stockholders' equity | 2,561,242 | 1,828,507 | ||
Total liabilities and stockholders' equity | $ 5,083,977 | $ 4,553,795 | ||
Waters Corporation and Subsidiaries | |||||||||||
Preliminary Condensed Consolidated Statements of Cash Flows | |||||||||||
Three and Twelve Months Ended December 31, 2025 and December 31, 2024 | |||||||||||
(In thousands and unaudited) | |||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||
December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 | ||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ 225,214 | $ 231,398 | $ 642,629 | $ 637,834 | |||||||
Adjustments to reconcile net income to net | |||||||||||
cash provided by operating activities: | |||||||||||
Stock-based compensation | 14,502 | 11,716 | 54,127 | 44,709 | |||||||
Depreciation and amortization | 52,541 | 48,575 | 206,237 | 191,825 | |||||||
Change in operating assets and liabilities and other, net | (127,704) | (51,550) | (250,438) | (112,245) | |||||||
Net cash provided by operating activities | 164,553 | 240,139 | 652,555 | 762,123 | |||||||
Cash flows from investing activities: | |||||||||||
Additions to property, plant, equipment | |||||||||||
and software capitalization | (38,973) | (52,104) | (112,745) | (142,481) | |||||||
Business acquisitions, net of cash acquired | - | - | (35,053) | - | |||||||
Investments in unaffiliated companies | (6,000) | - | (7,295) | (1,489) | |||||||
Net change in investments | - | (9) | - | (53) | |||||||
Other cash flow from investing activities, net | 2,840 | - | 2,840 | ||||||||
Net cash used in investing activities | (42,133) | (52,113) | (152,253) | (144,023) | |||||||
Cash flows from financing activities: | |||||||||||
Net change in debt | (335) | (200,000) | (243,321) | (730,000) | |||||||
Proceeds from stock plans | 5,169 | 5,293 | 20,790 | 30,366 | |||||||
Purchases of treasury shares | (144) | (66) | (14,667) | (13,541) | |||||||
Other cash flow from financing activities, net | (1,354) | 1,195 | (7) | 16,500 | |||||||
Net cash provided by (used in) financing activities | 3,336 | (193,578) | (237,205) | (696,675) | |||||||
Effect of exchange rate changes on cash and cash equivalents | 2,957 | (541) | (621) | 7,920 | |||||||
Increase (decrease) in cash and cash equivalents | 128,713 | (6,093) | 262,476 | (70,655) | |||||||
Cash and cash equivalents at beginning of period | 459,118 | 330,514 | 325,355 | 395,076 | |||||||
Cash and cash equivalents at end of period | $ 587,831 | $ 324,421 | $ 587,831 | $ 324,421 | |||||||
Reconciliation of GAAP Cash Flows from Operating Activities to Free Cash Flow (a) | |||||||||||
Net cash provided by operating activities - GAAP | $ 164,553 | $ 240,139 | $ 652,555 | $ 762,123 | |||||||
Adjustments: | |||||||||||
Additions to property, plant, equipment | |||||||||||
and software capitalization | (38,973) | (52,104) | (112,745) | (142,481) | |||||||
Tax reform payments | - | - | 120,006 | 95,645 | |||||||
Litigation settlements (received) paid, net | (375) | - | (2,625) | 9,250 | |||||||
Payment of Wyatt retention bonus obligation (b) | - | - | 20,127 | 19,770 | |||||||
Free Cash Flow - Adjusted Non-GAAP | $ 125,205 | $ 188,035 | $ 677,318 | $ 744,307 | |||||||
(a) | The Company defines free cash flow as net cash flow from operations accounted for under GAAP less capital expenditures and software capitalizations plus or minus any unusual and non recurring items. Free cash flow is not a GAAP measurement and may not be comparable to free cash flow reported by other companies. | ||||||||||
(b) | During the twelve months ended December 31, 2025 and 2024, the Company made retention payments under the Wyatt retention bonus program. The Company believes that these payments are not normal and do not represent future ongoing business expenses. | ||||||||||
Waters Corporation and Subsidiaries | |||||||||
Reconciliation of Projected GAAP to Adjusted Non-GAAP Financial Outlook | |||||||||
(In millions, except per share data) | |||||||||
Twelve Months Ended | Three Months Ended | ||||||||
December 31, 2026 | April 4, 2026 | ||||||||
Range | Range | ||||||||
Projected revenue | |||||||||
Reported revenue | $ 6,405 | - | $ 6,455 | $ 1,198 | - | $ 1,211 | |||
Impact of: | |||||||||
Acquired business contribution | $ 3,000 | - | $ 3,000 | $ 480 | - | $ 480 | |||
Revenue synergies | $ 50 | - | $ 50 | $ - | - | $ - | |||
Organic reported revenue | $ 3,355 | - | $ 3,405 | $ 718 | - | $ 731 | |||
Organic reported revenue growth | 6.0 % | - | 7.5 % | 8.5 % | - | 10.5 % | |||
Currency translation impact | 0.5 % | - | 0.5 % | 1.5 % | - | 1.5 % | |||
Organic constant currency revenue growth (a) | 5.5 % | - | 7.0 % | 7.0 % | - | 9.0 % | |||
Range | Range | ||||||||
Projected Earnings Per Diluted Share | |||||||||
GAAP earnings per diluted share | $ 6.63 | - | $ 6.83 | $ 0.05 | - | $ 0.15 | |||
Adjustments: | |||||||||
Purchased intangibles amortization | $ 5.24 | - | $ 5.24 | $ 1.05 | - | $ 1.05 | |||
ERP implementation and transformation costs | $ 0.14 | - | $ 0.14 | $ 0.06 | - | $ 0.06 | |||
Acquisition related costs | $ 0.45 | - | $ 0.45 | $ 0.45 | - | $ 0.45 | |||
Amortization of acquisition-related inventory fair value step-up | $ 1.84 | - | $ 1.84 | $ 0.64 | - | $ 0.64 | |||
Adjusted non-GAAP earnings per diluted share | $ 14.30 | - | $ 14.50 | $ 2.25 | - | $ 2.35 | |||
(a) | Organic constant currency growth rates are a non-GAAP financial measure that measures the change in net revenue between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period and excluding the impact of acquisitions made within twelve months of the acquisition close date. These amounts are estimated at the current foreign currency exchange rates and based on the forecasted geographical revenue in local currency, as well as an assessment of market conditions as of the date of this press release, and may differ significantly from actual results. | |||||||||
These forward-looking adjustment estimates do not reflect future gains and charges that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance. | ||||||||||
Contact: Caspar Tudor, Head of Investor Relations – (508) 482-3448
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SOURCE Waters Corporation