Waters Corporation (NYSE: WAT) Reports Third Quarter 2025 Financial Results
Rhea-AI Summary
Waters (NYSE: WAT) reported third quarter 2025 sales of $800 million, up 8% as reported and in constant currency versus Q3 2024. GAAP diluted EPS was $2.50; non-GAAP EPS rose 16% to $3.40. Instruments grew 6% in constant currency; recurring revenue grew 9% CC and Pharma sales grew 11% CC. The company raised full‑year 2025 constant currency sales guidance to +6.7%–+7.3% and raised full‑year non‑GAAP EPS guidance to $13.05–$13.15 (≈+10%–+12%). Q4 2025 non‑GAAP EPS is expected at $4.45–$4.55. A conference call and webcast were scheduled for November 4, 2025.
Positive
- Non‑GAAP EPS +16% to $3.40 in Q3 2025
- Raised full‑year non‑GAAP EPS guidance to $13.05–$13.15 (≈+10%–+12%)
- Raised full‑year constant currency sales guidance to +6.7%–+7.3%
- Pharma sales +11% in constant currency
Negative
- None.
News Market Reaction 37 Alerts
On the day this news was published, WAT gained 6.29%, reflecting a notable positive market reaction. Argus tracked a peak move of +5.7% during that session. Our momentum scanner triggered 37 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $1.35B to the company's valuation, bringing the market cap to $22.74B at that time.
Data tracked by StockTitan Argus on the day of publication.
Highlights
-
Sales of
$800 million 8% as reported and8% in constant currency -
Delivered GAAP EPS of
$2.50 $3.40 16% growth in Adjusted Earnings Per Share that exceeded guidance -
Instruments grew
6% in constant currency, led by high single-digit LC & MS growth, and TA Division returning to positive growth -
Recurring revenue grew
9% in constant currency; chemistry grew double digits, with strong uptake of new bioseparations products -
In constant currency, Pharma grew
11% , driven by broad-based growth across all regions, including double-digit growth in theAmericas - Raising full-year 2025 constant currency sales growth guidance and raising full-year 2025 non-GAAP EPS guidance
Third Quarter 2025
Sales for the third quarter of 2025 were
On a GAAP basis, diluted earnings per share (EPS) for the third quarter of 2025 were
"Our team yet again delivered outstanding results, driven by strong execution and our differentiated product portfolio. Pharma grew double digits as the instrument replacement cycle entered its second year, and new LC-MS and chemistry products captured opportunities from the growing share of biologics and novel modalities in the pharma pipeline," said Dr. Udit Batra, President & CEO of Waters Corporation.
Dr. Batra continued, "Our chemistry portfolio continues to set the standard in the industry, with excellent customer reception of our new Affinity bioseparation columns. In bioanalytical characterization, we have worked closely with customers to develop the Xevo™ Charge Detection Mass Spectrometer, which uses up to 100-fold less sample volume than current techniques and delivers results in under 10 minutes."
"We will uphold the same high standards of innovation, operational excellence, and execution in BD's Biosciences & Diagnostic Solutions business as we accelerate our long-term growth strategy. Integration planning is progressing as expected, and we remain highly confident in the achievability of the significant cost and revenue synergies we have identified."
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 Fourth Quarter 2025 Financial Guidance
Full-Year 2025 Financial Guidance
The Company is raising its full-year 2025 constant currency sales growth guidance to the range of +
The Company is raising its full-year 2025 non-GAAP EPS guidance to the range of
Fourth Quarter 2025 Financial Guidance
The Company expects fourth quarter 2025 constant currency sales growth in the range of +
The Company expects fourth quarter 2025 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 fourth quarter.
Conference Call Details
Waters Corporation will webcast its third quarter 2025 financial results conference call today, November 4, 2025, at 8:00 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 December 2, 2025.
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 7,600+ passionate employees collaborate with customers in laboratories, manufacturing sites, and hospitals to accelerate the benefits of pioneering science.
Additional Information and Where to Find It
This release is not intended to and does not constitute an offer to sell or the solicitation of an offer to buy or exchange any securities or a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. It does not constitute a prospectus or prospectus equivalent document. No offering or sale of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the "Securities Act"), and otherwise in accordance with applicable law.
In connection with the proposed transaction between Waters, Augusta SpinCo Corporation ("SpinCo") and Becton, Dickinson and Company ("BD"), the parties intend to file relevant materials with the
Participants in the Solicitation
Waters and BD and their respective directors and executive officers may be considered participants in the solicitation of proxies from Waters' stockholders in connection with the proposed transaction. Information about the directors and executive officers of Waters is set forth in its Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on February 25, 2025, and its proxy statement for its 2025 annual meeting, which was filed with the SEC on April 9, 2025. To the extent holdings of Waters' securities by its directors or executive officers have changed since the amounts set forth in such filings, such changes have been or will be reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Beneficial Ownership on Form 4 filed with the SEC. Information about the directors and executive officers of Waters and other information regarding the potential participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction. Information about the directors and executive officers of BD is set forth in its Annual Report on Form 10-K for the year ended September 30, 2024, which was filed with the SEC on November 27, 2024, and its proxy statement for its 2025 annual meeting, which was filed with the SEC on December 19, 2024. To the extent holdings of BD's securities by its directors or executive officers have changed since the amounts set forth in such filings, such changes have been or will be reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Beneficial Ownership on Form 4 filed with the SEC. You may obtain these documents (when they become available) free of charge through the website maintained by the SEC at www.sec.gov and from Waters' website and BD's website as described above.
Non-GAAP Financial Measures
This release contains financial measures, such as constant currency growth rates, adjusted earnings per diluted share and free cash flow, 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 future 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 expectations regarding our strategy, 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, the potential impacts of the
|
Waters Corporation and Subsidiaries |
|||||||
|
Consolidated Statements of Operations |
|||||||
|
(In thousands, except per share data) |
|||||||
|
(Unaudited) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
September 27, |
|
September 28, |
|
September 27, |
|
September 28, |
|
|
|
|
|
|
|
|
|
|
Net sales |
$ 799,887 |
|
$ 740,305 |
|
$ 2,232,924 |
|
$ 2,085,673 |
|
|
|
|
|
|
|
|
|
|
Costs and operating expenses: |
|
|
|
|
|
|
|
|
Cost of sales |
327,806 |
|
301,655 |
|
925,958 |
|
851,685 |
|
Selling and administrative expenses |
214,229 |
|
169,097 |
|
590,367 |
|
516,880 |
|
Research and development expenses |
53,643 |
|
45,336 |
|
148,813 |
|
136,113 |
|
Purchased intangibles amortization |
12,095 |
|
11,759 |
|
35,714 |
|
35,337 |
|
Litigation provision |
- |
|
1,326 |
|
- |
|
11,568 |
|
|
|
|
|
|
|
|
|
|
Operating income |
192,114 |
|
211,132 |
|
532,072 |
|
534,090 |
|
|
|
|
|
|
|
|
|
|
Other (expense) income, net |
(70) |
|
(338) |
|
778 |
|
1,619 |
|
Interest expense, net |
(21,925) |
|
(17,177) |
|
(42,153) |
|
(57,824) |
|
|
|
|
|
|
|
|
|
|
Income from operations before income taxes |
170,119 |
|
193,617 |
|
490,697 |
|
477,885 |
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
21,196 |
|
32,114 |
|
73,282 |
|
71,449 |
|
|
|
|
|
|
|
|
|
|
Net income |
$ 148,923 |
|
$ 161,503 |
|
$ 417,415 |
|
$ 406,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per basic common share |
$ 2.50 |
|
$ 2.72 |
|
$ 7.02 |
|
$ 6.85 |
|
|
|
|
|
|
|
|
|
|
Weighted-average number of basic common shares |
59,528 |
|
59,367 |
|
59,496 |
|
59,314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per diluted common share |
$ 2.50 |
|
$ 2.71 |
|
$ 7.00 |
|
$ 6.83 |
|
|
|
|
|
|
|
|
|
|
Weighted-average number of diluted common shares and equivalents |
59,622 |
|
59,504 |
|
59,656 |
|
59,471 |
|
Waters Corporation and Subsidiaries |
|||||||||||||||
|
Reconciliation of GAAP to Adjusted Non-GAAP |
|||||||||||||||
|
Net Sales by Operating Segments, Products & Services, Geography and Markets |
|||||||||||||||
|
Three Months Ended September 27, 2025 and September 28, 2024 |
|||||||||||||||
|
(In thousands) |
|||||||||||||||
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant |
|
|
|
|
|
|
Three Months Ended |
|
Percent |
|
Impact of |
|
Currency |
||||
|
|
|
|
|
|
September 27, 2025 |
|
September 28, 2024 |
|
Change |
|
Currency |
|
Growth Rate (a) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES - OPERATING SEGMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Waters |
|
|
$ |
713,375 |
|
$ |
655,652 |
|
9 % |
|
0 % |
|
9 % |
||
|
TA |
|
|
|
|
86,512 |
|
|
84,653 |
|
2 % |
|
1 % |
|
2 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
$ |
799,887 |
|
$ |
740,305 |
|
8 % |
|
0 % |
|
8 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES - PRODUCTS & SERVICES |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instruments |
|
|
$ |
341,484 |
|
$ |
323,076 |
|
6 % |
|
0 % |
|
6 % |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service |
|
|
|
299,923 |
|
|
278,294 |
|
8 % |
|
1 % |
|
7 % |
||
|
Chemistry |
|
|
|
158,480 |
|
|
138,935 |
|
14 % |
|
1 % |
|
13 % |
||
|
Total Recurring |
|
|
|
458,403 |
|
|
417,229 |
|
10 % |
|
1 % |
|
9 % |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
$ |
799,887 |
|
$ |
740,305 |
|
8 % |
|
0 % |
|
8 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES - GEOGRAPHY |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
269,714 |
|
$ |
251,329 |
|
7 % |
|
(5 %) |
|
13 % |
|
|
|
|
|
|
292,812 |
|
|
279,136 |
|
5 % |
|
0 % |
|
5 % |
||
|
|
|
|
|
237,361 |
|
|
209,840 |
|
13 % |
|
8 % |
|
5 % |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
$ |
799,887 |
|
$ |
740,305 |
|
8 % |
|
0 % |
|
8 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES - MARKETS |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical |
|
|
$ |
479,776 |
|
$ |
430,138 |
|
12 % |
|
1 % |
|
11 % |
||
|
Industrial |
|
|
|
235,669 |
|
|
227,740 |
|
3 % |
|
(1 %) |
|
4 % |
||
|
Academic & Government |
|
|
84,442 |
|
|
82,427 |
|
2 % |
|
1 % |
|
1 % |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
$ |
799,887 |
|
$ |
740,305 |
|
8 % |
|
0 % |
|
8 % |
|
|
________________________________________ |
|||||||||||||||
|
|
|
||||||||||||||
|
(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 |
|||||||||||||||
|
Nine Months Ended September 27, 2025 and September 28, 2024 |
|||||||||||||||
|
(In thousands) |
|||||||||||||||
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant |
|
|
|
|
|
|
Nine Months Ended |
|
Percent |
|
Impact of |
|
Currency |
||||
|
|
|
|
|
|
September 27, 2025 |
|
September 28, 2024 |
|
Change |
|
Currency |
|
Growth Rate (a) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES - OPERATING SEGMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Waters |
|
|
$ |
1,989,509 |
|
$ |
1,840,112 |
|
8 % |
|
0 % |
|
9 % |
||
|
TA |
|
|
|
|
243,415 |
|
|
245,561 |
|
(1 %) |
|
1 % |
|
(1 %) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
$ |
2,232,924 |
|
$ |
2,085,673 |
|
7 % |
|
0 % |
|
7 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES - PRODUCTS & SERVICES |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instruments |
|
|
$ |
912,792 |
|
$ |
859,079 |
|
6 % |
|
0 % |
|
7 % |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service |
|
|
|
859,030 |
|
|
812,367 |
|
6 % |
|
(1 %) |
|
6 % |
||
|
Chemistry |
|
|
|
461,102 |
|
|
414,227 |
|
11 % |
|
0 % |
|
11 % |
||
|
Total Recurring |
|
|
|
1,320,132 |
|
|
1,226,594 |
|
8 % |
|
0 % |
|
8 % |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
$ |
2,232,924 |
|
$ |
2,085,673 |
|
7 % |
|
0 % |
|
7 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES - GEOGRAPHY |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
756,430 |
|
$ |
696,319 |
|
9 % |
|
(5 %) |
|
13 % |
|
|
|
|
|
|
829,089 |
|
|
794,775 |
|
4 % |
|
0 % |
|
5 % |
||
|
|
|
|
|
647,405 |
|
|
594,579 |
|
9 % |
|
4 % |
|
5 % |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
$ |
2,232,924 |
|
$ |
2,085,673 |
|
7 % |
|
0 % |
|
7 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES - MARKETS |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmaceutical |
|
|
$ |
1,332,795 |
|
$ |
1,220,092 |
|
9 % |
|
(1 %) |
|
10 % |
||
|
Industrial |
|
|
|
676,689 |
|
|
644,459 |
|
5 % |
|
0 % |
|
5 % |
||
|
Academic & Government |
|
|
223,440 |
|
|
221,122 |
|
1 % |
|
1 % |
|
0 % |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
$ |
2,232,924 |
|
$ |
2,085,673 |
|
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 Nine Months Ended September 27, 2025 and September 28, 2024 |
|||||||||||||||||||||||||||||
|
(In thousands, except per share data) |
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling & |
|
|
Research & |
|
|
|
|
|
Operating |
|
|
Interest |
|
|
before |
|
|
Provision for |
|
|
|
|
|
Diluted |
|
|
|
|
|
|
Administrative |
|
|
Development |
|
|
Operating |
|
|
Income |
|
|
Expense, |
|
|
Income |
|
|
Income |
|
|
Net |
|
|
Earnings |
|
|
|
|
|
|
Expenses (a) |
|
|
Expenses |
|
|
Income |
|
|
Percentage |
|
|
Net |
|
|
Taxes |
|
|
Taxes |
|
|
Income |
|
|
per Share |
|
Three Months Ended September 27, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
GAAP |
|
|
$ |
226,324 |
|
$ |
53,643 |
|
$ |
192,114 |
|
|
24.0 % |
|
$ |
(21,925) |
|
$ |
170,119 |
|
$ |
21,196 |
|
$ |
148,923 |
|
$ |
2.50 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased intangibles amortization (b) |
|
|
(12,095) |
|
|
- |
|
|
12,095 |
|
|
1.5 % |
|
|
- |
|
|
12,095 |
|
|
2,894 |
|
|
9,201 |
|
|
0.15 |
|
|
|
Restructuring costs and certain other items (c) |
|
|
(1,279) |
|
|
- |
|
|
1,279 |
|
|
0.2 % |
|
|
- |
|
|
1,279 |
|
|
288 |
|
|
991 |
|
|
0.02 |
|
|
|
ERP implementation and transformation costs (d) |
|
|
(6,434) |
|
|
- |
|
|
6,434 |
|
|
0.8 % |
|
|
- |
|
|
6,434 |
|
|
1,544 |
|
|
4,890 |
|
|
0.08 |
|
|
|
Acquisition related costs (e) |
|
|
(26,809) |
|
|
(3,735) |
|
|
30,544 |
|
|
3.8 % |
|
|
- |
|
|
30,544 |
|
|
2,338 |
|
|
28,206 |
|
|
0.47 |
|
|
|
Financing Costs (h) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
14,060 |
|
|
14,060 |
|
|
3,374 |
|
|
10,686 |
|
|
0.18 |
|
|
Adjusted Non-GAAP |
|
$ |
179,707 |
|
$ |
49,908 |
|
$ |
242,466 |
|
|
30.3 % |
|
$ |
(7,865) |
|
$ |
234,531 |
|
$ |
31,634 |
|
$ |
202,897 |
|
$ |
3.40 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 28, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
GAAP |
|
|
$ |
182,182 |
|
$ |
45,336 |
|
$ |
211,132 |
|
|
28.5 % |
|
$ |
(17,177) |
|
$ |
193,617 |
|
$ |
32,114 |
|
$ |
161,503 |
|
$ |
2.71 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased intangibles amortization (b) |
|
|
(11,759) |
|
|
- |
|
|
11,759 |
|
|
1.6 % |
|
|
- |
|
|
11,759 |
|
|
2,814 |
|
|
8,945 |
|
|
0.15 |
|
|
|
Restructuring costs and certain other items (c) |
|
|
(1,194) |
|
|
- |
|
|
1,194 |
|
|
0.2 % |
|
|
- |
|
|
1,194 |
|
|
282 |
|
|
912 |
|
|
0.02 |
|
|
|
Litigation provision (f) |
|
|
(1,326) |
|
|
- |
|
|
1,326 |
|
|
0.2 % |
|
|
- |
|
|
1,326 |
|
|
318 |
|
|
1,008 |
|
|
0.02 |
|
|
|
Retention bonus obligation (g) |
|
|
(1,909) |
|
|
(636) |
|
|
2,545 |
|
|
0.3 % |
|
|
- |
|
|
2,545 |
|
|
611 |
|
|
1,934 |
|
|
0.03 |
|
|
Adjusted Non-GAAP |
|
$ |
165,994 |
|
$ |
44,700 |
|
$ |
227,956 |
|
|
30.8 % |
|
$ |
(17,177) |
|
$ |
210,441 |
|
$ |
36,139 |
|
$ |
174,302 |
|
$ |
2.93 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 27, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
GAAP |
|
|
$ |
626,081 |
|
$ |
148,813 |
|
$ |
532,072 |
|
|
23.8 % |
|
$ |
(42,153) |
|
$ |
490,697 |
|
$ |
73,282 |
|
$ |
417,415 |
|
$ |
7.00 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased intangibles amortization (b) |
|
|
(35,714) |
|
|
- |
|
|
35,714 |
|
|
1.6 % |
|
|
- |
|
|
35,714 |
|
|
8,546 |
|
|
27,168 |
|
|
0.46 |
|
|
|
Restructuring costs and certain other items (c) |
|
|
(5,746) |
|
|
- |
|
|
5,746 |
|
|
0.3 % |
|
|
- |
|
|
5,746 |
|
|
1,344 |
|
|
4,402 |
|
|
0.07 |
|
|
|
ERP implementation and transformation costs (d) |
|
|
(13,811) |
|
|
- |
|
|
13,811 |
|
|
0.6 % |
|
|
- |
|
|
13,811 |
|
|
3,315 |
|
|
10,496 |
|
|
0.18 |
|
|
|
Acquisition related costs (e) |
|
|
(41,093) |
|
|
(3,735) |
|
|
44,828 |
|
|
2.0 % |
|
|
- |
|
|
44,828 |
|
|
4,729 |
|
|
40,099 |
|
|
0.67 |
|
|
|
Retention bonus obligation (g) |
|
|
(2,864) |
|
|
(954) |
|
|
3,818 |
|
|
0.2 % |
|
|
- |
|
|
3,818 |
|
|
916 |
|
|
2,902 |
|
|
0.05 |
|
|
|
Financing Costs (h) |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
14,060 |
|
|
14,060 |
|
|
3,374 |
|
|
10,686 |
|
|
0.18 |
|
|
Adjusted Non-GAAP |
|
$ |
526,853 |
|
$ |
144,124 |
|
$ |
635,989 |
|
|
28.5 % |
|
$ |
(28,093) |
|
$ |
608,674 |
|
$ |
95,506 |
|
$ |
513,168 |
|
$ |
8.60 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 28, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
GAAP |
|
|
$ |
563,785 |
|
$ |
136,113 |
|
$ |
534,090 |
|
|
25.6 % |
|
$ |
(57,824) |
|
$ |
477,885 |
|
$ |
71,449 |
|
$ |
406,436 |
|
$ |
6.83 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased intangibles amortization (b) |
|
|
(35,337) |
|
|
- |
|
|
35,337 |
|
|
1.7 % |
|
|
- |
|
|
35,337 |
|
|
8,456 |
|
|
26,881 |
|
|
0.45 |
|
|
|
Restructuring costs and certain other items (c) |
|
|
(10,680) |
|
|
- |
|
|
10,680 |
|
|
0.5 % |
|
|
- |
|
|
10,680 |
|
|
2,617 |
|
|
8,063 |
|
|
0.14 |
|
|
|
Litigation provision and settlement (f) |
|
|
(11,568) |
|
|
- |
|
|
11,568 |
|
|
0.6 % |
|
|
- |
|
|
11,568 |
|
|
2,776 |
|
|
8,792 |
|
|
0.15 |
|
|
|
Retention bonus obligation (g) |
|
|
(11,451) |
|
|
(3,817) |
|
|
15,268 |
|
|
0.7 % |
|
|
- |
|
|
15,268 |
|
|
3,664 |
|
|
11,604 |
|
|
0.20 |
|
|
Adjusted Non-GAAP |
|
$ |
494,749 |
|
$ |
132,296 |
|
$ |
606,943 |
|
|
29.1 % |
|
$ |
(57,824) |
|
$ |
550,738 |
|
$ |
88,962 |
|
$ |
461,776 |
|
$ |
7.76 |
||
|
________________________________________ |
|
|
|
|
|
(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) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 27, 2025 |
|
December 31, 2024 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ 459,118 |
|
$ 325,355 |
||
|
Accounts receivable |
|
|
|
748,519 |
|
733,365 |
|
|
Inventories |
|
|
|
572,941 |
|
477,261 |
|
|
Property, plant and equipment, net |
|
636,964 |
|
651,200 |
|||
|
Intangible assets, net |
|
|
|
570,773 |
|
567,906 |
|
|
Goodwill |
|
|
|
|
1,338,358 |
|
1,295,720 |
|
Other assets |
|
|
|
535,891 |
|
502,988 |
|
|
Total assets |
|
|
|
$ 4,862,564 |
|
$ 4,553,795 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable and debt |
|
|
$ 1,407,206 |
|
$ 1,626,488 |
||
|
Other liabilities |
|
|
|
1,124,665 |
|
1,098,800 |
|
|
Total liabilities |
|
|
|
2,531,871 |
|
2,725,288 |
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
|
2,330,693 |
|
1,828,507 |
||
|
Total liabilities and stockholders' equity |
|
$ 4,862,564 |
|
$ 4,553,795 |
|||
|
Waters Corporation and Subsidiaries |
|||||||||||
|
Preliminary Condensed Consolidated Statements of Cash Flows |
|||||||||||
|
Three and Nine Months Ended September 27, 2025 and September 28, 2024 |
|||||||||||
|
(In thousands and unaudited) |
|||||||||||
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
||||
|
|
|
|
|
September 27, 2025 |
|
September 28, 2024 |
|
|
September 27, 2025 |
|
September 28, 2024 |
|
|
|
|
|
|
|
|
|
||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|||
|
|
Net income |
$ 148,923 |
|
$ 161,503 |
|
|
$ 417,415 |
|
$ 406,436 |
||
|
|
Adjustments to reconcile net income to net |
|
|
|
|
|
|
|
|
||
|
|
|
|
cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
13,650 |
|
10,647 |
|
|
39,625 |
|
32,993 |
|
|
|
|
Depreciation and amortization |
52,678 |
|
47,507 |
|
|
153,696 |
|
143,250 |
|
|
|
|
Change in operating assets and liabilities and other, net |
(27,943) |
|
(15,077) |
|
|
(122,734) |
|
(60,695) |
|
|
|
|
|
Net cash provided by operating activities |
187,308 |
|
204,580 |
|
|
488,002 |
|
521,984 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|||
|
|
Additions to property, plant, equipment |
|
|
|
|
|
|
|
|
||
|
|
|
|
and software capitalization |
(25,436) |
|
(25,618) |
|
|
(73,772) |
|
(90,377) |
|
|
Business acquisitions, net of cash acquired |
(84) |
|
- |
|
|
(35,053) |
|
- |
||
|
|
Investments in unaffiliated companies |
- |
|
(425) |
|
|
(1,295) |
|
(1,489) |
||
|
|
Net change in investments |
- |
|
(8) |
|
|
- |
|
(44) |
||
|
|
|
|
Net cash used in investing activities |
(25,520) |
|
(26,051) |
|
|
(110,120) |
|
(91,910) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|||
|
|
Net change in debt |
(68,480) |
|
(180,000) |
|
|
(242,986) |
|
(530,000) |
||
|
|
Proceeds from stock plans |
2,883 |
|
3,237 |
|
|
15,621 |
|
25,073 |
||
|
|
Purchases of treasury shares |
(214) |
|
(141) |
|
|
(14,523) |
|
(13,475) |
||
|
|
Other cash flow from financing activities, net |
(455) |
|
20 |
|
|
1,347 |
|
15,305 |
||
|
|
|
|
Net cash used in financing activities |
(66,266) |
|
(176,884) |
|
|
(240,541) |
|
(503,097) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
(3,619) |
|
2,442 |
|
|
(3,578) |
|
8,461 |
|||
|
|
|
|
Increase (decrease) in cash and cash equivalents |
91,903 |
|
4,087 |
|
|
133,763 |
|
(64,562) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
367,215 |
|
326,427 |
|
|
325,355 |
|
395,076 |
|||
|
|
|
|
Cash and cash equivalents at end of period |
$ 459,118 |
|
$ 330,514 |
|
|
$ 459,118 |
|
$ 330,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Cash Flows from Operating Activities to Free Cash Flow (a) |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities - GAAP |
$ 187,308 |
|
$ 204,580 |
|
|
$ 488,002 |
|
$ 521,984 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
||
|
|
|
Additions to property, plant, equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
and software capitalization |
(25,436) |
|
(25,618) |
|
|
(73,772) |
|
(90,377) |
|
|
|
Tax reform payments |
- |
|
- |
|
|
120,006 |
|
95,645 |
|
|
|
|
Litigation settlements (received) paid, net |
(2,250) |
|
- |
|
|
(2,250) |
|
9,250 |
|
|
|
|
Payment of Wyatt retention bonus obligation (b) |
- |
|
- |
|
|
20,127 |
|
19,770 |
|
|
Free Cash Flow - Adjusted Non-GAAP |
$ 159,622 |
|
$ 178,962 |
|
|
$ 552,113 |
|
$ 556,272 |
|||
|
|
|
|
(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 nine months ended September 27, 2025 and September 28, 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 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
Three Months Ended |
|
||||
|
|
|
|
December 31, 2025 |
|
December 31, 2025 |
|
||||
|
|
|
|
|
Range |
|
|
|
Range |
|
|
|
Projected Sales |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
Constant currency sales growth rate (a) |
6.7 % |
- |
7.3 % |
|
5.0 % |
- |
7.0 % |
|
||
|
Currency translation impact |
(0.2 %) |
- |
(0.2 %) |
|
0.2 % |
- |
0.2 % |
|
||
|
Sales growth rate as reported |
6.5 % |
- |
7.1 % |
|
5.2 % |
- |
7.2 % |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Range |
|
|
|
Range |
|
|
|
Projected Earnings Per Diluted Share |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings per diluted share |
$ 11.10 |
- |
$ 11.20 |
|
$ 4.10 |
- |
$ 4.20 |
|
||
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Purchased intangibles amortization |
$ 0.60 |
- |
$ 0.60 |
|
$ 0.15 |
- |
$ 0.15 |
|
|
|
|
Restructuring costs and certain other items |
$ 0.08 |
- |
$ 0.08 |
|
$ 0.01 |
- |
$ 0.01 |
|
|
|
|
ERP implementation and transformation costs |
$ 0.25 |
- |
$ 0.25 |
|
$ 0.07 |
- |
$ 0.07 |
|
|
|
|
Acquisition related costs |
$ 0.78 |
- |
$ 0.78 |
|
$ 0.11 |
- |
$ 0.11 |
|
|
|
|
Retention bonus obligation |
$ 0.05 |
- |
$ 0.05 |
|
$ - |
- |
$ - |
|
|
|
|
Financing Costs |
$ 0.19 |
- |
$ 0.19 |
|
$ 0.01 |
- |
$ 0.01 |
|
|
|
Adjusted non-GAAP earnings per diluted share |
$ 13.05 |
- |
$ 13.15 |
|
$ 4.45 |
- |
$ 4.55 |
|
||
|
|
|
|
(a) |
Constant currency growth rates are a non-GAAP financial measure that measures the change in net sales between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period. These amounts are estimated at the current foreign currency exchange rates and based on the forecasted geographical sales in local currency, as well as an assessment of market conditions as of today, 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
View original content:https://www.prnewswire.com/news-releases/waters-corporation-nyse-wat-reports-third-quarter-2025-financial-results-302603102.html
SOURCE Waters Corporation
FAQ
What were Waters' reported sales and growth for Q3 2025 (WAT)?
How did Waters' Q3 2025 EPS compare on a GAAP and non‑GAAP basis (WAT)?
What full‑year 2025 guidance did Waters (WAT) announce on Nov 5, 2025?
What is Waters' Q4 2025 non‑GAAP EPS outlook (WAT)?
Which business areas drove Waters' Q3 2025 growth (WAT)?
When and how could investors listen to Waters' Q3 2025 earnings call (WAT)?
