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Apr 04
Veralto Q1 2025 Earnings Report
Veralto reported strong Q1 2025 results with robust sales growth and margin expansion.
Key Takeaways
Veralto delivered strong financial results in Q1 2025 with a 6.9% year-over-year sales increase, solid margin expansion, and double-digit adjusted EPS growth, driven by disciplined execution across both segments.
Sales grew 6.9% year-over-year to $1,332,000,000.
Net income reached $225,000,000 with diluted EPS of $0.90.
Core sales growth was broad-based across Product Quality and Water Quality segments.
Free cash flow increased approximately 39% compared to the prior year.
Veralto
Veralto
Forward Guidance
Veralto reaffirmed its 2025 guidance, expecting low-to-mid single-digit core sales growth and adjusted EPS between $3.60 and $3.70, despite macroeconomic uncertainties.
Positive Outlook
- Reaffirmed full-year adjusted EPS guidance of $3.60 to $3.70.
- Expected core sales growth in the low-to-mid single digits for FY 2025.
- Anticipated adjusted operating profit margin expansion up to 50 basis points.
- Targeted free cash flow conversion between 90% and 100%.
- Second quarter 2025 adjusted EPS guidance set between $0.84 and $0.88.
Challenges Ahead
- Ongoing macroeconomic uncertainties impacting market conditions.
- Exposure to tariffs and global trade policy changes.
- Challenges in foreign currency exchange rates.
- Cost pressures requiring countermeasures to maintain flexibility.
- Continued need for agility to navigate economic shifts.