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Jul 04
Veralto Q2 2025 Earnings Report
Veralto reported strong Q2 2025 results with increased sales, margin expansion, and higher adjusted EPS.
Key Takeaways
Veralto delivered a solid performance in Q2 2025, driven by steady customer demand and strong commercial execution, resulting in higher revenue, improved profitability, and increased adjusted earnings.
Revenue rose to $1.371 billion, up from $1.288 billion a year ago.
Adjusted EPS reached $0.93, up from $0.85 in Q2 2024.
Net income totaled $222 million with strong operating discipline.
Free cash flow was $323 million, demonstrating robust cash generation.
Veralto
Veralto
Veralto Revenue by Segment
Revenue by Segment
Water Quality Revenue
CapyFin.comProduct Quality & Innovation Revenue
CapyFin.com Forward Guidance
Veralto raised full-year 2025 guidance based on stable demand and strong first-half performance, expecting mid-single-digit core sales growth and higher adjusted EPS.
Positive Outlook
- Raised full-year adjusted EPS guidance to $3.72–$3.80.
- Increased full-year core sales growth outlook to mid-single-digits.
- Q3 2025 adjusted EPS expected between $0.91 and $0.95.
- Continued expectation of adjusted operating margin expansion.
- Free cash flow conversion expected between 90% and 100%.
Challenges Ahead
- Uncertainty around global trade policies may impact future performance.
- No specific geographic revenue data limits regional analysis.
- Currency exchange rates had a negative impact on sales.
- Adjusted operating margin slightly lower YoY (23.7% vs. 24.0%).
- Minimal visibility into cost structure evolution beyond margin metrics.
Revenue & Expenses
Visualization of income flow from segment revenue to net income