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Dec 31, 2025
Veralto Q4 2025 Earnings Report
Veralto reported strong fourth quarter and full year 2025 results, with sales increasing by 3.8% year-over-year to $1,396 million and diluted EPS of $1.01.
Key Takeaways
Veralto concluded 2025 with a robust fourth quarter, achieving a 3.8% increase in sales to $1,396 million and a non-GAAP adjusted operating profit margin of 24.6%. The full year saw a 6.0% sales growth and over one billion dollars in free cash flow, driven by strong execution and strategic initiatives.
Fourth quarter sales increased by 3.8% year-over-year to $1,396 million, with non-GAAP core sales growth of 1.6%.
Net earnings for the quarter were $254 million, or $1.01 per diluted common share, with non-GAAP adjusted net earnings at $261 million, or $1.04 per diluted common share.
Operating cash flow for the quarter was $311 million, and non-GAAP free cash flow was $291 million.
For the full year 2025, sales grew 6.0% to $5,503 million, and non-GAAP adjusted net earnings were $977 million, or $3.90 per diluted common share.
Revenue by Segment
Forward Guidance
For the first quarter of 2026, Veralto anticipates flat to low-single digit non-GAAP core sales growth, with an adjusted operating profit margin of approximately 24.5% and adjusted diluted earnings per share in the range of $0.97 to $1.01. For the full year 2026, the Company expects low-to-mid-single digit non-GAAP core sales growth and a 25 basis point expansion in adjusted operating profit margin, targeting adjusted diluted EPS of $4.10 to $4.20 and approximately 100% free cash flow conversion.
Positive Outlook
- Anticipated low-to-mid-single digit non-GAAP core sales growth for the full year 2026.
- Expected expansion of adjusted operating profit margin by approximately 25 basis points for the full year 2026.
- Targeted adjusted diluted earnings per share for the full year 2026 in the range of $4.10 to $4.20.
- Projected free cash flow conversion of approximately 100% of GAAP net earnings for the full year 2026.
- Confidence in continued steady demand for products and services due to the enduring need to safeguard clean water and safe food.
Challenges Ahead
- First quarter 2026 non-GAAP core sales growth is anticipated to be flat to low-single digits, indicating a potentially slower start to the year.
Revenue & Expenses
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Avg. Return Before/After Earnings
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