Veralto (VLTO) Q2 2025 Financial Results Summary
QuoteReporter
WALTHAM, Mass., (July 28, 2025) – Veralto (NYSE: VLTO), a global leader in essential water and product quality solutions, announced its financial results for the second quarter ended July 4, 2025. Here is a summary of the company’s performance during the quarter.
### Key Second Quarter 2025 Results
– **Sales**:
– Increased by **6.4%** year-over-year to **$1,371 million**.
– Non-GAAP core sales growth was **4.8%**.
– **Profitability**:
– Operating profit margin was **22.8%**, while non-GAAP adjusted operating profit margin was **23.7%**.
– Net earnings reached **$222 million**, equating to **$0.89** per diluted common share.
– Non-GAAP adjusted net earnings were **$232 million**, or **$0.93** per diluted common share.
– **Cash Flow**:
– Operating cash flow stood at **$339 million**.
– Non-GAAP free cash flow was reported at **$323 million**, representing an increase of approximately **34.5%** compared to the same quarter of the previous year.
### Highlights from Management
– Jennifer L. Honeycutt, President and CEO, commented on the strong performance driven by commercial execution and consistent customer demand.
– The Veralto Enterprise System contributed substantially to global growth and operational discipline amidst fluctuations in global trade policies.
– The first half of 2025 saw mid-single-digit core sales growth, an expansion of adjusted operating profit margins, and double-digit growth in adjusted earnings per share.
### Adjusted Guidance for 2025
– For Q3 2025, Veralto anticipates:
– Non-GAAP core sales growth in the mid-single-digits year-over-year.
– Adjusted diluted earnings per share in the range of **$0.91 to $0.95**.
– For the full year 2025, the adjusted earnings per share guidance has been raised to a range of **$3.72 to $3.80** (up from **$3.60 to $3.70**). The full year core sales growth assumption has also been adjusted to mid-single-digits, up from a prior assumption of low-to-mid-single-digits.
– The expectation for full year adjusted operating profit margin expansion remains flat to **+50 basis points year-over-year**.
– Free cash flow conversion is projected to be in the range of **90% to 100%**.
### Dividend and Share Repurchase Information
– The report does not specify any quarterly dividend declaration or share repurchase activities during this quarter.
### Conference Call and Webcast
– Veralto is scheduled to discuss these results further during its quarterly conference call on July 29, 2025, at 8:30 a.m. ET. A live webcast will be accessible on the company’s website.
### About Veralto
Veralto Corporation boasts annual sales exceeding **$5 billion**, focusing on innovative technology solutions aimed at addressing complex global challenges. With a commitment to safeguarding essential resources, Veralto operates with a dedicated workforce of nearly **17,000 associates** globally.
### Summary of Key Metrics
| Metric | Q2 2025 | Q2 2024 | Change |
|---|---|---|---|
| Sales | $1,371 million | $1,288 million | +6.4% |
| Non-GAAP Core Sales Growth | 4.8% | – | N/A |
| Operating Profit Margin | 22.8% | 23.2% | -0.4% |
| Adjusted Operating Profit Margin | 23.7% | 24.0% | -0.3% |
| Net Earnings | $222 million | $203 million | +9.4% |
| Adjusted Net Earnings | $232 million | $213 million | +8.9% |
| Net Earnings per Diluted Share | $0.89 | $0.81 | +9.9% |
| Free Cash Flow | $323 million | $240 million | +34.5% |
| Average Common Shares Outstanding – Diluted | 249.9 million | 249.3 million | +0.2% |
This financial results summary encapsulates Veralto’s performance in Q2 2025, spotlighting its growth trajectory and operational metrics amid evolving market conditions.
# CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
*Amounts in millions*
| Three-Month Period Ended | July 4, 2025 | June 28, 2024 | Six-Month Period Ended | July 4, 2025 | June 28, 2024 | |
|---|---|---|---|---|---|---|
| Sales | $1,371 | $1,288 | $2,703 | $2,534 | ||
| Cost of sales | -$549 | -$514 | -$1,076 | -$1,013 | ||
| Gross profit | $822 | $774 | $1,627 | $1,521 | ||
| Operating costs: | ||||||
| Selling, general and administrative expenses | -$442 | -$414 | -$861 | -$808 | ||
| Research and development expenses | -$67 | -$61 | -$131 | -$121 | ||
| Operating profit | $313 | $299 | $635 | $592 | ||
| Nonoperating income (expense): | ||||||
| Other income (expense), net | — | $1 | -$6 | -$14 | ||
| Interest expense, net | -$28 | -$30 | -$55 | -$58 | ||
| Earnings before income taxes | $285 | $270 | $574 | $520 | ||
| Income taxes | -$63 | -$67 | -$127 | -$133 | ||
| Net earnings | $222 | $203 | $447 | $387 | ||
| Net earnings per common share: | ||||||
| Basic | $0.89 | $0.82 | $1.80 | $1.57 | ||
| Diluted | $0.89 | $0.81 | $1.79 | $1.55 | ||
| Average common stock and common equivalent shares outstanding: | ||||||
| Basic | 248.2 | 247.2 | 248.0 | 247.1 | ||
| Diluted | 249.9 | 249.3 | 250.0 | 249.1 |
# CONSOLIDATED BALANCE SHEETS
*Amounts in millions*
| July 4, 2025 | December 31, 2024 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ | $ |
| Accounts receivable, net | ||
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| Property, plant and equipment, net | ||
| Goodwill | ||
| Other intangible assets, net | ||
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| Total assets | ||
| Liabilities and stockholders’ equity | ||
| Current liabilities: | ||
| Accounts payable | ||
| Accrued liabilities | ||
| Short-term debt | ||
| Other current liabilities | ||
| Total current liabilities | ||
| Long-term debt | ||
| Other liabilities | ||
| Total liabilities | ||
| Stockholders’ equity: | ||
| Common stock | ||
| Additional paid-in capital | ||
| Retained earnings | ||
| Accumulated other comprehensive income | ||
| Total stockholders’ equity | ||
| Total liabilities and stockholders’ equity |
