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Veralto Reports Fourth Quarter and Full Year 2025 Results

On February 3, 2026, Veralto (NYSE: VLTO), a global leader in vital water and product quality solutions, announced its financial performance for the fourth quarter and the full year ended December 31, 2025. The company reported noteworthy achievements, highlighting its ongoing commitment to safeguarding the world's essential resources.

Key Fourth Quarter Highlights

For the fourth quarter of 2025, Veralto saw a year-over-year sales increase of 3.8%, reaching $1.396 billion. The non-GAAP core sales growth was recorded at 1.6%. The operating profit margin stood at an impressive 22.6%, with a non-GAAP adjusted operating profit margin of 24.6%. The net earnings for the quarter were $254 million, translating to $1.01 per diluted common share, while the non-GAAP, adjusted net earnings reached $261 million, or $1.04 per diluted common share. Additionally, the operating cash flow amounted to $311 million, with a non-GAAP free cash flow of $291 million.

Full Year Performance Overview

In 2025, Veralto’s sales grew 6.0% year-over-year, totaling $5.503 billion, with a non-GAAP core sales increase of 4.7%. The company maintained a strong operating profit margin of 23.2%, and the adjusted operating profit margin slightly surpassed it at 24.3%. The full year’s net earnings reached $940 million, or $3.76 per diluted share, which adjusted to $977 million, or $3.90 per diluted share. Operating cash flow was robust at $1.077 billion, and free cash flow was approximately $1.014 billion.

Jennifer L. Honeycutt, President and CEO, stated, "2025 concluded with an excellent quarter. Despite macroeconomic challenges, our targeted execution empowered us to enhance customer service and operational efficiency. Our achievements included mid-single-digit core sales growth, double-digit adjusted earnings growth, and over a billion dollars in free cash flow."

Strategic Developments

In January 2026, Veralto completed the acquisition of In-Situ, further augmenting its water analytics portfolio and positioning itself for growth in the environmental and hydrology sectors. During the fourth quarter, the company also initiated a $750 million share repurchase program and announced an 18% increase in its dividend. Looking forward, Honeycutt mentioned potential opportunities for value creation through strategic growth and disciplined capital allocation, stating, "We believe the imperative to ensure access to clean water and safe food will sustain demand across the board for our offerings."

Outlook for 2026

For the first quarter of 2026, Veralto anticipates that non-GAAP core sales growth will remain flat to low-single digits year-over-year, aligning with an adjusted operating profit margin of around 24.5%. The adjusted diluted earnings per share are projected between $0.97 and $1.01. The full year forecast suggests low-to-mid-single-digit non-GAAP core sales growth, with an expected 25 basis points expansion in adjusted operating profit margin. The company targets adjusted diluted earnings per share in the range of $4.10 to $4.20, with free cash flow conversion predicted to approach 100% of GAAP net earnings.

Conclusion

Veralto remains confident as it heads into 2026, underpinned by its strong business model and commitment to essential resource sustainability. The company plans to share more details during its investor conference call scheduled for tomorrow at 8:30 AM (ET). For those interested in following the conference call, the details are available on Veralto's official site. Veralto continues to make strides in ensuring both economic success and crucial support for communities around the globe, thus solidifying its position as a conscientious leader in its field.