Veralto Reports Strong Fourth Quarter Performance and Future Growth Expectations
Veralto Delivers Impressive Fourth Quarter and Year-End Results
On February 4, 2025, Veralto Corporation (NYSE: VLTO), a prominent global entity in vital water and product quality solutions, shared its financial results for the fourth quarter and full year of 2024. Amidst a dynamically evolving market, Veralto has shown robust sales growth, impressive profit margins, and a promising outlook for 2025.
Key Highlights from Q4 2024
In the fourth quarter of 2024, Veralto recorded a 4.4% increase in sales year-over-year, reaching $1.345 billion. The company's non-GAAP core sales growth stood at 4.6%. Notably, the operating profit margin sat at 22.9%, while the non-GAAP adjusted operating profit margin was slightly higher at 23.8%.
Net earnings for the quarter reached $227 million, or $0.91 per diluted share, and adjusted net earnings were $238 million, translating to $0.95 per diluted share. Furthermore, Veralto generated operating cash flow of $285 million, highlighting the company’s strong financial health.
Full Year 2024 Overview
Over the entire year of 2024, Veralto experienced a 3.4% rise in overall sales to total $5.193 billion, with 3.7% non-GAAP core sales growth. The operating profit margin reached 23.3%, complemented by an adjusted operating profit margin of 24.1%. The net earnings for the year stood at $833 million, resulting in a diluted earnings per share of $3.34; when adjusted, this figure climbed to $3.54.
Veralto's operating cash flow for 2024 reached $875 million, while free cash flow amounted to $820 million. This financial performance underscores a successful year, achieving significant milestones while positioning for future growth.
Strategic Commentary
Jennifer L. Honeycutt, President and CEO of Veralto, emphasized the company's achievements, stating, "Our fourth-quarter results reflected solid core sales growth across both segments, robust cash generation, and our recent acquisition of TraceGains. This has capped off a year of strong performance, supported by the Veralto Enterprise System that has enabled effective execution of our strategic initiatives. Demand in the market remained strong throughout the year, particularly in the industrial water treatment sector in North America and the global recovery in consumer-packaged goods."
Honeycutt also conveyed optimism for the upcoming year, stating, "As we commence 2025, we are entering with a stronger financial standing and a favorable outlook on our markets relative to 2024. We anticipate sustained durability in our businesses, underpinned by our robust enterprise system, will allow us to deftly navigate the changing global economic landscape."
2025 Projections
Looking ahead, Veralto is targeting low-to-mid single-digit core sales growth for 2025, alongside predicted expansion in profit margins and continued strong cash flow generation. The initial guidance for the first quarter suggests non-GAAP core sales growth at low-to-mid-single digits on a year-over-year basis, with adjusted operating profit margins estimated between 24% and 24.5%. For the full year, adjusted diluted earnings per share is projected to be between $3.60 and $3.70.
Investor Relations Update
Veralto will discuss these results and 2025 guidance in a conference call scheduled for Februay 5, 2025, at 8:30 a.m. ET. Investors can access details for the call through the company’s website under the
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