Veralto (VLTO) Q3 2025 earnings summary

Executive summary

• Achieved 6.9% year-over-year sales growth to $1,404 million in Q3 2025, with core sales up 5.1% driven by both volume and price increases.

• Adjusted EPS grew 11.2% to $0.99, with net earnings of $239 million and free cash flow up 20% to $258 million, reflecting 108% conversion.

• Fifth consecutive quarter of mid single digit core sales growth, supported by strong commercial execution and secular growth drivers.

• Recurring sales represented approximately 62% of total sales for the nine months, supporting a resilient business model.

• Continued focus on sustainability, with milestones in product innovation and environmental impact, including supporting clean water access for 3.4 billion people and saving 85 billion gallons of water in 2024.

Financial highlights

• Q3 2025 sales reached $1,404 million, up 6.9% year-over-year; core sales up 5.1%.

• Gross profit was $844 million, with gross margin improving by 50 bps to 60.1%.

• Adjusted operating profit was $336 million (23.9% margin), up 6% year-over-year.

• Adjusted EPS grew 11% to $0.99, $0.04 above guidance high end.

• Free cash flow was $258 million in Q3, up 20% year-over-year, with 108% conversion of net income.

Outlook and guidance

• Full-year 2025 adjusted EPS guidance raised to $3.82–$3.85, with free cash flow conversion targeted at ~100%.

• Q4 2025 core sales growth expected to be low single digits; adjusted EPS guidance set at $0.95–$0.98.

• Full-year core sales growth expected at mid single digits for both segments.

• Adjusted operating margin guidance: flat to +25 bps year-over-year.

• Guidance reflects current assessment of end market demand, tariffs, and macroeconomic factors.