Veralto (VLTO) Q4 2024 earnings summary

Executive summary

• Achieved full-year 2024 sales of $5,193 million, with core sales growth of 3.7% year-over-year, driven by balanced volume and price contributions.

• Q4 2024 sales reached $1,345 million, up 4.4% year-over-year, with core sales growth of 4.6%.

• Delivered double-digit adjusted EPS growth and margin expansion for the year, exceeding initial guidance.

• Executed disciplined capital allocation, including strategic acquisitions and divestitures to optimize the portfolio.

• Entered 2025 with positive momentum, improved portfolio, and strong financial position.

Financial highlights

• FY 2024 adjusted operating profit was $1,251 million (24.1% margin, up 80 bps year-over-year); adjusted EPS was $3.54, up 11% year-over-year.

• FY 2024 free cash flow was $820 million, with 98% free cash flow conversion; Q4 free cash flow was $263 million.

• Q4 adjusted EPS was $0.95, up 9% year-over-year; Q4 adjusted operating profit margin was 23.8%.

• Gross profit margin in Q4 2024 improved 170 bps to 59.6% year-over-year.

• Net leverage at year-end was 1.2x adjusted EBITDA.

Outlook and guidance

• FY 2025 guidance targets low- to mid-single-digit core sales growth, adjusted operating margin of 24.0%–24.5% (up 25–50 bps), and adjusted EPS of $3.60–$3.70.

• Q1 2025 guidance: core sales growth low- to mid-single digits, adjusted EPS $0.84–$0.88.

• Currency expected to be a 2% headwind to sales and $0.08 headwind to adjusted EPS for 2025.

• Free cash flow conversion targeted at 90%–100% of GAAP net income, with CapEx at 1%–1.5% of sales.