Veralto (VLTO) Q4 2025 earnings summary

Executive summary

• Achieved 2025 sales of $5.5B, with 6% total and 4.7% core sales growth, driven by volume and price; adjusted EPS rose 10% to $3.90.

• Free cash flow exceeded $1B, with 108% conversion; adjusted operating profit reached $1,337M at a 24.3% margin.

• Completed acquisitions (In-Situ, Aquafides, TraceGains) and divested AVT to enhance portfolio quality and growth.

• Announced $750M share repurchase program and 18% dividend increase.

• Adjusted net earnings for 2025 were $977M ($3.90 per diluted share).

Financial highlights

• Q4 2025 sales grew 3.8% year-over-year to $1.4B; core sales up 1.6%.

• Q4 adjusted EPS up 9% to $1.04; full-year adjusted EPS $3.90, up 10%.

• Q4 gross profit margin 59.3–59.4%; adjusted operating margin 24.6%, up 80 bps.

• Free cash flow conversion in Q4 at 115% of GAAP net income; full-year free cash flow $1,014M.

• Net debt at year-end $642M, net leverage 0.5x; cash and cash equivalents $2,031M.

Outlook and guidance

• 2026 core sales growth targeted at low- to mid-single digits; total sales growth (including M&A and FX) in mid- to high-single digits.

• Adjusted EPS guidance for 2026: $4.10–$4.20; adjusted operating margin to expand by ~25 bps.

• Q1 2026 core sales growth expected flat to low-single digits; adjusted EPS $0.97–$1.01.

• Pricing expected to contribute ~200 bps to 2026 growth.

• Free cash flow conversion for 2026 expected at ~100% of net earnings.