Veralto Corp · NYSE:VLTO
Veralto — Q2 2026 Earnings Presentation
36 slides from Veralto's earnings presentation, Jul 29, 2026
Slide 1: Second Quarter 2026 Results
Second Quarter 2026 Results July 28, 2026
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation, including statements regarding the Company's third quarter and full year 2026 financial performance and guidance, the Company’s differentiation and positioning to continue delivering sustainable, long-term shareholder value and any
Slide 3: Second Quarter 2026 Key Messages
Veralto / Second Quarter 2026 Key Messages 1. Delivered 7.6% YoY sales growth and 19.4% adjusted EPS growth: 4.2% core sales growth with growth across both segments (Water Quality +5.7%; PQI +2.0%) 2.4% sales growth from acquisitions 2. Expect YoY core sales growth to accelerate in 2H 2026 to 5.
Slide 4: Q2 2026 Key Consolidated Financial Results
Veralto / Q2 2026 Key Consolidated Financial Results ADJUSTED ADJUSTED OPERATING GROSS PROFIT PROFIT ADJUSTED ADJUSTED FREE CASH SALES MARGIN* MARGIN* EPS* EBITDA* FLOW* $1,474m 61.6% 24.6% $1.11 $375m $328m +7.6% total +160 basis points +90 basis points +19.4% 25.4% adjusted 136% free cash sales gr
Slide 5: Water Quality Q2 and YTD 2026 performance
Water Quality / Q2 and YTD 2026 performance ($ millions, variances versus prior year period) Q2 SALES Q2 ADJUSTED OPERATING PROFIT * +12.6% +10.1% Three months ended Price YOY Change in Sales Q2 2025 Q2 2026 +2.9% Core Growth* +5.0% +5.7% Currency +1.1% +1.2% M&A +0.1% +3.2% Total Growth +6.2% +10.1
Slide 6: Product Quality & Innovation Q2 and YTD 2026 performance
Product Quality & Innovation / Q2 and YTD 2026 performance ($ millions, variances versus prior year period) Q2 SALES Q2 ADJUSTED OPERATING PROFIT * +3.8% Three months ended Price +8.6% YOY Change in Sales Q2 2025 Q2 2026 +3.0% Core Growth* +4.6% +2.0% Currency +2.2% +0.6% M&A —% +1.2% Total Growth +
Slide 7: Q2 2026 cash flow and balance sheet
Veralto / Q2 2026 cash flow and balance sheet ($ millions) Q2 2026 YTD 2026 Cash from operations $340 $522 Financial position summary: Capital expenditures $(12) $(24) Capital-light business model Free cash flow* $328 $498 TTM free cash flow margin* at 18.4% Free cash flow conversion* 136% 101%
Slide 8: Q3 and FY 2026 guidance
Veralto / Q3 and FY 2026 guidance Previous FY Q3 2026E FY 2026E Guide Core sales growth* Core Sales Growth* +4.0% to 5.0% +4.0% to 4.5% +3.0% to 4.5% Adjusted Operating +25 basis points +25 to +50 basis +25 basis points +4.0% to Profit Margin* points +4.7% 4.5% +3.7% +2.6% Adjusted EPS* $1.06 to $1.
Slide 9: 2026E Modeling Items
Veralto / 2026E Modeling Items Q3 2026E FY 2026E Sales assumptions Core sales growth (non-GAAP) 4.0% to 5.0% 4.0% to 4.5% Year-over-year Acquisitions/divestitures (1) ~2.0% ~2.0% Currency exchange rates impact on sales (2) flat ~1.0% Total sales growth (GAAP) 6.0% to 7.0% 7.0% to 7.5% Other key assu
Slide 10: Well-positioned to drive compounding earnings and free cash flow growth
Veralto / Well-positioned to drive compounding earnings and free cash flow growth ATTRACTIVE SECULAR GROWTH DRIVERS PREMIER FINANCIAL PROFILE and DURABLE BUSINESS MODEL PROVEN VALUE CREATION PLAYBOOK SAFEGUARDING THE WORLD’S MOST VITAL RESOURCES 10 Q 2 2 0 2 6 R E S U L T S | 10
Slide 11: Appendix
Appendix Q2 2026 Results | July 28, 2026
Slide 12: Geographic core sales growth for Q2 2026
Veralto / Geographic core sales growth(1) for Q2 2026 Q2 2026 Geographic Core Sales Growth Q2 2026 Sales by Geography North Western High-Growth Western America Europe Markets Europe 23% North Water Quality +8.3% +9.3% -1.5% America 49% Product Quality & Innovation +3.7% +0.8% +1.4% High Growth Total
Slide 13: Geographic core sales growth for YTD 2026
Veralto / Geographic core sales growth(1) for YTD 2026 YTD 2026 Geographic Core Sales Growth YTD 2026 Sales by Geography North Western High-Growth Western America Europe Markets Europe 23% North Water Quality +7.0% +6.9% -0.6% America 49% Product Quality & +2.4% -1.2% -0.0% Innovation High Growth To
Slide 14: Reconciliation of GAAP to Non-GAAP Financial Measures
VERALTO CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL FORWARD-LOOKING INFORMATION THREE AND SIX-MONTH PERIODS ENDED JULY 3, 2026 AND JULY 4, 2025
Slide 15: Table of Contents
TABLE OF CONTENTS Page 1 Sales Growth by Segment, Core Sales Growth by Segment 3 Forecasted Core Sales Growth, Adjusted Operating Profit Margin, Adjusted Diluted Net Earnings per Share and Free Cash Flow to Net Earnings Conversion Ratio 4 Segment Sales, Operating Profit, Adjusted Operating Profit, O
Slide 16: Sales Growth by Segment, Core Sales Growth by Segment
VERALTO CORPORATION Sales Growth by Segment, Core Sales Growth by Segment % Change Three-Month Period Ended July 3, 2026 vs. Comparable 2025 Period Segments Product Quality Total Company Water Quality and Innovation Total sales growth (GAAP) 7.6 % 10.1 % 3.8 % Impact of: Acquisitions/divestitures (2
Slide 17: Sales Growth by Segment, Core Sales Growth by Segment
VERALTO CORPORATION Sales Growth by Segment, Core Sales Growth by Segment % Change Three-Month Period Ended July 4, 2025 vs. Comparable 2024 Period Segments Product Quality Total Company Water Quality and Innovation Total sales growth (GAAP) 6.4 % 6.2 % 6.8 % Impact of: Acquisitions/divestitures (0.
Slide 18: Forecasted Core Sales Growth, Adjusted Operating Profit Margin
VERALTO CORPORATION Forecasted Core Sales Growth, Adjusted Operating Profit Margin, Adjusted Diluted Net Earnings per Share and Free Cash Flow to Net Earnings Conversion Ratio The Company provides forecasted sales only on a non-GAAP basis because of the difficulty in estimating the other components
Slide 19: Segment Sales, Operating Profit, Adjusted Operating Profit
VERALTO CORPORATION Segment Sales, Operating Profit, Adjusted Operating Profit, Operating Profit Margin and Adjusted Operating Profit Margin ($ in millions) Three-Month Period Ended Six-Month Period Ended July 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025 Sales (GAAP) Water Quality $ 908 $ 825 $ 1,
Slide 20: Segment Sales, Operating Profit, Adjusted Operating Profit
VERALTO CORPORATION Segment Sales, Operating Profit, Adjusted Operating Profit, Operating Profit Margin and Adjusted Operating Profit Margin ($ in millions) Three-Month Period Ended Six-Month Period Ended July 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025 Adjusted Operating Profit (non-GAAP) 2 Wate
Slide 21: Net Earnings, Operating Profit, Adjusted EBITDA
VERALTO CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Three-Month Period Ended July 3, 2026 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 241 Interest Expense
Slide 22: Net Earnings, Operating Profit, Adjusted EBITDA
VERALTO CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Three-Month Period Ended July 4, 2025 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 222 Interest Expense
Slide 23: Net Earnings, Operating Profit, Adjusted EBITDA
VERALTO CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Six-Month Period Ended July 3, 2026 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 495 Interest Expense 5
Slide 24: Net Earnings, Operating Profit, Adjusted EBITDA
VERALTO CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Six-Month Period Ended July 4, 2025 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 447 Interest Expense 5
Slide 25: Trailing Twelve Month Adjusted EBITDA, Gross Leverage and Net Leverage
VERALTO CORPORATION Trailing Twelve Month Adjusted EBITDA, Gross Leverage and Net Leverage ($ in millions) Three-Month Period Ended July 3, 2026 April 3, 2026 December 31, 2025 October 3, 2025 Net Earnings (GAAP) $ 241 $ 254 $ 254 $ 239 Interest Expense 27 24 20 21 Other Nonoperating (Income) Expens
Slide 26: Other Non-GAAP Adjusted P&L Measures
VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended July 3, 2026 Net earnings for calculation Diluted net Earnings of diluted net earnings per Gross profit Operating Operating before Income earnings per common Sales Cost of sales m
Slide 27: Other Non-GAAP Adjusted P&L Measures
VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended July 4, 2025 Net earnings for calculation Diluted net Earnings of diluted net earnings per Gross profit Operating Operating before Income earnings per common Sales Cost of sales m
Slide 28: Other Non-GAAP Adjusted P&L Measures
VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Six-Month Period Ended July 3, 2026 Net earnings for calculation Diluted net Earnings of diluted net earnings per Gross profit Operating Operating before Income earnings per common Sales Cost of sales mar
Slide 29: Other Non-GAAP Adjusted P&L Measures
VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Six-Month Period Ended July 4, 2025 Net earnings for calculation Diluted net Earnings of diluted net earnings per Gross profit Operating Operating before Income earnings per common Sales Cost of sales mar
Slide 30: Other Non-GAAP Adjusted P&L Measures
VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) A Amortization of acquisition-related intangible assets in the following historical periods (only the pretax amounts set forth below are reflected in the amortization line item above): Three-Month Period
Slide 31: Operating Profit Margin and Year-Over-Year Core Operating Margin Changes
VERALTO CORPORATION Operating Profit Margin and Year-Over-Year Core Operating Margin Changes Segments Product Quality Total Company Water Quality & Innovation Three-Month Period Ended July 4, 2025 Operating Profit Margins (GAAP) 22.8 % 25.6 % 24.5 % Restructuring costs incurred related to the 2026 C
Slide 32: Cash Flow, Free Cash Flow, Operating Cash Flow to Net Earnings Ratio
VERALTO CORPORATION Cash Flow, Free Cash Flow, Operating Cash Flow to Net Earnings Ratio, Free Cash Flow to Net Earnings Conversion Ratio and Free Cash Flow Margin ($ in millions) Three-Month Period Ended Six-Month Period Ended Year-over-Year Year-over-Year July 3, 2026 July 4, 2025 Change July 3, 2
Slide 33: Cash Flow, Free Cash Flow, Operating Cash Flow to Net Earnings Ratio
VERALTO CORPORATION Cash Flow, Free Cash Flow, Operating Cash Flow to Net Earnings Ratio, Free Cash Flow to Net Earnings Conversion Ratio and Free Cash Flow Margin ($ in millions) Three-Month Period Ended July 3, 2026 April 3, 2026 December 31, 2025 October 3, 2025 Free Cash Flow Margin (non-GAAP) F
Slide 34: Statement Regarding Non-GAAP Measures
VERALTO CORPORATION Statement Regarding Non-GAAP Measures Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. M
Slide 35: Statement Regarding Non-GAAP Measures
VERALTO CORPORATION Statement Regarding Non-GAAP Measures and not treated as discontinued operations) because the timing, size, number and nature of such transactions can vary significantly from period to period and may obscure underlying business trends and make comparisons of long-term performance
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