Veralto Corp · NYSE:VLTO
Veralto — Q1 2025 Earnings Presentation
34 slides from Veralto's earnings presentation, Apr 30, 2025
Slide 1: First Quarter 2025 Results
First Quarter 2025 Results April 29, 2025
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation, including statements regarding the Company's second quarter and full year 2025 financial performance and guidance, the Company’s differentiation and positioning to continue delivering sustainable, long-term shareholder value and any
Slide 3: Opening Remarks
Opening Remarks Jennifer L. Honeycutt President and Chief Executive Officer Q1 2025 Results | April 29, 2025
Slide 4: Q1 2025 key consolidated financial results
Veralto / Q1 2025 key consolidated financial results ADJUSTED OPERATING ADJUSTED ADJUSTED FREE CASH SALES PROFIT* EPS* EBITDA* FLOW* $1,332m $333m $0.95 $343m $142m core sales growth* 25.0% adjusted +13% 25.8% adjusted 63% free cash of +7.8% operating profit year-over-year EBITDA margin* flow conver
Slide 5: Core sales growth by region for Q1 2025
Veralto / Core sales growth by region for Q1 2025 Q1 2025 Commentary NORTH AMERICA (49% of Q1 sales) WESTERN EUROPE (23% of Q1 sales) HIGH GROWTH MARKETS (26% of Q1 sales) 49 8 North America: Q1 2025 WQ +8.3% WQ +11.3% WQ +3.3% +7.9% +10.8% +6.1% • WQ: DD growth in water treatment led by broad- PQI
Slide 6: Resilient Business Model
Veralto / Resilient Business Model Essential Technologies | Durable Business Model | Secular Growth Drivers Q1 2025 RESULTS | 6 6
Slide 7: 2025 CEO Kaizen Week
Optimizing sourcing strategy Veralto / 2025 CEO Kaizen Week Increasing software adoption with mid-market Accelerating design inputs for innovation Accelerating growth of laser marking and coding system Various Improving standard work for regulatory growth opportunities At Veralto, We Are All Practit
Slide 8: Financial Review
Financial Review Sameer Ralhan SVP and Chief Financial Officer Q1 2025 Results | April 29, 2025
Slide 9: Q1 2025 consolidated performance
Veralto / Q1 2025 consolidated performance YOY Q1 2024 Q1 2025 • Sales grew +6.9% year-over-year: Variance $ millions, except per share data ◦ Core sales* +7.8% Sales $1,246 $1,332 +6.9% ◦ Currency: -1.3% ◦ Acquisitions & divestitures: +0.4% Core Sales Growth* 1.8% 7.8% • Gross profit margin up 40 b
Slide 10: Water Quality / Q1 2025 Performance
Water Quality / Q1 2025 Performance ($ millions, variances versus prior year period) Q1 SALES Q1 ADJUSTED OPERATING PROFIT * $794 +6.0% +7.5% Price +1.0% $200 $749 $186 24.8% 25.2% Q1 2024 Q1 2025 Q1 2024 Q1 2025 Adj. operating profit Adj. operating profit margin YOY Change in Sales Q1 2024 Q1 2025
Slide 11: Product Quality & Innovation / Q1 2025 performance
Product Quality & Innovation / Q1 2025 performance ($ millions, variances versus prior year period) Q1 SALES Q1 ADJUSTED OPERATING PROFIT * +8.3% $538 +10.1% Price +1.6% $153 $497 $139 28.0% 28.4% Q1 2024 Q1 2025 Q1 2024 Q1 2025 Adj. operating profit Adj. operating profit margin YOY Change in Sales
Slide 12: Q1 2025 cash flow and balance sheet
Veralto / Q1 2025 cash flow and balance sheet ($ millions) Q1 2025 Cash from operations $157 Financial position summary: Capital expenditures $(15) • Strong annual cash generation Free cash flow* $142 Free cash flow conversion* 63% • Resilient and capital-light business model Q1 2025 • Gross leverag
Slide 13: Q2 and FY 2025 guidance
Veralto / Q2 and FY 2025 guidance FY2025E Annual Sales and Core Sales Growth* ~$5.4b Q2 2025E Current Prior $5.2b Core Sales +LSD to +LSD to +LSD to $5.0b Growth* +MSD +MSD +MSD $4.9b Adjusted flat to +50 +25 to +50 Operating Profit -- basis points basis points Core sales +8.1% +2.6% +3.7% +LSD to M
Slide 14: Closing Remarks
Closing Remarks Jennifer L. Honeycutt Q1 2025 Results | April 29, 2025
Slide 15: Well-positioned to drive compounding earnings and free cash flow growth
Veralto / Well-positioned to drive compounding earnings and free cash flow growth ATTRACTIVE SECULAR GROWTH DRIVERS PREMIER FINANCIAL PROFILE and DURABLE BUSINESS MODEL PROVEN VALUE CREATION PLAYBOOK SAFEGUARDING THE WORLD’S MOST VITAL RESOURCES™ 15 Q 1 2 0 2 5 R E S U L T S | 15
Slide 16: Appendix
Appendix Q1 2025 Results | April 29, 2025
Slide 17: 2025E Modeling Items
Veralto / 2025E Modeling Items ($ millions, except per share data) Q2 2025E FY 2025E Core sales growth (non-GAAP) +LSD to +MSD +LSD to +MSD Sales assumptions Year-over-year Acquisitions/divestitures (1) ~flat ~flat Currency exchange rates impact on sales (2) ~flat ~flat Total sales growth (GAAP) +LS
Slide 18: Reconciliation of GAAP to Non-GAAP Financial Measures
VERALTO CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL FORWARD-LOOKING INFORMATION THREE-MONTH PERIODS ENDED APRIL 4, 2025 AND MARCH 29, 2024
Slide 19: Table of Contents
TABLE OF CONTENTS Page 3 Sales Growth by Segment, Core Sales Growth by Segment 4 Forecasted Core Sales Growth, Adjusted Operating Profit Margin, Adjusted Diluted Net Earnings per Share and Free Cash Flow to Net Earnings Conversion Ratio 5 Segment Sales, Operating Profit, Adjusted Operating Profit, O
Slide 20: 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 April 4, 2025 vs. Comparable 2024 Period Segments Product Quality Total Company Water Quality and Innovation Total sales growth (GAAP) 6.9 % 6.0 % 8.3 % Impact of: Acquisitions/divestitures (0
Slide 21: Forecasted Core Sales Growth, Adjusted Operating Profit Margin, EPS and FCF Conversion
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 22: 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 April 4, 2025 March 29, 2024 Sales (GAAP) Water Quality $ 794 $ 749 Product Quality & Innovation 538 497 Total $ 1,332
Slide 23: Segment Sales, Operating Profit, Adjusted Operating Profit (continued)
VERALTO CORPORATION Segment Sales, Operating Profit, Adjusted Operating Profit, Operating Profit Margin and Adjusted Operating Profit Margin ($ in millions) Three-Month Period Ended April 4, 2025 March 29, 2024 2 Adjusted Operating Profit (non-GAAP) Water Quality $ 200 $ 186 Product Quality & Innova
Slide 24: Net Earnings, Operating Profit, Adjusted EBITDA (Q1 2025)
VERALTO CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Three-Month Period Ended April 4, 2025 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 225 Interest Expens
Slide 25: Net Earnings, Operating Profit, Adjusted EBITDA (Q1 2024)
VERALTO CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Three-Month Period Ended March 29, 2024 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 184 Interest Expen
Slide 26: 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 December 31, September 27, April 4, 2025 2024 2024 June 28, 2024 Net Earnings (GAAP) $ 225 $ 227 $ 219 $ 203 Interest Expense 27 28 27 30 Other Nonoperating (Income) Ex
Slide 27: Other Non-GAAP Adjusted P&L Measures (Q1 2025)
VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended April 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
Slide 28: Other Non-GAAP Adjusted P&L Measures (Q1 2024)
VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended March 29, 2024 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
Slide 29: Other Non-GAAP Adjusted P&L Measures (footnotes)
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 30: 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 March 29, 2024 Operating Profit Margins (GAAP) 23.5 % 24.2 % 26.8 % Costs incurred during 2024 as a result of the Se
Slide 31: Cash Flow, Free Cash Flow and Conversion Ratios
VERALTO CORPORATION Cash Flow, Free Cash Flow, Operating Cash Flow to Net Earnings Ratio and Free Cash Flow to Net Earnings Conversion Ratio ($ in millions) Three-Month Period Ended Year-over-Year April 4, 2025 March 29, 2024 Change Total Cash Flows: Net cash provided by operating activities (GAAP)
Slide 32: 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 33: Statement Regarding Non-GAAP Measures (continued)
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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