Veralto Corp · NYSE:VLTO
Veralto — Q3 2026 Earnings Presentation
37 slides from Veralto's earnings presentation, Oct 29, 2026
Slide 1: Third Quarter 2026 Results
Third Quarter 2026 Results October 29, 2026
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation, including statements regarding the Company's fourth 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: Third Quarter 2026 Key Messages
Veralto / Third Quarter 2026 Key Messages 1. Delivered strong year-over-year growth in Q3 2026 through VES-driven execution: • 7.5% total sales growth: ◦ 5.1% core sales growth (Water Quality +6.4%; PQI +3.2%) ◦ 2.3% from acquisitions • 170 basis points of adjusted operating margin expansion • 19.2%
Slide 4: 3-Year Performance 2023 to 2026E
2023 to 2026E (1) Financial Performance Veralto / 3-Year Performance ~$5.9 Total Sales Growth $5.5 7.7% to Core Sales Growth* $5.2 2023-2024: Established building blocks $5.0 8.0% Sales in $ billions 6.0% Simplified VES and improved operating rigor 3.1% 3.4% 4.2% to Increased innovation investme
Slide 5: Q3 2026 Key Consolidated Financial Results
Veralto / Q3 2026 Key Consolidated Financial Results ADJUSTED ADJUSTED OPERATING GROSS PROFIT PROFIT ADJUSTED ADJUSTED FREE CASH SALES MARGIN* MARGIN* EPS* EBITDA* FLOW* $1,509m 60.6% 25.6% $1.18 $397m $304m +7.5% total sales +50 basis points +170 basis points +19.2% 26.3% adjusted 120% free cash gr
Slide 6: Water Quality Q3 and YTD 2026 performance
Water Quality / Q3 and YTD 2026 performance ($ millions, variances versus prior year period) Q3 SALES Q3 ADJUSTED OPERATING PROFIT * +11.1% +9.8% Price Three months ended +2.0% YOY Change in Sales Q3 2025 Q3 2026 Core Growth* +5.3% +6.4% Currency +1.4% +0.4% M&A +0.3% +3.0% Total Growth +7.0% +9.8%
Slide 7: Product Quality & Innovation Q3 and YTD 2026 performance
Product Quality & Innovation / Q3 and YTD 2026 performance ($ millions, variances versus prior year period) Q3 SALES Q3 ADJUSTED OPERATING PROFIT * +3.9% Three months ended Price +15.8% YOY Change in Sales Q3 2025 Q3 2026 +2.6% Core Growth* +4.6% +3.2% Currency +2.0% -0.4% M&A +0.3% +1.1% Total Grow
Slide 8: Q3 2026 cash flow and balance sheet
Veralto / Q3 2026 cash flow and balance sheet ($ millions) Q3 2026 YTD 2026 Financial position summary: Cash from operations $323 $845 • Capital-light business model Capital expenditures $(19) $(43) • LTM free cash flow margin* at 18.8% Free cash flow* $304 $802 • Gross leverage* at 2.0x Free cash f
Slide 9: Q4 and FY 2026 guidance
Veralto / Q4 and FY 2026 guidance FY2026E Q4 2026E Current Prior Core sales growth* Core Sales +5.5% to 6.5% +4.2% to 4.5% +4.0% to 4.5% Growth* Adjusted Operating Profit ~24.5% ~+50 basis points +25 to +50 basis points +2.6% +3.7% +4.7% +4.2% Margin* to 4.5% Adjusted EPS* $1.13 to $1.16 $4.49 to $4
Slide 10: Q4 and Full Year 2026E Modeling Items
Veralto / Q4 and Full Year 2026E Modeling Items ($ millions, except per share data) Q4 2026E FY 2026E Core sales growth (non-GAAP) 5.5% to 6.5% 4.2% to 4.5% Sales assumptions Year-over-year Acquisitions/divestitures (1) ~5.0% ~2.5% Currency exchange rates impact on sales (2) ~(0.5%) ~1.0% Total sale
Slide 11: 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 11 Q 3 2 0 2 6 R E S U L T S | 11
Slide 12: Appendix
Appendix Q3 2026 Results | October 29, 2026
Slide 13: Geographic core sales growth for Q3 2026
Veralto / Geographic core sales growth(1) for Q3 2026 Q3 2026 Geographic Core Sales Growth Q3 2026 Sales by Geography North Western High-Growth Western America Europe Markets Europe 22% Water Quality North +8.8% +7.3% -1.1% America 50% Product Quality & Innovation +4.4% +0.6% +4.7% High Growth Total
Slide 14: 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 +7.6% +7.0% -0.8% America 49% Product Quality & +3.1% -0.6% +1.6% Innovation High Growth To
Slide 15: 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 NINE-MONTH PERIODS ENDED OCTOBER 2, 2026 AND OCTOBER 3, 2025
Slide 16: 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 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 October 2, 2026 vs. Comparable 2025 Period Segments Product Quality Total Company Water Quality and Innovation Total sales growth (GAAP) 7.5 % 9.8 % 3.9 % Impact of: Acquisitions/divestitures
Slide 18: 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 October 3, 2025 vs. Comparable 2024 Period Segments Product Quality Total Company Water Quality and Innovation Total sales growth (GAAP) 6.9 % 7.0 % 6.9 % Impact of: Acquisitions/divestitures
Slide 19: Forecasted Core Sales Growth, Adjusted Operating 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 20: Segment Sales, Operating Profit and 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 Nine-Month Period Ended October 2, 2026 October 3, 2025 October 2, 2026 October 3, 2025 Sales (GAAP) Water Quality $ 9
Slide 21: Segment Sales, Operating Profit and 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 Nine-Month Period Ended October 2, 2026 October 3, 2025 October 2, 2026 October 3, 2025 Adjusted Operating Profit (non
Slide 22: Net Earnings, Operating Profit, Adjusted EBITDA and Margins
VERALTO CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Three-Month Period Ended October 2, 2026 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 253 Interest Expe
Slide 23: Net Earnings, Operating Profit, Adjusted EBITDA and Margins
VERALTO CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Three-Month Period Ended October 3, 2025 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 239 Interest Expe
Slide 24: Net Earnings, Operating Profit, Adjusted EBITDA and Margins
VERALTO CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Nine-Month Period Ended October 2, 2026 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 748 Interest Expen
Slide 25: Net Earnings, Operating Profit, Adjusted EBITDA and Margins
VERALTO CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Nine-Month Period Ended October 3, 2025 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 686 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, October 2, 2026 July 3, 2026 April 3, 2026 2025 Net Earnings (GAAP) $ 253 $ 241 $ 254 $ 254 Interest Expense 25 27 24 20 Other Nonoperating (Income) Expens
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 October 2, 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 sale
Slide 28: 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 October 3, 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 sale
Slide 29: Other Non-GAAP Adjusted P&L Measures
VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Nine-Month Period Ended October 2, 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
Slide 30: Other Non-GAAP Adjusted P&L Measures
VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Nine-Month Period Ended October 3, 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 31: 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 32: 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 October 3, 2025 Operating Profit Margins (GAAP) 23.2 % 25.9 % 24.3 % Restructuring costs incurred related to the 202
Slide 33: Cash Flow, Free Cash Flow and Conversion Ratios
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 Nine-Month Period Ended Year-over-Year Year-over-Year October 2, 2026 October 3, 2025 Change Oc
Slide 34: Cash Flow, Free Cash Flow and Free Cash Flow Margin
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 October 2, 2026 July 3, 2026 April 3, 2026 December 31, 2025 Free Cash Flow Margin (non-GAAP) F
Slide 35: 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 36: 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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