Veralto Corp · NYSE:VLTO
Veralto — Q2 2025 Earnings Presentation
37 slides from Veralto's earnings presentation, Jul 29, 2025
Slide 1: Second Quarter 2025 Results
Second Quarter 2025 Results July 28, 2025
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation, including statements regarding the Company's third 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 Q2 2025 Results | July 28, 2025
Slide 4: Q2 2025 key consolidated financial results
Veralto / Q2 2025 key consolidated financial results ADJUSTED OPERATING ADJUSTED ADJUSTED FREE CASH SALES PROFIT* EPS* EBITDA* FLOW* $1,371m $325m $0.93 $335m $323m core sales growth* 23.7% adjusted +9.4% 24.4% adjusted 145% free cash of +4.8% operating profit year-over-year EBITDA margin* flow conv
Slide 5: Core sales growth by region for Q2 and YTD 2025
Veralto / Core sales growth by region for Q2 and YTD 2025 NORTH AMERICA (48% of Q2 sales) WESTERN EUROPE (23% of Q2 sales) HIGH GROWTH MARKETS (27% of Q2 sales) Q2 2025 Commentary North America: Q2 2025 WQ +5.7% WQ +11.4% WQ +4.7% +5.6% +6.3% +6.1% PQI +5.3% PQI +2.1% PQI +7.6% • WQ: HSD growth in w
Slide 6: Financial Review
Financial Review Sameer Ralhan SVP and Chief Financial Officer Q2 2025 Results | July 28, 2025
Slide 7: Q2 2025 consolidated performance
Veralto / Q2 2025 consolidated performance YOY Q2 2024 Q2 2025 Variance • Sales grew +6.4% year-over-year $ millions, except per share data ◦ Core sales* +4.8% Sales $1,288 $1,371 +6.4% ◦ Currency: +1.5% ◦ Acquisitions & divestitures: +0.1% Core Sales Growth* 3.8% 4.8% • Gross profit margin (10) bps
Slide 8: Water Quality Q2 and YTD 2025 performance
Water Quality / Q2 and YTD 2025 performance ($ millions, variances versus prior year period) Q2 SALES Q2 ADJUSTED OPERATING PROFIT * +6.2% $825 +11.5% $214 Price Three months ended $777 +1.4% YOY Change in Sales Q2 2024 Q2 2025 $192 Core Growth* +4.0% +5.0% Currency (0.8)% +1.1% Adj. operating profi
Slide 9: Product Quality & Innovation Q2 and YTD 2025 performance
Product Quality & Innovation / Q2 and YTD 2025 performance ($ millions, variances versus prior year period) Q2 SALES Q2 ADJUSTED OPERATING PROFIT * +6.8% $546 Three months ended YOY Change in Sales Q2 2024 Q2 2025 (0.7)% $511 Price +2.2% Core Growth* +3.4% +4.6% $141 $140 Currency (0.7)% +2.2% Adj o
Slide 10: Q2 2025 cash flow and balance sheet
Veralto / Q2 2025 cash flow and balance sheet ($ millions) Q2 2025 YTD 2025 Cash from operations $339 $496 Financial position summary: Capital expenditures $(16) $(31) • Strong year-to-date cash generation Free cash flow* $323 $465 Free cash flow conversion* 145% 104% • Capital-light business model
Slide 11: Q3 and FY 2025 guidance
Veralto / Q3 and FY 2025 guidance FY2025E Annual Sales and Core Sales Growth* ~$5.5b Q3 2025E Current Prior $5.2b Core Sales +LSD to +MSD +MSD $5.0b Growth* +MSD $4.9b Adjusted flat to +50 flat to +50 Operating Profit -- basis points basis points Core sales +8.1% +2.6% +3.7% +MSD Margin* growth* Adj
Slide 12: Closing Remarks
Closing Remarks Jennifer L. Honeycutt Q2 2025 Results | July 28, 2025
Slide 13: Well-positioned to drive compounding earnings and free cash flow growth
Veralto / Well-positioned to drive compounding earnings and free cash flow growth ATTRACTIVE SECULAR GROWTH DRIVERS PREMIER FINANCIAL PROFILE and DURABLE BUSINESS MODEL PROVEN VALUE CREATION PLAYBOOK SAFEGUARDING THE WORLD’S MOST VITAL RESOURCES™ 13 Q 2 2 0 2 5 R E S U L T S | 13
Slide 14: Appendix
Appendix Q2 2025 Results | July 28, 2025
Slide 15: 2025E Modeling Items
Veralto / 2025E Modeling Items ($ millions, except per share data) Q3 2025E FY 2025E Core sales growth (non-GAAP) +MSD +MSD Sales assumptions Year-over-year Acquisitions/divestitures (1) ~flat ~flat Currency exchange rates impact on sales (2) ~2.0% 1.0% to 1.5% Total sales growth (GAAP) +MSD to +HSD
Slide 16: 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 4, 2025 AND JUNE 28, 2024
Slide 17: 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 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 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 19: 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 June 28, 2024 vs. Comparable 2023 Period Segments Product Quality Total Company Water Quality and Innovation Total sales growth (GAAP) 2.8 % 2.8 % 2.7 % Impact of: Acquisitions/divestitures 0.
Slide 20: 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 21: Segment Sales, Operating Profit, Adjusted Operating Profit and Margins
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 4, 2025 June 28, 2024 July 4, 2025 June 28, 2024 Sales (GAAP) Water Quality $ 825 $ 777 $
Slide 22: Segment Sales, Operating Profit, Adjusted Operating Profit and Margins
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 4, 2025 June 28, 2024 July 4, 2025 June 28, 2024 2 Adjusted Operating Profit (non-GAAP) Wa
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 July 4, 2025 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 222 Interest Expense
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) Three-Month Period Ended June 28, 2024 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 203 Interest Expens
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) Six-Month Period Ended July 4, 2025 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 447 Interest Expense 5
Slide 26: 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) Six-Month Period Ended June 28, 2024 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 387 Interest Expense
Slide 27: 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, July 4, 2025 April 4, 2025 2024 2024 Net Earnings (GAAP) $ 222 $ 225 $ 227 $ 219 Interest Expense 28 27 28 27 Other Nonoperating (Income) Exp
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 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 29: 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 June 28, 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 30: 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 31: 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 June 28, 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 ma
Slide 32: 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 33: 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 June 28, 2024 Operating Profit Margins (GAAP) 23.2 % 24.2 % 26.4 % Impact of acquisitions and dispositions (0.3) (0.
Slide 34: 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 Six-Month Period Ended Year-over-Year Year-over-Year July 4, 2025 June 28, 2024 Change July 4, 2025 June 28, 2024 Chan
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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