Veralto Corp · NYSE:VLTO
Veralto — Q4 2025 Earnings Presentation
41 slides from Veralto's earnings presentation, Feb 4, 2026
Slide 1: Fourth Quarter and Full Year 2025 Results
Fourth Quarter and Full Year 2025 Results February 3, 2026
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation, including the statement regarding the Company's first quarter and full year 2026 financial performance, the Company’s differentiation and positioning to continue delivering sustainable, long-term shareholder value and any other stat
Slide 3: Opening Remarks
Opening Remarks Jennifer L. Honeycutt President and Chief Executive Officer Q4 2025 Results | February 3, 2026
Slide 4: Full Year 2025 key consolidated financial results
Veralto / Full Year 2025 key consolidated financial results ADJUSTED OPERATING ADJUSTED ADJUSTED FREE CASH SALES PROFIT* EPS* EBITDA* FLOW* $5,503m $1,337m $3.90 $1,379m $1,014m core sales 24.3% adjusted +10% 25.1% adjusted 108% free cash growth* of +4.7% operating margin* year-over-year EBITDA marg
Slide 5: Core sales growth by region for YTD 2025
Veralto / Core sales growth(1) by region for YTD 2025 2025 Commentary NORTH AMERICA (48% of YTD sales) WESTERN EUROPE (23% of YTD sales) HIGH GROWTH MARKETS (27% of YTD sales) North America: WQ +5.2% WQ +4.0% WQ +4.8% • WQ: strong growth in water treatment led by YTD 2025 +5.3% +3.8% +5.1% broad-bas
Slide 6: Delivering Consistent Growth and Margin Expansion
Veralto / Delivering Consistent Growth and Margin Expansion Key Financial Statistics Key 2025 Business Drivers ($ billions, except for per share data) • Strong Commercial Execution: ◦ Rigorous use of VES Growth Tools ◦ Improved commercial architecture +LSD to +MSD • Targeted Geographic Growth: ◦ LAT
Slide 7: Environmental Water / Protecting a Vital Resource
Environmental Water / Protecting a Vital Resource Water Cycle Challenges Quantity • Droughts / overuse - not enough water • Heavy rains / floods - excessive water • Water is in the wrong place Surface Water: Rivers, Streams, Lakes Groundwater: Underground aquifers Quality • Regulatory non-compliance
Slide 8: OTT + In-Situ / Complementary Product Portfolios
OTT + In-Situ / Complementary Product Portfolios + QUALITY Ground Water Management QUANTITY QUALITY Surface Water Management QUANTITY Leader in Proactive Monitoring Capabilities Across Environmental Water Ecosystem Q4 2025 RESULTS | 8 8
Slide 9: Financial Review
Financial Review Sameer Ralhan SVP and Chief Financial Officer Q4 2025 Results | February 3, 2026
Slide 10: Q4 2025 consolidated performance
Veralto / Q4 2025 consolidated performance YOY Q4 2024 Q4 2025 • Sales grew +3.8% year-over-year: Variance $ millions, except per share data ◦ Core sales*: +1.6% Sales $1,345 $1,396 +3.8% ◦ Currency: +2.5% ◦ Acquisitions & divestitures: (0.3)% Core Sales Growth* 4.6% 1.6% • Gross profit margin down
Slide 11: Water Quality / Q4 and YTD 2025 performance
Water Quality / Q4 and YTD 2025 performance ($ millions, variances versus prior year period) Q4 SALES Q4 ADJUSTED OPERATING PROFIT * +4.3% +5.8% $846 $219 Three months ended $811 Price YOY Change in Sales Q4 2024 Q4 2025 $207 +1.8% Core Growth* +4.9% +1.4% 25.5% 25.9% Currency (0.6)% +2.4% Adj. oper
Slide 12: Product Quality & Innovation / Q4 and YTD 2025 performance
Product Quality & Innovation / Q4 and YTD 2025 performance ($ millions, variances versus prior year period) Q4 SALES Q4 ADJUSTED OPERATING PROFIT * +9.8% $146 +3.0% $550 $133 Three months ended $534 Price YOY Change in Sales Q4 2024 Q4 2025 +3.0% Core Growth* +4.1% +1.8% 26.5% Currency (0.3)% +2.8%
Slide 13: Q4 2025 key consolidated financial results
Veralto / Q4 2025 key consolidated financial results ($ millions) Q4 2025 Cash from operations $311 Financial position summary: Capital expenditures $(20) • Strong annual cash generation Free cash flow* $291 Free cash flow conversion* 115% • Resilient, capital-light business model Year End 2025 • Gr
Slide 14: Q1 and FY 2026 guidance
Veralto / Q1 and FY 2026 guidance Annual Sales and Core Sales Growth* Q1 2026E FY 2026E ~$5.9b Core sales growth* Core Sales Growth* ~flat to +LSD +LSD to MSD $5.5b $5.2b $5.0b Adjusted Operating +4.7% +LSD to ~24.5% +25 basis points MSD Profit Margin* +3.7% +2.6% Adjusted EPS* $0.97 to $1.01 $4.10
Slide 15: Closing Remarks
Closing Remarks Jennifer L. Honeycutt Q4 2025 Results | February 3, 2026
Slide 16: 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™ 16 Q 4 2 0 2 5 R E S U L T S | 16
Slide 17: Appendix
Appendix Q4 2025 Results | February 3, 2026
Slide 18: Q4 2025 key consolidated financial results
Veralto / Q4 2025 key consolidated financial results ADJUSTED OPERATING ADJUSTED ADJUSTED FREE CASH SALES PROFIT* EPS* EBITDA* FLOW* $1,396m $343m $1.04 $354m $291m core sales 24.6% adjusted +9% 25.4% adjusted 115% free cash growth* of +1.6% operating margin* year-over-year EBITDA margin* flow conve
Slide 19: 2026E Modeling Items
Veralto / 2026E Modeling Items Q1 2026E FY 2026E Core sales growth (non-GAAP) ~flat to +LSD +LSD to +MSD Sales assumptions Year-over-year Acquisitions/divestitures (1) ~0.5% ~1.5% Currency exchange rates impact on sales (2) ~3.0% - 3.5% ~1.0% - 1.5% Total sales growth (GAAP) +MSD +MSD to +HSD Other
Slide 20: 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 AND YEARS ENDED DECEMBER 31, 2025 AND DECEMBER 31, 2024
Slide 21: 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 22: 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 December 31, 2025 vs. Comparable 2024 Period Segments Product Quality Total Company Water Quality & Innovation Total sales growth (GAAP) 3.8 % 4.3 % 3.0 % Impact of: Acquisitions/divestitures
Slide 23: 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 December 31, 2024 vs. Comparable 2023 Period Segments Product Quality Total Company Water Quality & Innovation Total sales growth (GAAP) 4.4 % 3.7 % 5.4 % Impact of: Acquisitions/divestitures
Slide 24: Forecasted Core Sales Growth, Adjusted Operating Profit Margin, Adjusted EPS
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 25: 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 Year Ended December 31, December 31, December 31, December 31, 2025 2024 2025 2024 Sales (GAAP) Water Quality $ 846 $
Slide 26: 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 Year Ended December 31, December 31, December 31, December 31, 2025 2024 2025 2024 Adjusted Operating Profit (Non-GAA
Slide 27: 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 December 31, 2025 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 254 Interest E
Slide 28: 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 December 31, 2024 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 227 Interest E
Slide 29: 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) Year Ended December 31, 2025 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 940 Interest Expense, net 96
Slide 30: 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) Year Ended December 31, 2024 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 833 Interest Expense, net 11
Slide 31: 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, 2025 October 3, 2025 July 4, 2025 April 4, 2025 Net Earnings (GAAP) $ 254 $ 239 $ 222 $ 225 Interest Expense 20 21 28 27 Other Nonoperating (Income) Expen
Slide 32: 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 December 31, 2025 Net earnings for Earnings calculation of Diluted net before diluted net earnings per Gross profit Operating Operating Income earnings per common Sales Cost of sa
Slide 33: 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 December 31, 2024 Net earnings for calculation of Diluted net Earnings diluted net earnings per Gross profit Operating Operating before Income earnings per common Sales Cost of sa
Slide 34: Other Non-GAAP Adjusted P&L Measures
VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Year Ended December 31, 2025 Net earnings for Earnings calculation of Diluted net before diluted net earnings per Gross profit Operating Operating Income earnings per common Sales Cost of sales margin pro
Slide 35: Other Non-GAAP Adjusted P&L Measures
VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Year Ended December 31, 2024 Net earnings for Earnings calculation of Diluted net before diluted net earnings per Gross profit Operating Operating Income earnings per common Sales Cost of sales margin pro
Slide 36: 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 37: Operating Profit Margins and Year-Over-Year Core Operating Margin Changes
VERALTO CORPORATION Operating Profit Margins and Year-Over-Year Core Operating Margin Changes Segments Product Quality Total Company Water Quality & Innovation Three-Month Period Ended December 31, 2024 Operating Profit Margins (GAAP) 22.9 % 25.2 % 23.2 % Impact of acquisitions and dispositions 0.1
Slide 38: 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, and Free Cash Flow to Net Earnings Conversion Ratio ($ in millions) Three-Month Period Ended Year Ended December 31, December 31, Year-over-Year December 31, December 31, Year-over-Year 2025 2024 Change 2025 20
Slide 39: 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 40: Statement Regarding Non-GAAP Measures
VERALTO CORPORATION Statement Regarding Non-GAAP Measures • We calculate adjusted EBITDA by adding to operating profit amounts equal to depreciation and amortization and making the other adjustments reflected in the applicable tables above, which allows us to calculate and disclose such measure by s
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