Veralto Q4 Net Earnings $254M on 3.8% Sales Increase, $750M Buyback
Veralto's Q4 2025 sales grew 3.8% y/y to $1,396M, with net earnings of $254M ($1.01/share) and adjusted net earnings of $261M ($1.04/share), while operating cash flow was $311M. In full-year 2025, sales rose 6.0% to $5,503M, net earnings were $940M ($3.76/share), and the company launched a $750M repurchase program.
1. Strong Fourth Quarter Performance
Veralto Corporation reported sales of $1.396 billion in the fourth quarter of 2025, up 3.8% year-over-year, with non-GAAP core sales growth of 1.6%. Operating profit margin was 22.6%, improving to 24.6% on an adjusted non-GAAP basis. Net earnings reached $254 million, or $1.01 per diluted share, while adjusted net earnings were $261 million, or $1.04 per diluted share. Operating cash flow totaled $311 million and non-GAAP free cash flow was $291 million, underscoring robust cash generation in the quarter.
2. Full Year 2025 Results Exceed Expectations
For the full year 2025, VLTO delivered sales of $5.503 billion, marking a 6.0% increase over 2024, with non-GAAP core sales growth of 4.7%. The company achieved an operating profit margin of 23.2%, rising to 24.3% on an adjusted basis. Full-year net earnings were $940 million, or $3.76 per diluted share, and adjusted net earnings reached $977 million, or $3.90 per share. Operating cash flow was $1.077 billion and non-GAAP free cash flow stood at $1.014 billion, reflecting strong liquidity and capital efficiency.
3. Strategic Growth and Capital Allocation
In late January, VLTO completed its acquisition of In-Situ, expanding into high-growth environmental water and hydrology markets and strengthening its water analytics portfolio. During the fourth quarter, the company established a $750 million share repurchase program and increased its dividend by 18%. CEO Jennifer Honeycutt highlighted the company’s rigorous VES-driven execution, which enabled mid-single-digit core sales growth and double-digit adjusted EPS growth throughout 2025, while maintaining disciplined capital allocation.
4. 2026 Financial Outlook
Looking ahead, VLTO forecasts first-quarter non-GAAP core sales growth to be flat to low-single digits, with an adjusted operating profit margin of approximately 24.5% and adjusted EPS of $0.97 to $1.01. For full-year 2026, the company anticipates low-to-mid-single-digit core sales growth, a 25-basis-point expansion in adjusted operating margin, and adjusted EPS in the range of $4.10 to $4.20. Management expects free cash flow conversion to be approximately 100% of GAAP net earnings, driven by sustained demand for water and product quality solutions.