Wed, Apr 30, 10:01 AM (12 days ago)
**Veralto Corporation (VLTO) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $1,332 million, up 6.9% YoY. - **Profit Margins:** Gross margin at 60.4%, operating margin at 24.2%, and net margin at 16.9%. - **Cash Flow:** Operating cash flow of $157 million, up 37% YoY. - **Earnings:** Net earnings of $225 million, up 22.3% YoY. EPS increased to $0.91 from $0.75. **Segment Performance:** - **Water Quality (WQ):** Sales up 6.0% to $794 million, operating margin at 24.9%. - **Product Quality & Innovation (PQI):** Sales up 8.3% to $538 million, operating margin at 27.1%. **Trends & Uncertainties:** - Positive secular growth in industrial markets and steady municipal demand. - Evaluating potential impacts of tariffs and trade policies. - Three additional days in Q1 2025 boosted recurring revenue growth. - Foreign currency translation gains of $81 million due to U.S. dollar weakening. **Future Operations Impact:** - Continued investment in R&D, acquisitions, and strategic initiatives. - Focus on cost reductions, operational efficiency, and market expansion. - Expectations for steady demand in consumer-packaged goods and industrial markets. **Key Metrics:** - **Current Ratio:** 2.18 (improved liquidity). - **Debt-to-Equity:** 1.14 (stable leverage). - **ROE:** 9.7% (improved profitability). **Conclusion:** Veralto Corporation demonstrated strong quarterly performance with robust revenue growth, improved profit margins, and increased cash flow. The company's strategic investments and operational efficiencies position it well for future growth, despite uncertainties in the global economic environment.