Tue, May 6, 11:02 AM (13 days ago)
**Waters Corporation (WAT) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total net sales increased by 4% to $661.7 million, driven by a 6% increase in product sales and a slight decrease in service sales. Foreign currency translation decreased total sales growth by 3%. - **Profit Margins:** Operating income rose by 13% to $151.7 million, with an operating margin of 22.9%. Net income increased by 19% to $121.4 million, with a net margin of 18.3%. - **Cash Flow:** Net cash provided by operating activities was $259.6 million, a slight decrease from $262.9 million in Q1 2024. Capital expenditures were $26.2 million. - **Earnings Changes:** Earnings per diluted share increased by 18% to $2.03. **Trends and Uncertainties:** - **Geographic Performance:** Sales increased in Asia (6%) and the Americas (6%), but decreased in Europe (1%). Foreign currency translation negatively impacted sales growth in Asia and Europe. - **Customer Segments:** Pharmaceutical sales increased by 5%, industrial sales by 4%, and academic/government sales were flat. - **Product Performance:** Waters instrument systems sales increased by 11%, while TA sales decreased by 1% due to lower customer demand. - **Uncertainties:** The company faces risks from global economic conditions, tariffs, competition, and regulatory changes. The implementation of a new ERP system and potential impacts of AI are also noted. **Future Operations Impact:** - **Debt and Liquidity:** The company has a total debt of $1.46 billion, with $1.36 billion in long-term debt. Cash and cash equivalents were $382.9 million, with a significant portion held in foreign currencies. - **Share Repurchase:** The company has $1.0 billion authorized for future share repurchases. - **Taxes:** The effective tax rate was 15.1%, impacted by discrete tax benefits and differences in pre-tax income across jurisdictions. **Summary:** Waters Corporation demonstrated strong financial health in Q1 2025, with increased revenue, profit margins, and earnings. However, the company faces uncertainties from global economic conditions, regulatory changes, and competitive pressures. The implementation of a new ERP system and the potential impacts of AI are also noted as areas of focus for future operations. The company maintains a strong liquidity position and has authorized share repurchases for future growth.