Strong Start in 2025
Veralto Corporation reported a strong start in 2025 with a 7.8% core sales growth, 50 basis points of adjusted operating margin expansion, and double-digit adjusted EPS growth.
Broad-Based Sales Growth
Core sales growth was broad-based across both segments, with PQI delivering 8.3% and water quality 4%. Sales growth in Western Europe was nearly 11%, and North America saw approximately 8% growth.
Record Operating Profit Margin
Adjusted operating profit margin reached an all-time high of 25%, driven by high-quality sales growth and efficient operating leverage.
Successful Acquisition Integration
The integration of TraceGains is on track, with sales growing in line with expectations. Additionally, a definitive agreement to acquire AQUAFIDES for $20 million was signed, expanding the company's UV treatment portfolio.
Strong Financial Position
Veralto reported $142 million in free cash flow for Q1, an increase of $40 million year-over-year, with net leverage at 1.1x.