Detailed financial statements for Veralto Corporation (VLTO): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Veralto Corporation is a global provider specializing in critical solutions across water quality management, brand protection, and packaging aesthetics. Its operations are structured into two primary divisions: Water Quality (WQ) and Product Quality & Innovation (PQI). The WQ segment delivers advanced instrumentation and treatment technologies designed for the precise measurement, analysis, and purification of water.
Analysis Summary
Veralto Corporation reported revenue of $5.50B in the most recent fiscal year, growing at a 5-year CAGR of 4.8%. Net income reached $940.0M, with a 5.4% 5-year CAGR.
Trailing-twelve-month margins: gross margin 59.9%, operating margin 23.2%, net margin 17.1%. Free cash flow grew at 1.0% CAGR over 5 years.
At the current price of $96.57, VLTO trades at a P/E of 23.91 and an ROE of 30.27%. Market capitalisation stands at $23.5B, placing it among large-cap names.
Balance sheet quality for VLTO: current ratio of 1.7, net debt of $642.0M. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $1.01B represents 108% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Revenue | $4.35B | $4.70B | $4.87B | $5.02B | $5.19B | $5.50B |
| Cost of Revenue | $1.84B | $1.99B | $2.11B | $2.12B | $2.09B | $2.20B |
| Gross Profit | $2.51B | $2.71B | $2.77B | $2.90B | $3.10B | $3.30B |
| Research & Development | $219.0M | $244.0M | $217.0M | $225.0M | $253.0M | $266.0M |
| Selling, General & Admin | $1.34B | $1.43B | $1.47B | $1.54B | $1.64B | $1.76B |
| Operating Expenses | $1.56B | $1.67B | $1.65B | $1.76B | $1.90B | $2.02B |
| Operating Income | $951.0M | $1.04B | $1.11B | $1.14B | $1.21B | $1.28B |
| EBITDA | $1.06B | $1.15B | $1.20B | $1.21B | $1.28B | $1.35B |
| Interest Expense | 0 | 0 | 0 | $30.0M | $113.0M | $96.0M |
| Pre-tax Income | $950.0M | $1.05B | $1.11B | $1.10B | $1.09B | $1.17B |
| Income Tax | $226.0M | $186.0M | $268.0M | $257.0M | $253.0M | $233.0M |
| Net Income | $724.0M | $861.0M | $845.0M | $839.0M | $833.0M | $940.0M |
| EPS | $2.94 | $3.50 | $3.43 | $3.41 | $3.37 | $3.79 |
| EPS (Diluted) | $2.94 | $3.50 | $3.43 | $3.41 | $3.34 | $3.76 |
| Shares Outstanding (Diluted) | $246.1M | $246.1M | $246.1M | $246.4M | $249.6M | $250.3M |
Income Statement (Quarterly)
| Year | 2025-Q4 | 2025-Q4 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Revenue | $1.40B | $1.40B | $1.42B | $1.47B |
| Gross Profit | $844.0M | $828.0M | $854.0M | $902.0M |
| Operating Income | $326.0M | $316.0M | $338.0M | $315.0M |
| EBITDA | $347.0M | $333.0M | $356.0M | $315.0M |
| Net Income | $239.0M | $254.0M | $254.0M | $241.0M |
| EPS | $0.96 | $1.02 | $1.03 | $0.98 |
| EPS (Diluted) | $0.95 | $1.01 | $1.02 | $0.98 |
Balance Sheet (10y)
| Year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | 0 | 0 | $762.0M | $1.10B | $2.03B |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 |
| Receivables | $757.0M | $816.0M | $826.0M | $812.0M | $897.0M |
| Inventory | $322.0M | $345.0M | $297.0M | $288.0M | $307.0M |
| Total Current Assets | $1.21B | $1.28B | $2.07B | $2.39B | $3.43B |
| Property, Plant & Equipment | $260.0M | $247.0M | $262.0M | $268.0M | $294.0M |
| Goodwill | $2.50B | $2.48B | $2.53B | $2.69B | $2.84B |
| Intangible Assets | $533.0M | $479.0M | $427.0M | $535.0M | $524.0M |
| Total Assets | $4.84B | $4.83B | $5.69B | $6.41B | $7.69B |
| Accounts Payable | $464.0M | $440.0M | $431.0M | $395.0M | $416.0M |
| Short-term Debt | $34.0M | $32.0M | $33.0M | $39.0M | $700.0M |
| Total Current Liabilities | $1.12B | $1.12B | $1.26B | $1.25B | $2.06B |
| Long-term Debt | 0 | 0 | $2.63B | $2.60B | $1.97B |
| Total Liabilities | $1.64B | $1.58B | $4.30B | $4.36B | $4.59B |
| Retained Earnings | 0 | 0 | $178.0M | $917.0M | $1.74B |
| Total Equity | $3.20B | $3.23B | $1.38B | $2.04B | $3.10B |
| Total Debt | $135.0M | $123.0M | $2.78B | $2.77B | $2.67B |
| Net Debt | $135.0M | $123.0M | $2.02B | $1.67B | $642.0M |
| Working Capital | $84.0M | $157.0M | $808.0M | $1.14B | $1.38B |
Balance Sheet (Quarterly)
| Year | 2025-Q4 | 2025-Q4 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Cash & Equivalents | $1.77B | $2.03B | $1.43B | $2.12B |
| Total Assets | $7.43B | $7.69B | $7.65B | $8.56B |
| Total Liabilities | $4.58B | $4.59B | $4.65B | $5.46B |
| Total Equity | $2.85B | $3.10B | $3.00B | $3.10B |
| Total Debt | $2.67B | $2.67B | $2.66B | $3.38B |
Cash Flow (10y)
| Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Net Income | $724.0M | $861.0M | $845.0M | $839.0M | $833.0M | $940.0M |
| Depreciation & Amortization | $110.0M | $106.0M | $90.0M | $87.0M | $78.0M | $78.0M |
| Stock-based Compensation | $30.0M | $34.0M | $41.0M | $55.0M | $65.0M | $74.0M |
| Change in Working Capital | $137.0M | -$97.0M | -$106.0M | -$33.0M | -$116.0M | -$27.0M |
| Operating Cash Flow | $1.00B | $896.0M | $870.0M | $963.0M | $875.0M | $1.08B |
| Capital Expenditure | -$36.0M | -$54.0M | -$34.0M | -$54.0M | -$55.0M | -$63.0M |
| Acquisitions | -$121.0M | -$34.0M | -$55.0M | $2.0M | -$363.0M | 0 |
| Stock Repurchased | -$844.0M | -$800.0M | -$781.0M | -$147.0M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | -$89.0M | -$109.0M |
| Free Cash Flow | $965.0M | $842.0M | $836.0M | $909.0M | $820.0M | $1.01B |
Cash Flow (Quarterly)
| Year | 2025-Q4 | 2025-Q4 | 2026-Q2 | 2026-Q3 |
|---|---|---|---|---|
| Operating Cash Flow | $270.0M | $311.0M | $182.0M | $340.0M |
| Capital Expenditure | -$12.0M | -$20.0M | -$12.0M | -$12.0M |
| Free Cash Flow | $258.0M | $291.0M | $170.0M | $328.0M |
| Dividends Paid | -$28.0M | -$27.0M | -$32.0M | -$32.0M |
| Stock-based Compensation | $21.0M | $13.0M | $16.0M | $24.0M |
Growth & Margins (10y)
| Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +8.1% | +3.6% | +3.1% | +3.4% | +6.0% | |
| Net Income Growth (YoY) | +18.9% | -1.9% | -0.7% | -0.7% | +12.8% | |
| EPS Growth (YoY) | +19.0% | -2.0% | -0.6% | -1.2% | +12.5% | |
| Shares Change (YoY) | +0.0% | +0.0% | +0.1% | +1.3% | +0.3% | |
| FCF Growth (YoY) | -12.7% | -0.7% | +8.7% | -9.8% | +23.7% | |
| Gross Margin | 57.7% | 57.7% | 56.9% | 57.8% | 59.8% | 59.9% |
| Operating Margin | 21.9% | 22.1% | 22.8% | 22.7% | 23.3% | 23.2% |
| EBITDA Margin | 24.4% | 24.4% | 24.7% | 24.2% | 24.6% | 24.5% |
| Net Margin | 16.7% | 18.3% | 17.4% | 16.7% | 16.0% | 17.1% |
| FCF Margin | 22.2% | 17.9% | 17.2% | 18.1% | 15.8% | 18.4% |
| Effective Tax Rate | 23.8% | 17.8% | 24.1% | 23.4% | 23.3% | 19.9% |
Per-Share Data (10y)
| Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| FCF Per Share | $3.92 | $3.42 | $3.40 | $3.69 | $3.29 | $4.05 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.36 | $0.44 |
| Shares Outstanding (Basic) | $246.1M | $246.1M | $246.1M | $246.4M | $247.3M | $248.3M |
What to look at in Industrials
Aerospace, defence, machinery, transport. Semi-cyclical. Key: backlog, operating margins, and FCF conversion.
- 5y revenue growth — Without growth, there is no long-term value creation
- Operating margin — The best indicator of operational discipline in industrials
- ROIC — Quality industrials have ROIC >15% — the rest destroy capital
- FCF conversion — FCF / Net Income — in industrials good >85%
- Net debt / EBITDA — Cyclical industrials with high debt suffer hard in recessions
- Capex / Revenue — Maintaining the machinery. <4% = possible underinvestment (future decline)
- Altman Z-Score — Bankruptcy model (NYU 1968) — combines liquidity, leverage and profitability. Key in cyclicals
Profitability
| Return on Equity | 30.27% |
| Return on Invested Capital | 16.15% |
| Return on Assets | 12.22% |
| Gross Margin | 59.95% |
| Operating Margin | 23.21% |
| Net Margin | 17.08% |
Financial Health
| Debt / Equity | 0.86 |
| Current Ratio | 1.67 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 5.04 |
Key Ratios (10y)
| Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| P/E | 27.41 | 23.03 | 23.50 | 24.12 | 30.22 | 26.33 |
| P/B | 0.00 | 6.20 | 6.13 | 14.66 | 12.36 | 7.98 |
| P/S | 4.56 | 4.22 | 4.07 | 4.04 | 4.85 | 4.50 |
| Gross Margin | 57.7% | 57.7% | 56.9% | 57.8% | 59.8% | 59.9% |
| Operating Margin | 21.9% | 22.1% | 22.8% | 22.7% | 23.3% | 23.2% |
| Net Margin | 16.7% | 18.3% | 17.4% | 16.7% | 16.0% | 17.1% |
Related companies: AER · CW · DOV · EFX · EME · ESLT · HUBB
Explore sector: Industrials · Industrial - Pollution & Treatment Controls
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