Consistent Growth Performance: Veralto Corporation reported a fourth consecutive quarter of mid-single-digit core sales growth, achieving 4.8% growth in Q2 2025 and nearly 13% growth in adjusted earnings per share (EPS) year-over-year. This trend demonstrates the strength and durability of the company's business model, driven by effective execution across its commercial and operational teams.
Revised Guidance: Based on solid first-half performance and stable demand, the company raised its full-year adjusted EPS guidance to a range of $3.72 to $3.80, up from $3.60 to $3.70 previously. Core sales growth for 2025 is now expected to be mid-single digits, indicating better-than-anticipated demand across key markets.
Financial Position and Cash Flow Strength: The company generated $323 million in free cash flow in Q2, an increase of $83 million year-over-year. Veralto's strong financial position, with gross debt of $2.7 billion and cash on hand exceeding $1.5 billion, provides flexibility for future capital allocation, with a bias towards acquisitions to enhance shareholder value.