Here are 1-2 brief analogies to describe Veralto (VLTO):

• Veralto is like Thermo Fisher Scientific, but specialized in solutions for water quality analysis and treatment.
• Veralto is like Zebra Technologies, but for industrial product marking, coding, and traceability solutions.

• Water Quality Instrumentation & Solutions: Provides analytical instruments, sensors, and software for monitoring, testing, and treating water across municipal, industrial, and environmental applications.
• Product Marking & Coding Solutions: Offers industrial printers (inkjet, laser, thermal transfer), consumables, and software for applying variable data such as dates, codes, and traceability information directly onto products and packaging.
• UV Disinfection Systems: Supplies advanced ultraviolet (UV) treatment solutions used to disinfect water and wastewater, ensuring public health and safety without chemicals.

Veralto (VLTO) primarily sells its products and services to other companies (B2B).

Due to the highly diversified nature of its customer base across numerous industries and geographies, Veralto does not disclose specific major customer companies by name in its public filings. Instead, it serves a broad range of businesses and organizations that rely on its water quality and product identification solutions.

The primary categories of customer companies that Veralto serves include:

• Municipalities and Public Utilities: These customers utilize Veralto's water quality solutions for monitoring, analyzing, and treating drinking water and wastewater.

• Industrial Manufacturers: Spanning various sectors such as food & beverage, pharmaceuticals, consumer packaged goods, life sciences, chemicals, power, and microelectronics, these companies use Veralto's products for process control, environmental compliance, and wastewater treatment (Water Quality segment) as well as for marking, coding, and traceability on their products and packaging (Product Identification segment).

• Laboratories and Research Institutions: These entities employ Veralto's analytical instruments, software, and consumables for water quality testing, research, and compliance.

null

Jennifer L. Honeycutt, President and Chief Executive Officer

Jennifer L. Honeycutt became Veralto's President and CEO in 2023. She joined Danaher in 1999 and held various leadership positions over 20 years, including Executive Vice President for Danaher's Environmental & Applied Solutions segment, which was spun off to form Veralto. Her prior roles at Danaher included Head of Life Sciences Tools Platform and Global High Growth Markets, and leadership roles at Danaher companies like Hach, Linx, and Pall Corporation.

Sameer Ralhan, Senior Vice President and Chief Financial Officer

Sameer Ralhan is the Senior Vice President and Chief Financial Officer of Veralto, a position he has held since 2023. Before joining Veralto, he served as Senior Vice President and Chief Financial Officer at The Chemours Company from 2019 to 2023, where he joined in 2014. At Chemours, he held various financial and strategic roles, including VP, Finance and Treasurer, and VP, Finance and Head of M&A. Prior to Chemours, he was a Managing Director in the Global Natural Resources Group at Goldman Sachs and began his career as a chemical engineer.

Melissa Aquino, Senior Vice President and Chief Segment Officer, Water Quality

Melissa Aquino serves as the Senior Vice President and Chief Segment Officer for Water Quality at Veralto. Before Veralto, she was the Senior Vice President and Group Executive of Danaher's Water Quality companies.

Mattias Byström, Senior Vice President and Chief Segment Officer, Product Quality & Innovation

Mattias Byström is the Senior Vice President and Chief Segment Officer for Product Quality & Innovation at Veralto. His previous experience includes serving as President of Danaher's Packing & Color Management companies.

Lesley Beneteau, Senior Vice President and Chief Human Resources Officer

Lesley Beneteau holds the position of Senior Vice President and Chief Human Resources Officer at Veralto. Prior to this role, she was the Vice President, Talent Management at Danaher.

The key risks to Veralto's business include intense competitive pressures, vulnerability to global economic conditions, and cybersecurity and data privacy threats.

1. Competitive Pressures: Veralto operates in highly competitive markets within its Water Quality and Product Quality & Innovation segments. The company faces competition from both established players and new entrants who may offer similar or superior technologies at more competitive prices. This intense competition could limit Veralto's market share, lead to price erosion, reduce customer loyalty, and ultimately hinder its ability to maintain strong margins and profitability.
2. Global Economic Conditions and Geopolitical Risks: Veralto's financial performance is susceptible to fluctuations and uncertainties in the global economy. Factors such as military conflicts, changes in trade policies, and tariff adjustments can adversely affect the company's business operations and financial results. A significant economic downturn could also impact capital spending decisions by its municipal and industrial customers, particularly affecting equipment sales, which in turn drive future recurring revenue streams.
3. Cybersecurity and Data Privacy Risks: As Veralto increasingly relies on digital solutions and information technology systems for its operations, it faces significant risks from disruptions, breaches in security, or violations of data privacy laws. Such incidents could have adverse effects on its business, lead to reputational damage, and result in financial losses.

The following are clear emerging threats to Veralto (VLTO):

• AI-powered Predictive Water Quality Management Platforms: The emergence of sophisticated platforms leveraging artificial intelligence, machine learning, and a diverse range of IoT sensors to provide real-time, predictive analytics for water quality and infrastructure performance. These platforms can offer a more holistic, automated, and potentially cost-effective "as-a-service" approach to water management, potentially diminishing the reliance on Veralto's specialized, instrument-heavy solutions for certain applications.
• Integrated AI/ML Vision Systems and Digital Traceability Platforms: The development of highly integrated systems that combine advanced machine vision, artificial intelligence, and potentially blockchain or other distributed ledger technologies for comprehensive product identification, quality control, authentication, and supply chain traceability. These solutions, often offered as embedded automation or cloud-based services, could challenge Veralto's dedicated coding, marking, and specialized inspection hardware by providing more flexible, data-rich, and potentially more cost-effective digital alternatives.

Veralto (VLTO) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Sustained Core Sales Growth and Strategic Pricing: Veralto consistently reports core sales growth, driven by both volume and pricing actions across its segments. The company expects low to mid-single-digit core sales growth for the full year 2025, with pricing contributing significantly to this expansion, as observed in previous quarters. For instance, in Q3 2024, pricing contributed 1.8% to core sales growth, and in Q3 2025, it contributed 2.4%. This indicates an ongoing ability to implement price increases and grow sales volumes.
2. Growth in Key End Markets and Geographies: The company is capitalizing on strong demand in specific sectors and regions. Notably, Veralto has seen continued robust demand for industrial water treatment in North America and a gradual recovery across consumer packaged goods markets globally. The Water Quality segment, in particular, has demonstrated strong growth in water treatment solutions within industrial end markets and UV treatment systems in municipal end markets. Geographic expansion and strong performance across North America and Western Europe also contribute to overall revenue growth.
3. Strategic Acquisitions and Portfolio Enhancement: Acquisitions, such as TraceGains, are identified as a driver for future growth, boosting Veralto's market share and efficiency in areas like food safety. The company expects acquisitions to contribute to year-over-year sales growth, indicating a strategy of inorganic growth to expand its offerings and market reach.
4. Investments in Research & Development (R&D) and Sales & Marketing: Veralto is increasing its investments in R&D to foster innovation and develop new products and services, which are aligned with its strategic growth plans. Concurrently, investments in sales and marketing efforts are aimed at driving future growth by expanding customer reach and market penetration for its essential water and product quality solutions. The company's focus on product innovation and environmental impact, including supporting clean water access and water saving initiatives, underpins these R&D efforts.
5. High Recurring Revenue and Operational Efficiency: A significant portion of Veralto's sales, over 55%, comes from recurring revenue streams, particularly in its Water Quality segment. This provides a stable and predictable base for revenue. Furthermore, the company's focus on expanding adjusted operating profit margins through improved productivity and cost optimization, powered by the Veralto Enterprise System, supports profitable growth and allows for continued investment in growth initiatives.

Share Repurchases

• Veralto has not reported significant share repurchases since its spin-off in late 2023.

Share Issuance

• Veralto reported net common equity issued of $4 million for 2023.
• For 2024, net common equity issued amounted to $24 million, representing a 500% increase from 2023.
• For the twelve months ending June 30, 2025, net common equity issued was $56 million, with $13 million in the quarter ending June 30, 2025.

Outbound Investments

• In October 2024, Veralto acquired TraceGains, a provider of cloud-based software solutions for food and beverage safety and traceability, for $350 million. This acquisition was funded with cash on hand and aims to expand Veralto's digital offerings and deliver greater value to consumer brands.
• In July 2025, Veralto committed €20 million to Emerald Technology Ventures' Global Water Fund II to support investments in early- and growth-stage water technology businesses. This strategic investment is intended to provide Veralto with access to emerging water technology innovations.
• Veralto's capital allocation strategy has a bias toward strategic, value-accretive acquisitions that are expected to yield attractive returns.

Capital Expenditures

• Capital expenditures were $11 million in Q3 2023 and $54 million for the full year 2023.
• For the full year 2024, capital expenditures were $55 million.
• Expected capital expenditures for the full year 2025 are $67.2 million. Veralto's business model is described as capital-light, supporting ongoing growth investments.