Veralto Corporation Reports 4.7% Revenue Growth, Improved Profitability in Q3 2024

Veralto Corporation reported its financial results for the three and nine-month periods ending September 27, 2024, reflecting a solid performance in revenue and profitability compared to the previous fiscal year. Total revenue for the third quarter reached $1,314 million, a 4.7% increase from $1,255 million in the same period of 2023. For the nine-month period, revenue rose to $3,848 million, up 3.1% from $3,733 million year-over-year. The growth was driven by both segments: Water Quality, which generated $801 million in Q3 2024 (up from $772 million), and Product Quality & Innovation, which saw sales of $513 million (up from $483 million).

Gross profit for the third quarter was $783 million, compared to $723 million in Q3 2023, while the nine-month gross profit increased to $2,304 million from $2,155 million. Operating profit for the third quarter also improved to $308 million from $273 million, with a corresponding increase in operating profit margin to 23.4%, up from 21.8% in the prior year. However, net earnings for the nine-month period decreased to $606 million from $639 million, attributed to a non-deductible loss on a product line sale and increased tax expenses.

Veralto's cash and cash equivalents significantly increased to $1,267 million as of September 27, 2024, compared to $762 million at the end of 2023. The company reported total assets of $6,263 million, up from $5,693 million, and total equity rose to $1,960 million from $1,389 million.

Strategically, Veralto completed the acquisition of Information Exchange Holdings, Inc. for $350 million on October 4, 2024, which will enhance its Product Quality & Innovation segment. The company also reported a net cash provided by operating activities of $590 million for the nine-month period, a decrease from $700 million in the previous year, while net cash used in financing activities improved to $(49) million from $(232) million.

The company continues to focus on high-growth markets, with sales in these regions increasing by 2.8% year-over-year, despite challenges in China. Price increases contributed significantly to sales growth, accounting for 1.8% and 2.0% for the three and nine-month periods, respectively. Overall, Veralto's financial performance reflects a robust operational strategy and a commitment to growth through acquisitions and market expansion.