Waters Corporation Reports Flat Sales Growth of $2.96 Billion for Fiscal Year 2024

Waters Corporation reported flat sales growth for the fiscal year ending December 31, 2024, with total net sales of $2.96 billion, a slight increase from $2.96 billion in 2023. The company experienced a 1% decline in sales in 2023 compared to 2022. The U.S. market saw a 1% increase in sales, while Europe grew by 4%. However, sales in Asia decreased by 4%, primarily due to a significant decline in China, where sales fell by 10% in 2024 and 22% in 2023, attributed to lower demand and increased government regulations. Excluding China, the company's sales increased by 2% in 2024.

In terms of customer segments, pharmaceutical sales increased by 1% to $1.72 billion, driven by a 18% increase in India, which offset a decline in China. Industrial sales remained flat at $908 million, while academic and government sales decreased by 6% to $331 million. The company’s product sales, which include Waters instrument systems and chemistry consumables, totaled $1.84 billion, down from $1.90 billion in 2023. Service sales, however, increased to $1.11 billion, up from $1.05 billion in the previous year.

Strategically, Waters completed the acquisition of Wyatt Technology in May 2023 for $1.3 billion, which has expanded its portfolio in large molecule applications. The financial results for 2024 include a full year of Wyatt's contributions, while 2023 only included part of the year. The acquisition is expected to enhance Waters' capabilities in light scattering and field-flow fractionation instruments. The company also reported a $12 million litigation provision related to a patent settlement during the year.

Operationally, Waters reported a net income of $637.8 million for 2024, slightly down from $642.2 million in 2023. The company’s effective tax rate increased to 15.5% in 2024 from 12.8% in 2023, primarily due to a change in the jurisdictional mix of earnings and a provision related to the Global Intangible Low-Taxed Income (GILTI) tax. The company’s cash flow from operating activities improved to $762 million, up from $603 million in 2023, driven by better inventory management and lower tax payments.

Looking ahead, Waters anticipates continued challenges in the Asian market, particularly in China, but expects growth in other regions, especially India. The company plans to invest approximately $130 million over the next three years in implementing a new enterprise resource planning (ERP) system, which it expects to fund through existing cash and its credit facility. Waters remains committed to leveraging its recent acquisitions and expanding its product offerings to drive future growth.