Full Press Release Details
Waters Corporation (NYSE: WAT) Reports Fourth Quarter
and Full-Year 2024 Financial Results
February 12, 2025 - Waters Corporation (NYSE: WAT) today announced its financial results for the fourth quarter and full-year 2024.
the fourth quarter of 2024 were $873 million, an increase of 6% as reported, compared to sales of $819 million for the fourth quarter of 2023. Currency translation decreased sales by 2%.
On a GAAP basis, diluted earnings per share (EPS) for the fourth quarter of 2024 was $3.88, compared to $3.65 for the fourth quarter of 2023. On a non-GAAP
basis, EPS increased by 13% to $4.10, compared to $3.62 for the fourth quarter of 2023. This includes a decline of approximately 9% due to foreign exchange headwinds, which were 6% or $0.23 adverse to guidance.
We delivered excellent results in the fourth quarter, led by double-digit growth in Pharma, while
instruments and recurring revenue both grew high single-digits in constant currency, said Dr. Udit Batra, President & CEO, Waters Corporation. Growth accelerated across all regions, driven by strong adoption of new
products and the success of our strategic initiatives.
Dr. Batra continued, Our team has done a commendable job of consistently
executing our strategy and delivering a second consecutive year of margin expansion while overcoming significant headwinds in foreign exchange, volume, and inflation. With the strong operational execution, the traction of our differentiated
portfolio and the success of our strategic initiatives, Waters is very well positioned for the next phase of growth.
During the fourth quarter of 2024, sales into the pharmaceutical market increased 8% as reported and 10% in constant currency. Sales into the
industrial market increased 1% as reported and 2% in constant currency. Sales into the academic and government market increased 15% as reported and 16% in constant currency.
During the quarter, instrument system sales increased 6% as reported and 8% in constant currency. Recurring revenues, which represent the combination of
service and precision chemistries, increased 7% as reported and 9% in constant currency.
Geographically, sales in Asia during the quarter increased 4% as
reported and 9% in constant currency. Sales in the Americas increased 6% as reported and in constant currency. Sales in Europe increased 10% as reported and 11% in constant currency.
Sales for the fiscal year 2024 were
$2,958 million, flat as reported, compared to sales of $2,956 million for fiscal year 2023. Currency translation decreased sales by approximately 1%, while the impact of acquisitions increased sales by approximately 1%.
On a GAAP basis, EPS for fiscal year 2024 was $10.71, compared to $10.84 for fiscal year 2023. On a non-GAAP basis, EPS increased by 1% to $11.86, compared to
$11.75 for fiscal year 2023. This includes a decline of approximately 5% due to foreign exchange headwinds, which were 2% adverse to guidance.
otherwise noted, sales growth and decline percentages are presented on an as-reported basis. A description and reconciliation of GAAP to non-GAAP results appear in the
tables below and can be found on the Company s website www.waters.com in the Investor Relations section.
Full-Year and First Quarter 2025 Financial Guidance
Full-Year 2025 Financial Guidance
full-year 2025 constant currency sales growth to be in the range of +4.5% to +7.0%. Currency translation is expected to decrease full-year sales growth by approximately 2.0%. The resulting full-year 2025 reported sales growth is expected in the
range of +2.5% to +5.0%.
The Company expects full-year 2025 non-GAAP EPS to be in the range of $12.70 to $13.00,
which includes an estimated headwind of approximately 4% due to unfavorable foreign exchange.
Please refer to the tables below for a reconciliation of
the projected GAAP to non-GAAP financial outlook for the full-year.
First Quarter 2025 Financial Guidance
The Company expects first quarter 2025 constant currency sales growth to be in the range of +4.0% to +7.0%. Currency translation is expected to
decrease first quarter sales growth by approximately 3.0%. The resulting first quarter 2025 reported sales growth is expected in the range of +1.0% to +4.0%.
The Company expects first quarter 2025 non-GAAP EPS to be in the range of $2.17 to $2.25, which includes an estimated headwind of approximately 7% due to
unfavorable foreign exchange.
Please refer to the tables below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the first
Conference Call Details
will webcast its fourth quarter 2024 financial results conference call today, February 12, 2025, at 8:00 a.m. Eastern Time. To listen to the call and see the accompanying slide presentation, please visit www.waters.com, select
Investor Relations under the About Waters section, navigate to Events & Presentations, and click on the Webcast. A replay will be available through at least March 5, 2025.
About Waters Corporation
Waters Corporation (NYSE:WAT)
is a global leader in analytical instruments, separations technologies, and software, serving the life, materials, food, and environmental sciences for over 65 years. Our Company helps ensure the efficacy of medicines, the safety of food and the
purity of water, and the quality and sustainability of products used every day. In over 100 countries, our 7,600 passionate employees collaborate with customers in laboratories, manufacturing sites, and hospitals to accelerate the benefits of
Non-GAAP Financial Measures
This press release contains financial measures, such as organic constant currency growth rates, adjusted operating income, adjusted net income, adjusted
earnings per diluted share and free cash flow, among others, which are considered non-GAAP financial measures under applicable U.S. Securities and Exchange Commission rules and regulations. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP). The Company s
definitions of these non-GAAP measures may differ from similarly titled measures used by others. The non-GAAP financial measures used in this press release adjust for
specified items that can be highly variable or difficult to predict. The Company generally uses these non-GAAP financial measures to facilitate management s financial and operational decision-making,
including evaluation of the Company s historical operating results, comparison to competitors operating results and determination of management incentive compensation. These non-GAAP financial
measures reflect an additional way of viewing aspects of the Company s operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and
trends affecting the Company s business. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company s reported results of operations, management
strongly encourages investors to review the Company s consolidated financial statements and publicly filed reports in their entirety. Reconciliations of the non-GAAP financial measures to the most
directly comparable GAAP financial measures are included in the tables accompanying this release.
Cautionary Statement
This release contains forward-looking statements regarding future results and events. For this purpose, any statements that are not statements of
historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words feels , believes , anticipates , plans , expects , intends , suggests ,
appears , estimates , projects and similar expressions, whether in the negative or affirmative, are intended to identify forward-looking statements. The Company s actual future results may differ significantly
from the results discussed in the forward- looking statements within this release for a variety of reasons, including and without limitation, risks related to, and expectations or ability to realize commercial success of the Wyatt transaction; the
impact of this transaction on the Company s business, anticipated progress on Waters research programs, development of new analytical instruments and associated software or consumables, manufacturing development and capabilities; the
increased indebtedness of the Company as a result of the Wyatt transaction, the repayment of which could impact the Company s future results, market prospects for its products and sales and earnings guidance; foreign currency exchange rate
fluctuations potentially affecting translation of the Company s future non-U.S. operating results, particularly when a foreign currency weakens against the U.S. dollar; current global economic, sovereign
and political conditions and uncertainties, including the effect of new or proposed tariff or trade regulations as well as other new or changed domestic and foreign laws, regulations and policies; changes in inflation and interest rates; the impacts
and costs of war, in particular as a result of the ongoing conflicts between Russia and Ukraine and in the Middle East, and the possibility of further escalation resulting in new geopolitical and regulatory instability; the Chinese government s
ongoing tightening of restrictions on procurement by government-funded customers; the Company s ability to access capital, maintain liquidity and service the Company s debt in volatile market conditions; risks related to the effects of any
pandemic on our business, financial
condition, results of operations and prospects; changes in timing and demand for the Company s products among the Company s customers and various market sectors, particularly as a
result of fluctuations in their expenditures or ability to obtain funding; the ability to realize the expected benefits related to the Company s various cost-saving initiatives, including workforce reductions and organizational restructurings;
the introduction of competing products by other companies and loss of market share, as well as pressures on prices from competitors and/or customers; changes in the competitive landscape as a result of changes in ownership, mergers and continued
consolidation among the Company s competitors; regulatory, economic and competitive obstacles to new product introductions; lack of acceptance of new products and inability to grow organically through innovation; rapidly changing technology and
product obsolescence; risks associated with previous or future acquisitions, strategic investments, joint ventures and divestitures, including risks associated with achieving the anticipated financial results and operational synergies; contingent
purchase price payments and expansion of our business into new or developing markets; risks associated with unexpected disruptions in operations; failure to adequately protect the Company s intellectual property, infringement of intellectual
property rights of third parties and inability to obtain licenses on commercially reasonable terms; the Company s ability to acquire adequate sources of supply and its reliance on outside contractors for certain components and modules, as well
as disruptions to its supply chain; risks associated with third-party sales intermediaries and resellers; the impact and costs of changes in statutory or contractual tax rates in jurisdictions in which the Company operates as well as shifts in
taxable income among jurisdictions with different effective tax rates, the outcome of ongoing and future tax examinations and changes in legislation affecting the Company s effective tax rate; the Company s ability to attract and retain
qualified employees and management personnel; risks associated with cybersecurity and technology, including attempts by third parties to defeat the security measures of the Company and its third-party partners; increased regulatory burdens as the
Company s business evolves, especially with respect to the U.S. Food and Drug Administration and U.S. Environmental Protection Agency, among others, and in connection with government contracts; regulatory, environmental and logistical obstacles
affecting the distribution of the Company s products, completion of purchase order documentation and the ability of customers to obtain letters of credit or other financing alternatives; risks associated with litigation and other legal and
regulatory proceedings; and the impact and costs incurred from changes in accounting principles and practices. Such factors and others are discussed more fully in the sections entitled Forward-Looking Statements and Risk
Factors of the Company s annual report on Form 10-K for the year ended December 31, 2023, as well as in the sections entitled Special Note Regarding Forward-Looking Statements and
Risk Factors of the Company s quarterly reports on Form 10-Q for the quarterly periods ended March 30, 2024, June 29, 2024, and September 28, 2024, as filed with the Securities and Exchange
Commission ( SEC ), which discussions are incorporated by reference in this release, as updated by the Company s future filings with the SEC. The forward-looking statements included in this release represent the Company s
estimates or views as of the date of this release and should not be relied upon as representing the Company s estimates or views as of any date subsequent to the date of this release. Except as required by law, the Company does not assume any
obligation to update any forward-looking statements.
Waters Corporation and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||||||
| Net sales | $ | 872,714 | $ | 819,474 | $ | 2,958,387 | $ | 2,956,416 | ||||||||
| Costs and operating expenses: | ||||||||||||||||
| Cost of sales | 348,516 | 318,360 | 1,200,201 | 1,195,223 | ||||||||||||
| Selling and administrative expenses | 173,268 | 180,357 | 690,148 | 736,014 | ||||||||||||
| Research and development expenses | 46,914 | 44,386 | 183,027 | 174,945 | ||||||||||||
| Purchased intangibles amortization | 11,753 | 12,148 | 47,090 | 32,558 | ||||||||||||
| Litigation provision | 11,568 | |||||||||||||||
| Operating income | 292,263 | 264,223 | 826,353 | 817,676 | ||||||||||||
| Other (expense) income, net | (843 | ) | (557 | ) | 776 | 807 | ||||||||||
| Interest expense, net | (14,437 | ) | (26,066 | ) | (72,261 | ) | (82,240 | ) | ||||||||
| Income from operations before income taxes | 276,983 | 237,600 | 754,868 | 736,243 | ||||||||||||
| Provision for income taxes | 45,585 | 21,395 | 117,034 | 94,009 | ||||||||||||
| Net income | $ | 231,398 | $ | 216,205 | $ | 637,834 | $ | 642,234 | ||||||||
| Net income per basic common share | $ | 3.90 | $ | 3.66 | $ | 10.75 | $ | 10.87 | ||||||||
| Weighted-average number of basic common shares | 59,386 | 59,142 | 59,333 | 59,076 | ||||||||||||
| Net income per diluted common share | $ | 3.88 | $ | 3.65 | $ | 10.71 | $ | 10.84 | ||||||||
| Weighted-average number of diluted common shares and equivalents | 59,645 | 59,311 | 59,552 | 59,270 |
Waters Corporation and Subsidiaries
Reconciliation of GAAP to Adjusted Non-GAAP
Net Sales by Operating Segments, Products & Services, Geography and Markets
Three Months Ended December 31, 2024 and December 31, 2023
| Three Months Ended | Percent Change | Impact of Currency | Constant Currency Growth Rate (a) | |||||||||||||||||
| December 31, 2024 | December 31, 2023 | |||||||||||||||||||
| NET SALES - OPERATING SEGMENTS | ||||||||||||||||||||
| Waters | $ | 764,309 | $ | 716,932 | 7 | % | (2 | %) | 8 | % | ||||||||||
| TA | 108,405 | 102,542 | 6 | % | (1 | %) | 7 | % | ||||||||||||
| Total | $ | 872,714 | $ | 819,474 | 6 | % | (2 | %) | 8 | % | ||||||||||
| NET SALES - PRODUCTS & SERVICES | ||||||||||||||||||||
| Instruments | $ | 419,616 | $ | 397,201 | 6 | % | (2 | %) | 8 | % | ||||||||||
| Service | 301,844 | 278,888 | 8 | % | (1 | %) | 9 | % | ||||||||||||
| Chemistry | 151,254 | 143,385 | 5 | % | (2 | %) | 7 | % | ||||||||||||
| Total Recurring | 453,098 | 422,273 | 7 | % | (2 | %) | 9 | % | ||||||||||||
| Total | $ | 872,714 | $ | 819,474 | 6 | % | (2 | %) | 8 | % | ||||||||||
| NET SALES - GEOGRAPHY | ||||||||||||||||||||
| Asia | $ | 272,903 | $ | 261,893 | 4 | % | (5 | %) | 9 | % | ||||||||||
| Americas | 321,005 | 303,746 | 6 | % | 0 | % | 6 | % | ||||||||||||
| Europe | 278,806 | 253,835 | 10 | % | (1 | %) | 11 | % | ||||||||||||
| Total | $ | 872,714 | $ | 819,474 | 6 | % | (2 | %) | 8 | % | ||||||||||
| NET SALES - MARKETS | ||||||||||||||||||||
| Pharmaceutical | $ | 498,807 | $ | 463,698 | 8 | % | (3 | %) | 10 | % | ||||||||||
| Industrial | 264,027 | 260,249 | 1 | % | (1 | %) | 2 | % | ||||||||||||
| Academic & Government | 109,880 | 95,527 | 15 | % | (1 | %) | 16 | % | ||||||||||||
| Total | $ | 872,714 | $ | 819,474 | 6 | % | (2 | %) | 8 | % |
Waters Corporation and Subsidiaries
Reconciliation of GAAP to Adjusted Non-GAAP
Net Sales by Operating Segments, Products & Services, Geography and Markets
Twelve Months Ended December 31, 2024 and December 31, 2023
| Twelve Months Ended | Percent Change | Impact of Currency | Impact of Acquisitions | Organic Constant Currency Growth Rate (a) | ||||||||||||||||||||
| December 31, 2024 | December 31, 2023 | |||||||||||||||||||||||
| NET SALES - OPERATING SEGMENTS | ||||||||||||||||||||||||
| Waters | $ | 2,604,421 | $ | 2,601,590 | 0 | % | (1 | %) | 1 | % | 0 | % | ||||||||||||
| TA | 353,966 | 354,826 | 0 | % | (1 | %) | 0 | % | 1 | % | ||||||||||||||
| Total | $ | 2,958,387 | $ | 2,956,416 | 0 | % | (1 | %) | 1 | % | 0 | % | ||||||||||||
| NET SALES - PRODUCTS & SERVICES | ||||||||||||||||||||||||
| Instruments | $ | 1,278,695 | $ | 1,361,581 | (6 | %) | (1 | %) | 2 | % | (7 | %) | ||||||||||||
| Service | 1,114,211 | 1,053,366 | 6 | % | (1 | %) | 1 | % | 6 | % | ||||||||||||||
| Chemistry | 565,481 | 541,469 | 4 | % | (1 | %) | 0 | % | 5 | % | ||||||||||||||
| Total Recurring | 1,679,692 | 1,594,835 | 5 | % | (1 | %) | 0 | % | 6 | % | ||||||||||||||
| Total | $ | 2,958,387 | $ | 2,956,416 | 0 | % | (1 | %) | 1 | % | 0 | % | ||||||||||||
| NET SALES - GEOGRAPHY | ||||||||||||||||||||||||
| Asia | $ | 969,222 | $ | 1,007,825 | (4 | %) | (4 | %) | 1 | % | (1 | %) | ||||||||||||
| Americas | 1,115,780 | 1,108,573 | 1 | % | 0 | % | 2 | % | (1 | %) | ||||||||||||||
| Europe | 873,385 | 840,018 | 4 | % | 1 | % | 1 | % | 2 | % | ||||||||||||||
| Total | $ | 2,958,387 | $ | 2,956,416 | 0 | % | (1 | %) | 1 | % | 0 | % | ||||||||||||
| NET SALES - MARKETS | ||||||||||||||||||||||||
| Pharmaceutical | $ | 1,718,899 | $ | 1,696,875 | 1 | % | (2 | %) | 2 | % | 1 | % | ||||||||||||
| Industrial | 908,486 | 909,003 | 0 | % | 0 | % | 0 | % | 0 | % | ||||||||||||||
| Academic & Government | 331,002 | 350,538 | (6 | %) | 0 | % | 1 | % | (7 | %) | ||||||||||||||
| Total | $ | 2,958,387 | $ | 2,956,416 | 0 | % | (1 | %) | 1 | % | 0 | % |
Waters Corporation and Subsidiaries