Full Press Release Details
Contact: Caspar Tudor, Head of
Investor Relations (508) 482-2429
Waters Corporation (NYSE: WAT) Reports First Quarter
2025 Financial Results
MILFORD, Mass., May 6, 2025 - Waters Corporation (NYSE: WAT), today announced its financial results for the first quarter of 2025.
Sales for the first quarter of 2025 were $662 million, an increase of 4% as reported, compared to sales of $637 million for the first quarter
of 2024, and an increase of 7% in constant currency.
On a GAAP basis, diluted earnings per share (EPS) for the first quarter of 2025 was $2.03, compared
to $1.72 for the first quarter of 2024. On a non-GAAP basis, EPS was $2.25, representing 2% growth, inclusive of approximately five percentage points of unfavorable foreign exchange.
Thanks to the focus and dedication of our teams, the momentum in our business has remained strong despite a very dynamic external environment,
said Dr. Udit Batra, President & CEO, Waters Corporation. Our first-quarter results exceeded expectations, driven by double-digit instrument growth, strength in pharma, and the continued traction of our innovative product
Dr. Batra continued, Given our unique exposure to resilient, downstream applications and our steadfast commitment to
operational excellence, we are raising our full-year 2025 guidance. Our swift operational actions, combined with improvements in foreign exchange, position us well to mitigate the impact of recently announced tariffs and policy changes. As a result,
we reaffirm our expectation of delivering high single-digit adjusted EPS growth for the year.
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 Second Quarter 2025 Financial Guidance
Full-Year 2025 Financial Guidance
The Company is raising
its full-year 2025 constant currency sales growth guidance to the range of +5.0% to +7.0%. Net of currency translation, the company is raising its full-year 2025 reported sales growth to the range of +4.0% to +6.0%.
The Company is raising its full-year 2025 non-GAAP EPS guidance to the range of $12.75 to $13.05. This reflects
year-over-year growth of approximately +8% to +10%, and +10% to +12% on a constant currency basis.
Second Quarter 2025 Financial Guidance
The Company expects second quarter 2025 constant currency sales growth in the range of +5.0% to +7.0%. Net of currency translation, second quarter 2025
reported sales growth is expected in the range of +4.0% to +6.0%.
The Company expects second quarter 2025 non-GAAP EPS to be in the range of $2.88 to
$2.98, which reflects year-over-year growth of approximately +10% to +13%, and +12% to +15% on a constant currency basis.
Please refer to the tables
below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the full-year and second quarter.
Conference Call Details
Waters Corporation will webcast its first quarter 2025 financial results conference call today, May 6, 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 June 3, 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 pioneering science.
Non-GAAP Financial Measures
This press release contains financial measures, such as 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. Definitions of the non-GAAP financial measures and reconciliations 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. Our 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 or uncertainties related to expectations regarding our strategy, our future financial and operational
performance, future economic and market conditions, including our expectations about the growth rates of certain markets, our strategic initiatives, including our instrument replacement initiatives, respond and adapt to changing global dynamics,
including the potential impacts of tariffs and supply chain challenges, our ability to retain and attract customers in various geographies and market segments, our market size and growth opportunities, our competitive positioning, projected costs,
technological capabilities and plans, and objectives of management. 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, 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 | ||||||||
| March 29, 2025 | March 30, 2024 | |||||||
| Net sales | $ | 661,705 | $ | 636,839 | ||||
| Costs and operating expenses: | ||||||||
| Cost of sales | 276,745 | 261,786 | ||||||
| Selling and administrative expenses | 174,881 | 174,536 | ||||||
| Research and development expenses | 46,622 | 44,595 | ||||||
| Purchased intangibles amortization | 11,712 | 11,834 | ||||||
| Litigation provision | 10,242 | |||||||
| Operating income | 151,745 | 133,846 | ||||||
| Other income, net | 1,524 | 2,259 | ||||||
| Interest expense, net | (10,381 | ) | (21,249 | ) | ||||
| Income from operations before income taxes | 142,888 | 114,856 | ||||||
| Provision for income taxes | 21,507 | 12,660 | ||||||
| Net income | $ | 121,381 | $ | 102,196 | ||||
| Net income per basic common share | $ | 2.04 | $ | 1.73 | ||||
| Weighted-average number of basic common shares | 59,439 | 59,232 | ||||||
| Net income per diluted common share | $ | 2.03 | $ | 1.72 | ||||
| Weighted-average number of diluted common shares and equivalents | 59,711 | 59,431 |
Waters Corporation and Subsidiaries
Reconciliation of GAAP to Adjusted Non-GAAP
Net Sales by Operating Segments, Products & Services, Geography and Markets
Three Months Ended March 29, 2025 and March 30, 2024
| Percent Change | Impact of Currency | Constant Currency Growth Rate (a) | ||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| March 29, 2025 | March 30, 2024 | |||||||||||||||||||
| NET SALES - OPERATING SEGMENTS | ||||||||||||||||||||
| Waters | $ | 587,297 | $ | 561,899 | 5 | % | (3 | %) | 8 | % | ||||||||||
| TA | 74,408 | 74,940 | (1 | %) | (1 | %) | 1 | % | ||||||||||||
| Total | $ | 661,705 | $ | 636,839 | 4 | % | (3 | %) | 7 | % | ||||||||||
| NET SALES - PRODUCTS & SERVICES | ||||||||||||||||||||
| Instruments | $ | 262,893 | $ | 241,944 | 9 | % | (3 | %) | 11 | % | ||||||||||
| Service | 261,175 | 260,688 | 0 | % | (3 | %) | 3 | % | ||||||||||||
| Chemistry | 137,637 | 134,207 | 3 | % | (3 | %) | 5 | % | ||||||||||||
| Total Recurring | 398,812 | 394,895 | 1 | % | (3 | %) | 4 | % | ||||||||||||
| Total | $ | 661,705 | $ | 636,839 | 4 | % | (3 | %) | 7 | % | ||||||||||
| NET SALES - GEOGRAPHY | ||||||||||||||||||||
| Asia | $ | 220,776 | $ | 207,559 | 6 | % | (6 | %) | 13 | % | ||||||||||
| Americas | 255,537 | 241,171 | 6 | % | 0 | % | 6 | % | ||||||||||||
| Europe | 185,392 | 188,109 | (1 | %) | (2 | %) | 1 | % | ||||||||||||
| Total | $ | 661,705 | $ | 636,839 | 4 | % | (3 | %) | 7 | % | ||||||||||
| NET SALES - MARKETS | ||||||||||||||||||||
| Pharmaceutical | $ | 391,051 | $ | 374,207 | 5 | % | (3 | %) | 8 | % | ||||||||||
| Industrial | 203,365 | 195,334 | 4 | % | (2 | %) | 6 | % | ||||||||||||
| Academic & Government | 67,289 | 67,298 | 0 | % | (3 | %) | 3 | % | ||||||||||||
| Total | $ | 661,705 | $ | 636,839 | 4 | % | (3 | %) | 7 | % |
Waters Corporation and Subsidiaries
Reconciliation of GAAP to Adjusted Non-GAAP Financials
Three Months Ended March 29, 2025 and March 30, 2024
(In thousands, except per share data)
| Selling & Administrative Expenses (a) | Research & Development Expenses | Operating Income | Operating Income Percentage | Other Income | Income from Operations before Income Taxes | Provision for Income Taxes | Net Income | Diluted Earnings per Share | ||||||||||||||||||||||||||||
| Three Months Ended March 29, 2025 | ||||||||||||||||||||||||||||||||||||
| GAAP | $ | 186,593 | $ | 46,622 | $ | 151,745 | 22.9 | % | $ | 1,524 | $ | 142,888 | $ | 21,507 | $ | 121,381 | $ | 2.03 | ||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||||||
| Purchased intangibles amortization (b) | (11,712 | ) | 11,712 | 1.8 | % | 11,712 | 2,832 | 8,880 | 0.15 | |||||||||||||||||||||||||||
| Restructuring costs and certain other items (d) | (598 | ) | 598 | 0.1 | % | 598 | 144 | 454 | 0.01 | |||||||||||||||||||||||||||
| ERP implementation and transformation costs (f) | (2,295 | ) | 2,295 | 0.3 | % | 2,295 | 551 | 1,744 | 0.03 | |||||||||||||||||||||||||||
| Retention bonus obligation (e) | (1,909 | ) | (636 | ) | 2,545 | 0.4 | % | 2,545 | 611 | 1,934 | 0.03 | |||||||||||||||||||||||||
| Adjusted Non-GAAP | $ | 170,079 | $ | 45,986 | $ | 168,895 | 25.5 | % | $ | 1,524 | $ | 160,038 | $ | 25,645 | $ | 134,393 | $ | 2.25 | ||||||||||||||||||
| Three Months Ended March 30, 2024 | ||||||||||||||||||||||||||||||||||||
| GAAP | $ | 196,612 | $ | 44,595 | $ | 133,846 | 21.0 | % | $ | 2,259 | $ | 114,856 | $ | 12,660 | $ | 102,196 | $ | 1.72 | ||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||||||
| Purchased intangibles amortization (b) | (11,834 | ) | 11,834 | 1.9 | % | 11,834 | 2,832 | 9,002 | 0.15 | |||||||||||||||||||||||||||
| Litigation provision (c) | (10,242 | ) | 10,242 | 1.6 | % | 10,242 | 2,458 | 7,784 | 0.13 | |||||||||||||||||||||||||||
| Restructuring costs and certain other items (d) | (8,347 | ) | 8,347 | 1.3 | % | 8,347 | 2,055 | 6,292 | 0.11 | |||||||||||||||||||||||||||
| Retention bonus obligation (e) | (5,725 | ) | (1,909 | ) | 7,634 | 1.2 | % | 7,634 | 1,832 | 5,802 | 0.10 | |||||||||||||||||||||||||
| Adjusted Non-GAAP | $ | 160,464 | $ | 42,686 | $ | 171,903 | 27.0 | % | $ | 2,259 | $ | 152,913 | $ | 21,837 | $ | 131,076 | $ | 2.21 |
Waters Corporation and Subsidiaries
Preliminary Condensed Unclassified Consolidated Balance Sheets
(In thousands and unaudited)
| March 29, 2025 | December 31, 2024 | |||||||
| Cash and cash equivalents | $ | 382,872 | $ | 325,355 | ||||
| Accounts receivable | 713,278 | 733,365 | ||||||
| Inventories | 511,499 | 477,261 | ||||||
| Property, plant and equipment, net | 643,260 | 651,200 | ||||||
| Intangible assets, net | 560,754 | 567,906 | ||||||
| Goodwill | 1,300,020 | 1,295,720 | ||||||
| Other assets | 479,893 | 502,988 | ||||||
| Total assets | $ | 4,591,576 | $ | 4,553,795 | ||||
| Notes payable and debt | $ | 1,456,727 | $ | 1,626,488 | ||||
| Other liabilities | 1,172,452 | 1,098,800 | ||||||
| Total liabilities | 2,629,179 | 2,725,288 | ||||||
| Total stockholders equity | 1,962,397 | 1,828,507 | ||||||
| Total liabilities and stockholders equity | $ | 4,591,576 | $ | 4,553,795 |
Waters Corporation and Subsidiaries
Preliminary Condensed Consolidated Statements of Cash Flows
Three Months Ended March 29, 2025 and March 30, 2024
(In thousands and unaudited)
| Three Months Ended | ||||||||
| March 29, 2025 | March 30, 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 121,381 | $ | 102,196 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Stock-based compensation | 12,878 | 10,913 | ||||||
| Depreciation and amortization | 49,369 | 48,514 | ||||||
| Change in operating assets and liabilities and other, net | 75,925 | 101,247 | ||||||
| Net cash provided by operating activities | 259,553 | 262,870 | ||||||
| Cash flows from investing activities: | ||||||||
| Additions to property, plant, equipment and software capitalization | (25,742 | ) | (28,655 | ) | ||||
| Investments in unaffiliated companies | (506 | ) | (1,064 | ) | ||||
| Net change in investments | (25 | ) | ||||||
| Net cash used in investing activities | (26,248 | ) | (29,744 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Net change in debt | (170,000 | ) | (300,000 | ) | ||||
| Proceeds from stock plans | 8,246 | 13,932 | ||||||
| Purchases of treasury shares | (13,934 | ) | (13,089 | ) | ||||
| Other cash flow from financing activities, net | 2,441 | 6,981 | ||||||
| Net cash used in financing activities | (173,247 | ) | (292,176 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (2,541 | ) | 1,264 | |||||
| Increase (decrease) in cash and cash equivalents | 57,517 | (57,786 | ) | |||||
| Cash and cash equivalents at beginning of period | 325,355 | 395,076 | ||||||
| Cash and cash equivalents at end of period | $ | 382,872 | $ | 337,290 | ||||
| Reconciliation of GAAP Cash Flows from Operating Activities to Free Cash Flow (a) | ||||||||
| Net cash provided by operating activities - GAAP | $ | 259,553 | $ | 262,870 | ||||
| Adjustments: | ||||||||
| Additions to property, plant, equipment and software capitalization | (25,742 | ) | (28,655 | ) | ||||
| Litigation settlements received, net | (375 | ) | ||||||
| Free Cash Flow - Adjusted Non-GAAP | $ | 233,811 | $ | 233,840 |
Waters Corporation and Subsidiaries
Reconciliation of Projected GAAP to Adjusted Non-GAAP Financial Outlook
| Twelve Months Ended December 31, 2025 | Three Months Ended June 28, 2025 | |||||||||||||||||||
| Range | Range | |||||||||||||||||||
| Projected Sales | ||||||||||||||||||||
| Constant currency sales growth rate (a) | 5.0 | % | - | 7.0 | % | 5.0 | % | - | 7.0 | % | ||||||||||
| Currency translation impact | (1.0 | %) | - | (1.0 | %) | (1.0 | %) | - | (1.0 | %) | ||||||||||
| Sales growth rate as reported | 4.0 | % | - | 6.0 | % | 4.0 | % | - | 6.0 | % | ||||||||||
| Range | Range | |||||||||||||||||||
| Projected Earnings Per Diluted Share | ||||||||||||||||||||
| GAAP earnings per diluted share | $ | 11.88 | - | $ | 12.18 | $ | 2.66 | - | $ | 2.76 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Purchased intangibles amortization | $ | 0.60 | - | $ | 0.60 | $ | 0.15 | - | $ | 0.15 | ||||||||||
| ERP implementation and transformation costs | $ | 0.22 | - | $ | 0.22 | $ | 0.05 | - | $ | 0.05 | ||||||||||
| Retention bonus obligation | $ | 0.05 | - | $ | 0.05 | $ | 0.02 | - | $ | 0.02 | ||||||||||
| Adjusted non-GAAP earnings per diluted share | $ | 12.75 | - | $ | 13.05 | $ | 2.88 | - | $ | 2.98 |
These forward-looking adjustment estimates do not reflect future gains and charges that are inherently difficult to predict and estimate due to their unknown
timing, effect and/or significance.