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Waters (WAT) Posts Its Financial Results for Q2 2025

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a day ago

Business
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Waters (WAT) Posts Its Financial Results for Q2 2025

Waters Corporation (NYSE:WAT) is one of the Oversold Fundamentally Strong Stocks to Buy Now. On August 4, the company released its financial results for Q2 2025, with sales coming at $771 million, reflecting 9% growth (as reported) and 8% (in constant currency) versus the sales of $709 million for Q2 2024. Waters Corporation (NYSE:WAT)'s results were aided by strong instrument replacement trends–mainly among the large pharma and CDMO customers. A technician in a lab coat monitoring a chromatography machine. The company witnessed healthy execution against its commercial growth initiatives, rapid uptake of new products, and contribution from incremental growth vectors like GLP-1s, PFAS, and generics. Therefore, Waters Corporation (NYSE:WAT) raised its full-year sales and earnings guidance. Net of currency translation, the company expects FY 2025 reported sales growth of 5.0% – 7.0%, and non-GAAP EPS of between $12.95 – $13.05. Waters Corporation (NYSE:WAT)'s combination with BD Biosciences & Diagnostic Solutions ramps up its strategy into multiple high-growth adjacencies, while, at the same time, enhancing the reach of its proven execution model into resilient, high-volume end markets. The company remains well-placed to fuel significant value creation, with synergies creating immediate impact. Baron Funds, an investment management company, released its Q1 2025 investor letter. Here is what the fund said: 'We initiated a position in Waters Corporation (NYSE:WAT), a leading provider of analytical instruments and consumables for high volume, regulated applications, including biopharmaceutical quality control, late-stage drug development, food and environmental safety, chemical analysis and materials testing. Waters has a particularly strong market position in biopharmaceutical quality control where its liquid chromatography instruments are used along with its proprietary column chemistry to efficiently separate contaminants from the drug mixture for analysis. This is coupled with their Empower software, which is a one-stop platform compatible for readout across multiple analyzer types, such as mass spectrometry, UV spectroscopy, and multi-angle light scattering. Empower takes all this information and pipes it to regulators with robust data integrity and audit trail. Currently, around 80% of novel drugs filed with regulators use this software, providing a competitive advantage. Moreover, the company's products are specified in the regulatory approval process, making them very sticky. Waters Corporation (NYSE:WAT) offers analytical workflow solutions. While we acknowledge the potential of WAT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio

Yahoo

07-08-2025

Business
Yahoo

BD Reports Third Quarter Fiscal 2025 Financial Results

Revenue of $5.5 billion increased 10.4% as reported, 8.5% adjusted FXN and 3.0% organic GAAP and adjusted diluted EPS grew to $2.00 and $3.68, respectively GAAP and adjusted gross margin up 160 basis points and 50 basis points, respectively, driven by BD Excellence GAAP and adjusted operating income up 46.6% and 11.3%, respectively Company raises full-year adjusted diluted EPS guidance to $14.30 to $14.45, reflecting an $0.18 increase to 9.4% growth at the midpoint, while reaffirming organic revenue growth guidance1 Expects to complete remaining $250 million of $1 billion share buyback commitment by the end of fiscal 2025 FRANKLIN LAKES, N.J., Aug. 7, 2025 /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today announced results for its fiscal 2025 third quarter, which ended June 30, 2025. "We increased our organic growth trajectory in Q3 while delivering strong margin and EPS growth fueled by BD Excellence, enabling us to raise our EPS guidance and reaffirm organic revenue growth expectations for the full year," said Tom Polen, chairman, CEO and president of BD. "We also announced in July an agreement to combine BD's Biosciences and Diagnostic Solutions business with Waters Corporation, which is expected to create an innovative life science and diagnostic leader focused on high-volume testing with a leading financial outlook. We are focused on closing the transaction and realizing the meaningful value-creation opportunity for BD shareholders through capturing the upside of synergies and growth within the combined company as well as maximizing the value of New BD. Looking ahead for the remainder of the fiscal year, we remain focused on further accelerating sequential growth as we position New BD for its next chapter of long-term success." 1 BD does not attempt to provide reconciliations of forward-looking adjusted diluted EPS guidance to the comparable GAAP measure. See the discussion below under "Assumptions and Outlook for Full Year Fiscal 2025." Recent Business Highlights The company announced a definitive agreement to combine BD's Biosciences & Diagnostic Solutions business with Waters Corporation, in a transaction which is expected to create an innovative life science and diagnostics leader with an industry-leading financial outlook focused on regulated, high-volume testing. BD Medical: The Medication Delivery Solutions business unit announced: Plans to invest $35 million in Nebraska facility to support new BD® PosiFlush™ Prefilled Flush Syringe production lines, product innovation and operational efficiencies, enabling BD to produce hundreds of millions of additional units annually to meet growing demand from U.S. hospitals and health systems. BD Vascular Access Management has been recognized with the Infusion Nurses Society Seal of Approval. The Pharmaceutical Systems business unit announced the first pharma-sponsored combination product clinical trial using the BD Libertas™ Wearable Injector for subcutaneous delivery of complex biologics. BD Interventional: The Peripheral Intervention business unit announced plans to initiate a patient data registry, known as "XTRACT," for the Rotarex™ Atherectomy System to measure real-world outcomes for patients with peripheral artery disease. BD Life Sciences: The Diagnostic Solutions business unit announced: Submission of FDA application for at-home BD Onclarity™ HPV Assay that includes a state-of-the-art fiber swab for self-collection, is fully automated on the BD COR™ System and reports more high-risk HPV strains than any other test on the market today. Receipt of FDA 510(k) clearance for the BD Veritor™ System rapid point-of-care COVID-19 test. The Biosciences business unit announced the global commercial launch of the BD FACSDiscover™ A8 Cell Analyzer, the world's first cell analyzer which features breakthrough spectral and real-time cell imaging technologies, bringing leading-edge capabilities to a wider range of scientists across academia and biopharma. BD issued its Fiscal Year 2024 Together We Advance Corporate Sustainability Report and announced it has achieved its Scope 1 and 2 science-based greenhouse gas (GHG) emissions reduction target for FY 2024, as well as mid-point reduction targets for water consumption and energy use. Third Quarter Fiscal 2025 Operating Results Three Months Ended June 30,Reported Change Foreign Currency Neutral Change1 Organic Revenue Change1,3 (Millions of dollars, except per share amounts)20252024Revenues$ 5,509$ 4,99010.4 %9.9 % Adjusted Revenues1,2$ 5,509$ 5,0578.9 %8.5 %3.0 % Reported Diluted Earnings per Share$ 2.00$ 1.6819.0 %17.9 % Adjusted Diluted Earnings per Share1$ 3.68$ 3.505.1 %4.6 %1Represents a non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures in the attached financial tables. 2Adjusted Revenues excludes the recognition of accruals relating to the Italian government medical device pay back legislation, as well as another legal matter, and which substantially relate to years prior to fiscal year 2024. 3Organic Revenue growth denotes foreign currency neutral Adjusted Revenues further adjusted for the impact to revenues from acquisitions and divestitures during the first 12 months post-acquisition/divestiture. Geographic Results Revenues (Millions of dollars)Three Months Ended June 30,Reported Change Foreign Currency Neutral Change1 20252024 United States$ 3,181$ 2,89110.0 %10.0 % Adjusted United States1,2$ 3,181$ 2,8979.8 %9.8 %International$ 2,328$ 2,09811.0 %9.8 % Adjusted International1,2$ 2,328$ 2,1607.8 %6.7 %Total Revenues$ 5,509$ 4,99010.4 %9.9 % Adjusted Total Revenues1,2$ 5,509$ 5,0578.9 %8.5 %1Represents a non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures in the attached financial tables. 2Adjusted Revenues excludes the recognition of accruals relating to the Italian government medical device pay back legislation, as well as another legal matter, and which substantially relate to years prior to fiscal year 2024. Segment Results Revenues (Millions of dollars)Three Months Ended June 30,Reported Change Foreign Currency Neutral Change1 Organic Revenue Change1,3 20252024BD Medical$ 2,927$ 2,55814.4 %14.0 %3.2 %BD Life Sciences$ 1,254$ 1,260(0.5) %(1.1) %(1.1) %BD Interventional$ 1,328$ 1,2407.2 %6.8 %6.8 %Other2$ —$ (67)(100.0) %(100.0) %(100.0) %Total Revenues$ 5,509$ 4,99010.4 %9.9 %3.0 % Adjusted Revenues1,2$ 5,509$ 5,0578.9 %8.5 %3.0 %1Represents a non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures in the attached financial tables. 2Adjusted Revenues excludes "Other" which represents the recognition of accruals relating to the Italian government medical device pay back legislation, as well as another legal matter, and which substantially relate to years prior to fiscal year 2024. 3Organic Revenue growth denotes foreign currency neutral Adjusted Revenues further adjusted for the impact to revenues from acquisitions and divestitures during the first 12 months post-acquisition/divestiture. The BD Medical segment includes the Medication Delivery Solutions (MDS), Medication Management Solutions (MMS) and Pharmaceutical Systems (PS) business units, and the Advanced Patient Monitoring (APM) business unit. BD Medical performance reflects the revenue contribution from APM, which was formed upon the closing of the acquisition of Critical Care from Edwards Lifesciences on September 3, 2024. BD Medical organic revenue growth reflects mid single-digit growth in MMS and PS and low single-digit growth in MDS. MDS performance reflects increased volumes driven by share gains in Vascular Access Management and hypodermic products in the U.S., partially offset by an impact from the IV fluid shortage and volume-based procurement in China. MMS performance reflects continued strength in Infusion Systems, and solid growth in Dispensing Solutions and Pharmacy Automation. PS performance reflects sustained double-digit growth in Biologics, partially offset by lower market demand for non-biologic products. The BD Life Sciences segment includes the Specimen Management (SM), Diagnostic Solutions (DS) and Biosciences (BDB) business units. BD Life Sciences performance reflects declines in DS and BDB that were partially offset by low single-digit growth in SM. SM performance reflects growth in the BD Vacutainer™ portfolio, partially offset by performance in China. DS performance reflects declines in point of care testing and BD BACTEC™ blood culture, partially offset by continued double-digit growth in BD MAX™ IVD. BD BACTEC™ utilization improved sequentially, exiting the quarter at over 80% of historical levels. BDB performance was driven by continued market dynamics impacting instrument demand, partially offset by strong early traction from the FACSDiscover™ A8 and continued strength in reagents and service excluding a discontinued legacy platform. The BD Interventional segment includes the Surgery (SURG), Peripheral Intervention (PI), and Urology & Critical Care (UCC) business units. BD Interventional performance reflects double-digit growth in UCC and mid single-digit growth in SURG and PI. SURG performance reflects high single-digit growth in Advanced Tissue Regeneration, Infection Prevention and Biosurgery, partially offset by legacy U.S. hernia. PI performance reflects strong growth in Peripheral Vascular Disease driven by strength in the Rotarex™ Atherectomy System. UCC performance reflects strong double-digit growth in the PureWick™ franchise with continued adoption of the Male and Female portfolios. Assumptions and Outlook for Full Year Fiscal 2025 The company raised its full-year adjusted EPS guidance to $14.30 to $14.45, reflecting an $0.18 increase to 9.4% growth at the midpoint. This reflects strong Q3 operating performance and incremental investments in selling and marketing in Q4. The company reaffirmed its organic revenue growth guidance of 3.0% to 3.5%. For the full fiscal year, the company now estimates the impact of translational foreign currency to be an increase of approximately $10 million to revenue year over year and about neutral to adjusted 2025 Guidance as of August 7, 2025 Fiscal 2025 Guidance as of May 1, 2025 GAAP Revenues ~$21.8 to $21.9 billion ~$21.8 to $21.9 billion GAAP Revenue Growth 8.2% to 8.7% 8.0% to 8.5% Adjusted Revenue Growth (FXN) 7.8% to 8.3% 7.8% to 8.3% Organic Revenue Growth (FXN) 3.0% to 3.5% 3.0% to 3.5% Adjusted Diluted EPS $14.30 to $14.45 $14.06 to $14.34 Adjusted Diluted EPS Growth 8.8% to 10.0% ~7.0% to 9.1% BD's outlook for fiscal 2025 reflects numerous assumptions about many factors that could affect its business, based on the information management has reviewed as of this date. Management will discuss its outlook and several of its assumptions on its third fiscal quarter earnings call. The company's expected adjusted diluted EPS for fiscal 2025 excludes potential charges or gains that may be recorded during the fiscal year, such as, among other things, the non-cash amortization of intangible assets, acquisition-related charges, separation-related costs, and certain tax matters. BD does not attempt to provide reconciliations of forward-looking adjusted diluted non-GAAP EPS guidance to the comparable GAAP measure because the impact and timing of these potential charges or gains are inherently uncertain and difficult to predict and are unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a material impact on GAAP measures of BD's financial performance. We also present our estimated adjusted revenue growth and organic revenue growth for our 2025 fiscal year after adjusting for the illustrative impact of foreign currency translation. BD believes that this adjustment allows investors to better evaluate BD's anticipated underlying earnings performance for our 2025 fiscal year in relation to our underlying 2024 fiscal year performance. Conference Call and Presentation MaterialsBD will host an audio webcast today for the public, investors, analysts and news media to discuss its third quarter results. The audio webcast will be broadcast live on BD's website, at 8 a.m. (ET) Thursday, August 7, 2025. Accompanying slides will be available on BD's website, at approximately 6:30 a.m. (ET). The conference call will be available for replay on BD's website, Alternatively, you can dial into the replay at 800-839-1246 (domestic) and 402-220-0464 (international) through the close of business on Thursday, August 14, 2025. A confirmation number is not needed to access the replay. Non-GAAP Financial Measures/Financial TablesThis news release contains certain non-GAAP financial measures. These include adjusted revenues, revenue growth rates on a currency-neutral, adjusted and organic basis, adjusted diluted earnings per share, adjusted gross margin and adjusted operating income. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United States. BD management believes that the use of non-GAAP measures to adjust for items that are considered by management to be outside of BD's underlying operational results or that affect period-to-period comparability helps investors to gain a better understanding of our performance year-over-year, to analyze underlying trends in our businesses, to analyze our operating results, and to understand future prospects. Management uses these non-GAAP financial measures to measure and forecast the company's performance, especially when comparing such results to previous periods or forecasts. We believe presenting such adjusted metrics provides investors with greater transparency to the information used by BD management for its operational decision-making and for comparison to other companies within the medical technology industry. Although BD's management believes non-GAAP results are useful in evaluating the performance of its business, its reliance on these measures is limited since items excluded from such measures may have a material impact on BD's net income, earnings per share or cash flows calculated in accordance with GAAP. Therefore, management typically uses non-GAAP results in conjunction with GAAP results to address these limitations. BD strongly encourages investors to review its consolidated financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP measures used by BD may differ from similar measures used by other companies, even when similar terms are used to identify such measures. Non-GAAP measures should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. We present adjusted revenues for the third quarter of fiscal year 2024 which excludes the recognition of accruals relating to the Italian government medical device pay back legislation, as well as another legal matter, and which substantially relate to years prior to fiscal year 2024, because we believe these items affect the comparability of the periods presented. We present adjusted gross margin and adjusted operating income for the third quarter of fiscal year 2025 and for the corresponding prior period, which excludes the recognition of accruals relating to the Italian government medical device pay back legislation, as well as another legal matter, and which substantially relate to years prior to fiscal year 2024, as well as the impact of purchase accounting adjustments, integration and restructuring costs, transaction costs, separation-related costs, certain regulatory costs, certain product remediation costs, certain legal matters, and certain asset impairment charges because we believe these items affect the comparability of the periods presented to prior periods and helps investors better understand our performance year-over-year, to analyze underlying trends in our businesses, to analyze our operating results, and to better understand our future prospects. We present adjusted diluted earnings per share for the third quarter and the first nine months of fiscal year 2025, and the corresponding prior periods, after eliminating items we believe are not part of our ordinary operations and affect the comparability of the periods presented. Adjusted diluted earnings per share includes adjustments for the impact of purchase accounting adjustments, integration and restructuring costs, transaction costs, financing costs, separation-related costs, certain regulatory costs, certain product remediation costs, certain legal matters, certain investment gains and losses, certain asset impairment charges, and certain pension settlement costs. In particular, prior-year adjusted diluted earnings per share results exclude European regulatory initiative-related costs, which represent costs incurred to develop processes and systems to establish initial compliance with the European Union Medical Device Regulation and the European Union In Vitro Diagnostic Medical Device Regulation (collectively, the "New EU Medical Devices Regulations"), which represent a significant, unusual change to the existing regulatory framework. We consider the excluded European regulatory initiative-related costs to be duplicative of previously incurred costs and/or one-off costs related to establishing initial compliance with such regulatory regimes, and in each case are limited to a specific period of time. These expenses relate to establishing initial compliance with the New EU Medical Devices Regulations and include the cost of labor, other services and consulting (in particular, research and development and clinical trials) and supplies, travel and other miscellaneous costs. These costs were recorded in Cost of products sold and Research and development expense. We also present revenue growth rates for the third quarter and the first nine months of fiscal year 2025 over the corresponding prior periods on a currency-neutral basis after eliminating the effect of foreign currency translation, where applicable. We also show the growth in adjusted diluted earnings per share compared to the prior year periods after eliminating the impact of foreign currency translation to further enable investors to evaluate BD's underlying earnings performance compared to the prior periods. We calculate foreign currency-neutral percentages by converting our current-period local currency financial results using the prior period foreign currency exchange rates and comparing these adjusted amounts to our current-period results. As exchange rates are an important factor in understanding period-to-period comparisons, we believe the presentation of results on a foreign currency-neutral basis in addition to reported results helps improve investors' ability to understand our operating results and evaluate our performance in comparison to the prior periods. Reconciliations of these and other non-GAAP measures to the comparable GAAP measures are included in the attached financial tables. Within the attached financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying amounts. About BD BD is one of the largest global medical technology companies in the world and is advancing the world of health by improving medical discovery, diagnostics and the delivery of care. The company supports the heroes on the frontlines of health care by developing innovative technology, services and solutions that help advance both clinical therapy for patients and clinical process for health care providers. BD and its more than 70,000 employees have a passion and commitment to help enhance the safety and efficiency of clinicians' care delivery process, enable laboratory scientists to accurately detect disease and advance researchers' capabilities to develop the next generation of diagnostics and therapeutics. BD has a presence in virtually every country and partners with organizations around the world to address some of the most challenging global health issues. By working in close collaboration with customers, BD can help enhance outcomes, lower costs, increase efficiencies, improve safety and expand access to health care. For more information on BD, please visit or connect with us on LinkedIn at and on X (formerly known as Twitter) @BDandCo. *** This press release and accompanying audio webcast on August 7, 2025 contain certain estimates and other forward-looking statements (as defined under Federal securities laws) regarding BD's future prospects and performance, including, but not limited to, statements relating to future revenues, margins, earnings per share, leverage targets and capital deployment. All such statements are based upon current expectations and assumptions of BD and involve a number of business risks and uncertainties. Actual results could vary materially from anticipated results described, implied or projected in any forward-looking statement. With respect to such forward-looking statements, a number of factors could cause actual results to vary materially. These factors include, but are not limited to, risks relating to macroeconomic conditions and their impact on our operations and health care spending generally, including any impact of disruptions in the global transportation networks or other aspects of our supply chain on our ability to source raw materials, components and energy sources needed to produce our products, labor constraints or disputes, inflationary pressures, volatility resulting from the imposition of and changing policies around tariffs, currency rate fluctuations, and increased interest rates and borrowing costs; conditions in international markets, including geopolitical developments such as the evolving situations in Russia and Ukraine, the Middle East and Asia, which could adversely impact our operations; competitive factors including technological advances and new products or novel medical therapies introduced by competitors; product efficacy or safety concerns, changes to the labeled use of our products, non-compliance with applicable regulatory requirements regarding our products (such as non-compliance of our products with marketing authorization or registration requirements resulting from modifications to such products, or other factors, including, but not limited to, with respect to BD Alaris™ System and infusion sets, BD Vacutainer™ and BD Pyxis™ products) resulting in product recalls, lost revenue or other actions being taken with respect to products in the field or the ability to continue selling new products to customers (including restrictions on future product clearances and civil penalties), product liability or other claims and damage to our reputation, including products we acquire through acquisitions; changes to legislation or regulations impacting the U.S. or foreign health care systems, changes in medical or clinical practices or in patient preferences, potential cuts or freezes in governmental research or other health care spending, or governmental or private measures to contain health care costs, such as China's volume-based procurement tender process or changes in pricing and reimbursement policies, which could result in reduced demand for our products or downward pricing pressure; policy and regulatory changes implemented by the U.S. federal government, including the elimination, downsizing, and reduced funding of certain government agencies and programs, as well as changes in the policy positions of such agencies; new or changing laws and regulations impacting our business (including the imposition of tariffs, such as those relating to countries in which we do business), sanctions or other trade barriers, changes in tax laws, new environmental laws and regulations (such as those related to climate change or materials of concern), new cybersecurity, artificial intelligence or privacy laws, or changes in laws impacting international trade, including import and export licensing requirements, or anti-corruption and bribery, or changes in reporting requirements or enforcement practices with respect to such laws; the adverse impact on our business or products of past, current or future information and technology system disruptions, breaches or breakdowns, including through cyberattacks, ransom attacks or cyber-intrusion, and any investigations, legal proceedings, liability, expense or reputational damage arising in connection with any such events; increased labor costs and labor shortages or disputes; our suppliers' ability to provide products needed for our operations and BD's ability to maintain favorable supplier arrangements and relationships; increases in energy costs and their effect on, among other things, the cost of producing BD's products; adverse changes in regional, national or foreign economic conditions, including any impact on our ability to access credit markets and finance our operations; risks relating to our overall indebtedness; the possible impact of public health crises on our business and the global health care system, which could decrease demand for our products, disrupt our operations or the operations of our customers and companies within our supply chain, or increase transportation costs; interruptions in our manufacturing or sterilization processes or those of our third-party providers, including any restrictions placed on the use of ethylene oxide for sterilization; pricing and market pressures; difficulties inherent in product development, delays in product introductions and uncertainty of market acceptance of new products; the overall timing of the replacement or remediation of the BD Alaris™ Infusion System and return to market in the U.S., which may be impacted by, among other things, customer readiness, supply continuity and our continued engagement with the FDA; our ability to achieve our projected level or mix of product sales; our ability to successfully integrate any businesses we acquire; uncertainties of litigation, investigations, subpoenas, settlements, fines, penalties and/or other sanctions (as described in BD's filings with the Securities and Exchange Commission (the "SEC")); the issuance of new or revised accounting standards; risks associated with the proposed combination of BD's Biosciences and Diagnostic Solutions business with Waters, including the anticipated benefits of the proposed transaction and the expected timing of completion of the proposed transaction, as well as other factors discussed in BD's filings with the SEC. There can be no assurance that the proposed combination will in fact be completed, in the manner described or at all. Tariff commentary is based on tariff policies in effect as of August 5, 2025. International trade policies, trade restrictions and tariffs are rapidly evolving and there can be no assurance as to how the landscape may change and what the ultimate impact on our guidance and results of operations will be. We do not intend to update any forward-looking statements to reflect events or circumstances after the date hereof except as required by applicable laws or regulations. BECTON DICKINSON AND COMPANY CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited; Amounts in millions, except share and per share data) ‌ Three Months Ended June 30, 20252024% Change REVENUES$ 5,509 $ 4,990 10.4 Cost of products sold2,875 2,683 7.2Selling and administrative expense1,320 1,196 10.4Research and development expense297 299 (0.5)Integration, restructuring and transaction expense97 112 (13.9)Other operating expense, net38 98 (61.3)TOTAL OPERATING COSTS AND EXPENSES4,627 4,388 5.5OPERATING INCOME882 602 46.6‌ Interest expense(152) (137) 11.0Interest income5 48 (89.8)Other expense, net(33) (13) (156.1)INCOME BEFORE INCOME TAXES703 500 40.5Income tax provision129 13 888.9NET INCOME574 487 17.9‌ Basic Earnings per Share$ 2.00 $ 1.68 19.0Diluted Earnings per Share$ 2.00 $ 1.68 19.0‌ AVERAGE SHARES OUTSTANDING (in thousands) Basic287,170289,562 Diluted287,223290,253 BECTON DICKINSON AND COMPANY CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited; Amounts in millions, except share and per share data) ‌ Nine Months Ended June 30, 20252024% Change REVENUES$ 15,949 $ 14,741 8.2‌ Cost of products sold8,823 8,103 8.9Selling and administrative expense3,912 3,601 8.6Research and development expense943 888 6.2Integration, restructuring and transaction expense279 288 (3.2)Other operating expense, net111 86 29.5TOTAL OPERATING COSTS AND EXPENSES14,067 12,966 8.5OPERATING INCOME1,882 1,775 6.0‌ Interest expense(458) (373) 22.7Interest income33 108 (69.5)Other expense, net(86) (19) (359.7)INCOME BEFORE INCOME TAXES1,371 1,491 (8.0)Income tax provision186 186 0.3NET INCOME1,185 1,305 (9.2)‌ Basic Earnings per Share$ 4.11 $ 4.50 (8.7)Diluted Earnings per Share$ 4.10 $ 4.49 (8.7)‌ AVERAGE SHARES OUTSTANDING (in thousands) Basic287,997289,815 Diluted288,693290,857 BECTON DICKINSON AND COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in millions) ‌ June 30, 2025September 30, 2024 (Unaudited) ASSETS Cash and equivalents$ 735 $ 1,717Restricted cash62 139Short-term investments22 445Trade receivables, net2,943 3,033Inventories3,949 3,843Prepaid expenses and other1,285 1,292TOTAL CURRENT ASSETS8,997 10,468Property, plant and equipment, net6,818 6,821Goodwill and other intangibles, net36,384 37,383Other assets2,702 2,615TOTAL ASSETS$ 54,902 $ 57,286LIABILITIES AND SHAREHOLDERS' EQUITY Current debt obligations$ 1,810 $ 2,170Other current liabilities6,350 6,786Long-term debt17,531 17,940Long-term employee benefit obligations908 942Deferred income taxes and other liabilities2,831 3,558Shareholders' equity25,472 25,890TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$ 54,902 $ 57,286 BECTON DICKINSON AND COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited; Amounts in millions) ‌ Nine Months Ended June 30, 20252024 OPERATING ACTIVITIES Net income$ 1,185 $ 1,305Depreciation and amortization1,833 1,700Change in operating assets and liabilities and other, net(942) (340)NET CASH PROVIDED BY CONTINUING OPERATING ACTIVITIES2,076 2,666INVESTING ACTIVITIES Capital expenditures(408) (429)Maturities and sales (purchases) of investments, net408 (830)Other, net(324) (318)NET CASH USED FOR INVESTING ACTIVITIES(324) (1,577)FINANCING ACTIVITIES Change in short-term debt133 —Proceeds from long-term debt— 4,517Payments of debt(1,209) (1,142)Repurchases of common stock... (750) (500)Dividends paid(899) (825)Other, net(83) (88)NET CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES(2,808) 1,963Net cash used for operating activities of discontinued operations— (46)Effect of exchange rate changes on cash and equivalents and restricted cash(2) —NET (DECREASE) INCREASE IN CASH AND EQUIVALENTS AND RESTRICTED CASH(1,058) 3,006OPENING CASH AND EQUIVALENTS AND RESTRICTED CASH1,856 1,481CLOSING CASH AND EQUIVALENTS AND RESTRICTED CASH$ 798 $ 4,487 BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES Three Months Ended June 30, (Unaudited; Amounts in millions) ‌ ABC=(A-B)/B 20252024% Change BD MEDICAL Medication Delivery Solutions$ 680 $ 670 1.4Medication Management Solutions709 680 4.3Pharmaceutical Systems178 158 13.2Advanced Patient Monitoring176 — NMTOTAL$ 1,743 $ 1,508 15.6‌ BD LIFE SCIENCES Specimen Management (1)$ 240 $ 239 0.8Diagnostic Solutions (1)154 167 (7.4)Biosciences145 141 2.9TOTAL$ 539 $ 546 (1.2)‌ BD INTERVENTIONAL Surgery$ 294 $ 283 3.6Peripheral Intervention271 263 2.9Urology and Critical Care334 297 12.4TOTAL$ 898 $ 844 6.5‌ Other(2)$ — $ (6) (100.0)‌ TOTAL UNITED STATES$ 3,181 $ 2,891 10.0"NM" denotes that the percentage change is not meaningful. (1) During the first quarter of fiscal year 2025, Life Sciences split its former Integrated Diagnostic Solutions organizational unit into two units to better align BD resources with the distinct needs of each business. (2) Represents an accrual resulting from a legal matter and which substantially relates to years prior to fiscal year 2024. This amount was not allocated to our reportable segments. BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL Three Months Ended June 30, (continued) (Unaudited; Amounts in millions) ‌ D=(A-B)/BE=(A-B-C)/B ABC% Change 20252024FX ImpactReportedFXN BD MEDICAL Medication Delivery Solutions$ 452 $ 453 $ 1 (0.1) (0.3)Medication Management Solutions179 160 3 11.4 9.6Pharmaceutical Systems451 437 6 3.1 1.7Advanced Patient Monitoring102 — 2 NM NMTOTAL$ 1,184 $ 1,050 $ 12 12.7 11.6‌ BD LIFE SCIENCES Specimen Management (1)$ 230 $ 228 $ 1 0.7 0.3Diagnostic Solutions (1)271 263 3 3.1 1.8Biosciences213 222 3 (4.1) (5.6)TOTAL$ 714 $ 714 $ 8 0.1 (1.0)‌ BD INTERVENTIONAL Surgery$ 101 $ 93 $ 1 9.0 7.7Peripheral Intervention241 225 1 7.0 6.4Urology and Critical Care88 78 2 12.7 10.8TOTAL$ 430 $ 396 $ 4 8.6 7.6‌ Other(2)$ — $ (62) $ — (100.0) (100.0)‌ TOTAL INTERNATIONAL$ 2,328 $ 2,098 $ 23 11.0 9.8"NM" denotes that the percentage change is not meaningful. (1) During the first quarter of fiscal year 2025, Life Sciences split its former Integrated Diagnostic Solutions organizational unit into two units to better align BD resources with the distinct needs of each business. (2) Represents the recognition of accruals relating to the Italian government medical device pay back legislation which substantially relate to years prior to fiscal year 2024. Such amounts were not allocated to our reportable segments. BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL Three Months Ended June 30, (continued) (Unaudited; Amounts in millions) ‌ D=(A-B)/BE=(A-B-C)/B ABC% Change 20252024FX ImpactReportedFXN BD MEDICAL Medication Delivery Solutions$ 1,132 $ 1,123 $ 1 0.8 0.7Medication Management Solutions888 840 3 5.7 5.3Pharmaceutical Systems629 594 6 5.8 4.8Advanced Patient Monitoring278 — 2 NM NMTOTAL$ 2,927 $ 2,558 $ 12 14.4 14.0‌ BD LIFE SCIENCES Specimen Management (1)$ 470 $ 467 $ 1 0.7 0.6Diagnostic Solutions (1)425 429 3 (1.0) (1.8)Biosciences358 363 3 (1.3) (2.3)TOTAL$ 1,254 $ 1,260 $ 8 (0.5) (1.1)‌ BD INTERVENTIONAL Surgery$ 395 $ 376 $ 1 4.9 4.6Peripheral Intervention512 488 1 4.8 4.5Urology and Critical Care422 375 2 12.5 12.1TOTAL$ 1,328 $ 1,240 $ 4 7.2 6.8‌ Other(2)$ — $ (67) $ — (100.0) (100.0)‌ TOTAL REVENUES$ 5,509 $ 4,990 $ 23 10.4 9.9"NM" denotes that the percentage change is not meaningful. (1) During the first quarter of fiscal year 2025, Life Sciences split its former Integrated Diagnostic Solutions organizational unit into two units to better align BD resources with the distinct needs of each business. (2) Represents the recognition of accruals relating to the Italian government medical device pay back legislation, as well as another legal matter, and which substantially relate to years prior to fiscal year 2024. Such amounts were not allocated to our reportable segments. BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION REVENUES BY BUSINESS SEGMENTS AND UNITS - UNITED STATES Nine Months Ended June 30, (Unaudited; Amounts in millions) ‌ ABC=(A-B)/B 20252024% Change BD MEDICAL Medication Delivery Solutions$ 2,060 $ 1,971 4.5Medication Management Solutions2,030 1,883 7.8Pharmaceutical Systems431 442 (2.4)Advanced Patient Monitoring490 — NMTOTAL$ 5,012 $ 4,297 16.6‌ BD LIFE SCIENCES Specimen Management (1)$ 721 $ 708 1.8Diagnostic Solutions (1)556 578 (3.8)Biosciences440 426 3.2TOTAL$ 1,717 $ 1,712 0.3‌ BD INTERVENTIONAL Surgery$ 885 $ 851 4.0Peripheral Intervention793 762 4.0Urology and Critical Care962 930 3.4TOTAL$ 2,640 $ 2,543 3.8‌ Other(2)$ — $ (6) (100.0)‌ TOTAL UNITED STATES$ 9,369 $ 8,546 9.6"NM" denotes that the percentage change is not meaningful. (1) During the first quarter of fiscal year 2025, Life Sciences split its former Integrated Diagnostic Solutions organizational unit into two units to better align BD resources with the distinct needs of each business. (2) Represents an accrual resulting from a legal matter and which substantially relates to years prior to fiscal year 2024. This amount was not allocated to our reportable segments. BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION REVENUES BY BUSINESS SEGMENTS AND UNITS - INTERNATIONAL Nine Months Ended June 30, (continued) (Unaudited; Amounts in millions) ‌ D=(A-B)/BE=(A-B-C)/B ABC% Change 20252024FX ImpactReportedFXN BD MEDICAL Medication Delivery Solutions$ 1,313 $ 1,310 $ (19) 0.2 1.6Medication Management Solutions470 475 (1) (1.2) (0.9)Pharmaceutical Systems1,191 1,154 (1) 3.2 3.3Advanced Patient Monitoring317 — (1) NM NMTOTAL$ 3,290 $ 2,940 $ (23) 11.9 12.7‌ BD LIFE SCIENCES Specimen Management (1)$ 667 $ 664 $ (8) 0.4 1.7Diagnostic Solutions (1)783 787 (5) (0.4) 0.3Biosciences631 689 (2) (8.4) (8.1)TOTAL$ 2,081 $ 2,139 $ (16) (2.7) (2.0)‌ BD INTERVENTIONAL Surgery$ 288 $ 273 $ (1) 5.2 5.6Peripheral Intervention673 669 (5) 0.6 1.4Urology and Critical Care249 234 — 6.1 6.3TOTAL$ 1,209 $ 1,177 $ (7) 2.8 3.3‌ Other(2)$ — $ (62) $ — (100.0) (100.0)‌ TOTAL INTERNATIONAL$ 6,581 $ 6,195 $ (45) 6.2 7.0"NM" denotes that the percentage change is not meaningful. (1) During the first quarter of fiscal year 2025, Life Sciences split its former Integrated Diagnostic Solutions organizational unit into two units to better align BD resources with the distinct needs of each business. (2) Represents the recognition of accruals relating to the Italian government medical device pay back legislation which substantially relate to years prior to fiscal year 2024. Such amounts were not allocated to our reportable segments. BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION REVENUES BY BUSINESS SEGMENTS AND UNITS - TOTAL Nine Months Ended June 30, (continued) (Unaudited; Amounts in millions) ‌ D=(A-B)/BE=(A-B-C)/B ABC% Change 20252024FX ImpactReportedFXN BD MEDICAL Medication Delivery Solutions$ 3,373 $ 3,282 $ (19) 2.8 3.4Medication Management Solutions2,500 2,359 (1) 6.0 6.1Pharmaceutical Systems1,622 1,596 (1) 1.6 1.7Advanced Patient Monitoring806 — (1) NM NMTOTAL$ 8,302 $ 7,237 $ (23) 14.7 15.0‌ BD LIFE SCIENCES Specimen Management (1)$ 1,387 $ 1,372 $ (8) 1.1 1.7Diagnostic Solutions (1)1,340 1,365 (5) (1.8) (1.4)Biosciences1,071 1,115 (2) (3.9) (3.8)TOTAL$ 3,798 $ 3,852 $ (16) (1.4) (1.0)‌ BD INTERVENTIONAL Surgery$ 1,173 $ 1,124 $ (1) 4.3 4.4Peripheral Intervention1,466 1,431 (5) 2.4 2.8Urology and Critical Care1,211 1,165 — 4.0 4.0TOTAL$ 3,849 $ 3,720 $ (7) 3.5 3.7‌ Other(2)$ — $ (67) $ — (100.0) (100.0)‌ TOTAL REVENUES$ 15,949 $ 14,741 $ (45) 8.2 8.5"NM" denotes that the percentage change is not meaningful. (1) During the first quarter of fiscal year 2025, Life Sciences split its former Integrated Diagnostic Solutions organizational unit into two units to better align BD resources with the distinct needs of each business. (2) Represents the recognition of accruals relating to the Italian government medical device pay back legislation, as well as another legal matter, and which substantially relate to years prior to fiscal year 2024. Such amounts were not allocated to our reportable segments. BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION RECONCILIATION OF REPORTED REVENUE CHANGE TO ADJUSTED REVENUE CHANGE TO ORGANIC REVENUE CHANGE Three Months Ended June 30, (Unaudited; Amounts in millions) ‌ D = (A-B)/BE=(A-B-C)/B ABC% Change 20252024FX ImpactReportedFXN TOTAL REVENUES$ 5,509 $ 4,990 $ 23 10.4 9.9Add: Reduction for government legislative and legal matters(1)— 67 — (100.0) (100.0)Adjusted Revenues$ 5,509 $ 5,057 $ 23 8.9 8.5Less: Inorganic revenue adjustment (2)278 — 2 NM NMOrganic Revenue$ 5,231 $ 5,057 $ 21 3.4 3.0‌ BD MEDICAL REVENUES$ 2,927 $ 2,558 $ 12 14.4 14.0Less: Inorganic revenue adjustment (2)278 — 2 NM NMBD Medical Organic Revenue$ 2,649 $ 2,558 $ 10 3.6 3.2"NM" denotes that the percentage change is not meaningful. (1) Represents the recognition of accruals relating to the Italian government medical device pay back legislation, as well as another legal matter, and which substantially relate to years prior to fiscal year 2024. (2) Inorganic revenue adjustment is defined as the amount of incremental revenue attributable to acquisitions and the revenue decline attributable to divestitures during the first 12 months post-acquisition/divestiture. Acquisitions include: Advanced Patient Monitoring in the Medical Segment. BECTON DICKINSON AND COMPANY SUPPLEMENTAL REVENUE INFORMATION RECONCILIATION OF REPORTED GEOGRAPHIC REVENUE TO ADJUSTED GEOGRAPHIC REVENUE Three Months Ended June 30, (Unaudited; Amounts in millions) ‌ D=(A-B)/BE=(A-B-C)/B ABC% Change 20252024FX ImpactReportedFXN UNITED STATES REVENUES$ 3,181 $ 2,891 $ — 10.0 10.0Add: Reduction for legal matters(1)— 6 — (100.0) (100.0)Adjusted United States Revenues$ 3,181 $ 2,897 $ — 9.8 9.8‌ INTERNATIONAL REVENUES$ 2,328 $ 2,098 $ 23 11.0 9.8Add: Reduction for government legislative matters(1)— 62 — (100.0) (100.0)Adjusted International Revenues$ 2,328 $ 2,160 $ 23 7.8 6.7‌ TOTAL REVENUES$ 5,509 $ 4,990 $ 23 10.4 9.9Add: Reduction for government legislative and legal matters(1)— 67 — (100.0) (100.0)Adjusted Total Revenues$ 5,509 $ 5,057 $ 23 8.9 8.5(1) Represents the recognition of accruals relating to the Italian government medical device pay back legislation, as well as another legal matter, and which substantially relate to years prior to fiscal year 2024. BECTON DICKINSON AND COMPANY SUPPLEMENTAL INFORMATION RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS (Unaudited) ‌‌Three Months Ended June 30,20252024ChangeTranslational FXFXNChangeChange %FXNChange % Reported Diluted Earnings per Share $ 2.00 $ 1.68 $ 0.32 $ 0.02 $ 0.30 19.0 %17.9 % Purchase accounting adjustments ($385 million and $352 million pre-tax, respectively) (1) 1.34 1.21 —Integration costs ($37 million and $7 million pre-tax, respectively) (2) 0.13 0.03 —Restructuring costs ($58 million and $95 million pre-tax, respectively) (2) 0.20 0.33 —Transaction Costs ($1 million and $10 million pre-tax) (3) 0.01 0.03 —Financing Costs (($2) million pre-tax) (3) — (0.01) —Separation-related items ($31 million and $1 million pre-tax) (4) 0.11 — —European regulatory initiative-related costs ($25 million pre-tax) (5) — 0.09 —Product, litigation, and other items ($56 million and $174 million pre-tax, respectively) (6) 0.20 0.60 —Tax impact of specified items and other tax related (($86) million and ($133) million, respectively) (0.30) (0.46) —Adjusted Diluted Earnings per Share $ 3.68 $ 3.50 $ 0.18 $ 0.02 $ 0.16 5.1 %4.6 % (1) Includes amortization and other adjustments related to the purchase accounting for acquisitions. (2) Represents costs associated with integration and restructuring activities. (3) Represents transaction costs and financing impacts incurred in connection with the Advanced Patient Monitoring acquisition. The transaction costs are recorded to Integration, restructuring and transaction expense and the financing impacts are recorded to Interest income and Interest expense. (4) Represents costs recorded to Other operating expense, net incurred in connection with the proposed combination of our Biosciences and Diagnostic Solutions business with Waters Corporation for the three months ended June 30, 2025 and the separation of BD's former Diabetes Care business for the three months ended June 30, 2024. (5) Represents costs incurred to develop processes and systems to establish initial compliance with the European Union Medical Device Regulation and the European Union In Vitro Diagnostic Medical Device Regulation, which represent a significant, unusual change to the existing regulatory framework. We consider these costs to be duplicative of previously incurred costs and/or one-off costs, which are limited to a specific period of time. These expenses, which are recorded in Cost of products sold and Research and development expense, include the cost of labor, other services and consulting (in particular, research and development and clinical trials) and supplies, travel and other miscellaneous costs. (6) Includes certain (income) expense items which are not part of ordinary operations and affect the comparability of the periods presented. Such items may include certain product remediation costs, certain legal matters, certain investment gains and losses, certain asset impairment charges, and certain pension settlement costs. The amount for the three months ended June 30, 2025 reflects a charge of $30 million related to pension settlement costs to Other expense, net. The amount for the three months ended June 30, 2024, reflects the recognition of $67 million in accruals as an impact to Revenues relating to the Italian government medical device payback legislation, as well as another legal matter, and which substantially relate to years prior to fiscal year 2024, as well as charges to Other operating expense, net related to legal matters, including a $50 million charge to accrue an estimated liability for the SEC investigation with respect to, among other things, certain reporting issues involving BD Alaris™ infusion pumps included in SEC disclosures prior to 2021. BECTON DICKINSON AND COMPANY SUPPLEMENTAL INFORMATION RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS (Unaudited) ‌‌Nine Months Ended June 30,20252024ChangeTranslational FXFXNChangeChange %FXNChange % Reported Diluted Earnings per Share $ 4.10 $ 4.49 $ (0.39) $ (0.02) $ (0.37) (8.7) %(8.2) % Purchase accounting adjustments ($1.506 billion and $1.076 billion pre-tax, respectively) (1) 5.22 3.70 —Integration costs ($87 million and $17 million pre-tax, respectively) (2) 0.30 0.06 —Restructuring costs ($187 million and $262 million pre-tax, respectively) (2) 0.65 0.90 (0.01)Transaction Costs ($5 million and $9 million pre-tax) (3) 0.02 0.03 —Financing Costs (($2) million pre-tax) (3) — (0.01) —Separation-related items ($41 million and $7 million pre-tax, respectively) (4) 0.14 0.02 —European regulatory initiative-related costs ($72 million pre-tax) (5) — 0.25 —Product, litigation, and other items ($297 million and $169 million pre-tax, respectively) (6) 1.03 0.58 —Tax impact of specified items and other tax related (($290) million and ($197) million, respectively) (1.00) (0.68) —Adjusted Diluted Earnings per Share $ 10.45 $ 9.34 $ 1.11 $ (0.02) $ 1.13 11.9 %12.1 % (1) Includes amortization and other adjustments related to the purchase accounting for acquisitions. (2) Represents costs associated with integration and restructuring activities. (3) Represents transaction costs and financing costs incurred in connection with the Advanced Patient Monitoring acquisition. The transaction costs are recorded to Integration, restructuring and transaction expense and the financing impacts are recorded to Interest income and Interest expense. (4) Represents costs recorded to Other operating expense, net incurred in connection with the proposed combination of our Biosciences and Diagnostic Solutions business with Waters Corporation for the nine months ended June 30, 2025 and the separation of BD's former Diabetes Care business for the nine months ended June 30, 2024. (5) Represents costs incurred to develop processes and systems to establish initial compliance with the European Union Medical Device Regulation and the European Union In Vitro Diagnostic Medical Device Regulation, which represent a significant, unusual change to the existing regulatory framework. We consider these costs to be duplicative of previously incurred costs and/or one-off costs, which are limited to a specific period of time. These expenses, which are recorded in Cost of products sold and Research and development expense, include the cost of labor, other services and consulting (in particular, research and development and clinical trials) and supplies, travel and other miscellaneous costs. (6) Includes certain (income) expense items which are not part of ordinary operations and affect the comparability of the periods presented. Such items may include certain product remediation costs, certain legal matters, certain investment gains and losses, certain asset impairment charges, and certain pension settlement costs. The amount for the nine months ended June 30, 2025 reflects charges of $98 million to Cost of products sold to adjust the estimate of future product remediation costs, a charge of $30 million to Research and development expense related to a non-cash asset impairment charge in the Life Sciences segment, charges of $64 million to Other operating expense, net, related to various legal matters, and a charge of $30 million related to pension settlement costs to Other expense, net. The amount for the nine months ended June 30, 2024 reflects the recognition of $67 million in accruals as an impact to Revenues relating to the Italian government medical device pay back legislation, as well as another legal matter, and which substantially relate to years prior to fiscal year 2024, as well as charges to Other operating expense, net related to legal matters, including a $50 million charge to accrue an estimated liability for the SEC investigation with respect to, among other things, certain reporting issues involving BD Alaris™ infusion pumps included in SEC disclosures prior to 2021. BECTON DICKINSON AND COMPANY SUPPLEMENTAL INFORMATION RECONCILIATION OF REPORTED GAAP GROSS MARGIN PERCENTAGE AND OPERATING INCOME TO NON-GAAP GROSS MARGIN PERCENTAGE AND OPERATING INCOME (Unaudited) ‌ Three Months Ended June 30, 2025 GAAPPurchase accounting adjustments (1)Integration costs (2)Restructuring costs (2)Transaction costs (3)Separation-related items (4)Product, litigation, and other items (6)TSA / LSAAdjusted (non-GAAP) Revenues$ 5,509 — — — — — — — $ 5,509Cost of products sold$ 2,875 (386) — — — — 1 — $ 2,490Gross profit$ 2,634 386 — — — — (1) — $ 3,019Gross margin percentage47.8 %54.8 % Change vs. prior year (basis points)160 50‌ Operating income$ 882 386 37 58 1 31 28 (3) $ 1,421% Change vs. prior year46.6 %11.3 % Three Months Ended June 30, 2024GAAPPurchase accounting adjustments (1)Integration costs (2)Restructuring costs (2)Transaction costs (3)Separation-related items (4)European regulatory initiative-related costs (5)Product, litigation, and other items (6)TSA / LSAAdjusted (non-GAAP)Revenues$ 4,990 — — — — — — 67 — $ 5,057Cost of products sold$ 2,683 (356) — — — — (9) (5) — $ 2,312Gross profit$ 2,307 356 — — — — 9 72 — $ 2,745Gross margin percentage46.2 %54.3 % ‌Operating income$ 602 353 7 95 10 1 25 180 3 $ 1,276 Refer to the Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS for the three months ended June 30, 2025 and 2024 for footnote descriptions. BECTON DICKINSON AND COMPANY SUPPLEMENTAL INFORMATION FY 2025 OUTLOOK RECONCILIATION ‌ Full Year FY 2024Full Year FY 2025 Outlook ($ in millions)% ChangeRevenues BDX Reported Revenues$ 20,178Add: Revenue Adjustment Impact67Adjusted Revenues$ 20,245‌ FY 2025 Reported Revenue Growth+8.2% to +8.7% Revenue Adjustment Impact~+35 basis points Illustrative Foreign Currency (FX) Impact~+10 basis points FY 2025 Revenue Growth (adjusted) (FXN)+7.8% to 8.3% FY 2025 Inorganic Impact to Revenue Growth~+475 basis points FY 2025 Organic Revenue Growth (FXN)+3.0% to +3.5% ‌ Total FY 2025 Revenues~$21.8 to $21.9 billion Notes - Revenue Adjustment Impact reflects the recognition of accruals relating to the Italian government medical device pay back legislation, as well as another legal matter, and which substantially relate to years prior to fiscal year 2024. - Inorganic revenue adjustment is defined as the amount of incremental revenue attributable to acquisitions and the revenue decline attributable to divestitures during the first 12 months post-acquisition/divestiture. BECTON DICKINSON AND COMPANY SUPPLEMENTAL INFORMATION FY 2025 OUTLOOK RECONCILIATION CONTINUED ‌ Full Year FY 2025 Outlook Full Year FY 2024 from Continuing OperationsTotal Company Reported Diluted Earnings per Share$ 5.86Purchase accounting adjustments ($1.503 billion pre-tax) (1)5.16Integration costs ($23 million pre-tax) (2)0.08Restructuring costs ($387 million pre-tax) (2)1.33Transaction Costs ($48 million pre-tax) (3)0.17Financing Costs (($8) million pre-tax) (3)(0.03)Separation-related items ($13 million pre-tax) (4)0.05European regulatory initiative-related costs ($104 million pre-tax) (5)0.36Product, litigation, and other items ($346 million pre-tax) (6)1.19Tax impact of specified items and other tax related (($297) million)(1.02)Adjusted Diluted Earnings per Share$ 13.14 $14.30 to $14.45 Reported % Change+8.8% to +10.0% (1) Includes amortization and other adjustments related to the purchase accounting for acquisitions. (2) Represents costs associated with integration and restructuring activities. (3) Represents transaction costs and financing impacts associated with the Advanced Patient Monitoring acquisition. The transaction costs are recorded in Integration, restructuring and transaction expense and the financing impacts are recorded in Interest income and Interest expense. (4) Represents costs recorded to Other operating expense (income), net incurred in connection with the separation of BD's former Diabetes Care business. (5) Represents costs incurred to develop processes and systems to establish initial compliance with the European Union Medical Device Regulation and the European Union In Vitro Diagnostic Medical Device Regulation, which represent a significant, unusual change to the existing regulatory framework. We consider these costs to be duplicative of previously incurred costs and/or one-off costs, which are limited to a specific period of time. These expenses, which are recorded in Cost of products sold and Research and development expense, include the cost of labor, other services and consulting (in particular, research and development and clinical trials) and supplies, travel and other miscellaneous costs. (6) Includes certain (income) expense items which are not part of ordinary operations and affect the comparability of the periods presented. Such items may include certain product remediation costs, certain legal matters, certain investment gains and losses, certain asset impairment charges, and certain pension settlement costs. The amount in 2024 reflects the recognition of $67 million in accruals as an impact to Revenues resulting from recent developments relating to the Italian government medical device pay back legislation, as well as another legal matter, and which substantially relate to years prior to fiscal year 2024, and charges of $38 million to Cost of products sold to record or adjust future costs for product remediation efforts. The amount in 2024 also reflects charges to Other operating expense (income), net related to legal matters, including a $175 million charge to accrue an estimated liability for the SEC investigation with respect to, among other things, certain reporting issues involving BD Alaris™ infusion pumps included in SEC disclosures prior to 2021. Contacts:Investors: Adam Reiffe, Sr. Director, Investor Relations - 201-847-6927Media: Troy Kirkpatrick, VP, Public Relations - 858-617-2361 View original content: SOURCE BD (Becton, Dickinson and Company) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Waters Holds Jefferies Buy Rating Despite Target Cut, with BD Merger Poised to Boost Long-Term Growth

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05-08-2025

Business
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Waters Holds Jefferies Buy Rating Despite Target Cut, with BD Merger Poised to Boost Long-Term Growth

Waters Corporation (NYSE:WAT) is one of the best agriculture technology stocks to buy now. On August 4, 2025, Jefferies analyst Tycho Peterson reiterated a Buy rating on Waters while trimming the price target from $435 to $385. The revision wasn't a knock on the company's strength, it was a tempered recalibration after a 12% post-merger dip. Jefferies called the Q2 earnings a 'solid beat,' with revenue and EPS both exceeding consensus. A portion of the upside was front-loaded due to tariff pressures, but the firm emphasized that Waters is well-positioned to outperform in the back half of the year. Despite trimming the target, Peterson expressed confidence in the trajectory: raised full-year guidance, strong recurring revenue, and a major upcoming merger with Becton Dickinson's diagnostics arm all point to scale, synergies, and a wider moat. Jefferies noted that the BD merger is being underappreciated by the market and should ultimately reinforce Waters' long-term value proposition. Waters Corporation (NYSE:WAT) is a global leader in analytical instruments and software, serving life sciences, food safety, and agriculture, and offering critical tools in everything from pesticide residue analysis to precision crop science. While we acknowledge the potential of WAT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data

Waters Corporation (NYSE: WAT) Reports Second Quarter 2025 Financial Results

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04-08-2025

Business
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Waters Corporation (NYSE: WAT) Reports Second Quarter 2025 Financial Results

Highlights Sales of $771 million exceeded guidance range; grew 9% as reported and 8% in constant currency GAAP EPS of $2.47 and non-GAAP EPS of $2.95, above mid-point of guidance range Instruments grew mid-single-digits in constant currency, led by high-single-digit LC and MS growth – with continued strength in instrument replacement, particularly among large pharma and CDMO customers Recurring revenue grew 11% in constant currency, with 9% service growth and double-digit chemistry growth In constant currency, Pharma grew 11% and Industrial grew 6%, while Academic & Government declined 3%, performing better than expected Raising full-year 2025 constant currency sales growth guidance to +5.5% to +7.5% and raising full-year 2025 non-GAAP EPS guidance to $12.95 to $13.05 Second Quarter 2025 MILFORD, Mass., Aug. 4, 2025 /PRNewswire/ -- Waters Corporation (NYSE: WAT), today announced its financial results for the second quarter of 2025. Sales for the second quarter of 2025 were $771 million, an increase of 9% as reported and 8% in constant currency, compared to sales of $709 million for the second quarter of 2024. On a GAAP basis, diluted earnings per share (EPS) for the second quarter of 2025 was $2.47, compared to $2.40 for the second quarter of 2024. Non-GAAP EPS for the second quarter of 2025 grew 12% to $2.95, compared to $2.63 for the second quarter of 2024. "Our team continues to execute extremely well and we delivered excellent results again this quarter, driven by robust instrument replacement trends–particularly among large pharma and CDMO customers," said Dr. Udit Batra, President & CEO, Waters Corporation. "Our performance reflects strong execution against our commercial growth initiatives, rapid uptake of our new products, and contribution from incremental growth vectors such as GLP-1s, PFAS and generics. As a result, we are raising our full-year sales and earnings guidance." Dr. Batra continued, "The strength of our core business provides the foundation for our next phase of growth. Our combination with BD Biosciences & Diagnostic Solutions accelerates our strategy into multiple high-growth adjacencies, while extending the reach of our proven execution model into resilient, high-volume end markets. We are well positioned to drive substantial value creation for shareholders with synergies that create immediate impact. Integration planning is underway, and I'm pleased to share that Chris Ross, SVP of Global Operations, will lead this effort. Chris and I successfully partnered on the EMD Millipore–Sigma-Aldrich integration, and I'm confident in his leadership to deliver strong results once again." A description and reconciliation of GAAP to non-GAAP results appear in the tables below and can be found on the Company's website in the Investor Relations section. Full-Year and Third 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 +5.5% to +7.5%. Net of currency translation, the Company is raising its full-year 2025 reported sales growth to the range of +5.0% to +7.0%. The Company is raising its full-year 2025 non-GAAP EPS guidance to the range of $12.95 to $13.05. This reflects year-over-year growth of approximately +9% to +10%, and +10% to +11% on a constant currency basis. Third Quarter 2025 Financial Guidance The Company expects third quarter 2025 constant currency sales growth in the range of +5.0% to +7.0%. Net of currency translation, third quarter 2025 reported sales growth is expected in the range of +4.5% to +6.5%. The Company expects third quarter 2025 non-GAAP EPS to be in the range of $3.15 to $3.25, which reflects year-over-year growth of approximately +8% to +11%. Please refer to the tables below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the full-year and third quarter. Conference Call Details Waters Corporation will webcast its second quarter 2025 financial results conference call today, August 4, 2025, at 8:00 a.m. Eastern Time. To listen to the call and see the accompanying slide presentation, please visit 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 September 2, 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. Additional Information and Where to Find It This release is not intended to and does not constitute an offer to sell or the solicitation of an offer to buy or exchange any securities or a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. It does not constitute a prospectus or prospectus equivalent document. No offering or sale of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the "Securities Act"), and otherwise in accordance with applicable law. In connection with the proposed transaction between Waters, Augusta SpinCo Corporation ("SpinCo") and Becton, Dickinson and Company ("BD"), the parties intend to file relevant materials with the U.S. Securities and Exchange Commission (the "SEC"), including, among other filings, a registration statement on Form S-4 to be filed by Waters (the "Form S-4") that will include a preliminary proxy statement/prospectus of Waters and a definitive proxy statement/prospectus of Waters, the latter of which will be mailed to stockholders of Waters, and a registration statement on Form 10 to be filed by SpinCo that will incorporate by reference certain portions of the Form S-4 and will serve as an information statement/prospectus in connection with the spin-off of SpinCo from BD. INVESTORS AND SECURITY HOLDERS OF WATERS AND BD ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS, THE INFORMATION STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS THAT WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders will be able to obtain free copies of the Form S-4 and the proxy statement/prospectus (when available) and other documents filed with the SEC by Waters, SpinCo or BD through the website maintained by the SEC at Copies of the documents filed with the SEC by Waters will be available free of charge on Waters' website at under the tab "About Waters" and under the heading "Investor Relations" and subheading "Financials—SEC Filings." Copies of the documents filed with the SEC by BD and SpinCo will be available free of charge on BD's website at under the tab "About BD" and under the heading "Investors" and subheading "SEC Filings." Participants in the Solicitation Waters and BD and their respective directors and executive officers may be considered participants in the solicitation of proxies from Waters' stockholders in connection with the proposed transaction. Information about the directors and executive officers of Waters is set forth in its Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on February 25, 2025, and its proxy statement for its 2025 annual meeting, which was filed with the SEC on April 9, 2025. To the extent holdings of Waters' securities by its directors or executive officers have changed since the amounts set forth in such filings, such changes have been or will be reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Beneficial Ownership on Form 4 filed with the SEC. Information about the directors and executive officers of Waters and other information regarding the potential participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction. Information about the directors and executive officers of BD is set forth in its Annual Report on Form 10-K for the year ended September 30, 2024, which was filed with the SEC on November 27, 2024, and its proxy statement for its 2025 annual meeting, which was filed with the SEC on December 19, 2024. To the extent holdings of BD's securities by its directors or executive officers have changed since the amounts set forth in such filings, such changes have been or will be reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Beneficial Ownership on Form 4 filed with the SEC. You may obtain these documents (when they become available) free of charge through the website maintained by the SEC at and from Waters' website and BD's website as described above. Non-GAAP Financial Measures This 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 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. Furthermore, important factors related to the proposed transaction between Waters, BD and SpinCo could cause actual results to differ materially from those currently anticipated, including that one or more closing conditions to the transaction, including certain regulatory approvals, may not be satisfied or waived, on a timely basis or otherwise, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the proposed transaction, may require conditions, limitations or restrictions in connection with such approvals or that the required approval by the stockholders of Waters may not be obtained, the risk that the proposed transaction may not be completed on the terms or in the time frame expected by Waters, or at all, unexpected costs, charges or expenses resulting from the proposed transaction, uncertainty of the expected financial performance of the combined company following completion of the proposed transaction, failure to realize the anticipated benefits of the proposed transaction, including as a result of delay in completing the proposed transaction or integrating the businesses of Waters and SpinCo, on the expected timeframe or at all, the ability of the combined company to implement its business strategy, difficulties and delays in the combined company achieving revenue and cost synergies, inability of the combined company to retain and hire key personnel, the occurrence of any event that could give rise to termination of the proposed transaction, the risk that stockholder litigation in connection with the proposed transaction or other litigation, settlements or investigations may affect the timing or occurrence of the proposed transaction or result in significant costs of defense, indemnification and liability, evolving legal, regulatory and tax regimes, changes in general economic and/or industry specific conditions or any volatility resulting from the imposition of and changing policies around tariffs, actions by third parties, including government agencies, the risk that the anticipated tax treatment of the proposed transaction is not obtained, the risk of greater than expected difficulty in separating the business of SpinCo from the other businesses of BD, risks related to the disruption of management time from ongoing business operations due to the pendency of the proposed transaction, or other effects of the pendency of the proposed transaction on the relationship of any of the parties to the transaction with their employees, customers, suppliers, or other counterparties; and other risk factors detailed from time to time in Waters' reports filed with the SEC. 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) (Unaudited) ‌ Three Months EndedSix Months EndedJune 28, 2025June 29, 2024June 28, 2025June 29, 2024 ‌Net sales $ 771,332$ 708,529$ 1,433,037$ 1,345,368 Costs and operating expenses:Cost of sales 321,407288,244598,152550,030 Selling and administrative expenses 201,257173,247376,138347,783 Research and development expenses 48,54846,18295,17090,777 Purchased intangibles amortization 11,90711,74423,61923,578 Litigation provision ---10,242 ‌Operating income 188,213189,112339,958322,958 ‌Other (expense) income, net (676)(302)8481,957 Interest expense, net (9,847)(19,398)(20,228)(40,647) ‌Income from operations before income taxes 177,690169,412320,578284,268 ‌Provision for income taxes 30,57926,67552,08639,335 ‌Net income $ 147,111$ 142,737$ 268,492$ 244,933 ‌Net income per basic common share $ 2.47$ 2.41$ 4.51$ 4.13 ‌Weighted-average number of basic common shares 59,51559,33959,47859,287 ‌Net income per diluted common share $ 2.47$ 2.40$ 4.50$ 4.12 ‌Weighted-average number of diluted common shares and equivalents 59,65659,45159,68659,445 Waters Corporation and Subsidiaries Reconciliation of GAAP to Adjusted Non-GAAP Net Sales by Operating Segments, Products & Services, Geography and Markets Three Months Ended June 28, 2025 and June 29, 2024 (In thousands) ‌ConstantThree Months EndedPercentImpact ofCurrencyJune 28, 2025June 29, 2024ChangeCurrencyGrowth Rate (a) ‌NET SALES - OPERATING SEGMENTS Waters $ 688,837$ 622,56111 %1 %10 % TA 82,495 85,968(4 %)2 %(6 %) ‌Total$ 771,332$ 708,5299 %1 %8 % ‌NET SALES - PRODUCTS & SERVICES ‌Instruments $ 308,415$ 294,0595 %1 %4 % ‌Service297,932 273,3859 %0 %9 % Chemistry164,985 141,08517 %1 %16 % Total Recurring462,917 414,47012 %1 %11 % ‌Total$ 771,332$ 708,5299 %1 %8 % ‌NET SALES - GEOGRAPHY ‌Asia$ 265,940$ 237,43112 %(2 %)14 % Americas280,740 274,4682 %0 %2 % Europe224,652 196,63014 %6 %8 % ‌Total$ 771,332$ 708,5299 %1 %8 % ‌NET SALES - MARKETS ‌Pharmaceutical $ 461,968$ 415,74711 %1 %11 % Industrial237,655 221,3857 %1 %6 % Academic & Government 71,709 71,3970 %3 %(3 %) ‌Total$ 771,332$ 708,5299 %1 %8 %... (a)The Company believes that referring to comparable constant currency growth rates is a useful way to evaluate the underlying performance of Waters Corporation's net sales. Constant currency growth, a non-GAAP financial measure, measures the change in net sales between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period. See description of non-GAAP financial measures contained in this release. Waters Corporation and Subsidiaries Reconciliation of GAAP to Adjusted Non-GAAP Net Sales by Operating Segments, Products & Services, Geography and Markets Six Months Ended June 28, 2025 and June 29, 2024 (In thousands) ‌ Constant Six Months EndedPercentImpact ofCurrency June 28, 2025June 29, 2024ChangeCurrencyGrowth Rate (a)‌ NET SALES - OPERATING SEGMENTS‌ Waters $ 1,276,134$ 1,184,4608 %(1 %)9 %TA 156,903 160,908(2 %)1 %(3 %)‌ Total$ 1,433,037$ 1,345,3687 %(1 %)7 %‌NET SALES - PRODUCTS & SERVICES‌ Instruments $ 571,308$ 536,0037 %(1 %)7 %‌ Service559,107 534,0735 %(1 %)6 %Chemistry302,622 275,29210 %0 %10 %Total Recurring861,729 809,3656 %(1 %)8 %‌ Total$ 1,433,037$ 1,345,3687 %(1 %)7 % ‌ NET SALES - GEOGRAPHY‌ Asia$ 486,716$ 444,9909 %(4 %)13 %Americas536,277 515,6394 %0 %4 %Europe410,044 384,7397 %2 %5 %‌ Total$ 1,433,037$ 1,345,3687 %(1 %)7 %‌NET SALES - MARKETS‌ Pharmaceutical $ 853,019$ 789,9548 %(1 %)9 %Industrial441,020 416,7196 %0 %6 %Academic & Government 138,998 138,6950 %0 %0 %‌ Total$ 1,433,037$ 1,345,3687 %(1 %)7 % (a)The Company believes that referring to comparable constant currency growth rates is a useful way to evaluate the underlying performance of Waters Corporation's net sales. Constant currency growth, a non-GAAP financial measure, measures the change in net sales between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period. See description of non-GAAP financial measures contained in this release. Waters Corporation and Subsidiaries Reconciliation of GAAP to Adjusted Non-GAAP Financials Three and Six Months Ended June 28, 2025 and June 29, 2024 (In thousands, except per share data)‌ Income fromOperations Selling & Research &Operating Other before Provision forDilutedAdministrative Development Operating Income (Expense) Income Income Net EarningsExpenses(a) Expenses Income Percentage Income Taxes Taxes Income per Share Three Months Ended June 28, 2025GAAP $ 213,164$ 48,548$ 188,213 24.4 %$ (676)$ 177,690$ 30,579$ 147,111$ 2.47 Adjustments:Purchased intangibles amortization (b) (11,907) - 11,907 1.5 % - 11,907 2,820 9,087 0.15Restructuring costs and certain other items (c) (3,869) - 3,869 0.5 % - 3,869 912 2,957 0.05ERP implementation and transformation costs (d) (5,082) - 5,082 0.7 % - 5,082 1,220 3,862 0.06Acquisition related costs (e) (14,284) - 14,284 1.9 % - 14,284 2,391 11,893 0.20Retention bonus obligation (g) (955) (318) 1,273 0.2 % - 1,273 305 968 0.02 Adjusted Non-GAAP$ 177,067$ 48,230$ 224,628 29.1 %$ (676)$ 214,105$ 38,227$ 175,878$ 2.95 ‌Three Months Ended June 29, 2024GAAP $ 184,991$ 46,182$ 189,112 26.7 %$ (302)$ 169,412$ 26,675$ 142,737$ 2.40 Adjustments:Purchased intangibles amortization (b) (11,744) - 11,744 1.7 % - 11,744 2,810 8,934 0.15Restructuring costs and certain other items (c) (1,139) - 1,139 0.2 % - 1,139 280 859 0.01Retention bonus obligation (g) (3,817) (1,272) 5,089 0.7 % - 5,089 1,221 3,868 0.07 Adjusted Non-GAAP$ 168,291$ 44,910$ 207,084 29.2 %$ (302)$ 187,384$ 30,986$ 156,398$ 2.63 ‌Six Months Ended June 28, 2025GAAP $ 399,757$ 95,170$ 339,958 23.7 %$ 848$ 320,578$ 52,086$ 268,492$ 4.50 Adjustments:Purchased intangibles amortization (b) (23,619) - 23,619 1.6 % - 23,619 5,652 17,967 0.30Restructuring costs and certain other items (c) (4,467) - 4,467 0.3 % - 4,467 1,056 3,411 0.06ERP implementation and transformation costs (d) (7,377) - 7,377 0.5 % - 7,377 1,771 5,606 0.09Acquisition related costs (e) (14,284) - 14,284 1.0 % - 14,284 2,391 11,893 0.20Retention bonus obligation (g) (2,864) (954) 3,818 0.3 % - 3,818 916 2,902 0.05 Adjusted Non-GAAP$ 347,146$ 94,216$ 393,523 27.5 %$ 848$ 374,143$ 63,872$ 310,271$ 5.20 ‌Six Months Ended June 29, 2024GAAP $ 381,603$ 90,777$ 322,958 24.0 %$ 1,957$ 284,268$ 39,335$ 244,933$ 4.12 Adjustments:Purchased intangibles amortization (b) (23,578) - 23,578 1.8 % - 23,578 5,642 17,936 0.30Restructuring costs and certain other items (c) (9,486) - 9,486 0.7 % - 9,486 2,335 7,151 0.12Litigation provision and settlement (f) (10,242) - 10,242 0.8 % - 10,242 2,458 7,784 0.13Retention bonus obligation (g) (9,542) (3,181) 12,723 0.9 % - 12,723 3,053 9,670 0.16 Adjusted Non-GAAP$ 328,755$ 87,596$ 378,987 28.2 %$ 1,957$ 340,297$ 52,823$ 287,474$ 4.84(a) Selling & administrative expenses include purchased intangibles amortization and litigation provisions and settlements. (b) The purchased intangibles amortization, a non-cash expense, was excluded to be consistent with how management evaluates the performance of its core business against historical operating results and the operating results of competitors over periods of time. (c) Restructuring costs and certain other items were excluded as the Company believes that the cost to consolidate operations, reduce overhead, and certain other income or expense items are not normal and do not represent future ongoing business expenses of a specific function or geographic location of the Company. (d) ERP implementation and transformation costs represent costs related to the Company's initiative to transition from its legacy enterprise resource planning (ERP) system to a new global ERP solution with a cloud-based infrastructure. These costs, which do not represent normal or future ongoing business expenses, are one-time, non-recurring costs related to the establishment of our new global ERP solution that were determined to be non-capitalizable in accordance with accounting standards. (e) Acquisition related costs include all incremental costs incurred to effect the business combination, such as advisory, legal, accounting, tax, valuation, and other professional fees. The Company believes that these costs are not normal and do not represent future ongoing business expenses. (f) Litigation provisions and settlement gains were excluded as these items are isolated, unpredictable and not expected to recur regularly. (g) In connection with the Wyatt acquisition, the Company recognized a two-year retention bonus obligation that is contingent upon the employee's providing future service and continued employment with Waters. The Company believes that these costs are not normal and do not represent future ongoing business expenses. Waters Corporation and Subsidiaries Preliminary Condensed Unclassified Consolidated Balance Sheets (In thousands and unaudited) ‌ June 28, 2025December 31, 2024 ‌Cash and cash equivalents $ 367,215$ 325,355 Accounts receivable730,074733,365 Inventories540,754477,261 Property, plant and equipment, net645,267651,200 Intangible assets, net579,127567,906 Goodwill 1,337,9081,295,720 Other assets517,730502,988 Total assets$ 4,718,075$ 4,553,795 ‌Notes payable and debt $ 1,456,966$ 1,626,488 Other liabilities1,101,2971,098,800 Total liabilities2,558,2632,725,288 Total stockholders' equity 2,159,8121,828,507 Total liabilities and stockholders' equity$ 4,718,075$ 4,553,795 Waters Corporation and Subsidiaries Preliminary Condensed Consolidated Statements of Cash Flows Three and Six Months Ended June 28, 2025 and June 29, 2024 (In thousands and unaudited)‌ Three Months Ended Six Months Ended June 28, 2025June 29, 2024 June 28, 2025June 29, 2024‌ Cash flows from operating activities:Net income $ 147,111$ 142,737 $ 268,492$ 244,933Adjustments to reconcile net income to netcash provided by operating activities: Stock-based compensation 13,09711,433 25,97522,346 Depreciation and amortization 51,64947,229 101,01895,743 Change in operating assets and liabilities and other, net (170,716)(146,865) (94,791)(45,618)Net cash provided by operating activities 41,14154,534 300,694317,404‌ Cash flows from investing activities:Additions to property, plant, equipmentand software capitalization (22,594)(36,104) (48,336)(64,759)Business acquisitions, net of cash acquired (34,969)- (34,969)-Investments in unaffiliated companies (789)- (1,295)(1,064)Net change in investments -(11) -(36)Net cash used in investing activities (58,352)(36,115) (84,600)(65,859)‌ Cash flows from financing activities:Net change in debt (4,506)(50,000) (174,506)(350,000)Proceeds from stock plans 4,4927,904 12,73821,836Purchases of treasury shares (375)(245) (14,309)(13,334)Other cash flow from financing activities, net (639)8,304 1,80215,285Net cash used in financing activities (1,028)(34,037) (174,275)(326,213)‌ Effect of exchange rate changes on cash and cash equivalents 2,5824,755 416,019(Decrease) increase in cash and cash equivalents (15,657)(10,863) 41,860(68,649) Cash and cash equivalents at beginning of period 382,872337,290 325,355395,076Cash and cash equivalents at end of period $ 367,215$ 326,427 $ 367,215$ 326,427‌‌ Reconciliation of GAAP Cash Flows from Operating Activities to Free Cash Flow (a) Net cash provided by operating activities - GAAP $ 41,141$ 54,534 $ 300,694$ 317,404‌Adjustments: Additions to property, plant, equipmentand software capitalization (22,594)(36,104) (48,336)(64,759) Tax reform payments 120,00695,645 120,00695,645 Litigation settlements paid, net -9,625 -9,250 Payment of Wyatt retention bonus obligation (b) 20,12719,770 20,12719,770 Free Cash Flow - Adjusted Non-GAAP $ 158,680$ 143,470 $ 392,491$ 377,310 (a) The Company defines free cash flow as net cash flow from operations accounted for under GAAP less capital expenditures and software capitalizations plus or minus any unusual and non recurring items. Free cash flow is not a GAAP measurement and may not be comparable to free cash flow reported by other companies. (b) During the six months ended June 28, 2025 and June 29, 2024, the Company made retention payments under the Wyatt retention bonus program. The Company believes that these payments are not normal and do not represent future ongoing business expenses. Waters Corporation and Subsidiaries Reconciliation of Projected GAAP to Adjusted Non-GAAP Financial Outlook ‌ Twelve Months EndedThree Months Ended December 31, 2025September 27, 2025RangeRange Projected Sales‌Constant currency sales growth rate (a) 5.5 % - 7.5 %5.0 % - 7.0 %Currency translation impact (0.5 %) - (0.5 %)(0.5 %) - (0.5 %)Sales growth rate as reported 5.0 % - 7.0 %4.5 % - 6.5 %‌RangeRange Projected Earnings Per Diluted ShareGAAP earnings per diluted share $ 11.45 - $ 11.55$ 2.70 - $ 2.80Adjustments: Purchased intangibles amortization $ 0.60 - $ 0.60$ 0.15 - $ 0.15 Restructuring costs and certain other items $ 0.07 - $ 0.07$ 0.01 - $ 0.01 ERP implementation and transformation costs $ 0.25 - $ 0.25$ 0.08 - $ 0.08 Acquisition related costs $ 0.53 - $ 0.53$ 0.21 - $ 0.21 Retention bonus obligation $ 0.05 - $ 0.05$ - - $ -Adjusted non-GAAP earnings per diluted share $ 12.95 - $ 13.05$ 3.15 - $ 3.25 (a) Constant currency growth rates are a non-GAAP financial measure that measures the change in net sales between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period. These amounts are estimated at the current foreign currency exchange rates and based on the forecasted geographical sales in local currency, as well as an assessment of market conditions as of today, and may differ significantly from actual results. 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. Contact: Caspar Tudor, Head of Investor Relations – (508) 482-3448 View original content: SOURCE Waters Corporation

Waters Corporation (WAT) Reports Earnings Tomorrow: What To Expect

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03-08-2025

Business
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Waters Corporation (WAT) Reports Earnings Tomorrow: What To Expect

Scientific instruments company Waters Corporation (NYSE:WAT) will be reporting earnings this Monday before market hours. Here's what to look for. Waters Corporation beat analysts' revenue expectations by 1.2% last quarter, reporting revenues of $661.7 million, up 3.9% year on year. It was a satisfactory quarter for the company, with a narrow beat of analysts' organic revenue estimates. Is Waters Corporation a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Waters Corporation's revenue to grow 5.4% year on year to $746.6 million, a reversal from the 4.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.94 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Waters Corporation has missed Wall Street's revenue estimates twice over the last two years. Looking at Waters Corporation's peers in the research tools & consumables segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Mettler-Toledo delivered year-on-year revenue growth of 3.9%, beating analysts' expectations by 2.9%, and Thermo Fisher reported revenues up 3%, topping estimates by 1.6%. Mettler-Toledo traded down 3% following the results while Thermo Fisher was up 11.3%. Read our full analysis of Mettler-Toledo's results here and Thermo Fisher's results here. The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the research tools & consumables stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.3% on average over the last month. Waters Corporation is down 16.3% during the same time and is heading into earnings with an average analyst price target of $373.98 (compared to the current share price of $290.31). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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