Veralto Corp

Strong Q1 Performance: Varalto delivered a 7.8% core sales growth in Q1 2025, driven by robust demand across both segments, particularly in marking and coding (8.3% growth) and water quality (4% growth). Adjusted earnings per share (EPS) increased 13% year-over-year to $0.95, exceeding guidance mainly due to better-than-expected volume sales.

Tough Tariff Environment: The company anticipates a gross exposure to tariffs at approximately 3.5% of full-year sales, necessitating strategic pricing and supply chain adjustments. They have implemented countermeasures such as strategic pricing and manufacturing adjustments to mitigate risks from recent tariff hikes.

Operational Flexibility and New Initiatives: Varalto has opened a new manufacturing facility in Grand Rapids, Michigan, enhancing operational flexibility and reducing exposure to tariffs. The company is focusing on innovative solutions within the water treatment sector, particularly regarding PFAS remediation, which presents growth opportunities.