[10-Q] Waters Corp Quarterly Earnings Report
Waters Corp. (WAT) Q2 2025 10-Q highlights
- Net sales: $771.3 m, up 8.9 % YoY; YTD $1.43 bn, +6.5 %.
- Mix: Product $473.4 m (+8.8 %), Service $297.9 m (+9.0 %).
- Profitability: Q2 operating income $188.2 m (24.4 % margin vs 26.7 %), essentially flat YoY. Net income $147.1 m (+3 %); diluted EPS $2.47 (vs $2.40). YTD EPS $4.50 (+9.2 %).
- Cash & debt: Cash $367 m (鈫�$42 m YTD); total debt $1.46 bn (鈫�$169 m). Current $260 m of notes re-classified as short-term; amended credit facility now $1.8 bn maturing 2030.
- Working capital: Inventories $541 m (+13 % since FY-end); A/R flat; deferred revenue up $113 m to $420 m.
- Cash flow: Operating cash flow $300.7 m (-5 % YoY); capex & software $48 m; free cash flow ~$253 m. Share buybacks limited to $14 m for RSU tax withholding.
- Acquisitions & strategy: Closed May 2025 purchase of Halo Labs for $35 m (adds particle-analysis tech). Subsequent event: definitive agreement (13 Jul 25) to acquire BD Biosciences & Diagnostic Solutions for ~$17.5 bn cash/stock鈥攖ransformative if completed.
- Guidance: none provided; management notes FX headwinds, ERP roll-out ($130 m over 3 yrs) and higher tax rate (17.2 % vs 15.7 %).
- Balance-sheet strength: Equity $2.16 bn vs $1.83 bn FY-end; leverage (net debt/EBITDA) falls to ~2.7脳 pre-BD deal.
Overall, Waters delivered mid-single-digit growth and steady EPS, while preparing for a large, leverage-adding acquisition that could significantly reshape its scale and risk profile.
Waters Corp. (WAT) Q2 2025: punti salienti del 10-Q
- Vendite nette: 771,3 milioni di dollari, +8,9% su base annua; da inizio anno 1,43 miliardi, +6,5%.
- Composizione: Prodotti 473,4 milioni (+8,8%), Servizi 297,9 milioni (+9,0%).
- 搁别诲诲颈迟颈惫颈迟脿: Utile operativo Q2 188,2 milioni (margine 24,4% vs 26,7%), sostanzialmente stabile su base annua. Utile netto 147,1 milioni (+3%); EPS diluito 2,47$ (vs 2,40$). EPS da inizio anno 4,50$ (+9,2%).
- Liquidit脿 e debito: Liquidit脿 367 milioni (+42 milioni da inizio anno); debito totale 1,46 miliardi (-169 milioni). 260 milioni di note sono state riclassificate come a breve termine; linea di credito modificata a 1,8 miliardi con scadenza 2030.
- Capitale circolante: Rimanenze 541 milioni (+13% rispetto a fine esercizio); crediti verso clienti stabili; ricavi differiti aumentati di 113 milioni a 420 milioni.
- Flusso di cassa: Flusso operativo 300,7 milioni (-5% su base annua); investimenti in capitale e software 48 milioni; flusso di cassa libero circa 253 milioni. Riacquisti azioni limitati a 14 milioni per copertura tasse RSU.
- Acquisizioni e strategia: Completato a maggio 2025 l'acquisto di Halo Labs per 35 milioni (aggiunge tecnologia di analisi particellare). Evento successivo: accordo definitivo (13 luglio 2025) per acquisire BD Biosciences & Diagnostic Solutions per circa 17,5 miliardi in contanti e azioni鈥攐perazione trasformativa se completata.
- Previsioni: nessuna fornita; la direzione segnala impatti negativi da cambio valuta, implementazione ERP (130 milioni in 3 anni) e aumento dell'aliquota fiscale (17,2% vs 15,7%).
- Solidit脿 patrimoniale: Patrimonio netto 2,16 miliardi vs 1,83 miliardi a fine esercizio; leva finanziaria (debito netto/EBITDA) scende a circa 2,7脳 prima dell'acquisizione BD.
In sintesi, Waters ha registrato una crescita a cifra media singola e un EPS stabile, preparandosi a una grande acquisizione che aumenter脿 la leva finanziaria e potrebbe modificare significativamente la sua dimensione e profilo di rischio.
Waters Corp. (WAT) Q2 2025: aspectos destacados del 10-Q
- Ventas netas: 771,3 millones de d贸lares, aumento del 8,9 % interanual; acumulado anual 1,43 mil millones, +6,5 %.
- 颁辞尘辫辞蝉颈肠颈贸苍: Producto 473,4 millones (+8,8 %), Servicio 297,9 millones (+9,0 %).
- Rentabilidad: Ingreso operativo Q2 188,2 millones (margen 24,4 % vs 26,7 %), pr谩cticamente estable interanual. Ingreso neto 147,1 millones (+3 %); EPS diluido 2,47$ (vs 2,40$). EPS acumulado 4,50$ (+9,2 %).
- Efectivo y deuda: Efectivo 367 millones (+42 millones en el a帽o); deuda total 1,46 mil millones (-169 millones). 260 millones de notas reclasificadas a corto plazo; l铆nea de cr茅dito modificada a 1,8 mil millones con vencimiento en 2030.
- Capital de trabajo: Inventarios 541 millones (+13 % desde fin de ejercicio); cuentas por cobrar estables; ingresos diferidos aumentaron 113 millones a 420 millones.
- Flujo de caja: Flujo operativo 300,7 millones (-5 % interanual); capex y software 48 millones; flujo de caja libre alrededor de 253 millones. Recompra de acciones limitada a 14 millones para retenci贸n fiscal de RSU.
- Adquisiciones y estrategia: Cerrada en mayo 2025 la compra de Halo Labs por 35 millones (agrega tecnolog铆a de an谩lisis de part铆culas). Evento posterior: acuerdo definitivo (13 jul 25) para adquirir BD Biosciences & Diagnostic Solutions por aproximadamente 17,5 mil millones en efectivo/acciones鈥攐peraci贸n transformadora si se completa.
- Perspectivas: no se proporcionaron; la direcci贸n menciona vientos en contra por tipo de cambio, implementaci贸n ERP (130 millones en 3 a帽os) y mayor tasa impositiva (17,2 % vs 15,7 %).
- Fortaleza financiera: Patrimonio 2,16 mil millones vs 1,83 mil millones fin de ejercicio; apalancamiento (deuda neta/EBITDA) cae a ~2,7脳 antes del acuerdo BD.
En resumen, Waters mostr贸 un crecimiento de un solo d铆gito medio y EPS estable, mientras se prepara para una gran adquisici贸n que aumentar谩 el apalancamiento y podr铆a cambiar significativamente su escala y perfil de riesgo.
Waters Corp. (WAT) 2025雲� 2攵勱赴 10-Q 欤检殧 雮挫毄
- 靾滊Г於�: 7鞏� 7,130毵� 雼煬, 鞝勲厔 雽�牍� 8.9% 歃濌皜; 鞐办磮 雸勳爜 14鞏� 3觳滊 雼煬, +6.5%.
- 甑劚: 鞝滍拡 4鞏� 7,340毵� 雼煬 (+8.8%), 靹滊箘鞀� 2鞏� 9,790毵� 雼煬 (+9.0%).
- 靾橃澋靹�: 2攵勱赴 鞓侅梾鞚挫澋 1鞏� 8,820毵� 雼煬 (毵堨 24.4% vs 26.7%), 鞝勲厔瓿� 瓯办潣 霃欖澕. 靾滌澊鞚� 1鞏� 4,710毵� 雼煬 (+3%); 頋劃 欤茧嫻靾滌澊鞚� 2.47雼煬 (歆�雮滍暣 2.40雼煬). 鞐办磮 雸勳爜 EPS 4.50雼煬 (+9.2%).
- 順勱笀 氚� 攵�毂�: 順勱笀 3鞏� 6,700毵� 雼煬 (鞐办磮 雽�牍� 4,200毵� 雼煬 歃濌皜); 齑濍秬毂� 14鞏� 6觳滊 雼煬 (1鞏� 6,900毵� 雼煬 臧愳唽). 雼赴攵�毂勲 鞛秳毳橂悳 鞏挫潓 2鞏� 6觳滊 雼煬; 靾橃爼霅� 鞁犾毄 頃滊弰 18鞏� 雼煬, 2030雲� 毵岅赴.
- 鞖挫爠鞛愲掣: 鞛碃 5鞏� 4,100毵� 雼煬 (須岅硠鞐半弰 毵� 雽�牍� 13% 歃濌皜); 毵れ稖毂勱秾鞚� 氤�霃� 鞐嗢潓; 鞚挫棸靾橃澋 1鞏� 1,300毵� 雼煬 歃濌皜頃� 4鞏� 2,000毵� 雼煬.
- 顺勱笀頋愲: 鞓侅梾順勱笀頋愲 3鞏� 70毵� 雼煬 (鞝勲厔 雽�牍� 5% 臧愳唽); 鞛愲掣鞝� 歆�於� 氚� 靻岉攧韸胳洦鞏� 4,800毵� 雼煬; 鞛愳湢順勱笀頋愲 鞎� 2鞏� 5,300毵� 雼煬. 欤检嫕頇橂Г電� RSU 靹戈笀 鞗愳矞歆曥垬鞖╈溂搿� 1,400毵� 雼煬鞐� 鞝滍暅霅�.
- 鞚胳垬 氚� 鞝勲灥: 2025雲� 5鞗� Halo Labs 鞚胳垬 鞕勲, 3,500毵� 雼煬 (鞛呾瀽 攵勳劃 旮办垹 於旉皜). 頉勳啀 鞚措菠韸�: 2025雲� 7鞗� 13鞚� BD Biosciences & Diagnostic Solutions 鞚胳垬毳� 鞙勴暅 斓滌 瓿勳暯 觳搓舶, 鞎� 175鞏� 雼煬 順勱笀/欤检嫕 瓯半灅鈥旍檮耄� 鞁� 雽�雽�鞝� 氤�頇� 鞓堨儊.
- 臧赌鞚措崢鞀�: 鞝滉车霅橃 鞎婌潓; 瓴届榿歆勳潃 頇橃湪 鞐拲, ERP 霃勳瀰(3雲勱皠 1鞏� 3觳滊 雼煬), 靹胳湪 靸侅姽(17.2% vs 15.7%) 鞏戈笁.
- 鞛 瓯挫爠靹�: 鞛愲掣 21鞏� 6觳滊 雼煬 vs 須岅硠鞐半弰 毵� 18鞏� 3觳滊 雼煬; 霠堧矂毽(靾滊秬毂�/EBITDA) BD 鞚胳垬 鞝� 鞎� 2.7氚半 頃橂澖.
鞝勲皹鞝侅溂搿� Waters電� 欷戧皠 雼渼鞚� 雼澕 鞛愲靾� 靹膘灔瓿� 鞎堨爼鞝侅澑 EPS毳� 旮半頄堨溂氅�, 雽�攴滊 霠堧矂毽 歃濌皜 鞚胳垬毳� 欷�牍勴晿鞐� 攴滊鞕� 鞙勴棙 頂勲頃勳棎 韥� 氤�頇旊ゼ 臧�鞝胳槵 靾� 鞛堨姷雼堧嫟.
Waters Corp. (WAT) Faits marquants du 10-Q du T2 2025
- Ventes nettes : 771,3 M$, en hausse de 8,9 % en glissement annuel ; cumul annuel 1,43 Md$, +6,5 %.
- R茅partition : Produits 473,4 M$ (+8,8 %), Services 297,9 M$ (+9,0 %).
- Rentabilit茅 : R茅sultat op茅rationnel T2 188,2 M$ (marge 24,4 % vs 26,7 %), pratiquement stable en glissement annuel. R茅sultat net 147,1 M$ (+3 %) ; BPA dilu茅 2,47 $ (vs 2,40 $). BPA cumul茅 4,50 $ (+9,2 %).
- Tr茅sorerie & dette : Tr茅sorerie 367 M$ (鈫�42 M$ depuis le d茅but de l鈥檃nn茅e) ; dette totale 1,46 Md$ (鈫�169 M$). 260 M$ de billets reclass茅s en court terme ; facilit茅 de cr茅dit modifi茅e 脿 1,8 Md$ 茅ch茅ant en 2030.
- Fonds de roulement : Stocks 541 M$ (+13 % depuis la fin d鈥檈xercice) ; cr茅ances clients stables ; revenus diff茅r茅s en hausse de 113 M$ 脿 420 M$.
- Flux de tr茅sorerie : Flux op茅rationnel 300,7 M$ (-5 % en glissement annuel) ; CAPEX & logiciels 48 M$ ; flux de tr茅sorerie libre ~253 M$. Rachats d鈥檃ctions limit茅s 脿 14 M$ pour la retenue fiscale li茅e aux RSU.
- Acquisitions & strat茅gie : Acquisition finalis茅e en mai 2025 de Halo Labs pour 35 M$ (ajoute une technologie d鈥檃nalyse particulaire). 脡v茅nement post茅rieur : accord d茅finitif (13 juillet 25) pour acqu茅rir BD Biosciences & Diagnostic Solutions pour environ 17,5 Md$ en cash/actions 鈥� op茅ration transformative si elle aboutit.
- Pr茅visions : aucune fournie ; la direction note des vents contraires li茅s au change, au d茅ploiement ERP (130 M$ sur 3 ans) et 脿 un taux d鈥檌mposition plus 茅lev茅 (17,2 % vs 15,7 %).
- Solidit茅 du bilan : Capitaux propres 2,16 Md$ vs 1,83 Md$ fin d鈥檈xercice ; levier (dette nette/EBITDA) en baisse 脿 ~2,7脳 avant l鈥檕p茅ration BD.
Dans l鈥檈nsemble, Waters a affich茅 une croissance 脿 un chiffre moyen et un BPA stable, tout en se pr茅parant 脿 une acquisition majeure augmentant son levier et pouvant transformer significativement son envergure et son profil de risque.
Waters Corp. (WAT) Q2 2025 10-Q Highlights
- 狈别迟迟辞别谤濒枚蝉别: 771,3 Mio. USD, +8,9 % im Jahresvergleich; Jahr bis Datum 1,43 Mrd. USD, +6,5 %.
- Mischung: Produkt 473,4 Mio. USD (+8,8 %), Service 297,9 Mio. USD (+9,0 %).
- 笔谤辞蹿颈迟补产颈濒颈迟盲迟: Operatives Ergebnis Q2 188,2 Mio. USD (Marge 24,4 % vs. 26,7 %), im Wesentlichen stabil im Jahresvergleich. Nettogewinn 147,1 Mio. USD (+3 %); verw盲ssertes EPS 2,47 USD (vs. 2,40 USD). YTD EPS 4,50 USD (+9,2 %).
- Barmittel & Schulden: Barmittel 367 Mio. USD (鈫�42 Mio. YTD); Gesamtschulden 1,46 Mrd. USD (鈫�169 Mio.). 260 Mio. USD an Schuldverschreibungen wurden als kurzfristig umklassifiziert; ge盲nderte Kreditlinie jetzt 1,8 Mrd. USD mit F盲lligkeit 2030.
- Working Capital: Lagerbest盲nde 541 Mio. USD (+13 % seit Gesch盲ftsjahresende); Forderungen stabil; abgegrenzte Erl枚se um 113 Mio. auf 420 Mio. USD gestiegen.
- Cashflow: Operativer Cashflow 300,7 Mio. USD (-5 % YoY); Investitionen in Sachanlagen & Software 48 Mio.; freier Cashflow ca. 253 Mio. USD. Aktienr眉ckk盲ufe auf 14 Mio. USD f眉r RSU-Steuerabz眉ge begrenzt.
- Akquisitionen & Strategie: Im Mai 2025 Abschluss des Kaufs von Halo Labs f眉r 35 Mio. USD (erg盲nzt Partikelanalysetechnologie). Nachfolgendes Ereignis: Definitive Vereinbarung (13. Juli 25) zur 脺bernahme von BD Biosciences & Diagnostic Solutions f眉r ca. 17,5 Mrd. USD in bar/aktien 鈥� transformativ, falls abgeschlossen.
- Prognose: Keine angegeben; Management weist auf W盲hrungsheadwinds, ERP-Rollout (130 Mio. 眉ber 3 Jahre) und h枚here Steuerquote (17,2 % vs. 15,7 %) hin.
- 叠颈濒补苍锄蝉迟盲谤办别: Eigenkapital 2,16 Mrd. USD vs. 1,83 Mrd. zum Gesch盲ftsjahresende; Verschuldungsgrad (Netto-Schulden/EBITDA) f盲llt auf ca. 2,7脳 vor BD-Deal.
Insgesamt erzielte Waters ein mittleres einstelligen Wachstum und stabile EPS, w盲hrend das Unternehmen sich auf eine gro脽e, die Verschuldung erh枚hende Akquisition vorbereitet, die seine Gr枚脽e und Risikoprofil erheblich ver盲ndern k枚nnte.
- Revenue growth outpaced peers at +8.9 % YoY, demonstrating demand resilience across regions.
- EPS diluted rose 3 % (Q2) and 9 % (YTD), supported by lower interest expense and share count control.
- Net debt reduced by $170 m, improving leverage and covenant flexibility ahead of the planned acquisition.
- Operating margin contracted 230 bp YoY due to higher SG&A and service cost inflation.
- Inventories climbed 13 % since year-end, raising working-capital risk if sales decelerate.
- Pending $17.5 bn BD Biosciences acquisition will materially increase leverage and integration risk.
- Operating cash flow fell 5 % YoY, partly from receivable timing and ERP expenses.
Insights
TL;DR: Solid top-line beat, flat margins; pending $17.5 bn BD deal is the swing factor for valuation.
Revenue grew nearly 9 % YoY, outperforming sector peers (~5 %), driven by chemistry consumables and China rebound (+17 %). However, gross margin compressed 100 bp on mix and higher service costs, and SG&A rose 16 % on ERP spending. Operating cash conversion dipped to 89 % from 97 %. Debt reduction improves flexibility, yet the BD Biosciences purchase will likely push leverage above 4脳 EBITDA, forcing credit-facility accordion and potential equity issuance. Investors should monitor H2 regulatory approvals, integration roadmap and covenant headroom (max leverage 4.25脳 post-acquisition).
TL;DR: Balance sheet healthy now; mega-deal adds execution, financing and FX risks.
Waters shaved $169 m of debt and holds $367 m cash, meeting covenants comfortably. Yet the $17.5 bn BD Biosciences deal dwarfs current equity ($2.16 bn). Funding will depend on the $1.8 bn revolver, incremental term loans and unsecured notes; interest-coverage covenant is 3.5脳 vs current 11脳, leaving limited buffer. Integration challenges include overlapping diagnostic lines, ERP migration and global tax changes (OECD Pillar Two). Inventory build (+13 %) hints at supply-chain normalization but could pressure working capital if demand softens. Overall impact: neutral to slightly negative until financing clarity emerges.
Waters Corp. (WAT) Q2 2025: punti salienti del 10-Q
- Vendite nette: 771,3 milioni di dollari, +8,9% su base annua; da inizio anno 1,43 miliardi, +6,5%.
- Composizione: Prodotti 473,4 milioni (+8,8%), Servizi 297,9 milioni (+9,0%).
- 搁别诲诲颈迟颈惫颈迟脿: Utile operativo Q2 188,2 milioni (margine 24,4% vs 26,7%), sostanzialmente stabile su base annua. Utile netto 147,1 milioni (+3%); EPS diluito 2,47$ (vs 2,40$). EPS da inizio anno 4,50$ (+9,2%).
- Liquidit脿 e debito: Liquidit脿 367 milioni (+42 milioni da inizio anno); debito totale 1,46 miliardi (-169 milioni). 260 milioni di note sono state riclassificate come a breve termine; linea di credito modificata a 1,8 miliardi con scadenza 2030.
- Capitale circolante: Rimanenze 541 milioni (+13% rispetto a fine esercizio); crediti verso clienti stabili; ricavi differiti aumentati di 113 milioni a 420 milioni.
- Flusso di cassa: Flusso operativo 300,7 milioni (-5% su base annua); investimenti in capitale e software 48 milioni; flusso di cassa libero circa 253 milioni. Riacquisti azioni limitati a 14 milioni per copertura tasse RSU.
- Acquisizioni e strategia: Completato a maggio 2025 l'acquisto di Halo Labs per 35 milioni (aggiunge tecnologia di analisi particellare). Evento successivo: accordo definitivo (13 luglio 2025) per acquisire BD Biosciences & Diagnostic Solutions per circa 17,5 miliardi in contanti e azioni鈥攐perazione trasformativa se completata.
- Previsioni: nessuna fornita; la direzione segnala impatti negativi da cambio valuta, implementazione ERP (130 milioni in 3 anni) e aumento dell'aliquota fiscale (17,2% vs 15,7%).
- Solidit脿 patrimoniale: Patrimonio netto 2,16 miliardi vs 1,83 miliardi a fine esercizio; leva finanziaria (debito netto/EBITDA) scende a circa 2,7脳 prima dell'acquisizione BD.
In sintesi, Waters ha registrato una crescita a cifra media singola e un EPS stabile, preparandosi a una grande acquisizione che aumenter脿 la leva finanziaria e potrebbe modificare significativamente la sua dimensione e profilo di rischio.
Waters Corp. (WAT) Q2 2025: aspectos destacados del 10-Q
- Ventas netas: 771,3 millones de d贸lares, aumento del 8,9 % interanual; acumulado anual 1,43 mil millones, +6,5 %.
- 颁辞尘辫辞蝉颈肠颈贸苍: Producto 473,4 millones (+8,8 %), Servicio 297,9 millones (+9,0 %).
- Rentabilidad: Ingreso operativo Q2 188,2 millones (margen 24,4 % vs 26,7 %), pr谩cticamente estable interanual. Ingreso neto 147,1 millones (+3 %); EPS diluido 2,47$ (vs 2,40$). EPS acumulado 4,50$ (+9,2 %).
- Efectivo y deuda: Efectivo 367 millones (+42 millones en el a帽o); deuda total 1,46 mil millones (-169 millones). 260 millones de notas reclasificadas a corto plazo; l铆nea de cr茅dito modificada a 1,8 mil millones con vencimiento en 2030.
- Capital de trabajo: Inventarios 541 millones (+13 % desde fin de ejercicio); cuentas por cobrar estables; ingresos diferidos aumentaron 113 millones a 420 millones.
- Flujo de caja: Flujo operativo 300,7 millones (-5 % interanual); capex y software 48 millones; flujo de caja libre alrededor de 253 millones. Recompra de acciones limitada a 14 millones para retenci贸n fiscal de RSU.
- Adquisiciones y estrategia: Cerrada en mayo 2025 la compra de Halo Labs por 35 millones (agrega tecnolog铆a de an谩lisis de part铆culas). Evento posterior: acuerdo definitivo (13 jul 25) para adquirir BD Biosciences & Diagnostic Solutions por aproximadamente 17,5 mil millones en efectivo/acciones鈥攐peraci贸n transformadora si se completa.
- Perspectivas: no se proporcionaron; la direcci贸n menciona vientos en contra por tipo de cambio, implementaci贸n ERP (130 millones en 3 a帽os) y mayor tasa impositiva (17,2 % vs 15,7 %).
- Fortaleza financiera: Patrimonio 2,16 mil millones vs 1,83 mil millones fin de ejercicio; apalancamiento (deuda neta/EBITDA) cae a ~2,7脳 antes del acuerdo BD.
En resumen, Waters mostr贸 un crecimiento de un solo d铆gito medio y EPS estable, mientras se prepara para una gran adquisici贸n que aumentar谩 el apalancamiento y podr铆a cambiar significativamente su escala y perfil de riesgo.
Waters Corp. (WAT) 2025雲� 2攵勱赴 10-Q 欤检殧 雮挫毄
- 靾滊Г於�: 7鞏� 7,130毵� 雼煬, 鞝勲厔 雽�牍� 8.9% 歃濌皜; 鞐办磮 雸勳爜 14鞏� 3觳滊 雼煬, +6.5%.
- 甑劚: 鞝滍拡 4鞏� 7,340毵� 雼煬 (+8.8%), 靹滊箘鞀� 2鞏� 9,790毵� 雼煬 (+9.0%).
- 靾橃澋靹�: 2攵勱赴 鞓侅梾鞚挫澋 1鞏� 8,820毵� 雼煬 (毵堨 24.4% vs 26.7%), 鞝勲厔瓿� 瓯办潣 霃欖澕. 靾滌澊鞚� 1鞏� 4,710毵� 雼煬 (+3%); 頋劃 欤茧嫻靾滌澊鞚� 2.47雼煬 (歆�雮滍暣 2.40雼煬). 鞐办磮 雸勳爜 EPS 4.50雼煬 (+9.2%).
- 順勱笀 氚� 攵�毂�: 順勱笀 3鞏� 6,700毵� 雼煬 (鞐办磮 雽�牍� 4,200毵� 雼煬 歃濌皜); 齑濍秬毂� 14鞏� 6觳滊 雼煬 (1鞏� 6,900毵� 雼煬 臧愳唽). 雼赴攵�毂勲 鞛秳毳橂悳 鞏挫潓 2鞏� 6觳滊 雼煬; 靾橃爼霅� 鞁犾毄 頃滊弰 18鞏� 雼煬, 2030雲� 毵岅赴.
- 鞖挫爠鞛愲掣: 鞛碃 5鞏� 4,100毵� 雼煬 (須岅硠鞐半弰 毵� 雽�牍� 13% 歃濌皜); 毵れ稖毂勱秾鞚� 氤�霃� 鞐嗢潓; 鞚挫棸靾橃澋 1鞏� 1,300毵� 雼煬 歃濌皜頃� 4鞏� 2,000毵� 雼煬.
- 顺勱笀頋愲: 鞓侅梾順勱笀頋愲 3鞏� 70毵� 雼煬 (鞝勲厔 雽�牍� 5% 臧愳唽); 鞛愲掣鞝� 歆�於� 氚� 靻岉攧韸胳洦鞏� 4,800毵� 雼煬; 鞛愳湢順勱笀頋愲 鞎� 2鞏� 5,300毵� 雼煬. 欤检嫕頇橂Г電� RSU 靹戈笀 鞗愳矞歆曥垬鞖╈溂搿� 1,400毵� 雼煬鞐� 鞝滍暅霅�.
- 鞚胳垬 氚� 鞝勲灥: 2025雲� 5鞗� Halo Labs 鞚胳垬 鞕勲, 3,500毵� 雼煬 (鞛呾瀽 攵勳劃 旮办垹 於旉皜). 頉勳啀 鞚措菠韸�: 2025雲� 7鞗� 13鞚� BD Biosciences & Diagnostic Solutions 鞚胳垬毳� 鞙勴暅 斓滌 瓿勳暯 觳搓舶, 鞎� 175鞏� 雼煬 順勱笀/欤检嫕 瓯半灅鈥旍檮耄� 鞁� 雽�雽�鞝� 氤�頇� 鞓堨儊.
- 臧赌鞚措崢鞀�: 鞝滉车霅橃 鞎婌潓; 瓴届榿歆勳潃 頇橃湪 鞐拲, ERP 霃勳瀰(3雲勱皠 1鞏� 3觳滊 雼煬), 靹胳湪 靸侅姽(17.2% vs 15.7%) 鞏戈笁.
- 鞛 瓯挫爠靹�: 鞛愲掣 21鞏� 6觳滊 雼煬 vs 須岅硠鞐半弰 毵� 18鞏� 3觳滊 雼煬; 霠堧矂毽(靾滊秬毂�/EBITDA) BD 鞚胳垬 鞝� 鞎� 2.7氚半 頃橂澖.
鞝勲皹鞝侅溂搿� Waters電� 欷戧皠 雼渼鞚� 雼澕 鞛愲靾� 靹膘灔瓿� 鞎堨爼鞝侅澑 EPS毳� 旮半頄堨溂氅�, 雽�攴滊 霠堧矂毽 歃濌皜 鞚胳垬毳� 欷�牍勴晿鞐� 攴滊鞕� 鞙勴棙 頂勲頃勳棎 韥� 氤�頇旊ゼ 臧�鞝胳槵 靾� 鞛堨姷雼堧嫟.
Waters Corp. (WAT) Faits marquants du 10-Q du T2 2025
- Ventes nettes : 771,3 M$, en hausse de 8,9 % en glissement annuel ; cumul annuel 1,43 Md$, +6,5 %.
- R茅partition : Produits 473,4 M$ (+8,8 %), Services 297,9 M$ (+9,0 %).
- Rentabilit茅 : R茅sultat op茅rationnel T2 188,2 M$ (marge 24,4 % vs 26,7 %), pratiquement stable en glissement annuel. R茅sultat net 147,1 M$ (+3 %) ; BPA dilu茅 2,47 $ (vs 2,40 $). BPA cumul茅 4,50 $ (+9,2 %).
- Tr茅sorerie & dette : Tr茅sorerie 367 M$ (鈫�42 M$ depuis le d茅but de l鈥檃nn茅e) ; dette totale 1,46 Md$ (鈫�169 M$). 260 M$ de billets reclass茅s en court terme ; facilit茅 de cr茅dit modifi茅e 脿 1,8 Md$ 茅ch茅ant en 2030.
- Fonds de roulement : Stocks 541 M$ (+13 % depuis la fin d鈥檈xercice) ; cr茅ances clients stables ; revenus diff茅r茅s en hausse de 113 M$ 脿 420 M$.
- Flux de tr茅sorerie : Flux op茅rationnel 300,7 M$ (-5 % en glissement annuel) ; CAPEX & logiciels 48 M$ ; flux de tr茅sorerie libre ~253 M$. Rachats d鈥檃ctions limit茅s 脿 14 M$ pour la retenue fiscale li茅e aux RSU.
- Acquisitions & strat茅gie : Acquisition finalis茅e en mai 2025 de Halo Labs pour 35 M$ (ajoute une technologie d鈥檃nalyse particulaire). 脡v茅nement post茅rieur : accord d茅finitif (13 juillet 25) pour acqu茅rir BD Biosciences & Diagnostic Solutions pour environ 17,5 Md$ en cash/actions 鈥� op茅ration transformative si elle aboutit.
- Pr茅visions : aucune fournie ; la direction note des vents contraires li茅s au change, au d茅ploiement ERP (130 M$ sur 3 ans) et 脿 un taux d鈥檌mposition plus 茅lev茅 (17,2 % vs 15,7 %).
- Solidit茅 du bilan : Capitaux propres 2,16 Md$ vs 1,83 Md$ fin d鈥檈xercice ; levier (dette nette/EBITDA) en baisse 脿 ~2,7脳 avant l鈥檕p茅ration BD.
Dans l鈥檈nsemble, Waters a affich茅 une croissance 脿 un chiffre moyen et un BPA stable, tout en se pr茅parant 脿 une acquisition majeure augmentant son levier et pouvant transformer significativement son envergure et son profil de risque.
Waters Corp. (WAT) Q2 2025 10-Q Highlights
- 狈别迟迟辞别谤濒枚蝉别: 771,3 Mio. USD, +8,9 % im Jahresvergleich; Jahr bis Datum 1,43 Mrd. USD, +6,5 %.
- Mischung: Produkt 473,4 Mio. USD (+8,8 %), Service 297,9 Mio. USD (+9,0 %).
- 笔谤辞蹿颈迟补产颈濒颈迟盲迟: Operatives Ergebnis Q2 188,2 Mio. USD (Marge 24,4 % vs. 26,7 %), im Wesentlichen stabil im Jahresvergleich. Nettogewinn 147,1 Mio. USD (+3 %); verw盲ssertes EPS 2,47 USD (vs. 2,40 USD). YTD EPS 4,50 USD (+9,2 %).
- Barmittel & Schulden: Barmittel 367 Mio. USD (鈫�42 Mio. YTD); Gesamtschulden 1,46 Mrd. USD (鈫�169 Mio.). 260 Mio. USD an Schuldverschreibungen wurden als kurzfristig umklassifiziert; ge盲nderte Kreditlinie jetzt 1,8 Mrd. USD mit F盲lligkeit 2030.
- Working Capital: Lagerbest盲nde 541 Mio. USD (+13 % seit Gesch盲ftsjahresende); Forderungen stabil; abgegrenzte Erl枚se um 113 Mio. auf 420 Mio. USD gestiegen.
- Cashflow: Operativer Cashflow 300,7 Mio. USD (-5 % YoY); Investitionen in Sachanlagen & Software 48 Mio.; freier Cashflow ca. 253 Mio. USD. Aktienr眉ckk盲ufe auf 14 Mio. USD f眉r RSU-Steuerabz眉ge begrenzt.
- Akquisitionen & Strategie: Im Mai 2025 Abschluss des Kaufs von Halo Labs f眉r 35 Mio. USD (erg盲nzt Partikelanalysetechnologie). Nachfolgendes Ereignis: Definitive Vereinbarung (13. Juli 25) zur 脺bernahme von BD Biosciences & Diagnostic Solutions f眉r ca. 17,5 Mrd. USD in bar/aktien 鈥� transformativ, falls abgeschlossen.
- Prognose: Keine angegeben; Management weist auf W盲hrungsheadwinds, ERP-Rollout (130 Mio. 眉ber 3 Jahre) und h枚here Steuerquote (17,2 % vs. 15,7 %) hin.
- 叠颈濒补苍锄蝉迟盲谤办别: Eigenkapital 2,16 Mrd. USD vs. 1,83 Mrd. zum Gesch盲ftsjahresende; Verschuldungsgrad (Netto-Schulden/EBITDA) f盲llt auf ca. 2,7脳 vor BD-Deal.
Insgesamt erzielte Waters ein mittleres einstelligen Wachstum und stabile EPS, w盲hrend das Unternehmen sich auf eine gro脽e, die Verschuldung erh枚hende Akquisition vorbereitet, die seine Gr枚脽e und Risikoprofil erheblich ver盲ndern k枚nnte.
Table of Contents
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
| ☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer |
☐ | Smaller reporting company | ||||
| Emerging growth company | ||||||
Table of Contents
WATERS CORPORATION AND SUBSIDIARIES
QUARTERLY REPORT ON FORM 10-Q
INDEX
| Page | ||||||
| PART I | FINANCIAL INFORMATION | |||||
| Item 1. |
Financial Statements | |||||
| Consolidated Balance Sheets (unaudited) as of June 28, 2025 and December 31, 2024 |
3 | |||||
| Consolidated Statements of Operations (unaudited) for the three months ended June 28, 2025 and June 29, 2024 |
4 | |||||
| Consolidated Statements of Operations (unaudited) for the six months ended June 28, 2025 and June 29, 2024 |
5 | |||||
| Consolidated Statements of Comprehensive Income (unaudited) for the three and six months ended June 28, 2025 and June 29, 2024 |
6 | |||||
| Consolidated Statements of Cash Flows (unaudited) for the six months ended June 28, 2025 and June 29, 2024 |
7 | |||||
| Consolidated Statements of Stockholders’ Equity (unaudited) for the three months ended June 28, 2025 and June 29, 2024 |
8 | |||||
| Consolidated Statements of Stockholders’ Equity (unaudited) for the six months ended June 28, 2025 and June 29, 2024 |
9 | |||||
| Condensed Notes to Consolidated Financial Statements (unaudited) |
10 | |||||
| Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 26 | ||||
| Item 3. |
Quantitative and Qualitative Disclosures About Market Risk | 37 | ||||
| Item 4. |
Controls and Procedures | 38 | ||||
| PART II |
OTHER INFORMATION |
|||||
| Item 1. |
Legal Proceedings | 38 | ||||
| Item 1A. |
Risk Factors | 38 | ||||
| Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds | 39 | ||||
| Item 5. |
Other Information | 40 | ||||
| Item 6. |
Exhibits | 41 | ||||
| Signature | 42 | |||||
Table of Contents
June 28, 2025 |
December 31, 2024 |
|||||||
(In thousands, except per share data) |
||||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | $ | ||||||
| Accounts receivable, net |
||||||||
| Inventories |
||||||||
| Other current assets |
||||||||
| |
|
|
|
|||||
| Total current assets |
||||||||
| Property, plant and equipment, net |
||||||||
| Intangible assets, net |
||||||||
| Goodwill |
||||||||
| Operating lease assets |
||||||||
| Other assets |
||||||||
| |
|
|
|
|||||
| Total assets |
$ | $ | ||||||
| |
|
|
|
|||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
| Current liabilities: |
||||||||
| Notes payable |
$ | $ | ||||||
| Accounts payable |
||||||||
| Accrued employee compensation |
||||||||
| Deferred revenue and customer advances |
||||||||
| Current operating lease liabilities |
||||||||
| Accrued income taxes |
||||||||
| Accrued warranty |
||||||||
| Other current liabilities |
||||||||
| |
|
|
|
|||||
| Total current liabilities |
||||||||
| Long-term liabilities: |
||||||||
| Long-term debt |
||||||||
| Long-term portion of retirement benefits |
||||||||
| Long-term income tax liabilities |
||||||||
| Long-term operating lease liabilities |
||||||||
| Other long-term liabilities |
||||||||
| |
|
|
|
|||||
| Total long-term liabilities |
||||||||
| |
|
|
|
|||||
| Total liabilities |
||||||||
| Commitments and contingencies (Notes 6, 7 and 9) |
||||||||
| Stockholders’ equity: |
||||||||
| Preferred stock, par value $ |
||||||||
| Common stock, par value $ |
||||||||
| Additional paid-in capital |
||||||||
| Retained earnings |
||||||||
| Treasury stock, at cost, |
( |
) | ( |
) | ||||
| Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
| |
|
|
|
|||||
| Total stockholders’ equity |
||||||||
| |
|
|
|
|||||
| Total liabilities and stockholders’ equity |
$ | $ | ||||||
| |
|
|
|
|||||
Three Months Ended |
||||||||
June 28, 2025 |
June 29, 2024 |
|||||||
(In thousands, except per share data) |
||||||||
| Revenues: |
||||||||
| Product sales |
$ | $ | ||||||
| Service sales |
||||||||
| |
|
|
|
|||||
| Total net sales |
||||||||
| Costs and operating expenses: |
||||||||
| Cost of product sales |
||||||||
| Cost of service sales |
||||||||
| Selling and administrative expenses |
||||||||
| Research and development expenses |
||||||||
| Purchased intangibles amortization |
||||||||
| |
|
|
|
|||||
| Total costs and operating expenses |
||||||||
| |
|
|
|
|||||
| Operating income |
||||||||
| Other expense, net |
( |
) |
( |
) | ||||
| Interest expense |
( |
) |
( |
) | ||||
| Interest income |
||||||||
| |
|
|
|
|||||
| Income before income taxes |
||||||||
| Provision for income taxes |
||||||||
| |
|
|
|
|||||
| Net income |
$ | $ | ||||||
| |
|
|
|
|||||
| Net income per basic common share |
$ |
$ |
||||||
| Weighted-average number of basic common shares |
||||||||
| Net income per diluted common share |
$ |
$ |
||||||
| Weighted-average number of diluted common shares and equivalents |
||||||||
Six Months Ended |
||||||||
June 28, 2025 |
June 29, 2024 |
|||||||
(In thousands, except per share data) |
||||||||
| Revenues: |
||||||||
| Product sales |
$ | $ | ||||||
| Service sales |
||||||||
| |
|
|
|
|||||
| Total net sales |
||||||||
| Costs and operating expenses: |
||||||||
| Cost of product sales |
||||||||
| Cost of service sales |
||||||||
| Selling and administrative expenses |
||||||||
| Research and development expenses |
||||||||
| Purchased intangibles amortization |
||||||||
| Litigation provision |
||||||||
| |
|
|
|
|||||
| Total costs and operating expenses |
||||||||
| |
|
|
|
|||||
| Operating income |
||||||||
| Other income, net |
||||||||
| Interest expense |
( |
) | ( |
) | ||||
| Interest income |
||||||||
| |
|
|
|
|||||
| Income before income taxes |
||||||||
| Provision for income taxes |
||||||||
| |
|
|
|
|||||
| Net income |
$ | $ | ||||||
| |
|
|
|
|||||
| Net income per basic common share |
$ | $ | ||||||
| Weighted-average number of basic common shares |
||||||||
| Net income per diluted common share |
$ | $ | ||||||
| Weighted-average number of diluted common shares and equivalents |
||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
(In thousands) |
(In thousands) |
|||||||||||||||
| Net income |
$ | $ | $ | $ | ||||||||||||
| Other comprehensive income (loss): |
||||||||||||||||
| Foreign currency translation |
( |
) | ( |
) | ||||||||||||
| Unrealized (losses) gains on derivative instruments before reclassifications |
( |
) | ( |
) | ||||||||||||
| Amounts reclassified to interest income |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Unrealized (losses) gains on derivative instruments before income taxes |
( |
) | ( |
) | ||||||||||||
| Income tax benefit (expense) |
( |
) | ( |
) | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Unrealized (losses) gains on derivative instruments, net of tax |
( |
) | ( |
) | ||||||||||||
| Retirement liability adjustment before reclassifications |
( |
) | ( |
) | ( |
) | ||||||||||
| Amounts reclassified to other income, net |
( |
) | ||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Retirement liability adjustment before income taxes |
( |
) | ( |
) | ( |
) | ||||||||||
| Income tax (expense) benefit |
( |
) | ( |
) | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Retirement liability adjustment, net of tax |
( |
) | ( |
) | ( |
) | ||||||||||
| Other comprehensive income (loss) |
( |
) | ( |
) | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Comprehensive income |
$ | $ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
Six Months Ended |
||||||||
June 28, 2025 |
June 29, 2024 |
|||||||
(In thousands) |
||||||||
| Cash flows from operating activities: |
||||||||
| Net income |
$ | $ | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Stock-based compensation |
||||||||
| Deferred income taxes |
||||||||
| Depreciation |
||||||||
| Amortization of intangibles |
||||||||
| Change in operating assets and liabilities: |
||||||||
| Decrease in accounts receivable |
||||||||
| Increase in inventories |
( |
) | ( |
) | ||||
| Increase in other current assets |
( |
) | ( |
) | ||||
| Decrease in other assets |
||||||||
| Decrease in accounts payable and other current liabilities |
( |
) | ( |
) | ||||
| Increase in deferred revenue and customer advances |
||||||||
| Decrease in other liabilities |
( |
) | ( |
) | ||||
| |
|
|
|
|||||
| Net cash provided by operating activities |
||||||||
| Cash flows from investing activities: |
||||||||
| Additions to property, plant, equipment and software capitalization |
( |
) | ( |
) | ||||
| Business acquisitions, net of cash acquired |
( |
) | ||||||
| Investments in unaffiliated companies, net |
( |
) | ( |
) | ||||
| Purchases of investments |
( |
) | ||||||
| Maturities and sales of investments |
||||||||
| |
|
|
|
|||||
| Net cash used in investing activities |
( |
) | ( |
) | ||||
| Cash flows from financing activities: |
||||||||
| Proceeds from debt issuances |
||||||||
| Payments on debt |
( |
) | ( |
) | ||||
| Payments of debt issuance costs |
( |
) | ||||||
| Proceeds from stock plans |
||||||||
| Purchases of treasury shares |
( |
) | ( |
) | ||||
| Proceeds from derivative contracts |
||||||||
| |
|
|
|
|||||
| Net cash used in financing activities |
( |
) | ( |
) | ||||
| Effect of exchange rate changes on cash and cash equivalents |
||||||||
| |
|
|
|
|||||
| Increase (decrease) in cash and cash equivalents |
( |
) | ||||||
| Cash and cash equivalents at beginning of period |
||||||||
| |
|
|
|
|||||
| Cash and cash equivalents at end of period |
$ | $ | ||||||
| |
|
|
|
|||||
Number of Common Shares |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Treasury Stock |
Accumulated Other Comprehensive Loss |
Total Stockholders’ Equity |
||||||||||||||||||||||
Balance March 30, 2024 |
$ | $ | $ |
$ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
Other comprehensive loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Issuance of common stock for employees: |
||||||||||||||||||||||||||||
Employee Stock Purchase Plan |
— | — | — | — | ||||||||||||||||||||||||
Stock options exercised |
— | — | — | — | ||||||||||||||||||||||||
Treasury stock |
— | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||
Stock-based compensation |
— | — | — | — | ||||||||||||||||||||||||
Balance June 29, 2024 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
Number of Common Shares |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Treasury Stock |
Accumulated Other Comprehensive Loss |
Total Stockholders’ Equity |
||||||||||||||||||||||
Balance March 29, 2025 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
Other comprehensive income |
— | — | — | — | — | |||||||||||||||||||||||
Issuance of common stock for employees: |
||||||||||||||||||||||||||||
Employee Stock Purchase Plan |
— | — | — | — | ||||||||||||||||||||||||
Stock options exercised |
— | — | — | — | ||||||||||||||||||||||||
Treasury stock |
— | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||
Stock-based compensation |
— | — | — | — | ||||||||||||||||||||||||
Balance June 28, 2025 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
Number of Common Shares |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Treasury Stock |
Accumulated Other Comprehensive Loss |
Total Stockholders’ Equity |
||||||||||||||||||||||
| Balance December 31, 2023 |
$ | $ | $ |
$ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
| Net income |
— | — | — | — | — | |||||||||||||||||||||||
| Other comprehensive loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
| Issuance of common stock for employees: |
||||||||||||||||||||||||||||
| Employee Stock Purchase Plan |
— | — | — | — | ||||||||||||||||||||||||
| Stock options exercised |
— | — | — | |||||||||||||||||||||||||
| Treasury stock |
— | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||
| Stock-based compensation |
— | — | — | |||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Balance June 29, 2024 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Number of Common Shares |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Treasury Stock |
Accumulated Other Comprehensive Loss |
Total Stockholders’ Equity |
||||||||||||||||||||||
| Balance December 31, 2024 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
| Net income |
— | — | — | — | — | |||||||||||||||||||||||
| Other comprehensive income |
— | — | — | — | — | |||||||||||||||||||||||
| Issuance of common stock for employees: |
||||||||||||||||||||||||||||
| Employee Stock Purchase Plan |
— | — | — | — | ||||||||||||||||||||||||
| Stock options exercised |
— | — | — | — | ||||||||||||||||||||||||
| Treasury stock |
— | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||
| Stock-based compensation |
— | — | — | |||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Balance June 28, 2025 |
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | ||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at Beginning of Period |
Additions |
Deductions and Other |
Balance at End of Period |
|||||||||||||
Allowance for Credit Losses |
||||||||||||||||
June 28, 2025 |
$ | $ | $ | ( |
) | $ | ||||||||||
June 29, 2024 |
$ | $ | $ | ( |
) | $ | ||||||||||
Total at June 28, 2025 |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
|||||||||||||
Assets: |
||||||||||||||||
Waters 401(k) Restoration Plan assets |
$ | $ | $ | — | $ | — | ||||||||||
Foreign currency exchange contracts |
— | — | ||||||||||||||
Interest rate cross-currency swap agreements |
— | — | ||||||||||||||
Interest rate swap cash flow hedge |
— | — | ||||||||||||||
Total |
$ | $ | $ | $ | ||||||||||||
Liabilities: |
||||||||||||||||
Foreign currency exchange contracts |
$ | $ | — | $ | $ | — | ||||||||||
Interest rate cross-currency swap agreements |
— | — | ||||||||||||||
Interest rate swap cash flow hedge |
— | — | ||||||||||||||
Total |
$ | $ | $ | $ | ||||||||||||
Total at December 31, 2024 |
Quoted Prices in Active Markets for Identical Assets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Unobservable Inputs (Level 3) |
|||||||||||||
Assets: |
||||||||||||||||
Waters 401(k) Restoration Plan assets |
$ | $ | $ | — | $ | — | ||||||||||
Foreign currency exchange contracts |
— | — | ||||||||||||||
Interest rate cross-currency swap agreements |
— | — | ||||||||||||||
Interest rate swap cash flow hedge |
— | — | ||||||||||||||
Total |
$ | $ | $ | $ | ||||||||||||
Liabilities: |
||||||||||||||||
Foreign currency exchange contracts |
$ | $ | — | $ | $ | — | ||||||||||
Interest rate swap cash flow hedge |
— | — | ||||||||||||||
Total |
$ | $ | $ | $ | ||||||||||||
June 28, 2025 |
December 31, 2024 |
|||||||||||||||
Notional Value |
Fair Value |
Notional Value |
Fair Value |
|||||||||||||
Foreign currency exchange contracts: |
||||||||||||||||
Other current assets |
$ | $ | $ | $ | ||||||||||||
Other current liabilities |
$ | $ | $ | $ | ||||||||||||
Interest rate cross-currency swap agreements: |
||||||||||||||||
Other assets |
$ | $ | $ | $ | ||||||||||||
Other liabilities |
$ | $ | $ | — | $ | — | ||||||||||
Accumulated other comprehensive (loss) income |
$ | ( |
) | $ | ||||||||||||
Interest rate swap cash flow hedges: |
||||||||||||||||
Other assets |
$ | $ | $ | $ | ||||||||||||
Other liabilities |
$ | $ | $ | $ | ||||||||||||
Accumulated other comprehensive (loss) income |
$ | ( |
) | $ | ( |
) | ||||||||||
Financial |
Three Months Ended |
Six Months Ended |
||||||||||||||||
Statement |
June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
||||||||||||||
Classification | ||||||||||||||||||
Foreign currency exchange contracts: |
||||||||||||||||||
AG真人官方ized (losses) gains on closed contracts |
Cost of sales |
$ | ( |
) | $ | $ | ( |
) | $ | |||||||||
Unrealized gains on open contracts |
Cost of sales |
|||||||||||||||||
Cumulative net pre-tax gains (losses) |
Cost of sales |
$ | $ | $ | ( |
) | $ | |||||||||||
Interest rate cross-currency swap agreements: |
||||||||||||||||||
Interest earned |
Interest income |
$ | $ | $ | $ | |||||||||||||
Unrealized (losses) gains on open contracts |
Other comprehensive income |
$ | ( |
) | $ | $ | ( |
) | $ | |||||||||
Interest rate swap cash flow hedges: |
||||||||||||||||||
Interest earned |
Interest income |
$ | $ | $ | $ | |||||||||||||
Unrealized (losses) gains on open contracts |
Other comprehensive income | $ | ( |
) | $ | $ | ( |
) | $ | |||||||||
Balance at Beginning of Period |
Accruals for Warranties |
Settlements Made |
Balance at End of Period |
|||||||||||||
Accrued warranty liability: |
||||||||||||||||
June 28, 2025 |
$ | $ | $ | ( |
) | $ | ||||||||||
June 29, 2024 |
$ | $ | $ | ( |
) | $ | ||||||||||
June 28, 2025 |
June 29, 2024 |
|||||||
| Balance at the beginning of the period |
$ | $ | ||||||
| Recognition of revenue included in balance at beginning of the period |
( |
) | ( |
) | ||||
| Revenue deferred during the period, net of revenue recognized |
||||||||
| |
|
|
|
|||||
| Balance at the end of the period |
$ | $ | ||||||
| |
|
|
|
|||||
June 28, 2025 |
||||
| Unfulfilled performance obligations expected to be recognized in: |
||||
| |
$ | |||
| |
||||
| |
||||
| |
|
|||
| Total |
$ | |||
| |
|
|||
June 28, 2025 |
December 31, 2024 |
|||||||
| Raw materials |
$ | $ | ||||||
| Work in progress |
||||||||
| Finished goods |
||||||||
| |
|
|
|
|||||
| Total inventories |
$ | $ | ||||||
| |
|
|
|
|||||
| Purchase Price |
||||
| Cash paid |
$ | |||
| Less: cash acquired |
( |
) | ||
| |
|
|||
| Net cash consideration |
||||
| |
|
|||
| Identifiable Net Assets (Liabilities) Acquired |
||||
| Accounts receivable |
||||
| Inventory |
||||
| Prepaid, property, plant and equipment, operating lease and other assets |
||||
| Intangible assets |
||||
| Accounts payable and accrued expenses |
( |
) | ||
| Operating lease liabilities, deferred revenue and other liabilities |
( |
) | ||
| Tax liabilities |
( |
) | ||
| |
|
|||
| Total identifiable net assets acquired |
||||
| Goodwill |
||||
| |
|
|||
| Net cash consideration |
$ | |||
| |
|
June 28, 2025 |
December 31, 2024 |
|||||||||||||||||||||||
Gross Carrying Amount |
Accumulated Amortization |
Weighted- Average Amortization Period |
Gross Carrying Amount |
Accumulated Amortization |
Weighted- Average Amortization Period |
|||||||||||||||||||
| Capitalized software |
$ | $ | $ | $ | ||||||||||||||||||||
| Purchased intangibles |
||||||||||||||||||||||||
| Trademarks |
— | — | ||||||||||||||||||||||
| Licenses |
||||||||||||||||||||||||
| Patents and other intangibles |
||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
$ | $ | $ | $ | ||||||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||||||||||
June 28, 2025 |
December 31, 2024 |
|||||||
Senior unsecured notes - Series K - |
$ | $ | ||||||
Senior unsecured notes - Series N - |
||||||||
Total notes payable and debt, current |
||||||||
Senior unsecured notes - Series K - |
||||||||
Senior unsecured notes - Series L - |
||||||||
Senior unsecured notes - Series M - |
||||||||
Senior unsecured notes - Series N - |
||||||||
Senior unsecured notes - Series O - |
||||||||
Senior unsecured notes - Series P - |
||||||||
Senior unsecured notes - Series Q - |
||||||||
Credit agreement |
||||||||
Unamortized debt issuance costs |
( |
) | ( |
) | ||||
Total long-term debt |
||||||||
Total debt |
$ | $ | ||||||
Three Months Ended June 28, 2025 |
||||||||||||
Net Income (Numerator) |
Weighted- Average Shares (Denominator) |
Per Share Amount |
||||||||||
| Net income per basic common share |
$ | $ | ||||||||||
| Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities |
— | |||||||||||
| |
|
|
|
|
|
|||||||
| Net income per diluted common share |
$ | $ | ||||||||||
| |
|
|
|
|
|
|||||||
Three Months Ended June 29, 2024 |
||||||||||||
Net Income (Numerator) |
Weighted- Average Shares (Denominator) |
Per Share Amount |
||||||||||
| Net income per basic common share |
$ | $ | ||||||||||
| Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities |
— | ( |
) | |||||||||
| |
|
|
|
|
|
|||||||
| Net income per diluted common share |
$ | $ | ||||||||||
| |
|
|
|
|
|
|||||||
Six Months Ended June 28, 2025 |
||||||||||||
Net Income (Numerator) |
Weighted- Average Shares (Denominator) |
Per Share Amount |
||||||||||
| Net income per basic common share |
$ | $ | ||||||||||
| Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities |
— | ( |
) | |||||||||
| |
|
|
|
|
|
|||||||
| Net income per diluted common share |
$ | $ | ||||||||||
| |
|
|
|
|
|
|||||||
Six Months Ended June 29, 2024 |
||||||||||||
Net Income (Numerator) |
Weighted- Average Shares (Denominator) |
Per Share Amount |
||||||||||
| Net income per basic common share |
$ | $ | ||||||||||
| Effect of dilutive stock option, restricted stock, performance stock unit and restricted stock unit securities |
— | ( |
) | |||||||||
| |
|
|
|
|
|
|||||||
| Net income per diluted common share |
$ | $ | ||||||||||
| |
|
|
|
|
|
|||||||
Currency Translation |
Unrealized Loss on Retirement Plans |
Unrealized Loss on Derivative Instruments |
Accumulated Other Comprehensive Loss |
|||||||||||||
| Balance at December 31, 2024 |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
| Other comprehensive income (loss), net of tax |
( |
) | ( |
) | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Balance at June 28, 2025 |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
| |
|
|
|
|
|
|
|
|||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
| Product net sales: |
||||||||||||||||
| Waters instrument systems |
$ | $ | $ | $ | ||||||||||||
| Chemistry consumables |
||||||||||||||||
| TA instrument systems |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total product sales |
||||||||||||||||
| Service net sales: |
||||||||||||||||
| Waters service |
||||||||||||||||
| TA service |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total service sales |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total net sales |
$ | $ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
| Net Sales: |
||||||||||||||||
| Asia: |
||||||||||||||||
| China |
$ | $ | $ | $ | ||||||||||||
| Asia Other |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total Asia |
||||||||||||||||
| Americas: |
||||||||||||||||
| United States |
||||||||||||||||
| Americas Other |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total Americas |
||||||||||||||||
| Europe |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total net sales |
$ | $ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
| Pharmaceutical |
$ | $ | $ | $ | ||||||||||||
| Industrial |
||||||||||||||||
| Academic and government |
||||||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
| Total net sales |
$ | $ | $ | $ | ||||||||||||
| |
|
|
|
|
|
|
|
|||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
Net sales recognized at a point in time: |
||||||||||||||||
Instrument systems |
$ | $ | $ | $ | ||||||||||||
Chemistry consumables |
||||||||||||||||
Service sales recognized at a point in time (time & materials) |
||||||||||||||||
Total net sales recognized at a point in time |
||||||||||||||||
Net sales recognized over time: |
||||||||||||||||
Service and software maintenance sales recognized over time (contracts) |
||||||||||||||||
Total net sales |
$ | $ | $ | $ | ||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 28, 2025 |
June 29, 2024 |
June 28, 2025 |
June 29, 2024 |
|||||||||||||
Total sales, net |
$ | $ | $ | $ | ||||||||||||
Less: |
||||||||||||||||
Labor costs within selling and administrative and research and development expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Material purchases |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Labor costs within product and service cost of sales |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other segment expenses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Interest expense and other income, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Provision for income taxes |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net income |
$ | $ | $ | $ | ||||||||||||
Table of Contents
Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations
Business Overview
The Company has two operating segments: WatersTM and TATM. Waters products and services primarily consist of high-performance liquid chromatography (“HPLC”), ultra-performance liquid chromatography (“UPLCTM” and, together with HPLC, referred to as “LC”), mass spectrometry (“MS”), light scattering and field-flow fractionation instruments (Wyatt), and precision chemistry consumable products and related services. TA products and services primarily consist of thermal analysis, rheometry and calorimetry instrument systems and service sales. The Company’s products are used by pharmaceutical, biochemical, industrial, nutritional safety, environmental, academic and government customers. These customers use the Company’s products to detect, identify, monitor and measure the chemical, physical and biological composition of materials and to predict the suitability and stability of fine chemicals, pharmaceuticals, water, polymers, metals and viscous liquids in various industrial, consumer goods and healthcare products.
Acquisition of Halo Labs
On May 20, 2025, the Company completed the acquisition of all of the outstanding equity interests of Optofluidics, Inc., and its wholly owned operating subsidiary, Halo Labs LTD (collectively, “Halo Labs”), for $35 million, net of cash acquired. Halo Labs offers high throughput biopharmaceutical formulation, stability and product quality control tools for aggregate and subvisible particle analysis through the use of custom optics and image processing techniques. As a result of the acquisition, the results of Halo Labs are included in the Company’s consolidated financial statements from the acquisition date.
Acquisition of BD Biosciences & Diagnostic Solutions Businesses
On July 13, 2025, the Company entered into definitive agreements with BD, Augusta SpinCo Corporation, a Delaware corporation and wholly owned subsidiary of BD (“SpinCo”), and Beta Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Waters (“Merger Sub”), with respect to a Reverse Morris Trust transaction valued at approximately $17.5 billion as of the date of signing, and pursuant to which, subject to the terms and conditions of such definitive agreements, (i) BD will transfer (or cause to be transferred) and SpinCo will accept and assume (or cause to be accepted and assumed) all of the rights, titles and interests to and under certain assets and liabilities relating to BD’s Biosciences and Diagnostic Solutions business, (ii) BD will distribute to its shareholders all of the issued and outstanding shares of common stock, $0.01 par value per share, of SpinCo (“SpinCo Common Stock”) held by BD by way of a pro rata distribution (the “Spin-Off” and the disposition by BD of 100% of the SpinCo Common Stock by way of the Spin-Off, the “Distribution”) and (iii) following the Distribution, Merger Sub will be merged with and into SpinCo, with SpinCo as the surviving entity (the “Merger”), and all SpinCo Common Stock will be converted into the right to receive shares of common stock, $0.01 par value per share, of the Company (“Company Common Stock”), as calculated and subject to adjustment as set forth in the Merger Agreement (as defined herein). When the Merger is completed, SpinCo will become a wholly owned subsidiary of Waters. Upon completion of the Merger, BD’s shareholders are expected to own approximately 39.2% of the combined company, and existing Waters Corporation shareholders are expected to own approximately 60.8% of the combined company. This strategic combination is expected to create a leading global life sciences and diagnostics company with enhanced scale, complementary capabilities and expanded end-market exposure.
The definitive agreements entered into in connection with the transaction include (i) an Agreement and Plan of Merger (the “Merger Agreement”), dated as of July 13, 2025, by and among Waters, BD, SpinCo and Merger Sub, and (ii) a Separation Agreement (the “Separation Agreement”), dated as of July 13, 2025, by and among Waters, BD and SpinCo. As set forth in the Merger Agreement, Waters, BD and SpinCo will also enter into several additional agreements in connection with the transaction.
Prior to, and as a condition of, the Distribution, SpinCo will make a cash payment to BD equal to $4.0 billion (the “SpinCo Cash Distribution”), subject to adjustment for cash, working capital and indebtedness of SpinCo and subject to decrease if additional shares of Company Common Stock will be issued to the Company’s shareholders. The SpinCo Cash Distribution is expected to be paid using proceeds from approximately $4.0 billion of new indebtedness to be incurred by SpinCo prior to the Distribution. The Company is expected to assume all indebtedness incurred by SpinCo in connection with the payment of the SpinCo Cash Distribution upon completion of the Merger. Based on information available through the date of this filing, if the transaction closes, the Company estimates it will incur transaction-related expenses and financing fees of approximately $120 million.
26
Table of Contents
In order to preserve the tax-free nature of the Spin-Off under the Reverse Morris Trust framework, the exchange ratio for the merger consideration specified in the Merger Agreement (the “Exchange Ratio”) may be adjusted and increased, if necessary, on the terms and subject to the conditions set forth in the Merger Agreement. In the event that the Exchange Ratio is adjusted upwards, the Company may issue a pre-closing cash dividend to the shareholders of the Company (the “Waters Special Dividend”) and/or the SpinCo Cash Distribution could be decreased to account for the value of the additional shares issued to the Company’s shareholders.
The transaction is expected to close around the end of the first quarter of calendar year 2026, subject to receipt of required regulatory approvals, shareholder approval from the Company’s shareholders and satisfaction of other customary closing conditions.
Tariffs
The Company sells and services its customers in over 35 countries outside of the U.S. and we have manufacturing operations in the U.S., Ireland, U.K. and in Singapore where we utilize subcontractors with worldwide capabilities.
In 2025, the U.S. government issued varying levels of tariffs on all imported goods into the U.S., including a baseline 10% tariff, subject to certain exceptions. The effective date of these tariffs has been delayed in certain cases, as the U.S. seeks to negotiate these tariffs with each of the respective countries. These tariffs, any resulting retaliatory tariffs and any related supply-chain disruptions could have a significant impact on the Company’s consolidated statement of operations and statement of cash flows. In response to currently applicable and potential future tariffs, the Company is continuing to evaluate and implement a series of actions and policies that are intended to offset a portion of the impact of the tariffs on the Company’s financial position and results of operations. While the Company believes that these actions and policies will mitigate a substantial portion of the impact of the tariffs, the Company cannot provide any assurances that the tariffs or any resulting impediments to trade will not have a material effect on the Company’s consolidated statement of operations and statement of cash flows.
Financial Overview
The Company’s operating results are as follows for the three and six months ended June 28, 2025 and June 29, 2024 (dollars in thousands, except per share data):
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 28, 2025 |
June 29, 2024 |
% change | June 28, 2025 |
June 29, 2024 |
% change | |||||||||||||||||||
| Revenues: |
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| Product sales |
$ | 473,400 | $ | 435,144 | 9 | % | $ | 873,930 | $ | 811,295 | 8 | % | ||||||||||||
| Service sales |
297,932 | 273,385 | 9 | % | 559,107 | 534,073 | 5 | % | ||||||||||||||||
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| Total net sales |
771,332 | 708,529 | 9 | % | 1,433,037 | 1,345,368 | 7 | % | ||||||||||||||||
| Costs and operating expenses: |
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| Cost of sales |
321,407 | 288,244 | 12 | % | 598,152 | 550,030 | 9 | % | ||||||||||||||||
| Selling and administrative expenses |
201,257 | 173,247 | 16 | % | 376,138 | 347,783 | 8 | % | ||||||||||||||||
| Research and development expenses |
48,548 | 46,182 | 5 | % | 95,170 | 90,777 | 5 | % | ||||||||||||||||
| Purchased intangibles amortization |
11,907 | 11,744 | 1 | % | 23,619 | 23,578 | — | |||||||||||||||||
| Litigation provision |
— | — | — | — | 10,242 | ** | ||||||||||||||||||
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| Operating income |
188,213 | 189,112 | — | 339,958 | 322,958 | 5 | % | |||||||||||||||||
| Operating income as a % of sales |
24.4 | % | 26.7 | % | 23.7 | % | 24.0 | % | ||||||||||||||||
| Other (expense) income, net |
(676 | ) | (302 | ) | 124 | % | 848 | 1,957 | (57 | %) | ||||||||||||||
| Interest expense, net |
(9,847 | ) | (19,398 | ) | (49 | %) | (20,228 | ) | (40,647 | ) | (50 | %) | ||||||||||||
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| Income before income taxes |
177,690 | 169,412 | 5 | % | 320,578 | 284,268 | 13 | % | ||||||||||||||||
| Provision for income taxes |
30,579 | 26,675 | 15 | % | 52,086 | 39,335 | 32 | % | ||||||||||||||||
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| Net income |
$ | 147,111 | $ | 142,737 | 3 | % | $ | 268,492 | $ | 244,933 | 10 | % | ||||||||||||
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| Net income per diluted common share |
$ | 2.47 | $ | 2.40 | 3 | % | $ | 4.50 | $ | 4.12 | 9 | % | ||||||||||||
| ** | Percentage not meaningful |
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The Company’s net sales increased 9% in the second quarter of 2025, as compared to the second quarter of 2024, with foreign currency translation increasing total sales growth by 1%. For the first half of 2025, the Company’s net sales increased 7%, with the effect of foreign currency translation decreasing sales growth by less than 1% as compared to the first half of 2024. The net sales growth in the second quarter and first half of 2025 was driven by strong customer demand across most major geographies, end markets and products.
Instrument system sales increased 5% and 7% for the second quarter and first half of 2025, respectively, primarily driven by broad-based higher customer demand for our instrument systems in most regions of the world. Foreign currency translation increased instrument system sales growth by 1% for the second quarter of 2025 and decreased instrument system sales growth by less than 1% for the first half of 2025.
Recurring revenues (combined sales of precision chemistry consumables and services) increased 12% and 6% for the second quarter and first half of 2025, respectively, with foreign currency translation increasing sales growth by 1% for the second quarter of 2025 and decreasing sales growth by approximately 1% for the first half of 2025. Service revenues increased 9% and 5% for the second quarter and first half of 2025, respectively. Chemistry sales growth increased 17% and 10% for the second quarter and first half of 2025, respectively. The double-digit chemistry sales growth can be attributed to approximately $8 million of chemistry consumable sales in China, which the Company believes may reflect sales that were pulled-forward into the second quarter of 2025, prior to the implementation of new tariffs.
Operating income decreased less than 1% for the second quarter of 2025 primarily due to the impact of the higher sales volume being offset by the change in sales mix, merit increases and approximately $14 million of transaction costs associated with the Merger. In addition, operating income for the second quarter of 2025 included the impact of $5 million of expenses associated with the Company’s new ERP system implementation. The effect of foreign currency translation increased operating income by $2 million.
Operating income increased 5% for the first half of 2025, due to the impact of the higher sales volume and the absence of severance-related costs associated with a workforce reduction in China and certain litigation settlements incurred in 2024, being partially offset by merit increases and $14 million of transaction costs associated with the Merger. In addition, operating income for the first half of 2025 also includes the impact of $7 million of expenses associated with the Company’s new ERP system implementation. The effect of foreign currency translation decreased operating income by $6 million.
The Company generated $301 million and $317 million of net cash from operating activities in the first half of 2025 and 2024, respectively. The first half of 2025 included an increase of $24 million more in tax payments associated with the final 2018 Tax Reform Transition payment as compared to the prior year. Net cash used in investing activities included capital expenditures related to property, plant, equipment and software capitalization of $48 million and $65 million in the first half of 2025 and 2024, respectively, as well as $35 million used for the Halo Labs acquisition in the second quarter of 2025.
On May 22, 2025, the Company and certain of its subsidiaries, as guarantors, entered into an Amendment and Restatement Agreement in respect of that certain Amended and Restated Credit Agreement, dated as of September 17, 2021 and amended as of March 3, 2023, with the lenders and issuing banks party thereto, and JPMorgan Chase Bank, N.A., as administrative agent, pursuant to which the Company, among other things, reduced the aggregate total borrowing capacity of its existing senior unsecured revolving credit facility (the “Credit Facility”) by up to $200 million for an aggregate principal amount of up to $1.8 billion. The Credit Facility will mature on May 22, 2030 subject to the Company’s ability to request, subject to customary conditions, a one-year extension to which each lender may, in its discretion, agree.
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Results of Operations
Sales by Geography
Geographic sales information is presented below for the three and six months ended June 28, 2025 and June 29, 2024 (dollars in thousands):
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 28, 2025 |
June 29, 2024 |
% change | June 28, 2025 |
June 29, 2024 |
% change | |||||||||||||||||||
| Net Sales: |
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| Asia: |
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| China |
$ | 117,130 | $ | 100,105 | 17 | % | $ | 208,003 | $ | 185,850 | 12 | % | ||||||||||||
| Asia Other |
148,810 | 137,326 | 8 | % | 278,713 | 259,140 | 8 | % | ||||||||||||||||
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| Total Asia |
265,940 | 237,431 | 12 | % | 486,716 | 444,990 | 9 | % | ||||||||||||||||
| Americas: |
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| United States |
230,131 | 231,931 | (1 | %) | 445,390 | 434,770 | 2 | % | ||||||||||||||||
| Americas Other |
50,609 | 42,537 | 19 | % | 90,887 | 80,869 | 12 | % | ||||||||||||||||
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| Total Americas |
280,740 | 274,468 | 2 | % | 536,277 | 515,639 | 4 | % | ||||||||||||||||
| Europe |
224,652 | 196,630 | 14 | % | 410,044 | 384,739 | 7 | % | ||||||||||||||||
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| Total net sales |
$ | 771,332 | $ | 708,529 | 9 | % | $ | 1,433,037 | $ | 1,345,368 | 7 | % | ||||||||||||
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Geographically, the increase in the Company’s sales in the second quarter and first half of 2025 was broad-based across most major regions except for the U.S., where sales declined 1%. Sales growth in China increased 17% and 12% in the second quarter and first half of 2025, respectively, as customers prioritized chemistry consumable purchases, which the Company estimates may have been pulled forward in advance of new tariffs being implemented. In the second quarter and first half of 2025, foreign currency translation increased Europe’s sales growth by 6% and 2%, respectively, and decreased Asia’s sales growth by 2% and 4%, respectively, primarily driven by the Japanese yen.
Sales by Trade Class
Net sales by customer class are presented below for the three and six months ended June 28, 2025 and June 29, 2024 (dollars in thousands):
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||
| June 28, 2025 |
June 29, 2024 |
% change | June 28, 2025 |
June 29, 2024 |
% change | |||||||||||||||||||
| Pharmaceutical |
$ | 461,968 | $ | 415,747 | 11 | % | $ | 853,019 | $ | 789,954 | 8 | % | ||||||||||||
| Industrial |
237,655 | 221,385 | 7 | % | 441,020 | 416,719 | 6 | % | ||||||||||||||||
| Academic and government |
71,709 | 71,397 | — | 138,998 | 138,695 | — | ||||||||||||||||||
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| Total net sales |
$ | 771,332 | $ | 708,529 | 9 | % | $ | 1,433,037 | $ | 1,345,368 | 7 | % | ||||||||||||
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During the second quarter of 2025, sales to pharmaceutical customers increased 11%, primarily driven by growth in China, the Americas and Europe. Foreign currency translation increased pharmaceutical sales growth by less than 1%. Combined sales to industrial customers, which include material characterization, food, environmental and fine chemical markets, increased 7% in the second quarter of 2025, primarily driven by the broad-based sales growth in most regions except for the U.S., where industrial sales declined by 10% on lower demand for TA instrument systems. Foreign currency translation increased industrial sales growth by 1%. Combined sales to academic and government customers were flat in the second quarter of 2025, with foreign currency translation increasing sales growth by 3%.
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During the first half of 2025, sales to pharmaceutical customers increased 8%, primarily driven by broad-based growth across all regions, with foreign currency translation decreasing pharmaceutical sales growth by 1%. Combined sales to industrial customers increased 6%, with foreign currency having minimal impact on sales growth. Sales to our academic and government customers remained flat and are highly dependent on when institutions receive funding to purchase our instrument systems and, as such, sales can vary significantly from period to period.
Waters Products and Services Net Sales
Net sales for Waters products and services were as follows for the three and six months ended June 28, 2025 and June 29, 2024 (dollars in thousands):
| Three Months Ended | ||||||||||||||||||||
| June 28, 2025 |
% of Total |
June 29, 2024 |
% of Total |
% change | ||||||||||||||||
| Waters instrument systems |
$ | 252,795 | 37 | % | $ | 235,228 | 38 | % | 7 | % | ||||||||||
| Chemistry consumables |
164,985 | 24 | % | 141,085 | 22 | % | 17 | % | ||||||||||||
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| Total Waters product sales |
417,780 | 61 | % | 376,313 | 60 | % | 11 | % | ||||||||||||
| Waters service |
271,057 | 39 | % | 246,248 | 40 | % | 10 | % | ||||||||||||
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| Total Waters net sales |
$ | 688,837 | 100 | % | $ | 622,561 | 100 | % | 11 | % | ||||||||||
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| Six Months Ended | ||||||||||||||||||||
| June 28, 2025 |
% of Total |
June 29, 2024 |
% of Total |
% change | ||||||||||||||||
| Waters instrument systems |
$ | 465,190 | 36 | % | $ | 426,487 | 36 | % | 9 | % | ||||||||||
| Chemistry consumables |
302,622 | 24 | % | 275,292 | 23 | % | 10 | % | ||||||||||||
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| Total Waters product sales |
767,812 | 60 | % | 701,779 | 59 | % | 9 | % | ||||||||||||
| Waters service |
508,322 | 40 | % | 482,681 | 41 | % | 5 | % | ||||||||||||
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| Total Waters net sales |
$ | 1,276,134 | 100 | % | $ | 1,184,460 | 100 | % | 8 | % | ||||||||||
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Waters products and services sales increased 11% and 8% for the second quarter and first half of 2025, respectively, with the effect of foreign currency translation adding 1% sales growth for the second quarter of 2025 and decreasing sales growth by 1% for the first half of 2025.
Waters instrument system sales increased by 7% and 9% for the second quarter and first half of 2025, respectively, due to higher customer demand for our instrument systems led by the increase in sales of mass spectrometry instrument systems.
The increase in Waters chemistry consumables sales was primarily due to the continued demand in most major geographies, driven by the uptake in columns and application-specific testing kits to pharmaceutical customers and the estimated pull-forward of approximately $8 million of China chemistry consumable sales into the second quarter of 2025 in advance of new tariffs being implemented. Foreign currency translation increased chemistry consumable sales by 1% in the second quarter of 2025.
Waters service sales increased 10% and 5% for the second quarter and first half of 2025, respectively, due to higher service demand billing in most major regions, with the effect of foreign currency translation having minimal impact on sales growth for the second quarter of 2025 and decreasing service sales by 2% for the first half of 2025.
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TA Product and Services Net Sales
Net sales for TA products and services were as follows for the three and six months ended June 28, 2025 and June 29, 2024 (dollars in thousands):
| Three Months Ended | ||||||||||||||||||||
| June 28, 2025 | % of Total |
June 29, 2024 | % of Total |
% change | ||||||||||||||||
| TA instrument systems |
$ | 55,620 | 67 | % | $ | 58,831 | 68 | % | (5 | %) | ||||||||||
| TA service |
26,875 | 33 | % | 27,137 | 32 | % | (1 | %) | ||||||||||||
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| Total TA net sales |
$ | 82,495 | 100 | % | $ | 85,968 | 100 | % | (4 | %) | ||||||||||
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| Six Months Ended | ||||||||||||||||||||
| June 28, 2025 | % of Total |
June 29, 2024 | % of Total |
% change | ||||||||||||||||
| TA instrument systems |
$ | 106,118 | 68 | % | $ | 109,516 | 68 | % | (3 | %) | ||||||||||
| TA service |
50,785 | 32 | % | 51,392 | 32 | % | (1 | %) | ||||||||||||
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| Total TA net sales |
$ | 156,903 | 100 | % | $ | 160,908 | 100 | % | (2 | %) | ||||||||||
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TA sales declined 4% and 2% for the second quarter and first half of 2025, respectively, due to lower customer demand for TA instrument systems primarily driven by a 21% decrease in U.S. sales. Foreign currency translation increased sales by 2% and 1% for the second quarter and first half of 2025, respectively.
Cost of Sales
Cost of sales increased 12% and 9% in the second quarter and first half of 2025, respectively. The increase is primarily due to higher sales volume. Cost of sales is affected by many factors, including, but not limited to, foreign currency translation, product mix, product costs of instrument systems and amortization of software platforms.
Selling and Administrative Expenses
Selling and administrative expenses increased 16% and 8% in the second quarter and first half of 2025, respectively, primarily due to an increase in merit compensation and $14 million of transaction costs associated with the Merger. In addition, 2025 included $5 million and $7 million of expenses associated with the Company’s new ERP system implementation for the second quarter and first half of 2025, respectively. The effect of foreign currency translation had minimal impact on selling and administrative expenses for the second quarter of 2025 and decreased expenses by 1% for the first half of 2025.
As a percentage of net sales, selling and administrative expenses were 26.1% and 26.2% for the second quarter and first half of 2025, respectively, and 24.5% and 25.9% for the second quarter and first half of 2024, respectively.
Research and Development Expenses
Research and development expenses increased 5% in both the second quarter and first half of 2025, respectively. The increase in these periods was primarily driven by merit compensation and costs associated with the development of new product and technology initiatives. The impact of foreign currency exchange decreased expenses by 1% for both the second quarter and first half of 2025.
Litigation Provisions
The Company recorded $10 million of patent litigation settlement provisions and related costs in the first half of 2024. No litigation provisions were recorded by the Company in the first half of 2025.
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Interest Expense, net
Interest expense, net decreased $10 million and $20 million in the second quarter and first half of 2025, primarily as a result of lower average outstanding debt as compared to the second quarter of 2024. The average outstanding debt in these periods was impacted by the timing of the repayment of outstanding debt.
Provision for Income Taxes
The four principal jurisdictions in which the Company manufactures are the U.S., Ireland, the U.K. and Singapore, where the statutory tax rates were 21%, 12.5%, 25% and 17%, respectively, as of June 28, 2025. The Company has a Development and Expansion Incentive in Singapore that provides a concessionary income tax rate of 5% on certain types of income for the period April 1, 2021 through March 31, 2026. The effect of applying the concessionary income tax rate rather than the statutory tax rate to income from qualifying activities in Singapore increased the Company’s net income by $1.5 million and $5 million and increased the Company’s net income per diluted share by $0.03 and $0.09 for the second quarter of 2025 and 2024, respectively.
The Company’s effective tax rate for the second quarter of 2025 and 2024 was 17.2% and 15.7%, respectively. The increase in the effective tax rate can be primarily attributed to the impact of discrete tax benefits in the prior year and differences in the proportionate amounts of pre-tax income recognized in jurisdictions with different effective tax rates.
The Company’s effective tax rate for the first half of 2025 and 2024 was 16.2% and 13.8%, respectively. The increase in the effective tax rate can be attributed to the impact of discrete tax benefits in the prior year and differences in the proportionate amounts of pre-tax income recognized in jurisdictions with different effective tax rates.
Effective in 2024, various foreign jurisdictions began implementing aspects of the guidance issued by the Organization for Economic Co-operation and Development related to the new Pillar Two system of global minimum tax rules. These changes in tax law did not have a material impact on the Company’s financial position, results of operations and cash flows for the second quarter and first half of 2025. The Company continues to monitor the adoption of the Pillar Two rules in additional jurisdictions.
On July 4, 2025, the US government enacted the One Big Beautiful Tax Bill Act, enacting changes to the United States federal tax code, including adjustments to corporate income tax rates and certain deduction limitations. The Company is currently evaluating the impact the enactment of the OBBB will have on the Company’s financial position, results of operations and cash flows.
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Liquidity and Capital Resources
Condensed Consolidated Statements of Cash Flows (in thousands):
| Six Months Ended | ||||||||
| June 28, 2025 | June 29, 2024 | |||||||
| Net income |
$ | 268,492 | $ | 244,933 | ||||
| Depreciation and amortization |
101,018 | 95,743 | ||||||
| Stock-based compensation |
25,975 | 22,346 | ||||||
| Deferred income taxes |
1,876 | 3,958 | ||||||
| Change in accounts receivable |
42,870 | 69,642 | ||||||
| Change in inventories |
(35,671 | ) | (16,709 | ) | ||||
| Change in accounts payable and other current liabilities |
(164,092 | ) | (31,206 | ) | ||||
| Change in deferred revenue and customer advances |
64,429 | 69,352 | ||||||
| Other changes |
(4,203 | ) | (140,655 | ) | ||||
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| Net cash provided by operating activities |
300,694 | 317,404 | ||||||
| Net cash used in investing activities |
(84,600 | ) | (65,859 | ) | ||||
| Net cash used in financing activities |
(174,275 | ) | (326,213 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents |
41 | 6,019 | ||||||
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| Increase (decrease) in cash and cash equivalents |
$ | 41,860 | $ | (68,649 | ) | |||
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Cash Flow from Operating Activities
Net cash provided by operating activities was $301 million and $317 million during the first half of 2025 and 2024, respectively. The decrease in 2025 operating cash flow was primarily a result of higher net income being offset by an increase of $24 million in tax payments associated with the final 2018 Tax Reform Transition payment as compared to the prior year and $18 million of costs related to the implementation of the Company’s new ERP system. The changes within net cash provided by operating activities include the following significant changes in the sources and uses of net cash provided by operating activities, aside from the changes in net income:
| • | The changes in accounts receivable were primarily attributable to the timing of payments made by customers and timing of sales. Days sales outstanding was 86 days at June 28, 2025 and 78 days at June 29, 2024. |
| • | The increase in inventory can primarily be attributed to higher material costs as well as an increase in safety stock levels to help navigate tariffs and mitigate any future supply chain issues. |
| • | Net cash provided from deferred revenue and customer advances results from annual increases in new service contracts as a higher installed base of customers renew annual service contracts. |
| • | Other changes were attributable to variation in the timing of various provisions, expenditures, prepaid income taxes and accruals in other current assets, other assets and other liabilities. |
Cash Flow from Investing Activities
Net cash used in investing activities totaled $85 million and $66 million in the first half of 2025 and 2024, respectively. Additions to fixed assets and capitalized software were $48 million and $65 million in the first half of 2025 and 2024, respectively.
On May 20, 2025, the Company completed the acquisition of Halo Labs for a total purchase price of $35 million in cash, net of cash acquired. Halo Labs is an innovator of specialized imaging technologies to detect, identify and count interfering materials in therapeutic products, such as cell, protein and gene therapies.
Cash Flow from Financing Activities
On May 22, 2025, the Company and certain of its subsidiaries, as guarantors, entered into an Amendment and Restatement Agreement in respect of that certain Amended and Restated Credit Agreement, dated as of September 17, 2021 and amended as of March 3, 2023, with the lenders and issuing banks party thereto, and JPMorgan Chase
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Bank, N.A., as administrative agent, pursuant to which the Company, among other things, reduced the aggregate total borrowing capacity of its existing senior unsecured revolving credit facility by up to $200 million for an aggregate principal amount of up to $1.8 billion. The Credit Facility will mature on May 22, 2030 subject to the Company’s ability to request, subject to customary conditions, a one-year extension to which each lender may, in its discretion, agree. As of June 28, 2025, the Company had a total of $1.5 billion in outstanding debt, which consisted of $1.3 billion in outstanding senior unsecured notes and $200 million borrowed under its Credit Facility. The Company’s net debt borrowings decreased by $170 million and $350 million during the first half of 2025 and 2024, respectively.
As of June 28, 2025, the Company had entered into interest rate cross-currency swap derivative agreements with durations up to three years with an aggregate notional value of $705 million to hedge the variability in the movement of foreign currency exchange rates on a portion of its euro-denominated and yen-denominated net asset investments. As a result of entering into these agreements, the Company lowered net interest expense by approximately $5 million during both the first half of 2025 and 2024. The Company anticipates that these swap agreements will lower net interest expense by approximately $10 million in 2025.
In December 2024, the Company’s Board of Directors authorized the extension of its existing share repurchase program through January 21, 2028. The Company’s remaining authorization is $1.0 billion. The Company did not make any open market share repurchases in 2025 or 2024. The Company repurchased $14 million and $13 million of common stock related to the vesting of restricted stock units during the first half of 2025 and 2024, respectively.
The Company received $13 million and $22 million of proceeds from the exercise of stock options and the purchase of shares pursuant to the Company’s employee stock purchase plan during the first half of 2025 and 2024, respectively.
The Company had cash, cash equivalents and investments of $367 million as of June 28, 2025. The majority of the Company’s cash and cash equivalents are generated from foreign operations, with $320 million held by foreign subsidiaries as of June 28, 2025, of which $267 million was held in currencies other than U.S. dollars.
Contractual Obligations, Commercial Commitments, Contingent Liabilities and Dividends
A summary of the Company’s contractual obligations and commercial commitments is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 25, 2025. The Company reviewed its contractual obligations and commercial commitments as of June 28, 2025 and determined that there were no material changes outside the ordinary course of business from the information set forth in the Annual Report on Form 10-K.
From time to time, the Company and its subsidiaries are involved in various litigation matters arising in the ordinary course of business. The Company believes that it has meritorious arguments in its current litigation matters and that any outcome, either individually or in the aggregate, will not be material to the Company’s financial position or results of operations.
During fiscal year 2025, the Company expects to contribute a total of approximately $3 million to $6 million to its defined benefit plans.
The Company has not paid any dividends and has no plans, at this time, to pay any dividends in the future.
In December 2024, the Company’s Board of Directors approved the implementation of a new worldwide ERP system. The Company anticipates spending approximately $130 million on the ERP implementation. The Company expects to use existing cash and its Credit Facility to fund the ERP implementation.
For the first half of 2025, the Company has incurred $11 million of capitalized costs included in other assets and $7 million of operating costs included in the consolidated statement of operations for the ERP system implementation.
In accordance with the Merger Agreement, prior to, and as a condition of, the Distribution, SpinCo will make a cash payment to BD equal to $4.0 billion, subject to adjustment for cash, working capital and indebtedness of SpinCo and subject to decrease if additional shares of Company Common Stock will be issued to the Company’s shareholders. The SpinCo Cash Distribution is expected to be paid using proceeds from approximately $4.0 billion of new indebtedness to be incurred by SpinCo prior to the Distribution. The Company is expected to assume all indebtedness incurred by SpinCo in connection with the payment of the SpinCo Cash Distribution upon completion of the Merger.
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In connection with the Merger, the Company and certain financial institutions executed a 364-day bridge loan facility commitment letter, pursuant to which such financial institutions have committed to provide bridge financing of $1.8 billion to fund dividends, fees and expenses related to the transactions contemplated by the Merger Agreement, on the terms and conditions set forth therein. Based on information available through the date of this filing, if the transaction closes, the Company estimates it will incur transaction-related expenses and financing fees of approximately $120 million.
Critical Accounting Policies and Estimates
In the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 25, 2025, the Company’s most critical accounting policies and estimates upon which its financial status depends were identified as those relating to revenue recognition, valuation of long-lived assets, intangible assets and goodwill, income taxes, uncertain tax positions and business combinations and asset acquisitions. The Company reviewed its policies and determined that those policies remain the Company’s most critical accounting policies for the six months ended June 28, 2025. The Company did not make any changes in those policies during the six months ended June 28, 2025.
New Accounting Pronouncements
Please refer to Note 13, Recent Accounting Standard Changes and Developments, in the Condensed Notes to Consolidated Financial Statements.
Special Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q, including the information incorporated by reference herein, contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Statements that are not statements of historical fact may be deemed forward-looking statements. You can identify these forward-looking statements by the use of the words “feels”, “believes”, “anticipates”, “plans”, “expects”, “may”, “will”, “would”, “intends”, “suggests”, “appears”, “estimates”, “projects”, “should” and similar expressions, whether in the negative or affirmative. These forward-looking statements are subject to various risks and uncertainties, many of which are outside the control of the Company, including, and without limitation:
| • | certain risks related to the Merger, including, without limitation: |
| • | the risk that one or more closing conditions to the Merger 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 Merger or may require conditions, limitations or restrictions in connection with such approvals or that the required approval by the stockholders of the Company may not be obtained; |
| • | the risk that the Merger may not be completed on the terms or in the time frame expected by the Company or at all; |
| • | the occurrence of any event that could give rise to termination of the Merger; |
| • | failure to realize the anticipated benefits of the Merger, including as a result of delay in completing the Merger or integrating the businesses of the Company and SpinCo, on the expected timeframe or at all; |
| • | the ability of the combined company to implement its business strategy and achieve revenue and cost synergies; |
| • | the risk that stockholder litigation in connection with the Merger or other litigation, settlements or investigations may affect the timing or occurrence of the Merger or result in significant costs of defense, indemnification and liability; |
| • | the risk that the anticipated tax treatment of the Merger is not obtained; |
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| • | 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 Merger, or other effects of the pendency of the Merger on the relationship of the Company with its employees, customers, suppliers, or other counterparties; |
| • | foreign currency exchange rate fluctuations potentially affecting translation of the Company’s future non-U.S. operating results, particularly when a foreign currency weakens against the U.S. dollar; |
| • | current global economic, sovereign and political conditions and uncertainties, including the effect of new or proposed tariff or trade regulations, as well as other new or changed domestic and foreign laws, regulations and policies (or new interpretations thereof), inflation and interest rates, the impacts and costs of war, in particular as a result of the ongoing conflicts between Russia and Ukraine and in the Middle East, and the possibility of further escalation resulting in new geopolitical and regulatory instability; |
| • | economic conditions in China, trade tensions and tariffs between the U.S. and China and their impact on our business, increased competition from local and international competitors in China, the Chinese government’s ongoing tightening of restrictions on procurement by government-funded customers and other regulatory and other challenges and uncertainties in the Chinese market; |
| • | the Company’s ability to access capital, maintain liquidity and service the Company’s debt in volatile market conditions; |
| • | changes in timing and demand for the Company’s products among the Company’s customers and various market sectors, particularly as a result of fluctuations in their expenditures or ability to obtain funding; |
| • | the ability to realize the expected benefits related to the Company’s various cost-saving initiatives, including workforce reductions and organizational restructurings; |
| • | the introduction of competing products by other companies and loss of market share, as well as pressures on prices from competitors and/or customers; |
| • | changes in the competitive landscape as a result of changes in ownership, mergers and continued consolidation among the Company’s competitors; |
| • | regulatory, economic and competitive obstacles to new product introductions, lack of acceptance of new products and inability to grow organically through innovation; |
| • | rapidly changing technology and product obsolescence; |
| • | the risks related to the development, deployment and use of artificial intelligence (“AI”); |
| • | a failure to timely and effectively use AI and embed it into new product offerings and services that negatively impacts our competitiveness; |
| • | risks associated with previous or future acquisitions, strategic investments, joint ventures and divestitures, including risks associated with achieving the anticipated financial results and operational synergies, contingent purchase price payments and expansion of our business into new or developing markets; |
| • | risks associated with unexpected disruptions in operations, including risks associated with our transition to a new ERP system; |
| • | risks related to any public health crisis or pandemic, climate change, severe weather and geological conditions or events or other events beyond our control; |
| • | failure to adequately protect the Company’s intellectual property, infringement of intellectual property rights of third parties and inability to obtain licenses on commercially reasonable terms; |
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| • | the Company’s ability to acquire adequate sources of supply and its reliance on outside contractors for certain components and modules, as well as disruptions to its supply chain; |
| • | risks associated with third-party sales intermediaries and resellers; |
| • | the impact and costs of changes in statutory or contractual tax rates in jurisdictions in which the Company operates as well as shifts in taxable income among jurisdictions with different effective tax rates, the outcome of ongoing and future tax examinations and changes in legislation affecting the Company’s effective tax rate; |
| • | the Company’s ability to attract and retain qualified employees and management personnel; |
| • | risks associated with cybersecurity and our information technology infrastructure, including attempts by third parties, both private and state-sponsored, to defeat the information security measures of the Company or its third-party partners and gain unauthorized access to sensitive and proprietary Company products, services, systems, or data; |
| • | risks associated with compliance with data privacy and information security laws and regulations regarding the collection, transmission, storage and use of personally identifying information; |
| • | increased regulatory burdens as the Company’s business evolves, especially with respect to the U.S. Food and Drug Administration and U.S. Environmental Protection Agency, among others, and in connection with government contracts; |
| • | regulatory, environmental and logistical obstacles affecting the distribution of the Company’s products, completion of purchase order documentation and the ability of customers to obtain letters of credit or other financing alternatives; |
| • | risks associated with litigation and other legal and regulatory proceedings; and |
| • | the impact and costs incurred from changes in accounting principles and practices. |
Certain of these and other factors are discussed under the heading “Risk Factors” under Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 25, 2025. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements, whether because of these factors or for other reasons. All forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q and are expressly qualified in their entirety by the cautionary statements included in this report. Except as required by law, the Company does not assume any obligation to update any forward-looking statements.
Item 3: Quantitative and Qualitative Disclosures About Market Risk
The Company is also exposed to the risk of exchange rate fluctuations. The Company maintains cash balances in various operating accounts in excess of federally insured limits, and in foreign subsidiary accounts in currencies other than the U.S. dollar. As of June 28, 2025 and December 31, 2024, $320 million out of $367 million and $275 million out of $325 million, respectively, of the Company’s total cash and cash equivalents were held by foreign subsidiaries. In addition, $267 million out of $367 million and $226 million out of $325 million of cash and cash equivalents were held in currencies other than the U.S. dollar at June 28, 2025 and December 31, 2024, respectively. As of June 28, 2025, the Company had no holdings in auction rate securities or commercial paper issued by structured investment vehicles.
Assuming a hypothetical adverse change of 10% in year-end exchange rates (a strengthening of the U.S. dollar), the fair market value of the Company’s cash and cash equivalents held in currencies other than the U.S. dollar as of June 28, 2025 would decrease by approximately $27 million, of which the majority would be recorded to foreign currency translation in other comprehensive income within stockholders’ equity.
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Period |
Total Number of Shares Purchased (1) |
Average Price Paid per Share |
Total Number of Shares Purchased as Part of Publicly Announced Programs |
Maximum Dollar Value of Shares That May Yet Be Purchased Under the Programs (in thousands) |
||||||||||||
March 30, 2025 to April 26, 2025 |
303 | $ | 325.80 | — | $ | 961,207 | ||||||||||
April 27, 2025 to May 24, 2025 |
537 | $ | 362.17 | — | $ | 961,207 | ||||||||||
May 25, 2025 to June 28, 2025 |
237 | $ | 348.69 | — | $ | 961,207 | ||||||||||
Total |
1,077 | $ | 348.97 | — | $ | 961,207 | ||||||||||
| (1) | All shares repurchased as referenced in the table above related to the vesting of restricted stock during the three months ended June 28, 2025. |
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Item 6: Exhibits
| Exhibit |
Description of Document | |
| 2.1* | Separation Agreement, dated as of July 13, 2025, by and among Waters Corporation, Becton, Dickinson and Company and Augusta SpinCo Corporation (Incorporated by reference to Exhibit 2.1 to the Registrant’s Report on Form 8-K dated July 14, 2025 (File No. 001-14010)). † | |
| 2.2* | Agreement and Plan of Merger, dated as of July 13, 2025, by and among Waters Corporation, Becton, Dickinson and Company, Beta Merger Sub, Inc. and Augusta SpinCo Corporation (Incorporated by reference to Exhibit 2.2 to the Registrant’s Report on Form 8-K dated July 14, 2025 (File No. 001-14010)). † | |
| 10.1 | Amendment and Restatement Agreement, dated as of May 22, 2025, by and among Waters Corporation, Waters Technologies Corporation, TA Instruments - Waters L.L.C., Waters Asia Limited, Environmental Resource Associates, Inc., Wyatt Technology, LLC, the lenders party thereto, the issuing banks party thereto and JPMorgan Chase Bank, N.A., as administrative agent (Incorporated by reference to Exhibit 10.1 to the Registrant’s Report on Form 8-K dated May 29, 2025 (File No. 001-14010)). | |
| 10.2 | Waters Corporation Amended and Restated 2009 Employee Stock Purchase Plan (Incorporated by references to Exhibit 4.1 to the Registrant’s Registration Statement on Form S-8 dated June 13, 2025 (File No. 333-288030)). + | |
| 31.1 | Chief Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| 31.2 | Chief Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| 32.1 | Chief Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.(*) | |
| 32.2 | Chief Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.(*) | |
| 101 | The following materials from Waters Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 28, 2025, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets (unaudited), (ii) the Consolidated Statements of Operations (unaudited), (iii) the Consolidated Statements of Comprehensive Income (unaudited), (iv) the Consolidated Statements of Cash Flows (unaudited) and (vi) Condensed Notes to Consolidated Financial Statements (unaudited). | |
| 104 | Cover Page Interactive Date File (formatted in iXBRL and contained in Exhibit 101). | |
| + | Indicates a management contract or compensatory plan. |
| † | Annexes, schedules and/or exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Registrant agrees to furnish supplementally a copy of any omitted attachment to the SEC on a confidential basis upon request. |
| * | This exhibit shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, whether made before or after the date hereof and irrespective of any general incorporation language in any filing, except to the extent the Company specifically incorporates it by reference. |
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| WATERS CORPORATION |
| /s/ Amol Chaubal |
| Amol Chaubal |
| Senior Vice President and Chief Financial Officer |
| (Principal Financial Officer) |
| (Principal Accounting Officer) |
Date: August 4, 2025
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