Q2 2025 Waters Corp Earnings Call Transcript
Key Points
- Waters Corp (WAT) reported strong sales growth of 9% as reported and 8% in constant currency, exceeding the high end of their guidance.
- Non-GAAP earnings per share increased by 12% year-on-year to $2.95, surpassing the midpoint of their guidance.
- The company experienced significant growth in its LC and mass spec portfolio, with instruments growing mid-single digits and recurring revenue up 11%.
- Waters Corp (WAT) raised its full-year 2025 constant currency sales growth guidance to 5.5% to 7.5% and increased its non-GAAP EPS guidance to $12.95 to $13.05.
- The company is successfully expanding into high-growth areas, with GLP testing revenue growing 70% year-over-year and PFAS testing revenue increasing over 50% year-over-year.
- The TA division experienced weakness, particularly in macro-sensitive polymer and materials testing applications, leading to a decline in sales.
- Academic and government segments underperformed, declining by 3%, despite better-than-expected performance.
- The operating tax rate presented a $0.05 headwind to adjusted EPS due to jurisdictional mix and discrete items specific to the quarter.
- The company faced margin dilution from tariff surcharges, impacting the gross margin for the quarter.
- The TA business in the Americas declined by 20% due to macroeconomic conditions and tariff challenges affecting material science and polymers customers.
Welcome to the Waters Corporation second quarter 2025 financial results conference call. (Operator Instructions) It is now my pleasure to turn the call over to Mr. Caspar Tudor, Head of Investor Relations. Please go ahead, sir.
Thank you, Layla, and good morning, everyone. Welcome to Corporation's second quarter earnings call. Joining me today are Dr. Udit Batra, our President and Chief Executive Officer, and Amol Chaubal, our Senior Vice President and Chief Financial Officer. Before we begin, I'll cover the cautionary language.
In this conference call, we will make forward-looking statements regarding future events or future financial performance of the company. We will provide guidance regarding possible future results as well as commentary on potential market and business conditions that may impact Waters Corporation during 2025 and beyond.
Additionally, we will comment on the expected timing for completion of Waters pending combination with the Biosciences and Diagnostic Solutions
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
