Segment Information

9 Months Ended

Oct. 03, 2025

SEGMENT INFORMATION

The Company operates and reports its results in two separate business segments consisting of the Water Quality and Product Quality & Innovation segments.

The Company’s Water Quality segment provides proprietary precision instrumentation, consumables, software, services and advanced water treatment technologies to help measure, analyze and treat the world’s water in municipal, industrial, commercial, residential, research and natural resource applications.

The Company’s Product Quality & Innovation segment provides equipment, consumables, software and services for various marking and coding, traceability, printing, packaging design and quality management, packaging converting and color and appearance management applications for consumer packaged goods and industrial products.

Resources are allocated and performance is assessed by the President & Chief Executive Officer (CEO), whom the Company has determined to be the Chief Operating Decision Maker (“CODM”). The CODM evaluates the performance of its segments and allocates resources to them based on operating profit. The CODM also compares actual results to expectations in assessing performance of the segments. Operating profit represents total revenues less operating expenses, excluding nonoperating income and expense and income taxes. Operating profit amounts in the Other segment consist of unallocated corporate costs and other costs not considered part of management’s evaluation of reportable segment operating performance.

The identifiable assets by segment are those used in each segment’s operations. Intersegment amounts are not significant and are eliminated to arrive at combined totals.

Detailed segment data for the three and nine-month periods ended October 3, 2025 and September 27, 2024 is as follows:


	Three-Month Period Ended				Nine-Month Period Ended
($ in millions)	October 3, 2025		September 27, 2024		October 3, 2025		September 27, 2024
Sales:
Water Quality	$	856	$	801	$	2,475	$	2,327
Product Quality & Innovation	548		513		1,632		1,521
Total	$	1,404	$	1,314	$	4,107	$	3,848

Operating profit:
Water Quality	$	222	$	195	$	631	$	564
Product Quality & Innovation	133		137		413		405
Other	(29)		(24)		(83)		(69)
Total	$	326	$	308	$	961	$	900

Depreciation and amortization of intangible assets:
Water Quality	$	10	$	11	$	28	$	32
Product Quality & Innovation	10		6		30		26

Total	$	20	$	17	$	58	$	58

Capital expenditures:
Water Quality	$	6	$	7	$	22	$	21
Product Quality & Innovation	6		2		21		9
Other	—		—		—		3
Total	$	12	$	9	$	43	$	33

Identifiable assets by segment as of October 3, 2025 and December 31, 2024 are as follows:


($ in millions)	October 3, 2025		December 31, 2024
Water Quality	$	2,857	$	2,450
Product Quality & Innovation	2,860		2,657
Other	1,712		1,299
Total	$	7,429	$	6,406

Reconciliations of total segment sales to total segment operating profit and of total segment operating profit to total consolidated earnings before income taxes, for the three and nine-month periods ended October 3, 2025 and September 27, 2024 are as follows:


	Three-Month Period Ended October 3, 2025
($ in millions)	Water Quality		Product Quality & Innovation		Other		Total
Sales	$	856	$	548	$	—	$	1,404
Less: other segment items	(634)		(415)		(29)		(1,078)
Segment operating profit	$	222	$	133	$	(29)	$	326
Other income (expense), net							1
Interest expense, net							(21)
Earnings before income taxes							$	306


	Three-Month Period Ended September 27, 2024
($ in millions)	Water Quality		Product Quality & Innovation		Other		Total
Sales	$	801	$	513	$	—	$	1,314
Less: other segment items	(606)		(376)		(24)		(1,006)
Segment operating profit	$	195	$	137	$	(24)	$	308
Other income (expense), net							5
Interest expense, net							(27)
Earnings before income taxes							$	286


	Nine-Month Period Ended October 3, 2025
($ in millions)	Water Quality		Product Quality & Innovation		Other		Total
Sales	$	2,475	$	1,632	$	—	$	4,107
Less: other segment items	(1,844)		(1,219)		(83)		(3,146)
Segment operating profit	$	631	$	413	$	(83)	$	961
Other income (expense), net							(5)
Interest expense, net							(76)
Earnings before income taxes							$	880


	Nine-Month Period Ended September 27, 2024
($ in millions)	Water Quality		Product Quality & Innovation		Other		Total
Sales	$	2,327	$	1,521	$	—	$	3,848
Less: other segment items	(1,763)		(1,116)		(69)		(2,948)
Segment operating profit	$	564	$	405	$	(69)	$	900
Other income (expense), net							(9)
Interest expense, net							(85)
Earnings before income taxes							$	806

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Veralto Corp 10-Q