Veralto lifts annual profit forecast on steady demand, cost-optimization program

Veralto

28/04/2026 23:46

April 28 - Veralto raised its 2026 profit forecast after reporting better-than-expected first-quarter earnings on Tuesday, driven by steady demand for its water treatment and UV filtration services and a recently initiated cost optimization program.

The Institute for Supply Management's U.S. manufacturing PMI climbed to 52.7 in March 2026 from 47.9 in December 2025, pointing to a rebound in factory activity that has supported demand for the company's industrial and environmental offerings.

Shares of Veralto, which offers water-treatment technologies, precision instrumentation and packaging products, among others, rose nearly 8.11% in aftermarket trading.

For the full year, Veralto now expects adjusted earnings per share between $4.20 and $4.28, compared with its earlier forecast of $4.10 to $4.20.

The Waltham, Massachusetts-based company posted first-quarter adjusted profit per share of $1.07, beating analysts' estimate of $1.01 per share, according to data compiled by LSEG.

"Going forward, our balance sheet remains strong, providing flexibility to pursue additional acquisitions and share repurchases," CEO Jennifer L. Honeycutt said.

The company also initiated a new cost-optimization program to streamline business processes and enhance operating efficiency.

It expects to incur a charge of $85 million to $105 million and make annual savings of $65 million to $75 million by 2028 from the cost-optimization program.

A changing trade environment has curbed order activity and weighed on manufacturers such as Veralto, which serves the industrial, water, food and beverage and consumer packaged goods industries. However, Veralto posted a 6.7% year-over-year rise in first-quarter sales.

Veralto's total revenue for the quarter ended March 31 stood at $1.42 billion, beating analysts' expectations of $1.40 billion, according to data compiled by LSEG.

(Reporting by Megavarshini G. Somasundaram and Jahanvi Kothari in Bengaluru)

((jahanvi.kothari@thomsonreuters.com))