Waters (WAT) Q4 2024 earnings summary

Executive summary

• Achieved 8% constant currency and 6.4% reported revenue growth in Q4 2024, with pharma sales up 10% and strong performance across all regions, driven by new products and strategic initiatives.

• Full-year 2024 revenue was $2.96B, flat year-over-year as reported, with recurring revenue up 6% and non-GAAP EPS up 1% to $11.86.

• Innovation in the product portfolio, including launches in liquid chromatography and mass spectrometry, and growth in GLP-1 and PFAS testing, drove momentum.

• Positioned for the next phase of growth, leveraging exposure to high-growth market segments and robust operational execution.

Financial highlights

• Q4 2024 sales grew 6.4% as reported and 8% in constant currency; instruments up 8%, recurring revenues up 9%.

• Q4 non-GAAP EPS was $4.10 (up 13%); GAAP EPS was $3.88; full-year non-GAAP EPS was $11.86 (up 1%), GAAP EPS $10.71.

• Q4 adjusted operating margin was 35.5%; full-year adjusted margin 31.0%.

• Free cash flow for 2024 was $744M (25% of sales), with a 105% free cash flow to adjusted net income conversion ratio.

• Currency translation reduced Q4 sales by 2% and full-year sales by 1%.

Outlook and guidance

• 2025 constant currency sales growth guidance is 4.5%-7%; reported sales growth guidance is 2.5%-5% due to a 2% FX headwind.

• Full-year 2025 non-GAAP EPS guidance is $12.70-$13.00, representing 7%-10% growth, including a 4% FX headwind.

• Q1 2025 constant currency sales growth guidance is 4%-7%, with reported sales growth of 1%-4% and non-GAAP EPS of $2.17-$2.25.