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Veralto — VLTO 3Q 2026 Earnings Slide Presentation (company IR deck)
Veralto (VLTO) · 0 slides · Filed Oct 29, 2026
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Slide 1 — Third Quarter 2026 Results
Third Quarter 2026 Results October 29, 2026
Slide 2 — Forward Looking Statements
2 Q 3 2 0 2 6 R E S U L T S | 2 Forward Looking Statements Certain statements in this presentation, including statements regarding the Company's fourth quarter and full year 2026 financial performance and guidance, the Company’s differentiation and positioning to continue delivering sustainable, long-term shareholder value and any other statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward-looking" statements within the meaning of the federal securities laws. All statements other than historical factual information are forward-looking statements, including, without limitation, statements regarding: projections of revenue, expenses, profit, profit margins, asset values, pricing, tax rates, tax provisions, cash flows, pension and benefit obligations and funding requirements, Veralto’s liquidity position or other projected financial measures; Veralto’s management’s plans and strategies for future operations, including statements relating to anticipated operating performance, customer demand, cost reductions, restructuring activities, new product and service developments, competitive strengths or market position, acquisitions and the integration thereof, divestitures, spin-offs, split-offs, initial public offerings, other securities offerings or other distributions, strategic opportunities, stock repurchases, dividends and executive compensation; growth, declines and other trends in markets Veralto sells into, the impact of global trade policies, tariffs, restrictions on imports, related countermeasures and reciprocal tariffs; future new or modified laws, regulations, accounting pronouncements or public policy changes; regulatory approvals and the timing and conditionality thereof; outstanding claims, legal proceedings, tax audits and assessments and other contingent liabilities; future foreign currency exchange rates and fluctuations in those rates; results of operations and/or financial condition; general economic and capital markets conditions; the anticipated timing of any of the foregoing; assumptions underlying any of the foregoing; and any other statements that address events or developments that Veralto intends or believes will or may occur in the future. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings. These forward-looking statements speak only as of the date of this presentation and except to the extent required by applicable law, the Company does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.
Slide 3 — Veralto / Third Quarter 2026 Key Messages
3 Q 3 2 0 2 6 R E S U L T S | 3 1. Delivered strong year-over-year growth in Q3 2026 through VES-driven execution: • 7.5% total sales growth: ◦ 5.1% core sales growth (Water Quality +6.4%; PQI +3.2%) ◦ 2.3% from acquisitions • 170 basis points of adjusted operating margin expansion • 19.2% growth in adjusted EPS 2. Demand remains healthy across our business: • WQ – strong demand in industrial markets for water treatment; steady demand in water analytics • PQI – steady marking and coding demand, YOY core growth rate accelerating in packaging and color 3. Deploying capital to compound long-term shareholder value: • Deployed $1.1 billion YTD on 4 strategic bolt-on acquisitions in structurally higher growth markets • Repurchased $550m shares YTD, or 2.4% of outstanding shares as of October 28, 2026 (2) • Early gains on Cost Optimization Program – now expect to realize $10m-$15m of savings in FY 2026 4. Sales growth rate to accelerate in Q4 2026: • Targeting core sales growth between 5.5% to 6.5% • Acquisition sales growth estimated at ~5.0% 5. Raised FY 2026 Adjusted EPS* guidance to $4.49 to $4.52 (1): • Representing 15%-16% year-over-year growth Veralto / Third Quarter 2026 Key Messages *See appendix for reconciliations to non-GAAP measures (1) FY 2026 assumes ~$0.06 per share benefit, or $21.0m, from IEEPA refunds received in 2026 (2)~2.4% is calculated off the Company’s common shares outstanding of 247,843,360 as of February 13, 2026 Acquisition and Share Repurchase Summary Q1 2026 Q2 2026 Q3 2026 Q4 2026 thru 10/28/2026 Acquisitions In-Situ GlobalVision Alfaa UV Cleanwater1 Share Repurchases $300m $134m $89m $27m Note: Alfaa UV acquisition announced on July 21, 2026 Accelerating Growth Profile, Optimizing Cost Structure, Executing Disciplined Capital Allocation
Slide 4 — Veralto / 3-Year Performance
4 Q 3 2 0 2 6 R E S U L T S | 4 $5.0 $5.2 $5.5 ~$5.9 2023 2024 2025 2026E (1) Sales in $ billions 3.1% 3.4% 6.0% 7.7% to 8.0% Total Sales Growth 2.6% 3.7% 4.7% 4.2% to 4.5% Core Sales Growth* Veralto / 3-Year Performance Capital Allocation: Since Spin-Off (2) Acquisitions 60% Share Repurchases 22% Dividends 12% CAPEX 6% $2.5b Accelerated Sales Growth, Consistently Expanded Margins, Delivered Double-Digit Adjusted EPS Growth *See appendix for reconciliations to non-GAAP measures; Historical reconciliations for all prior year periods are available in our previously published earnings presentations (1) 2026E based on the Company’s full year 2026 guidance issued October 29, 2026 (2) Capital allocation completed from 2024 through October 28, 2026 2023 to 2026E (1) Financial Performance 2023-2024: Established building blocks Simplified VES and improved operating rigor Increased innovation investments Improved commercial architecture Reignited M&A flywheel 2025: Accelerated growth and increased agility Selectively regionalized manufacturing and supply chain Modernized technology / upgraded facilities Invested in leadership development & upskilling 2026: Stepped Up Capital Deployment Established Cost Optimization Program Improved M&A velocity Repurchased 2.4% of outstanding shares Adj. OP Margin Expansion n.a. +80 basis points +20 basis points ~ +50 basis points Adj. Earnings Per Share Growth n.a. +11% +10% +15% to +16% M&A activity since spin-off: Completed 12 acquisitions Divested or exited 3 product lines
Slide 5 — 60.6%
5 Q 3 2 0 2 6 R E S U L T S | 5 Veralto / Q3 2026 Key Consolidated Financial Results Strong Core Sales Growth, Double-Digit Adjusted EPS Growth and Robust Cash Generation SALES ADJUSTED GROSS PROFIT MARGIN* ADJUSTED EPS* ADJUSTED EBITDA* FREE CASH FLOW* 60.6% +50 basis points year-over-year $1.18 +19.2% year-over-year $397m 26.3% adjusted EBITDA margin* +160 basis points year-over-year Note: Q3 2026 results include ~$0.01 per share, or $4.6 million, of benefit from IEEPA tariff refunds received during the quarter *See appendix for reconciliations to non-GAAP measures LTM = Last Twelve Months $1,509m +7.5% total sales growth +5.1% core sales growth* $304m 120% free cash flow conversion* 18.8% LTM free cash flow margin* ADJUSTED OPERATING PROFIT MARGIN* 25.6% +170 basis points year-over-year
Slide 6 — Water Quality / Q3 and YTD 2026 performance
6 Q 3 2 0 2 6 R E S U L T S | 6 Water Quality / Q3 and YTD 2026 performance ($ millions, variances versus prior year period) Q3 ADJUSTED OPERATING PROFIT * Q3 SALES Three months ended YOY Change in Sales Q3 2025 Q3 2026 Core Growth* +5.3% +6.4% Currency +1.4% +0.4% M&A +0.3% +3.0% Total Growth +7.0% +9.8% +10.0% +11.4% YTD ADJUSTED OPERATING PROFIT * YTD SALES Nine months ended YOY Change in Sales Q3 2025 Q3 2026 Core Growth* +5.9% +5.3% Currency +0.4% +1.6% M&A +0.1% +3.1% Total Growth +6.4% +10.0% *See appendix for reconciliations of non-GAAP measures Price +2.2% +9.8% +11.1% Price +2.0%
Slide 7 — Product Quality & Innovation / Q3 and YTD 2026 performance
7 Q 3 2 0 2 6 R E S U L T S | 7 Product Quality & Innovation / Q3 and YTD 2026 performance ($ millions, variances versus prior year period) Three months ended YOY Change in Sales Q3 2025 Q3 2026 Core Growth* +4.6% +3.2% Currency +2.0% -0.4% M&A +0.3% +1.1% Total Growth +6.9% +3.9% Nine months ended YOY Change in Sales Q3 2025 Q3 2026 Core Growth* +5.8% +1.4% Currency +1.0% +1.4% M&A +0.5% +0.4% Total Growth +7.3% +3.2% Q3 ADJUSTED OPERATING PROFIT * Q3 SALES YTD ADJUSTED OPERATING PROFIT * YTD SALES Price +2.6% Price +2.6% *See appendix for reconciliations of non-GAAP measures +3.9% +15.8% +3.2% +7.6%
Slide 8 — Veralto / Q3 2026 cash flow and balance sheet
8 Q 3 2 0 2 6 R E S U L T S | 8 Veralto / Q3 2026 cash flow and balance sheet Financial position summary: • Capital-light business model • LTM free cash flow margin* at 18.8% • Gross leverage* at 2.0x • Net leverage* at 0.8x • Debt update: • Repaid $700m senior notes using cash on hand and proceeds from 2032 Notes issuance • Issued $250m commercial paper used to partially fund the acquisition of Cleanwater1 Q3 2026 YTD 2026 Cash from operations $323 $845 Capital expenditures $(19) $(43) Free cash flow* $304 $802 Free cash flow conversion* 120% 107% Q3 2026 Cash and cash equivalents $1,785 Gross debt $2,920 Net debt* $1,135 * See appendix for reconciliations to non-GAAP measures LTM = Last Twelve Months ($ millions)
Slide 9 — Veralto / Q4 and FY 2026 guidance
9 Q 3 2 0 2 6 R E S U L T S | 9 Note: Adjusted Operating Profit Margin guidance includes margin dilution from acquisitions of ~(70) basis points in Q4 and ~(40) basis points FY 2026E IEEPA refund assumptions: Q4 2026 assumes no benefit from IEEPA refunds; FY 2026 includes ~$0.06 per share, or $21.0 million, benefit from IEEPA refunds received YTD Q3 2026 *See appendix for reconciliations to non-GAAP measures Veralto / Q4 and FY 2026 guidance Q4 2026E FY2026E Current Prior Core Sales Growth* +5.5% to 6.5% +4.2% to 4.5% +4.0% to 4.5% Adjusted Operating Profit Margin* ~24.5% ~+50 basis points +25 to +50 basis points Adjusted EPS* $1.13 to $1.16 $4.49 to $4.52 $4.35 to $4.43 Free Cash Flow Conversion* -- >105% >100% Core sales growth* +2.6% +3.7% +4.7% +4.2% to 4.5%
Slide 10 — Veralto / Q4 and Full Year 2026E Modeling Items
10 Q 3 2 0 2 6 R E S U L T S | 10 Veralto / Q4 and Full Year 2026E Modeling Items ($ millions, except per share data) Q4 2026E FY 2026E Year-over-year Sales assumptions Core sales growth (non-GAAP) 5.5% to 6.5% 4.2% to 4.5% Acquisitions/divestitures (1) ~5.0% ~2.5% Currency exchange rates impact on sales (2) ~(0.5%) ~1.0% Total sales growth (GAAP) 10.0% to 11.0% 7.7% to 8.0% Other key assumptions Corporate expense (3) $30m to $35m $105m to $110m Interest expense, net $25m to $30m $100m to $105m Effective Tax Rate ~20% ~20% Average diluted shares ~244m ~246m Capital expenditures NA ~1.0% of sales (1) Primarily reflects the In-Situ, GlobalVision, Alfaa UV and Cleanwater1 acquisitions, net of divestitures (2) Impact of currency exchange rates on sales if rates in effect as of October 2, 2026 prevailed throughout the remainder of 2026 (3) Corporate expense reported as “other” under Operating Profit
Slide 11 — Veralto / Well-positioned to drive compounding earnings and free cash flow growth
11 Q 3 2 0 2 6 R E S U L T S | 11 Veralto / Well-positioned to drive compounding earnings and free cash flow growth SAFEGUARDING THE WORLD’S MOST VITAL RESOURCES ATTRACTIVE SECULAR GROWTH DRIVERS PREMIER FINANCIAL PROFILE and DURABLE BUSINESS MODEL PROVEN VALUE CREATION PLAYBOOK
Slide 12 — Appendix
Appendix Q3 2026 Results | October 29, 2026
Slide 13 — Veralto / Geographic core sales growth(1) for Q3 2026
13 Q 3 2 0 2 6 R E S U L T S | 13 Veralto / Geographic core sales growth(1) for Q3 2026 North America Western Europe High-Growth Markets Water Quality +8.8% +7.3% -1.1% Product Quality & Innovation +4.4% +0.6% +4.7% Total Veralto +7.6% +3.9% +1.6% (1) Geographic core sales growth excludes impact from acquisitions, divestitures and management estimates for currency translation. It is not adjusted for intercompany sales, returns or allowances. Notes: Other developed markets includes Japan, Australia and New Zealand Q3 2026 Geographic Core Sales Growth Western Europe 22% High Growth Markets 26% Other Developed Markets 2% North America 50% Q3 2026 Sales by Geography
Slide 14 — Veralto / Geographic core sales growth(1) for YTD 2026
14 Q 3 2 0 2 6 R E S U L T S | 14 Veralto / Geographic core sales growth(1) for YTD 2026 North America Western Europe High-Growth Markets Water Quality +7.6% +7.0% -0.8% Product Quality & Innovation +3.1% -0.6% +1.6% Total Veralto +6.4% +3.1% +0.4% YTD 2026 Geographic Core Sales Growth Western Europe 23% High Growth Markets 26% Other Developed Markets 2% North America 49% YTD 2026 Sales by Geography (1) Geographic core sales growth excludes impact from acquisitions, divestitures and management estimates for currency translation. It is not adjusted for intercompany sales, returns or allowances. Notes: Other developed markets includes Japan, Australia and New Zealand
Slide 15 — VERALTO CORPORATION
VERALTO CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL FORWARD-LOOKING INFORMATION THREE AND NINE-MONTH PERIODS ENDED OCTOBER 2, 2026 AND OCTOBER 3, 2025
Slide 16 — TABLE OF CONTENTS
TABLE OF CONTENTS Page 1 Sales Growth by Segment, Core Sales Growth by Segment 3 Forecasted Core Sales Growth, Adjusted Operating Profit Margin, Adjusted Diluted Net Earnings per Share and Free Cash Flow to Net Earnings Conversion Ratio 4 Segment Sales, Operating Profit, Adjusted Operating Profit, Operating Profit Margin and Adjusted Operating Profit Margin 6 Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin 10 Last Twelve Month Adjusted EBITDA, Gross Leverage and Net Leverage 11 Other Non-GAAP Adjusted P&L Measures 16 Operating Profit Margin and Year-Over-Year Core Operating Margin Changes 17 Cash Flow, Free Cash Flow, Operating Cash Flow to Net Earnings Ratio, Free Cash Flow to Net Earnings Conversion Ratio and Free Cash Flow Margin FORWARD-LOOKING STATEMENTS DISCLOSURE Certain statements in this document, including statements regarding the Company's fourth quarter and full year 2026 financial performance and guidance, the Company’s differentiation and positioning to continue delivering sustainable, long-term shareholder value and any other statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward-looking" statements within the meaning of the federal securities laws. All statements other than historical factual information are forward-looking statements, including, without limitation, statements regarding: projections of revenue, expenses, profit, profit margins, asset values, pricing, tax rates, tax provisions, cash flows, pension and benefit obligations and funding requirements, Veralto’s liquidity position or other projected financial measures; Veralto’s management’s plans and strategies for future operations, including statements relating to anticipated operating performance, customer demand, cost reductions, restructuring activities, new product and service developments, competitive strengths or market position, acquisitions and the integration thereof, divestitures, spin-offs, split-offs, initial public offerings, other securities, offerings or other distributions, strategic opportunities, stock repurchases, dividends and executive compensation; growth, declines and other trends in markets Veralto sells into, the impact of global trade policies, tariffs, restrictions on imports, related countermeasures and reciprocal tariffs; future new or modified laws, regulations, accounting pronouncements or public policy changes; regulatory approvals and the timing and conditionality thereof; outstanding claims, legal proceedings, tax audits and assessments and other contingent liabilities; future foreign currency exchange rates and fluctuations in those rates; results of operations and/or financial condition; general economic and capital markets conditions; the anticipated timing of any of the foregoing; assumptions underlying any of the foregoing; and any other statements that address events or developments that Veralto intends or believes will or may occur in the future. Additional information regarding the factors that may cause actual results to differ materially from these forward- looking statements is available in our SEC filings. These forward-looking statements speak only as of the date of this document and except to the extent required by applicable law, the Company does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise. For the reconciliations of 2024 and 2023 GAAP to non-GAAP financial measures, refer to the Appendix of the 2024 Earnings Presentation for the three months and year ended December 31, 2024 and December 31, 2023, published on February 5, 2025. For the reconciliations of 2025 and 2024 GAAP to non-GAAP financial measures, refer to the Appendix of the 2025 Earnings Presentation for the three months and year ended December 31, 2025 and December 31, 2024, published on February 4, 2026.
Slide 17 — Total sales growth (GAAP)
% Change Three-Month Period Ended October 2, 2026 vs. Comparable 2025 Period Segments Total Company Water Quality Product Quality and Innovation Total sales growth (GAAP) 7.5 % 9.8 % 3.9 % Impact of: Acquisitions/divestitures (2.3) % (3.0) % (1.1) % Currency exchange rates (0.1) % (0.4) % 0.4 % Core sales growth (non-GAAP) 5.1 % 6.4 % 3.2 % % Change Nine-Month Period Ended October 2, 2026 vs. Comparable 2025 Period Segments Total Company Water Quality Product Quality and Innovation Total sales growth (GAAP) 7.3 % 10.0 % 3.2 % Impact of: Acquisitions/divestitures (2.0) % (3.1) % (0.4) % Currency exchange rates (1.5) % (1.6) % (1.4) % Core sales growth (non-GAAP) 3.8 % 5.3 % 1.4 % VERALTO CORPORATION Sales Growth by Segment, Core Sales Growth by Segment 1
Slide 18 — Total sales growth (GAAP)
% Change Three-Month Period Ended October 3, 2025 vs. Comparable 2024 Period Segments Total Company Water Quality Product Quality and Innovation Total sales growth (GAAP) 6.9 % 7.0 % 6.9 % Impact of: Acquisitions/divestitures (0.3) % (0.3) % (0.3) % Currency exchange rates (1.5) % (1.4) % (2.0) % Core sales growth (non-GAAP) 5.1 % 5.3 % 4.6 % % Change Nine-Month Period Ended October 3, 2025 vs. Comparable 2024 Period Segments Total Company Water Quality Product Quality and Innovation Total sales growth (GAAP) 6.7 % 6.4 % 7.3 % Impact of: Acquisitions/divestitures (0.3) % (0.1) % (0.5) % Currency exchange rates (0.5) % (0.4) % (1.0) % Core sales growth (non-GAAP) 5.9 % 5.9 % 5.8 % VERALTO CORPORATION Sales Growth by Segment, Core Sales Growth by Segment 2
Slide 19 — The Company provides forecasted sales only on a non-GAAP basis because of the difficulty in estimating the other components of GAAP revenue, such
The Company provides forecasted sales only on a non-GAAP basis because of the difficulty in estimating the other components of GAAP revenue, such as currency translation, acquisitions and divested product lines. Additionally, we do not reconcile adjusted operating profit margin (or components thereof), adjusted diluted earnings per share or free cash flow to net earnings conversion ratio to the comparable GAAP measures because of the difficulty in estimating the other unknown components such as investment gains and losses, impairments and separation costs, which would be reflected in any forecasted GAAP operating profit, forecasted diluted earnings per share or forecasted net earnings ratio. % Change Three-Month Period Ending December 31, 2026 vs. Comparable 2025 Period Core sales growth (non-GAAP) +5.5% to 6.5% Three-Month Period Ending December 31, 2026 Adjusted Operating Profit Margin (non-GAAP) ~24.5% Adjusted Diluted Net Earnings per Share (non-GAAP) $1.13 to $1.16 % Change Year Ending December 31, 2026 vs. Comparable 2025 Period Core sales growth (non-GAAP) +4.2% to 4.5% Year Ending December 31, 2026 Adjusted Operating Profit Margin (non-GAAP) ~+50 basis points Adjusted Diluted Net Earnings per Share (non-GAAP) $4.49 to $4.52 Free cash flow to net earnings conversion ratio (non-GAAP) >105% VERALTO CORPORATION Forecasted Core Sales Growth, Adjusted Operating Profit Margin, Adjusted Diluted Net Earnings per Share and Free Cash Flow to Net Earnings Conversion Ratio 3
Slide 20 — Sales (GAAP)
Sales (GAAP) Water Quality $ 939 $ 856 $ 2,721 $ 2,475 Product Quality & Innovation 570 548 1,684 1,632 Total $ 1,509 $ 1,404 $ 4,405 $ 4,107 Operating Profit (GAAP) Water Quality $ 226 $ 222 $ 664 $ 631 Product Quality & Innovation 136 133 399 413 Other (64) (29) (112) (83) Total $ 298 $ 326 $ 951 $ 961 Amortization of Intangible Assets (GAAP) Water Quality $ 9 $ 3 $ 24 $ 8 Product Quality & Innovation 8 6 23 19 Total $ 17 $ 9 $ 47 $ 27 Other Operating Profit Adjustments 1 Water Quality $ 15 $ — $ 24 $ — Product Quality & Innovation 17 — 43 — Other 39 1 41 6 Total $ 71 $ 1 $ 108 $ 6 Three-Month Period Ended Nine-Month Period Ended October 2, 2026 October 3, 2025 October 2, 2026 October 3, 2025 VERALTO CORPORATION Segment Sales, Operating Profit, Adjusted Operating Profit, Operating Profit Margin and Adjusted Operating Profit Margin ($ in millions) 4
Slide 21 — Adjusted Operating Profit (non-GAAP) 2
Adjusted Operating Profit (non-GAAP) 2 Water Quality $ 250 $ 225 $ 712 $ 639 Product Quality & Innovation 161 139 465 432 Other (25) (28) (71) (77) Total $ 386 $ 336 $ 1,106 $ 994 Operating Profit Margin (GAAP) Water Quality 24.1 % 25.9 % 24.4 % 25.5 % Product Quality & Innovation 23.9 % 24.3 % 23.7 % 25.3 % Total 19.7 % 23.2 % 21.6 % 23.4 % Adjusted Operating Profit Margin (Non-GAAP) 3 Water Quality 26.6 % 26.3 % 26.2 % 25.8 % Product Quality & Innovation 28.2 % 25.4 % 27.6 % 26.5 % Total 25.6 % 23.9 % 25.1 % 24.2 % Three-Month Period Ended Nine-Month Period Ended October 2, 2026 October 3, 2025 October 2, 2026 October 3, 2025 1 Refer to the Reconciliation of GAAP to Other Non-GAAP Adjusted P&L Measures for a description of the components of Other Operating Profit Adjustments. 2 Adjusted Operating Profit (non-GAAP) is defined as operating profit (GAAP) plus amortization of intangible assets (GAAP) plus (minus) Other Operating Profit Adjustments. 3 Adjusted Operating Profit Margin (Non-GAAP) is defined as Adjusted Operating Profit (Non-GAAP) divided by Sales (GAAP). VERALTO CORPORATION Segment Sales, Operating Profit, Adjusted Operating Profit, Operating Profit Margin and Adjusted Operating Profit Margin ($ in millions) 5
Slide 22 — Net Earnings (GAAP)
Three-Month Period Ended October 2, 2026 Water Quality Product Quality & Innovation Other Total Company Net Earnings (GAAP) $ 253 Interest Expense 25 Income Taxes 20 Operating Profit (GAAP) $ 226 $ 136 $ (64) $ 298 Other Operating Profit Adjustments 1 15 17 39 71 Depreciation 6 4 1 11 Amortization of Intangible Assets 9 8 — 17 Adjusted EBITDA (Non-GAAP) $ 256 $ 165 $ (24) $ 397 Interest Expense (25) Income Taxes (20) Other Operating Profit Adjustments 1 (71) Depreciation (11) Amortization of Intangible Assets (17) Net Earnings (GAAP) $ 253 Sales (GAAP) $ 939 $ 570 $ 1,509 Net Earnings Margin (GAAP) 16.8 % Operating Profit Margin (GAAP) 24.1 % 23.9 % 19.7 % Adjusted EBITDA Margin (Non-GAAP) 4 27.3 % 28.9 % 26.3 % 1 Refer to the Reconciliation of GAAP to Other Non-GAAP Adjusted P&L Measures for a description of the components of Other Operating Profit Adjustments. 4 Adjusted EBITDA Margin (Non-GAAP) is defined as Adjusted EBITDA (Non-GAAP) divided by sales. VERALTO CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) 6
Slide 23 — Net Earnings (GAAP)
Three-Month Period Ended October 3, 2025 Water Quality Product Quality & Innovation Other Total Company Net Earnings (GAAP) $ 239 Interest Expense 21 Other Nonoperating (Income) Expense (1) Income Taxes 67 Operating Profit (GAAP) $ 222 $ 133 $ (29) $ 326 Other Operating Profit Adjustments 1 — — 1 1 Depreciation 7 4 — 11 Amortization of Intangible Assets 3 6 — 9 Adjusted EBITDA (Non-GAAP) $ 232 $ 143 $ (28) $ 347 Interest Expense (21) Other Nonoperating Income (Expense) 1 Income Taxes (67) Other Operating Profit Adjustments 1 (1) Depreciation (11) Amortization of Intangible Assets (9) Net Earnings (GAAP) $ 239 Sales (GAAP) $ 856 $ 548 $ 1,404 Net Earnings Margin (GAAP) 17.0 % Operating Profit Margin (GAAP) 25.9 % 24.3 % 23.2 % Adjusted EBITDA Margin (Non-GAAP) 4 27.1 % 26.1 % 24.7 % 1 Refer to the Reconciliation of GAAP to Other Non-GAAP Adjusted P&L Measures for a description of the components of Other Operating Profit Adjustments. 4 Adjusted EBITDA Margin (Non-GAAP) is defined as Adjusted EBITDA (Non-GAAP) divided by sales. VERALTO CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) 7
Slide 24 — Net Earnings (GAAP)
Nine-Month Period Ended October 2, 2026 Water Quality Product Quality & Innovation Other Total Company Net Earnings (GAAP) $ 748 Interest Expense 76 Other Nonoperating (Income) Expense (8) Income Taxes 135 Operating Profit (GAAP) $ 664 $ 399 $ (112) $ 951 Other Operating Profit Adjustments 1 24 43 41 108 Depreciation 21 12 1 34 Amortization of Intangible Assets 24 23 — 47 Adjusted EBITDA (Non-GAAP) $ 733 $ 477 $ (70) $ 1,140 Interest Expense (76) Other Nonoperating Income (Expense) 8 Income Taxes (135) Other Operating Profit Adjustments 1 (108) Depreciation (34) Amortization of Intangible Assets (47) Net Earnings (GAAP) $ 748 Sales (GAAP) $ 2,721 $ 1,684 $ 4,405 Net Earnings Margin (GAAP) 17.0 % Operating Profit Margin (GAAP) 24.4 % 23.7 % 21.6 % Adjusted EBITDA Margin (Non-GAAP) 4 26.9 % 28.3 % 25.9 % 1 Refer to the Reconciliation of GAAP to Other Non-GAAP Adjusted P&L Measures for a description of the components of Other Operating Profit Adjustments. 4 Adjusted EBITDA Margin (Non-GAAP) is defined as Adjusted EBITDA (Non-GAAP) divided by sales. VERALTO CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) 8
Slide 25 — Net Earnings (GAAP)
Nine-Month Period Ended October 3, 2025 Water Quality Product Quality & Innovation Other Total Company Net Earnings (GAAP) $ 686 Interest Expense 76 Other Nonoperating (Income) Expense 5 Income Taxes 194 Operating Profit (GAAP) $ 631 $ 413 $ (83) $ 961 Other Operating Profit Adjustments 1 — — 6 6 Depreciation 20 11 — 31 Amortization of Intangible Assets 8 19 — 27 Adjusted EBITDA (Non-GAAP) $ 659 $ 443 $ (77) $ 1,025 Interest Expense (76) Other Nonoperating Income (Expense) (5) Income Taxes (194) Other Operating Profit Adjustments 1 (6) Depreciation (31) Amortization of Intangible Assets (27) Net Earnings (GAAP) $ 686 Sales (GAAP) $ 2,475 $ 1,632 $ 4,107 Net Earnings Margin (GAAP) 16.7 % Operating Profit Margin (GAAP) 25.5 % 25.3 % 23.4 % Adjusted EBITDA Margin (Non-GAAP) 4 26.6 % 27.1 % 25.0 % 1 Refer to the Reconciliation of GAAP to Other Non-GAAP Adjusted P&L Measures for a description of the components of Other Operating Profit Adjustments. 4 Adjusted EBITDA Margin (Non-GAAP) is defined as Adjusted EBITDA (Non-GAAP) divided by sales. VERALTO CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) 9
Slide 26 — Net Earnings (GAAP)
Three-Month Period Ended October 2, 2026 July 3, 2026 April 3, 2026 December 31, 2025 Net Earnings (GAAP) $ 253 $ 241 $ 254 $ 254 Interest Expense 25 27 24 20 Other Nonoperating (Income) Expense — (1) (7) 3 Income Taxes 20 48 67 39 Operating Profit (GAAP) $ 298 $ 315 $ 338 $ 316 Other Operating Profit Adjustments 1 71 31 6 18 Depreciation 11 12 11 11 Amortization of Intangible Assets 17 17 13 9 Adjusted EBITDA (Non-GAAP) $ 397 $ 375 $ 368 $ 354 Last Twelve Month Operating Profit (GAAP) 5 $ 1,267 Last Twelve Month Adjusted EBITDA (Non-GAAP) 6 $ 1,494 Total Debt 7 $ 2,920 Less: Cash 7 (1,785) Net Debt (Non-GAAP) $ 1,135 Gross Debt to Operating Profit 8 2.30 Net Debt to Operating Profit 9 0.90 Gross Leverage (Non-GAAP) 10 1.95 Net Leverage (Non-GAAP) 11 0.76 1 Refer to the Reconciliation of GAAP to Other Non-GAAP Adjusted P&L Measures for a description of the components of Other Operating Profit Adjustments. 5 Last Twelve Month Operating Profit is defined as the sum of Operating Profit for the previous four quarters. 6 Last Twelve Month Adjusted EBITDA (Non-GAAP) is defined as the sum of Adjusted EBITDA (Non-GAAP) for the previous four quarters. 7 Total Debt and Cash balances as of October 2, 2026. 8 Calculated as Total Debt divided by Last Twelve Month Operating Profit. 9 Calculated as Net Debt divided by Last Twelve Month Operating Profit. 10 Calculated as Total Debt divided by Last Twelve Month Adjusted EBITDA (Non-GAAP). 11 Calculated as Net Debt divided by Last Twelve Month Adjusted EBITDA (Non-GAAP). VERALTO CORPORATION Trailing Twelve Month Adjusted EBITDA, Gross Leverage and Net Leverage ($ in millions) 10
Slide 27 — Reported (GAAP)
Three-Month Period Ended October 2, 2026 Sales Cost of sales Gross profit margin Operating profit Operating profit margin Earnings before income taxes Income taxes Net earnings for calculation of diluted net earnings per common share Diluted net earnings per common share Reported (GAAP) $ 1,509 $ (601) 60.2 % $ 298 19.7 % $ 273 $ (20) $ 253 $ 1.03 Amortization of acquisition-related intangible assets A — — — 17 1.1 17 17 0.07 Restructuring B — 6 0.4 22 1.5 22 22 0.09 Other items C — — — 10 0.7 10 10 0.04 Reduction of tax indemnification D — — — 39 2.6 39 39 0.16 Tax effect of the above adjustments H (13) (13) (0.05) Discrete tax adjustments I (38) (38) (0.15) Rounding — — — — — — — — (0.01) Adjusted (Non-GAAP) $ 1,509 $ (595) 60.6 % $ 386 25.6 % $ 361 $ (71) $ 290 $ 1.18 Three-Month Period Ended October 2, 2026 Sales Selling, general and administrative expenses Selling, general and administrative expenses as a % of sales Research and development expenses Research and development expenses as a % of sales Nonoperating income (expense), net (excluding interest) Interest income (expense), net Reported (GAAP) $ 1,509 $ (541) (35.9) % $ (69) (4.6) % $ — $ (25) Amortization of acquisition-related intangible assets A — 17 1.1 — — — — Restructuring B — 16 1.1 — — — — Other items C — 10 0.7 — — — — Reduction of tax indemnification D — 39 2.6 — — — — Adjusted (Non-GAAP) $ 1,509 $ (459) (30.4) % $ (69) (4.6) % $ — $ (25) VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) 11
Slide 28 — Reported (GAAP)
Three-Month Period Ended October 3, 2025 Sales Cost of sales Gross profit margin Operating profit Operating profit margin Earnings before income taxes Income taxes Net earnings for calculation of diluted net earnings per common share Diluted net earnings per common share Reported (GAAP) $ 1,404 $ (560) 60.1 % $ 326 23.2 % $ 306 $ (67) $ 239 $ 0.95 Amortization of acquisition-related intangible assets A — — — 9 0.6 9 9 0.04 Other items C — — — 1 0.1 1 1 — Tax effect of the above adjustments H (2) (2) (0.01) Rounding — — — — — — — — 0.01 Adjusted (Non-GAAP) $ 1,404 $ (560) 60.1 % $ 336 23.9 % $ 316 $ (69) $ 247 $ 0.99 Three-Month Period Ended October 3, 2025 Sales Selling, general and administrative expenses Selling, general and administrative expenses as a % of sales Research and development expenses Research and development expenses as a % of sales Nonoperating income (expense), net (excluding interest) Interest income (expense), net Reported (GAAP) $ 1,404 $ (451) (32.1) % $ (67) (4.8) % $ 1 $ (21) Amortization of acquisition-related intangible assets A — 9 0.6 — — — — Other items C — 1 0.1 — — — — Adjusted (Non-GAAP) $ 1,404 $ (441) (31.4) % $ (67) (4.8) % $ 1 $ (21) VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) 12
Slide 29 — Reported (GAAP)
Nine-Month Period Ended October 2, 2026 Sales Cost of sales Gross profit margin Operating profit Operating profit margin Earnings before income taxes Income taxes Net earnings for calculation of diluted net earnings per common share Diluted net earnings per common share Reported (GAAP) $ 4,405 $ (1,741) 60.5 % $ 951 21.6 % $ 883 $ (135) $ 748 $ 3.03 Amortization of acquisition-related intangible assets A — — — 47 1.1 47 47 0.19 Restructuring B — 12 0.3 51 1.2 51 51 0.21 Other items C — — — 17 0.4 17 17 0.07 Reduction of tax indemnification D — — — 39 0.9 39 39 0.16 Fair value (gain) loss on investments E — — — — — (7) (7) (0.03) Amortization of inventory step-up F — — — 1 — 1 1 — Tax effect of the above adjustments H (25) (25) (0.10) Discrete tax adjustments I (41) (41) (0.17) Rounding — — (0.1) — (0.1) — — — — Adjusted (Non-GAAP) $ 4,405 $ (1,729) 60.7 % $ 1,106 25.1 % $ 1,031 $ (201) $ 830 $ 3.36 Nine-Month Period Ended October 2, 2026 Sales Selling, general and administrative expenses Selling, general and administrative expenses as a % of sales Research and development expenses Research and development expenses as a % of sales Nonoperating income (expense), net (excluding interest) Interest income (expense), net Reported (GAAP) $ 4,405 $ (1,503) (34.1) % $ (210) (4.8) % $ 8 $ (76) Amortization of acquisition-related intangible assets A — 47 1.1 — — — — Restructuring B — 39 0.9 — — — — Other items C — 17 0.4 — — — — Reduction of tax indemnification D — 39 0.9 — — — — Fair value (gain) loss on investments E — — — — — (7) — Amortization of inventory step-up F — 1 — — — — — Rounding — — (0.1) — — — — Adjusted (Non-GAAP) $ 4,405 $ (1,360) (30.9) % $ (210) (4.8) % $ 1 $ (76) VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) 13
Slide 30 — Reported (GAAP)
Nine-Month Period Ended October 3, 2025 Sales Cost of sales Gross profit margin Operating profit Operating profit margin Earnings before income taxes Income taxes Net earnings for calculation of diluted net earnings per common share Diluted net earnings per common share Reported (GAAP) $ 4,107 $ (1,636) 60.2 % $ 961 23.4 % $ 880 $ (194) $ 686 $ 2.74 Amortization of acquisition-related intangible assets A — — — 27 0.7 27 27 0.11 Other items C — — — 6 0.1 6 6 0.02 Loss on disposition of certain product lines G — — — — — 6 6 0.02 Tax effect of the above adjustments H (7) (7) (0.03) Discrete tax adjustments I (2) (2) (0.01) Rounding — — — — — — — — 0.01 Adjusted (Non-GAAP) $ 4,107 $ (1,636) 60.2 % $ 994 24.2 % $ 919 $ (203) $ 716 $ 2.86 Nine-Month Period Ended October 3, 2025 Sales Selling, general and administrative expenses Selling, general and administrative expenses as a % of sales Research and development expenses Research and development expenses as a % of sales Nonoperating income (expense), net (excluding interest) Interest income (expense), net Reported (GAAP) $ 4,107 $ (1,312) (31.9) % $ (198) (4.8) % $ (5) $ (76) Amortization of acquisition-related intangible assets A — 27 0.7 — — — — Other items C — 6 0.1 — — — — Loss on disposition of certain product lines G — — — — — 6 — Adjusted (Non-GAAP) $ 4,107 $ (1,279) (31.1) % $ (198) (4.8) % $ 1 $ (76) VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) 14
Slide 31 — Amortization of acquisition-related intangible assets in the following historical periods (only the pretax amounts set forth below are reflected in the
A Amortization of acquisition-related intangible assets in the following historical periods (only the pretax amounts set forth below are reflected in the amortization line item above): Three-Month Period Ended Nine-Month Period Ended October 2, 2026 October 3, 2025 October 2, 2026 October 3, 2025 Pretax $ 17 $ 9 $ 47 $ 27 After-tax 14 7 38 21 B Costs incurred during the three and nine-month periods ended October 2, 2026 related to the 2026 Cost Optimization Program ($22 million and $51 million pretax as reported in this line item, $17 million and $38 million after-tax). C Costs incurred during the three-month periods ended October 2, 2026 and October 3, 2025 related to certain strategic initiatives ($10 million and $1 million pretax as reported in this line item, $7 million and $1 million after-tax, respectively). Costs incurred during the nine-month periods ended October 2, 2026 and October 3, 2025 related to certain strategic initiatives ($17 million and $6 million pretax as reported in this line item, $14 million and $5 million after-tax, respectively). D During the separation from Danaher, indemnification agreements were established to protect the Company against certain pre-separation tax exposures. As a result of the settlement of a tax audit pertaining to pre-separation periods, a reduction to the related indemnification asset was recorded during the three and nine-month periods ended October 2, 2026 ($39 million pretax as reported in this line item, $37 million after-tax). A corresponding reduction to the related tax liability of $39 million was recorded during the three and nine-month periods ended October 2, 2026, which is reflected as a discrete tax adjustment (refer to Note I). E Fair value gain from the step acquisition of our previously held minority ownership interest in In-Situ during the nine-month period ended October 2, 2026 ($7 million pretax as reported in this line item, $5 million after-tax). F Amortization of the acquisition-related fair value adjustment to inventory related to the acquisition of In-Situ during the nine-month period ended October 2, 2026. G Loss on the disposition of certain product lines in the nine-month period ended October 3, 2025 ($6 million pretax and after-tax as reported in this line item). H This line item reflects the aggregate tax effect of all nontax adjustments reflected in the preceding line items of the table. In addition, the footnotes above indicate the after-tax amount of each individual adjustment item. Veralto estimates the tax effect of each adjustment item by applying Veralto’s overall estimated effective tax rate to the pretax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. I Discrete tax matters relate to changes in estimates associated with prior period uncertain tax positions, reduction of tax liabilities in connection with the reduction of the tax indemnification related to the separation from Danaher, audit settlements and excess tax benefits from stock-based compensation. VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) 15
Slide 32 — Three-Month Period Ended October 3, 2025 Operating Profit Margins (GAAP)
Segments Total Company Water Quality Product Quality & Innovation Three-Month Period Ended October 3, 2025 Operating Profit Margins (GAAP) 23.2 % 25.9 % 24.3 % Restructuring costs incurred related to the 2026 Cost Optimization Program (1.5) (0.6) (2.8) Impact of acquisitions and dispositions (0.2) (0.5) — Costs incurred related to certain strategic initiatives, including transaction costs incurred related to the 2026 acquisitions (0.7) (1.1) — Tax indemnification adjustment related to the separation from Danaher (2.6) — — Transaction costs incurred during the third quarter of 2025 related to certain strategic initiatives 0.1 — — Year-over-year core operating profit margin changes for the third quarter 2026 (defined as all year- over-year operating profit margin changes other than the changes identified in the line items above) (non-GAAP) 1.4 0.4 2.4 Three-Month Period Ended October 2, 2026 Operating Profit Margins (GAAP) 19.7 % 24.1 % 23.9 % Segments Total Company Water Quality Product Quality & Innovation Nine-Month Period Ended October 3, 2025 Operating Profit Margins (GAAP) 23.4 % 25.5 % 25.3 % Restructuring costs incurred related to the 2026 Cost Optimization Program (1.2) (0.4) (2.2) Impact of acquisitions and dispositions (0.2) (0.4) 0.1 Costs incurred related to certain strategic initiatives, including transaction costs incurred related to the 2026 acquisitions (0.4) (0.5) (0.3) Acquisition-related fair value adjustment to inventory related to the acquisition of In-Situ — (0.1) — Tax indemnification adjustment related to the separation from Danaher (0.9) — — Transaction costs incurred during the first nine months of 2025 related to certain strategic initiatives 0.1 — — Year-over-year core operating profit margin changes for first nine months of 2026 (defined as all year- over-year operating profit margin changes other than the changes identified in the line items above) (non-GAAP) 0.8 0.3 0.8 Nine-Month Period Ended October 2, 2026 Operating Profit Margins (GAAP) 21.6 % 24.4 % 23.7 % VERALTO CORPORATION Operating Profit Margin and Year-Over-Year Core Operating Margin Changes 16
Slide 33 — Total Cash Flows (GAAP):
Three-Month Period Ended Year-over-Year Change Nine-Month Period Ended Year-over-Year Change October 2, 2026 October 3, 2025 October 2, 2026 October 3, 2025 Total Cash Flows (GAAP): Net cash provided by operating activities (GAAP) $ 323 $ 270 $ 845 $ 766 Total cash used in investing activities (GAAP) $ (84) $ (12) $ (729) $ (63) Total cash used in financing activities (GAAP) $ (565) $ (36) $ (339) $ (77) Free Cash Flow (non-GAAP): Total cash provided by operating activities (GAAP) $ 323 $ 270 ~ 19.5 % $ 845 $ 766 ~ 10.5 % Less: payments for additions to property, plant & equipment (capital expenditures) (GAAP) (19) (12) (43) (43) Free cash flow (non-GAAP) $ 304 $ 258 ~ 18.0 % $ 802 $ 723 ~ 11.0 % Operating Cash Flow to Net Earnings Ratio (GAAP) Net cash provided by operating activities (GAAP) $ 323 $ 270 $ 845 $ 766 Net earnings (GAAP) $ 253 $ 239 $ 748 $ 686 Operating cash flow to net earnings conversion ratio (GAAP) 1.28 1.13 1.13 1.12 Free Cash Flow to Net Earnings Conversion Ratio (non-GAAP): Free cash flow from above (non-GAAP) $ 304 $ 258 $ 802 $ 723 Net earnings (GAAP) $ 253 $ 239 $ 748 $ 686 Free cash flow to net earnings conversion ratio (non- GAAP) 1.20 1.08 1.07 1.05 We define free cash flow as operating cash flows, less payments for additions to property, plant and equipment (“capital expenditures”) plus the proceeds from sales of property, plant and equipment (“capital disposals”). VERALTO CORPORATION Cash Flow, Free Cash Flow, Operating Cash Flow to Net Earnings Ratio, Free Cash Flow to Net Earnings Conversion Ratio and Free Cash Flow Margin ($ in millions) 17
Slide 34 — Free Cash Flow Margin (non-GAAP)
Three-Month Period Ended October 2, 2026 July 3, 2026 April 3, 2026 December 31, 2025 Free Cash Flow Margin (non-GAAP) Free Cash Flow (non-GAAP) $ 304 $ 328 $ 170 $ 291 Sales (GAAP) $ 1,509 $ 1,474 $ 1,422 $ 1,396 Last Twelve Month Free Cash Flow (non-GAAP) $ 1,093 Last Twelve Month Sales (GAAP) $ 5,801 Free Cash Flow Margin (non-GAAP) 18.8 % We define free cash flow as operating cash flows, less payments for additions to property, plant and equipment (“capital expenditures”) plus the proceeds from sales of property, plant and equipment (“capital disposals”). VERALTO CORPORATION Cash Flow, Free Cash Flow, Operating Cash Flow to Net Earnings Ratio, Free Cash Flow to Net Earnings Conversion Ratio and Free Cash Flow Margin ($ in millions) 18
Slide 35 — Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP
Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. Management believes that these measures provide useful information to investors by offering additional ways of viewing Veralto Corporation’s (“Veralto” or the “Company”) results that, when reconciled to the corresponding GAAP measure, help our investors: • with respect to the profitability-related non-GAAP measures, understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers; • with respect to core sales and related sales measures, identify underlying growth trends in our business and compare our sales performance with prior and future periods and to our peers; and • with respect to free cash flow and related cash flow measures (the “FCF Measure”), understand Veralto’s ability to generate cash without external financings, strengthen its balance sheet, invest in its business and grow its business through acquisitions and other strategic opportunities (although a limitation of free cash flow is that it does not take into account the Company’s non-discretionary expenditures, and as a result the entire free cash flow amount is not necessarily available for discretionary expenditures). Management uses these non-GAAP measures to measure the Company’s operating and financial performance. • The items excluded from the non-GAAP measures set forth above have been excluded for the following reasons: ◦ Amortization of Intangible Assets: We exclude the amortization of acquisition-related intangible assets because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate. While we have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition’s purchase price allocated to intangible assets and related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition. Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly acquired and long-held businesses, and with both acquisitive and non-acquisitive peer companies. We believe however that it is important for investors to understand that such intangible assets contribute to sales generation and that intangible asset amortization related to past acquisitions will recur in future periods until such intangible assets have been fully amortized. ◦ Restructuring Charges: We exclude costs incurred pursuant to discrete restructuring plans that are fundamentally different (in terms of the size, strategic nature and planning requirements, as well as the inconsistent frequency, of such plans) from the ongoing productivity improvements that result from application of the Veralto Enterprise System. Because these restructuring plans are incremental to the core activities that arise in the ordinary course of our business and we believe are not indicative of Veralto’s ongoing operating costs in a given period, we exclude these costs to facilitate a more consistent comparison of operating results over time. ◦ Other Adjustments: With respect to the other items excluded from the profitability-related non-GAAP measures, we exclude these items because they are of a nature and/or size that occur with inconsistent frequency, occur for reasons that may be unrelated to Veralto’s commercial performance during the period and/or we believe that such items may obscure underlying business trends and make comparisons of long-term performance difficult. ◦ With respect to core operating profit margin changes, in addition to the explanation set forth in the bullets above relating to “restructuring charges” and “other adjustments”, we exclude the impact of businesses owned for less than one year (or disposed of during such period VERALTO CORPORATION Statement Regarding Non-GAAP Measures 19
Slide 36 — and not treated as discontinued operations) because the timing, size, number and nature of such transactions can vary significantly from
and not treated as discontinued operations) because the timing, size, number and nature of such transactions can vary significantly from period to period and may obscure underlying business trends and make comparisons of long-term performance difficult. • We calculate adjusted EBITDA by adding to operating profit amounts equal to depreciation and amortization and making the other adjustments reflected in the applicable tables above, which allows us to calculate and disclose such measure by segment. Given Veralto’s diversification, we believe this helps our investors compare the profitability of our individual segments to peer companies with like business lines. • With respect to core sales related measures, (1) we exclude the impact of currency translation because it is not under management’s control, is subject to volatility and can obscure underlying business trends, and (2) we exclude the effect of acquisitions and divested product lines because the timing, size, number and nature of such transactions can vary significantly from period-to-period and between us and our peers, which we believe may obscure underlying business trends and make comparisons of long-term performance difficult. • With respect to the FCF Measure, we exclude payments for additions to property, plant and equipment (net of the proceeds from capital disposals) to demonstrate the amount of operating cash flow for the period that remains after accounting for the Company’s capital expenditure requirements. • We calculate gross leverage and net leverage as the ratio of debt and net debt (defined as total debt less cash and cash equivalents) to last twelve month adjusted EBITDA. Last Twelve Month EBITDA is an ongoing liquidity measure and is calculated as the sum of adjusted EBITDA for the previous four quarters. We believe these liquidity measures help our investors to assess our liquidity relative to peer companies. VERALTO CORPORATION Statement Regarding Non-GAAP Measures 20
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