Veralto CorpVLTO

Veralto Corp Segments Disclosure

10-KFiled Feb 20, 20263 min read
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 years ended December 31 is as follows:
($ in millions)
2025
2024
2023
Sales:
Water Quality
$
3,321 
$
3,138 
$
3,039 
Product Quality & Innovation
2,182 
2,055 
1,982 
Total
$
5,503 
$
5,193 
$
5,021 
Operating profit:
Water Quality
$
844 
$
768 
$
730 
Product Quality & Innovation
549 
529 
472 
Other
(116)
(89)
(62)
Total
$
1,277 
$
1,208 
$
1,140 
Depreciation and amortization of intangible assets:
Water Quality
$
36 
$
41 
$
45 
Product Quality & Innovation
41 
36 
42 
Other
1 
1 
— 
Total
$
78 
$
78 
$
87 
Capital expenditures:
Water Quality
$
36 
$
36 
$
29 
Product Quality & Innovation
27 
17 
17 
Other
— 
2 
8 
Total
$
63 
$
55 
$
54 
Identifiable assets by segment for the years ended December 31 are as follows:
($ in millions)
2025
2024
2023
Water Quality
$
2,651 
$
2,450 
$
2,508 
Product Quality & Innovation
2,810 
2,657 
2,289 
Other
2,232 
1,299 
896 
Total
$
7,693 
$
6,406 
$
5,693 
Reconciliations of total segment sales to total segment operating profit and of total segment operating profit to total consolidated and combined earnings before income taxes, for the years ended December 31 is as follows:
2025
($ in millions)
Water Quality
Product Quality & Innovation
Other
Total
Sales
$
3,321 
$
2,182 
$
— 
$
5,503 
Less: other segment items
(2,477)
(1,633)
(116)
(4,226)
Segment operating profit
$
844 
$
549 
$
(116)
$
1,277 
Other expense, net
(8)
Interest expense, net
(96)
Earnings before income taxes
$
1,173 
2024
($ in millions)
Water Quality
Product Quality & Innovation
Other
Total
Sales
$
3,138 
$
2,055 
$
— 
$
5,193 
Less: other segment items
(2,370)
(1,526)
(89)
(3,985)
Segment operating profit
$
768 
$
529 
$
(89)
$
1,208 
Other expense, net
(9)
Interest expense, net
(113)
Earnings before income taxes
$
1,086 
2023
($ in millions)
Water Quality
Product Quality & Innovation
Other
Total
Sales
$
3,039 
$
1,982 
$
— 
$
5,021 
Less: other segment items
(2,309)
(1,510)
(62)
(3,881)
Segment operating profit
$
730 
$
472 
$
(62)
$
1,140 
Other income, net
(14)
Interest expense, net
(30)
Earnings before income taxes
$
1,096 
Operations in Geographical Areas:
Year Ended December 31
($ in millions)
2025
2024
2023
Sales:
United States
$
2,440 
$
2,312 
$
2,177 
China
336 
334 
356 
Germany
281 
266 
257 
All other (each country individually less than 5% of total sales)
2,446 
2,281 
2,231 
Total
$
5,503 
$
5,193 
$
5,021 
Property, plant and equipment, net:
United States
$
203 
$
200 
$
179 
United Kingdom
17 
16 
14 
Germany
34 
24 
23 
All other (each country individually less than 5% of total property, plant and equipment, net)
40 
28 
46 
Total
$
294 
$
268 
$
262 

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 25, 2025
2023Feb 28, 2024

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

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