Technology
JinkoSolar Announces Third Quarter 2024 Financial Results
Published
1 year agoon
By
SHANGRAO, China, Oct. 30, 2024 /PRNewswire/ — JinkoSolar Holding Co., Ltd. (“JinkoSolar” or the “Company”) (NYSE: JKS), one of the largest and most innovative solar module manufacturers in the world, today announced its unaudited financial results for the third quarter ended September 30, 2024.
Third Quarter 2024 Business Highlights
Leveraging our advantages in N-type TOPCon technology, competitive products, global marketing, and manufacturing footprint, our module shipments ranked first in the industry for both the third quarter and the first three quarters of the year.At the end of the third quarter, we became the first module manufacturer in the world to have delivered a total of over 280 GW solar modules.N-type module shipments accounted for approximately 90% of our module shipments globally in the third quarter.The mass production efficiency of N-type TOPCon cells reached approximately 26.2%.We published our first Climate White Paper at the 2024 New York Climate Week.We were recently recognized as a Tier 1 energy storage provider by Bloomberg New Energy Finance.
Third Quarter 2024 Operational and Financial Highlights
Quarterly shipments were 25,910 MW (23,838 MW for solar modules, and 2,072 MW for cells and wafers), up 2.3% sequentially, and up 14.7% year-over-year.Total revenues were RMB24.51 billion (US$3.49 billion), up 1.9% sequentially and down 23.0% year-over-year.Gross profit was RMB3.86 billion (US$549.4 million), up 44.0% sequentially and down 37.1% year-over-year.Gross margin was 15.7%, compared with 11.1% in Q2 2024 and 19.3% in Q3 2023.Net income attributable to JinkoSolar Holding Co., Ltd.’s ordinary shareholders was RMB22.5 million (US$3.2 million), compared with net loss attributable to JinkoSolar Holding Co., Ltd.’s ordinary shareholders of RMB100.7 million in Q2 2024 and net income attributable to JinkoSolar Holding Co., Ltd.’s ordinary shareholders of RMB1.32 billion in Q3 2023.Adjusted net income attributable to JinkoSolar Holding Co., Ltd.’s ordinary shareholders was RMB103.9 million (US$14.8 million), which excluded the impact from (i) a change in fair value of the convertible senior notes, (ii) a change in fair value of long-term investments, (iii) share based compensation expenses, (iv) the net loss resulting from a fire accident at one of our production bases in Shanxi Province in April 2024 (the “Fire Accident”) and (v) the impairment of long-lived assets, compared with adjusted net income attributable to JinkoSolar Holding Co., Ltd.’s ordinary shareholders of RMB378.5 million in Q2 2024 and RMB1.35 billion in Q3 2023.Basic and diluted earnings per ordinary share were RMB0.11 (US$0.02) and RMB0.11 (US$0.02), respectively. This translates into basic and diluted earnings per ADS of RMB0.44 (US$0.06) and RMB0.44 (US$0.06), respectively.
Mr. Xiande Li, JinkoSolar’s Chairman and Chief Executive Officer, commented, “While earnings were under pressure across the industry during the quarter, we achieved relatively outstanding results leveraging our leading position in N-type TOPCon technology, competitive products, as well as our global sales and manufacturing networks. Imbalance between supply and demand led to continuous price decline in the end market, causing losses to almost the whole industrial chain. As we worked to balance utilization rates, shipments and profitability, prices in the third quarter were stable sequentially, and shipments to the U.S. increased significantly quarter-over-quarter. We also continued to optimize our integrated cost through technical advancements and supply chain management. Gross margin was 15.7%, and net income was $3.2 million, both improved significantly sequentially.
In September, the newly added installation was 20.89 GW in China, up 32.4% year-over-year and 26.9% sequentially, reversing the sequential decline in the previous two months while module exports decreased sequentially due to seasonality in some overseas markets. With profitability throughout the whole industrial chain under pressure, some companies have gone bankrupt, reorganized or been acquired. This month, the China Photovoltaic Industry Association (CPIA) held symposiums aimed at encouraging manufacturers to adopt self-discipline in their pricing strategies and production volume management. It also released a report calling on manufacturers to participate in biddings rationally and avoid selling or bidding below cost. The report also called on bid organizers to formulate healthy bidding processes that prioritize products and service quality as well as contract fulfillment. We believe these measures could help eliminate uncompetitive capacity and accelerate industry consolidation and that, with enhanced supervision, domestic prices will eventually return to reasonable levels.
We further consolidated our competitiveness, improving the mass-produced efficiency of our N-type TOPCon cells to nearly 26.2% at the end of the third quarter. As TOPCon technology is evolving rapidly, we have continued to invest in R&D and are gradually adopting certain new technologies into mass production based on market demand, equipment investments, and payback periods, to maintain a leading position in the industry. Also, we have further improved our smart production capabilities to lead the industry in digital transformation. Our new Jinko 360 Smart Platform, which has been certified by TÜV Rheinland, can achieve real-time equipment monitoring in most of our production processes and ensure whole-process management from warehousing of raw materials to warehousing of finished products.
As we navigate through cycles, we expect that the leading enterprises in our industry will emerge ahead thanks to their superior cost control, extensive sales networks, and effective cash flow management. In the long term, they will continue to benefit from continuous investments in R&D and expansion of their global capabilities. We will continue to focus on balancing market structure and profit margin levels and we expect module shipments to be between 90.0 GW to 100.0 GW for full year 2024. We will also continue to optimize our assets and liabilities structure, as well as turnover efficiency, further strengthening our resilience to risks.
Third Quarter 2024 Financial Results
Total Revenues
Total revenues in the third quarter of 2024 were RMB24.51 billion (US$3.49 billion), an increase of 1.9% from RMB24.05 billion in the second quarter of 2024 and a decrease of 23.0% from RMB31.83 billion in the third quarter of 2023. The sequential increase was mainly due to the increase in module shipments. The year-over-year decrease was mainly due to a decrease in the average selling price of solar modules compared to the third quarter of 2023.
Gross Profit and Gross Margin
Gross profit in the third quarter of 2024 was RMB3.86billion (US$549.4 million), compared with RMB2.68 billion in the second quarter of 2024 and RMB6.13 billion in the third quarter of 2023.
Gross margin was 15.7% in the third quarter of 2024, compared with 11.1% in the second quarter of 2024 and 19.3% in the third quarter of 2023. The sequential increase was mainly due to the increase in average selling price of the solar modules compared to the previous quarter. The year-over-year decrease was mainly due to the decrease in the average selling price of solar modules compared to the third quarter of 2023.
Income/Loss from Operations and Operating Margin
Income from operations in the third quarter of 2024 was RMB75.5 million (US$10.8 million), compared with loss from operations of RMB1.14 billion in the second quarter of 2024 and income from operations of RMB2.99 billion in the third quarter of 2023. The fluctuations were primarily attributable to the changes in our revenues and gross margin in the third quarter of 2024.
Operating profit margin was 0.3% in the third quarter of 2024, compared with operating loss margin of 4.7% in the second quarter of 2024 and operating profit margin of 9.4% in the third quarter of 2023.
Total operating expenses in the third quarter of 2024 were RMB3.78 billion (US$538.7 million), a decrease of 0.9% from RMB3.81 billion in the second quarter of 2024 and an increase of 20.3% from RMB3.14 billion in the third quarter of 2023. The year-over-year increase was mainly due to (i) the increase in the shipping cost as the shipment of solar modules increased and (ii) the increase in the impairment of long-lived assets.
Total operating expenses accounted for 15.4% of total revenues in the third quarter of 2024, compared to 15.9% in the second quarter of 2024 and 9.9% in the third quarter of 2023.
Interest Expenses, Net
Net interest expenses consist of interest expenses of RMB300.9 million (US$42.9 million) and interest income of RMB98.8 million (US$14.1 million) in the third quarter of 2024.
Net interest expenses in the third quarter of 2024 was RMB202.1 million (US$28.8 million), an increase of 92.2% from RMB105.2 million in the second quarter of 2024 and an increase of 36.4% from RMB148.2 million in the third quarter of 2023. The sequential and year-over-year increases were due to the increase in interest-bearing debts in the third quarter of 2024.
Subsidy Income
Subsidy income in the third quarter of 2024 was RMB431.8 million (US$61.5 million), compared with RMB885.0 million in the second quarter of 2024 and RMB64.5 million in the third quarter of 2023. The sequential and year-over-year changes were mainly attributable to the changes in the cash receipt of incentives related to the Company’s business operations.
Exchange Loss/Gain and Change in Fair Value of Foreign Exchange Derivatives
The Company recorded a net exchange loss (including change in fair value of foreign exchange derivatives) of RMB251.9 million (US$35.9 million) in the third quarter of 2024, compared to a net exchange gain of RMB305.0 million in the second quarter of 2024 and a net exchange loss of RMB295.8 million in the third quarter of 2023. The sequential and year-over-year changes were mainly attributable to the exchange rate fluctuation of US dollars against RMB in the third quarter of 2024.
Change in Fair Value of Convertible Senior Notes
The Company issued US$85.0 million of 4.5% convertible senior notes (the “Notes”) due 2024 in May 2019 and has elected to measure the Notes at fair value derived by valuation model, i.e. Binomial Model. All the Notes with the principle amount of US$85.0 million have been converted into ordinary shares of the Company in the second quarter of 2024.
Change in fair value of the convertible senior notes was nil in the third quarter of 2024, compared to a gain of RMB12.8 million in the second quarter of 2024 and a gain of RMB295.6 million in the third quarter of 2023.
Change in Fair Value of Long-term Investment
The Company invested in certain equity interests in several solar technology companies engaged in the photovoltaic industry chain, which are recorded as long-term investment and reported at fair value with changes in fair value recognized in earnings. As of September 30, 2024, the Company had RMB845.0 million (US$120.4 million) in long-term investment, compared with RMB849.7 million as of June 30, 2024.
The Company recognized a gain from change in fair value of RMB30.8 million (US$4.4 million) in the third quarter of 2024, compared with a loss of RMB144.2 million in the second quarter of 2024 and a loss of RMB130.3 million in the third quarter of 2023. The sequential and year-over-year changes were primarily due to the changes in the valuation of several solar technology companies we invested in.
Other Income/Loss, net
Net other income in the third quarter of 2024 was RMB73.6 million (US$10.5 million), compared with net other income of RMB157.6 million in the second quarter of 2024 and net other loss of RMB25.2 million in the third quarter of 2023. The sequential and year-over-year changes were mainly due to the changes in the fair value of the financial instruments in the third quarter of 2024.
Equity in Loss of Affiliated Companies
The Company indirectly holds a 20% equity interest in Sweihan PV Power Company P.J.S.C, a developer and operator of solar power projects in Dubai, and a 9% equity interest in Xinte Ltd, a domestic silicon material supplier, and both are accounted for using the equity method. The Company recorded equity in loss of affiliated companies of RMB3.4 million (US$0.5 million) in the third quarter of 2024, compared with equity in loss of RMB67.6 million in the second quarter of 2024 and equity in loss of RMB22.9 million in the third quarter of 2023. The fluctuations in equity in loss of affiliated companies primarily arose from the changes in net loss incurred by the affiliated companies.
Income Tax Expense
The Company recorded an income tax expense of RMB148.5 million (US$21.2 million) in the third quarter of 2024, compared with RMB24.8 million in the second quarter of 2024 and RMB403.3 million in the third quarter of 2023.
Net Loss/Income attributable to Non-Controlling Interests
Net loss attributable to non-controlling interests amounted to RMB39.0 million (US$5.6 million) in the third quarter of 2024, compared with net loss of RMB18.8 million in the second quarter of 2024 and net income of RMB1.00 billion in the third quarter of 2023. The sequential and year-over-year changes were mainly attributable to the changes in net income of the Company’s majority-owned principal operating subsidiary, Jinko Solar Co., Ltd..
Net Income/Loss and Earnings per Share
Net income attributable to the JinkoSolar Holding Co., Ltd.’s ordinary shareholders was RMB22.5 million (US$3.2 million) in the third quarter of 2024, compared with net loss of RMB100.7 million in the second quarter of 2024 and net income of RMB1.32 billion in the third quarter of 2023.
Excluding the impact from (i) a change in fair value of the convertible senior notes, (ii) a change in fair value of the long-term investment, (iii) share based compensation expenses, and (iv) the net loss resulted from the Fire Accident and (v) the impairment of long-lived assets, adjusted net income attributable to the JinkoSolar Holding Co., Ltd.’s ordinary shareholders was RMB103.9million (US$14.8 million), compared with RMB378.5 million in the second quarter of 2024 and RMB1.35 billion in the third quarter of 2023.
Basic and diluted earnings per ordinary share were RMB0.11 (US$0.02) and RMB0.11 (US$0.02), respectively, in the third quarter of 2024, compared to basic and diluted loss per ordinary share of RMB0.48 and RMB0.53, respectively, in the second quarter of 2024, and basic and diluted earnings per ordinary share of RMB6.42 and RMB4.61, respectively, in the third quarter of 2023. As each ADS represents four ordinary shares, this translates into basic and diluted earnings per ADS of RMB0.44 (US$0.06) and RMB0.44 (US$0.06), respectively in the third quarter of 2024; basic and diluted loss per ADS of RMB1.94 and RMB2.12, respectively, in the second quarter of 2024; and basic and diluted earnings per ADS of RMB25.66 and RMB18.46, respectively, in the third quarter of 2023.
Financial Position
As of September 30, 2024, the Company had RMB22.37 billion (US$3.19 billion) in cash, cash equivalents, and restricted cash, compared with RMB13.87 billion as of June 30, 2024.
As of September 30, 2024, the Company’s accounts receivables were RMB19.67 billion (US$2.80 billion), compared with RMB18.39 billion as of June 30, 2024.
As of September 30, 2024, the Company’s inventories were RMB15.25 billion (US$2.17 billion), compared with RMB19.49 billion as of June 30, 2024.
As of September 30, 2024, the Company’s total interest-bearing debts were RMB36.72 billion (US$5.23 billion), compared with RMB28.06 billion as of June 30, 2024.
Third Quarter 2024 Operational Highlights
Solar Module, Cell and Wafer Shipments
Total shipments were 25,910 MW in the third quarter of 2024, including 23,838 MW for solar module shipments and 2,072 MW for cell and wafer shipments.
Operations and Business Outlook Highlights
Fourth Quarter and Full Year 2024 Guidance
The Company’s business outlook is based on management’s current views and estimates with respect to market conditions, production capacity, the Company’s order book and the global economic environment. This outlook is subject to uncertainty on final customer demand and sale schedules. Management’s views and estimates are subject to change without notice.
For the fourth quarter of 2024, the Company expects its module shipments to be in the range of 22.3 GW to 32.3 GW.
For full year 2024, the Company estimates its module shipments to be in the range of 90.0 GW to 100.0 GW.
Solar Products Production Capacity
The Company expects its annual production capacity for mono wafer, solar cell and solar module to reach 120.0 GW, 95.0 GW and 130.0 GW, respectively, by the end of 2024.
Recent Business Developments
In September 2024, JinkoSolar completed its delivery program which provided over 1,000 PV modules to Ohana Hope Village, a rapid response housing initiative in Kahului, Maui aimed to provide sustainable housing solutions for families displaced by the August 2023 Maui fire.In September 2024, JinkoSolar was recognized as an Overall Highest Achiever in Renewable Energy Testing Center’s 2024 PV Module Index Report. This marks the fifth consecutive year that JinkoSolar has earned this notable award.In September 2024, Jiangxi Jinko participated in the 2024 New York Climate Week, where JinkoSolar officially launched the English version of its first Climate White Paper.In October 2024, Jiangxi Jinko announced that it proposes to offer and list up t 1,000,519,986 A shares in the form of GDRs on the Frankfurt Stock Exchange in Germany.As of the date of this press release, JinkoSolar has repurchased a total of 5,596,739 ADSs in an aggregate amount of approximately US$134.5 million in the open market under its share repurchase program announced in July 2022 and the extended share repurchase program announced in December 2023. As of the same date, approximately US$65.5 million of the Company’s ordinary shares represented by the ADSs under the extended share repurchase program had not been utilized.
Conference Call Information
JinkoSolar’s management will host an earnings conference call on Wednesday, October 30, 2024 at 8:30 a.m. U.S. Eastern Time (8:30 p.m. Beijing / Hong Kong the same day).
Please register in advance of the conference using the link provided below. Upon registering, you will be provided with participant dial-in numbers, passcode and unique access PIN by a calendar invite.
Participant Online Registration: https://s1.c-conf.com/diamondpass/10042950-b7e9np.html
It will automatically direct you to the registration page of “JinkoSolar Third Quarter 2024 Earnings Conference Call”, where you may fill in your details for RSVP.
In the 10 minutes prior to the call start time, you may use the conference access information (including dial-in number(s), passcode and unique access PIN) provided in the calendar invite that you have received following your pre-registration.
A telephone replay of the call will be available 2 hours after the conclusion of the conference call through 23:59 U.S. Eastern Time, November 6, 2024. The dial-in details for the replay are as follows:
International:
+61 7 3107 6325
U.S.:
+1 855 883 1031
Passcode:
10042950
Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of JinkoSolar’s website at http://www.jinkosolar.com.
About JinkoSolar Holding Co., Ltd.
JinkoSolar (NYSE: JKS) is one of the largest and most innovative solar module manufacturers in the world. JinkoSolar distributes its solar products and sells its solutions and services to a diversified international utility, commercial and residential customer base in China, the United States, Japan, Germany, the United Kingdom, Chile, South Africa, India, Mexico, Brazil, the United Arab Emirates, Italy, Spain, France, Belgium, Netherlands, Poland, Austria, Switzerland, Greece and other countries and regions.
JinkoSolar had over 10 productions facilities globally, over 20 overseas subsidiaries in Japan, South Korea, Vietnam, India, Turkey, Germany, Italy, Switzerland, the United States, Mexico, Brazil, Chile, Australia, Canada, Malaysia, the United Arab Emirates, Denmark, Indonesia, Nigeria and Saudi Arabia, and a global sales network with sales teams in China, the United States, Canada, Brazil, Chile, Mexico, Italy, Germany, Turkey, Spain, Japan, the United Arab Emirates, Netherlands, Vietnam and India, as of September 30, 2024.
To find out more, please see: www.jinkosolar.com
Currency Convenience Translation
The conversion of Renminbi into U.S. dollars in this release, made solely for the convenience of the readers, is based on the noon buying rate in the city of New York for cable transfers of Renminbi as certified for customs purposes by the Federal Reserve Bank of New York as of September 30, 2024, which was RMB7.0176 to US$1.00. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized, or settled into U.S. dollars at that rate or any other rate. The percentages stated in this press release are calculated based on Renminbi.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the quotations from management in this press release and the Company’s operations and business outlook, contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in JinkoSolar’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. Except as required by law, the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
For investor and media inquiries, please contact:
In China:
Ms. Stella Wang
JinkoSolar Holding Co., Ltd.
Tel: +86 21-5180-8777 ext.7806
Email: ir@jinkosolar.com
Mr. Rene Vanguestaine
Christensen
Tel: +86 178 1749 0483
Email: rene.vanguestaine@christensencomms.com
In the U.S.:
Ms. Linda Bergkamp
Christensen, Scottsdale, Arizona
Tel: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com
JINKOSOLAR HOLDING CO., LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except ADS and Share data)
For the quarter ended
For the nine months ended
Sep 30, 2023
Jun 30, 2024
Sep 30, 2024
Sep 30, 2023
Sep 30, 2024
RMB’000
RMB’000
RMB’000
USD’000
RMB’000
RMB’000
USD’000
Revenues
31,834,258
24,053,049
24,508,244
3,492,397
85,848,419
71,605,572
10,203,712
Cost of revenues
(25,701,047)
(21,376,366)
(20,652,556)
(2,942,966)
(70,891,519)
(62,338,117)
(8,883,111)
Gross profit
6,133,211
2,676,683
3,855,688
549,431
14,956,900
9,267,455
1,320,601
Operating expenses:
Selling and marketing
(1,739,184)
(1,797,061)
(2,172,100)
(309,522)
(4,961,480)
(5,435,558)
(774,561)
General and administrative
(1,157,814)
(1,141,307)
(1,175,798)
(167,550)
(3,042,370)
(3,684,972)
(525,104)
Research and development
(218,097)
(215,394)
(208,668)
(29,735)
(632,227)
(664,490)
(94,689)
Impairment of long-lived assets
(27,912)
(660,964)
(223,588)
(31,861)
(580,662)
(884,552)
(126,048)
Total operating expenses
(3,143,007)
(3,814,726)
(3,780,154)
(538,668)
(9,216,739)
(10,669,572)
(1,520,402)
(Loss)/income from operations
2,990,204
(1,138,043)
75,534
10,763
5,740,161
(1,402,117)
(199,801)
Interest expenses
(255,951)
(212,897)
(300,935)
(42,882)
(879,058)
(795,566)
(113,368)
Interest income
107,780
107,740
98,790
14,077
467,043
301,431
42,954
Subsidy income
64,461
885,024
431,753
61,524
620,879
1,548,621
220,677
Exchange gain/(loss),net
(253,303)
247,726
(203,999)
(29,070)
976,517
169,737
24,187
Change in fair value of foreign exchange derivatives
(42,474)
57,250
(47,912)
(6,827)
(429,628)
23,052
3,285
Change in fair value of Long-term Investment
(130,311)
(144,222)
30,772
4,385
312,391
(168,778)
(24,051)
Change in fair value of convertible senior notes
295,602
12,791
–
–
123,914
323,474
46,095
Other income/(loss), net
(25,190)
157,574
73,632
10,492
36,905
1,554,684
221,540
Income/(loss) before income taxes
2,750,818
(27,057)
157,635
22,462
6,969,124
1,554,538
221,518
Income tax expenses
(403,305)
(24,799)
(148,460)
(21,155)
(1,059,453)
(649,977)
(92,621)
Equity in (loss)/income of affiliated companies
(22,937)
(67,644)
(3,389)
(483)
220,299
(57,852)
(8,244)
Net income/(loss)
2,324,576
(119,500)
5,786
824
6,129,970
846,709
120,653
Less: Net (income)/loss attributable to non-controlling
interests
(1,001,203)
18,847
38,960
5,552
(2,711,842)
(293,218)
(41,783)
Less: Accretion to reemption value of redeemable non-
controlling interests
–
–
(22,214)
(3,165)
–
(22,214)
(3,165)
Net income/(loss) attributable to JinkoSolar
Holding Co., Ltd.’s ordinary shareholders
1,323,373
(100,653)
22,532
3,211
3,418,128
531,277
75,705
Net income/(loss) attributable to JinkoSolar Holding
Co., Ltd.’s
ordinary shareholders per share:
Basic
6.42
(0.48)
0.11
0.02
16.73
2.54
0.36
Diluted
4.61
(0.53)
0.11
0.02
14.85
0.99
0.14
Net income/(loss) attributable to JinkoSolar Holding
Co., Ltd.’s
ordinary shareholders per ADS:
Basic
25.66
(1.94)
0.44
0.06
66.93
10.15
1.45
Diluted
18.46
(2.12)
0.44
0.06
59.38
3.96
0.57
Weighted average ordinary shares outstanding:
Basic
206,286,879
208,076,672
204,902,909
204,902,909
204,273,709
209,393,151
209,393,151
Diluted
223,182,957
209,869,918
204,962,646
204,962,646
223,117,023
213,914,994
213,914,994
Weighted average ADS outstanding:
Basic
51,571,720
52,019,168
51,225,727
51,225,727
51,068,427
52,348,288
52,348,288
Diluted
55,795,739
52,467,479
51,240,662
51,240,662
55,779,256
53,478,749
53,478,749
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Net income/(loss)
2,324,576
(119,500)
5,786
824
6,129,970
846,709
120,653
Other comprehensive income/(loss):
-Unrealized loss on available-for-sale securities
–
–
(973)
–
-Foreign currency translation adjustments
(31,771)
9,874
(123,210)
(17,556)
192,274
(290,603)
(41,411)
-Change in the instrument-specific credit risk
5,245
–
–
–
70,690
–
–
Comprehensive income/(loss)
2,298,050
(109,626)
(117,424)
(16,732)
6,391,961
556,106
79,242
Less: Comprehensive (income)/loss attributable to non-
controlling interests
(992,475)
9,056
77,293
11,014
(2,747,573)
(262,164)
(37,358)
Comprehensive income/(loss) attributable to JinkoSolar
Holding Co., Ltd.’s ordinary shareholders
1,305,575
(100,570)
(40,131)
(5,718)
3,644,388
293,942
41,884
JINKOSOLAR HOLDING CO., LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Dec 31, 2023
Sep 30, 2024
RMB’000
RMB’000
USD’000
ASSETS
Current assets:
Cash,cash equivalents, and restricted cash
19,069,107
22,371,099
3,187,856
Restricted short-term investments and short-term investments
8,509,257
4,429,382
631,182
Accounts receivable, net
22,958,693
19,670,062
2,802,961
Notes receivable, net
4,090,085
3,840,562
547,276
Advances to suppliers, net
4,565,779
3,013,735
429,453
Inventories, net
18,215,537
15,247,446
2,172,744
Foreign exchange forward contract receivables
103,100
72,891
10,387
Prepayments and other current assets, net
3,430,224
5,477,271
780,505
Held-for-sale assets
2,003,417
189,077
26,943
Total current assets
82,945,199
74,311,525
10,589,307
Non-current assets:
Restricted long-term investments
1,536,198
2,006,350
285,903
Long-term investments
2,117,628
1,703,354
242,726
Property, plant and equipment, net
41,267,187
45,637,079
6,503,232
Land use rights, net
1,821,012
1,840,527
262,273
Intangible assets, net
569,088
327,871
46,721
Right-of-use assets, net
742,431
566,016
80,657
Deferred tax assets
1,290,004
1,580,433
225,210
Advances to suppliers to be utilised beyond one year
648,377
610,575
87,006
Other assets, net
2,790,567
1,485,964
211,748
Available-for-sale securities-non-current
104,134
146,134
20,824
Total non-current assets
52,886,626
55,904,303
7,966,300
Total assets
135,831,825
130,215,828
18,555,607
LIABILITIES
Current liabilities:
Accounts payable
15,475,166
11,550,419
1,645,922
Notes payable
25,690,532
13,248,885
1,887,951
Accrued payroll and welfare expenses
2,798,964
2,605,596
371,294
Advances from customers
6,965,298
6,466,944
921,532
Income tax payables
1,016,039
347,519
49,521
Other payables and accruals
13,448,501
17,670,758
2,518,063
Foreign exchange forward derivatives payables
26,466
18,420
2,625
Convertible senior notes
782,969
–
–
Lease liabilities – current
155,931
120,299
17,142
Short-term borrowings, including current portion of long-term
borrowings, and failed sale-leaseback financing
13,583,774
8,961,302
1,276,975
Held-for-sale liabilities
1,117,005
–
–
Total current liabilities
81,060,645
60,990,142
8,691,025
Non-current liabilities:
Long-term borrowings
11,238,806
19,907,288
2,836,766
Convertible notes
4,785,480
7,259,667
1,034,494
Accrued warranty costs – non current
2,145,426
2,204,720
314,170
Lease liabilities-noncurrent
557,136
470,711
67,076
Deferred tax liability
131,506
138,391
19,721
Long-term Payables
2,378,684
4,385,993
624,999
Total non-current liabilities
21,237,038
34,366,770
4,897,226
Total liabilities
102,297,683
95,356,912
13,588,251
Mezzanine Equity
Redeemable non-controlling interests
–
1,522,214
216,914
SHAREHOLDERS’ EQUITY
Total JinkoSolar Holding Co., Ltd. shareholders’ equity
20,156,434
20,117,522
2,866,724
Non-controlling interests
13,377,708
13,219,180
1,883,718
Total shareholders’ equity
33,534,142
33,336,702
4,750,442
Total liabilities, mezzanine equity and shareholders’ equity
135,831,825
130,215,828
18,555,607
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SOURCE JinkoSolar Holding Co., Ltd.
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Graybar Announces First Quarter 2026 Financial Results
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April 28, 2026By
Achieves Record Net Income and Second-Highest Net Sales in Company History
ST. LOUIS, April 28, 2026 /PRNewswire/ — Graybar, a leading distributor of electrical, industrial, automation and connectivity products and provider of related supply chain management and logistics services, today announced its first quarter financial results of 2026.
For the quarter, Graybar achieved net sales of $3.3 billion, an increase of 12.4% compared to the same period last year. The company also reported net income of $141.9 million, a 40.6% increase over the prior year. This marked the highest net income and the second-highest net sales for any quarter in Graybar’s 100-year history.
“Building on last year’s momentum, Graybar’s strong first quarter performance reflects the dedication of our employees and their commitment to our customers,” said Kathleen M. Mazzarella, chairman, president and chief executive officer of Graybar. “As an employee owned company, we remain focused on delivering great service, managing our business wisely and investing for the long term. Through our ongoing business transformation, we are building advanced capabilities designed to support growth, enhance the value we bring to our customers and strengthen our position as an industry leader.”
Select first quarter 2026 highlights include:
Successfully renewed the company’s Voting Trust Agreement with shareholders, a longstanding foundation of the company’s employee ownership structure.
Acquired Broken Arrow Electric Supply in March, expanding Graybar’s presence in Oklahoma and marking the company’s 20th acquisition over the past decade.
Announced key VP appointments, including Najam Chohan as Vice President – Pricing and Paul Ferguson as Vice President – Shared Services.
Named to Fortune Magazine’s 2026 list of the World’s Most Admired Companies for the 24th year.
About Graybar
Graybar, a Fortune 500 corporation and one of the largest employee-owned companies in North America, is a leader in the distribution of high quality electrical, industrial, automation and connectivity products, and specializes in related supply chain management and logistics services. Through its network of 355 North American distribution facilities, it stocks and sells products from thousands of manufacturers, helping its customers power, network, automate and secure their facilities with speed, intelligence and efficiency. For more information, visit www.graybar.com or call 1-800-GRAYBAR.
Media Contact:
Tim Sommer
(314) 578-7672
timothy.sommer@graybar.com
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SOURCE Graybar
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Jack Henry Announces Fiscal 2026 Third Quarter Deconversion Revenue Results
Published
48 minutes agoon
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MONETT, Mo., April 28, 2026 /PRNewswire/ — Jack Henry & Associates, Inc.® (Nasdaq: JKHY) announced today that deconversion revenue for the fiscal third quarter, ended Mar. 31, 2026, was $18.7 million. Based on these results, the deconversion revenue estimate has been increased to $37 million for full year fiscal 2026 guidance. For more information about how guidance is developed for deconversion revenue estimates, please see Jack Henry’s Current Report on Form 8-K filed with the Securities and Exchange Commission on Aug. 3, 2023.
The majority of deconversion revenue is generated when one of Jack Henry’s clients agrees to be acquired by another financial institution, resulting in the termination of the client’s contract with Jack Henry. In these circumstances, Jack Henry’s recognition of deconversion revenue is driven by factors outside Jack Henry’s control, and this revenue does not represent the true operations of Jack Henry’s ongoing business of providing services to clients. As a result, Jack Henry excludes deconversion revenue from non-GAAP revenue reported in its quarterly and annual earnings releases.
Statements made in this press release that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because forward-looking statements relate to the future, they are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, those discussed in Jack Henry’s Securities and Exchange Commission filings, including Jack Henry’s most recent reports on Form 10-K and Form 10-Q, particularly under the heading Risk Factors. Any forward-looking statement made in this current report speaks only as of the date of the current report, and Jack Henry’s expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether because of new information, future events or otherwise.
About Jack Henry & Associates, Inc.®
Jack HenryTM (Nasdaq: JKHY) is a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve. We are an S&P 500 company that prioritizes openness, collaboration, and user centricity – offering banks and credit unions a vibrant ecosystem of internally developed modern capabilities as well as the ability to integrate with leading fintechs. For nearly 50 years, Jack Henry has provided technology solutions to enable clients to innovate faster, strategically differentiate, and successfully compete while serving the evolving needs of their accountholders. We empower approximately 7,400 clients with people-inspired innovation, personal service, and insight-driven solutions that help reduce the barriers to financial health. Additional information is available at www.jackhenry.com.
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SOURCE Jack Henry & Associates, Inc.
WALTHAM, Mass., April 28, 2026 /PRNewswire/ — Veralto (NYSE: VLTO) (the “Company”), a global leader in essential water and product quality solutions dedicated to Safeguarding the World’s Most Vital Resources™, announced results for the first quarter ended April 3, 2026.
Key First Quarter 2026 Results:
Sales increased 6.7% year-over-year to $1,422 million, with non-GAAP core sales growth of 1.9%Operating profit margin was 23.8% and non-GAAP adjusted operating profit margin was 25.1%Net earnings were $254 million, or $1.02 per diluted common shareNon-GAAP, adjusted net earnings were $266 million, or $1.07 per diluted common shareOperating cash flow was $182 million and non-GAAP free cash flow was $170 millionCapital allocation of ~$1 billion year-to-date:Completed strategic acquisitions of In-Situ and GlobalVision(1) for ~$620 millionRepurchased $300 million shares, or 1.3% of outstanding shares(2)Initiated cost optimization program(1) to streamline business processes and enhance operating efficiency:Expect to incur a charge of $85 to $105 million and yield annual savings of $65 to $75 million by 2028
“We are off to a strong start in 2026, reflecting the effectiveness of the Veralto Enterprise System, the essential role of our products and services in customers’ operations, and the resilience of our end markets,” said Jennifer L. Honeycutt, President and Chief Executive Officer. “In the first quarter, we delivered approximately 7% sales growth and 13% adjusted earnings per share growth while continuing to invest in commercial execution, productivity and innovation.”
“Thus far this year, we have invested approximately $1 billion on strategic acquisitions and opportunistic share repurchases. Additionally, we initiated a new cost optimization program designed to enhance operating efficiency and further strengthen our competitive position. These actions underscore the strength of our free cash flow profile, our continuous improvement mindset and our ability to create shareholder value through multiple, disciplined levers,” Honeycutt added. “Going forward, our balance sheet remains strong, providing flexibility to pursue additional acquisitions and share repurchases.”
“Looking ahead, we expect core sales growth to accelerate as the year progresses. Reflecting this momentum and our strong first quarter, we raised our full‑year adjusted earnings per share guidance to a range of $4.20 to $4.28 per share,” concluded Honeycutt.
(1)
Indicates subsequent event that occurred after the first quarter
(2)
1.3% is calculated off the Company’s outstanding shares as of February 13, 2026
2026 Guidance
The Company provides forecasted sales guidance on a non-GAAP basis because of the difficulty in estimating the other components of GAAP sales, such as currency translation, acquisitions, and divestitures.
For the second quarter of 2026, Veralto anticipates non-GAAP core sales growth in the range of 3.0% to 4.0% year-over-year with adjusted operating profit margin of approximately 23.5%, or flat to the prior year period, and adjusted diluted earnings per share in the range of $0.96 to $1.00 per share.
For the full year 2026, the Company anticipates non-GAAP core sales growth in the range of 3.0% to 4.5% year-over-year with adjusted operating profit margin expansion of approximately 25 basis points. The Company raised its guidance for adjusted diluted earnings per share to a range of $4.20 to $4.28, up from the prior guidance range of $4.10 to $4.20 per share. Guidance for free cash flow conversion was increased to approximately 100% of GAAP net earnings.
Conference Call and Webcast Information
Veralto will webcast its first quarter 2026 earnings conference call tomorrow starting at 7:30 a.m. (ET). Access to the webcast, slide presentation and prepared remarks will be available on the “Investors” section of Veralto’s website, www.veralto.com, under the subheading “News & Events” and additional materials will be posted to the same section of Veralto’s website. A replay of the webcast will be available in the same section of Veralto’s website shortly after the conclusion of the call and will remain available until the next quarterly earnings call.
The conference call can be accessed by dialing +1 (800) 343-4849 (U.S.) or +1 (203) 518-9848 (INTL) (Conference ID: VLTO1Q26). A replay of the conference call will be available shortly after the conclusion of the call and until May 8, 2026. You can access the replay dial-in information on the “Investors” section of Veralto’s website under the subheading “News & Events.”
For more information about the acquisitions referenced in this new release, please visit:
In-Situ Acquisition
GlobalVision Acquisition
ABOUT VERALTO
With annual sales of approximately $5.5 billion, Veralto is a global leader in essential technology solutions with a proven track record of solving some of the most complex challenges we face as a society. Our industry-leading companies with globally recognized brands help billions of people around the world access clean water, safe food and trusted essential goods. Headquartered in Waltham, Massachusetts, our global team of approximately 17,000 associates is committed to making an enduring positive impact on our world and united by a powerful purpose: Safeguarding the World’s Most Vital Resources™.
NON-GAAP MEASURES AND SUPPLEMENTAL MATERIALS
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains non-GAAP financial measures. Calculations of these measures, the reasons why we believe these measures provide useful information to investors, a reconciliation of these measures to the most directly comparable GAAP measures, as applicable, and other information relating to these non-GAAP measures are included in the supplemental reconciliation schedule attached.
In addition, this earnings release, the slide presentation accompanying the related earnings call, non-GAAP reconciliations and a note containing details of historical and anticipated, future financial performance have been posted to the “Investors” section of Veralto’s website (www.veralto.com) under the subheading “Quarterly Earnings.”
FORWARD-LOOKING STATEMENTS
Certain statements in this release, including the statement regarding the Company’s anticipated second quarter and full year 2026 financial performance, 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 release 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.
VERALTO CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
($ and shares in millions, except per share amounts)
(unaudited)
Three-Month Period Ended
April 3, 2026
April 4, 2025
Sales
$ 1,422
$ 1,332
Cost of sales
(568)
(527)
Gross profit
854
805
Operating costs:
Selling, general and administrative expenses
(448)
(419)
Research and development expenses
(68)
(64)
Operating profit
338
322
Nonoperating income (expense):
Other income (expense), net
7
(6)
Interest expense, net
(24)
(27)
Earnings before income taxes
321
289
Income taxes
(67)
(64)
Net earnings
$ 254
$ 225
Net earnings per common share:
Basic
$ 1.03
$ 0.91
Diluted
$ 1.02
$ 0.90
Average common stock and common equivalent shares outstanding:
Basic
247.6
247.9
Diluted
249.2
250.1
This information is presented for reference only.
VERALTO CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Reconciliation of GAAP to Non-GAAP Financial Measures
($ in millions)
Three-Month Period Ended April 3, 2026
Sales
Operating profit
Operating
profit margin
Net earnings for
calculation of
diluted net
earnings per
common share
Diluted net
earnings per
common share
Reported (GAAP)
$ 1,422
$ 338
23.8 %
$ 254
$ 1.02
Amortization of acquisition-related intangible assets A
—
13
0.9
13
0.05
Fair value (gain) loss on investments B
—
—
—
(7)
(0.03)
Other items C
—
5
0.4
5
0.02
Amortization of inventory step-up D
—
1
0.1
1
—
Tax effect of the above adjustments F
—
—
—
(1)
—
Discrete tax adjustments G
—
—
—
1
—
Rounding
—
—
(0.1)
—
0.01
Adjusted (Non-GAAP)
$ 1,422
$ 357
25.1 %
$ 266
$ 1.07
Three-Month Period Ended April 4, 2025
Sales
Operating profit
Operating profit margin
Net earnings for
calculation of
diluted net
earnings per
common share
Diluted net
earnings per
common share
Reported (GAAP)
$ 1,332
$ 322
24.2 %
$ 225
$ 0.90
Amortization of acquisition-related intangible assets A
—
9
0.7
9
0.04
Other items C
—
2
0.2
2
0.01
Loss on disposition of certain product lines E
—
—
—
6
0.02
Tax effect of the above adjustments F
—
—
—
(3)
(0.01)
Discrete tax adjustments G
—
—
—
(2)
(0.01)
Rounding
—
—
(0.1)
—
—
Adjusted (Non-GAAP)
$ 1,332
$ 333
25.0 %
$ 237
$ 0.95
VERALTO CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Notes to Reconciliation of GAAP to Non-GAAP Financial Measures
($ in millions)
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
April 3, 2026
April 4, 2025
Pretax
$ 13
$ 9
After-tax
10
7
B
Fair value gain from the step acquisition of our previously held minority ownership interest in In-Situ during the three-month period ended April 3, 2026 ($7 million pretax as reported in this line item, $5 million after-tax).
C
Costs incurred during the three-month periods ended April 3, 2026 and April 4, 2025 related to certain strategic initiatives, including transaction costs related to the acquisitions of In-Situ and GlobalVision during the three-month period ended April 3, 2026 ($5 million and $2 million pretax as reported in this line item, $5 million and $1 million after-tax, respectively).
D
Amortization of the acquisition-related fair value adjustment to inventory related to the acquisition of In-Situ.
E
Loss on the disposition of certain product lines in the three-month period ended April 4, 2025 ($6 million pretax and after-tax as reported in this line item).
F
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.
G
Discrete tax matters relate to changes in estimates associated with prior period uncertain tax positions, audit settlements and excess tax benefits from stock-based compensation.
VERALTO CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Sales Growth by Segment, Core Sales Growth by Segment
% Change Three-Month Period Ended April 3, 2026 vs.
Comparable 2025 Period
Segments
Total Company
Water Quality
Product Quality and
Innovation
Total sales growth (GAAP)
6.7 %
10.1 %
1.7 %
Impact of:
Acquisitions/divestitures
(1.3) %
(3.0) %
1.3 %
Currency exchange rates
(3.5) %
(3.3) %
(4.0) %
Core sales growth (decline) (non-GAAP)
1.9 %
3.8 %
(1.0) %
VERALTO CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Forecasted Core Sales Growth, Adjusted Operating Profit Margin, Adjusted Diluted Net Earnings per Share and Free Cash Flow to Net Earnings Conversion Ratio
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 July 3, 2026 vs.
Comparable 2025 Period
Core sales growth (non-GAAP)
+3.0% to 4.0%
Three-Month Period Ending
July 3, 2026
Adjusted Operating Profit Margin (non-GAAP)
~23.5%
Adjusted Diluted Net Earnings per Share (non-GAAP)
$0.96 to $1.00
% Change Year Ending
December 31, 2026 vs.
Comparable 2025 Period
Core sales growth (non-GAAP)
+3.0% to 4.5%
Year Ending
December 31, 2026
Adjusted Operating Profit Margin (non-GAAP)
+25 basis points
Adjusted Diluted Net Earnings per Share (non-GAAP)
$4.20 to $4.28
Free cash flow to net earnings conversion ratio (non-GAAP)
~100%
VERALTO CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Cash Flow and Free Cash Flow
($ in millions)
Three-Month Period Ended
Year-over-Year Change
April 3, 2026
April 4, 2025
Total Cash Flows (GAAP):
Net cash provided by operating activities (GAAP)
$ 182
$ 157
Total cash used in investing activities (GAAP)
$ (439)
$ (11)
Total cash used in financing activities (GAAP)
$ (332)
$ (26)
Free Cash Flow (non-GAAP):
Total cash provided by operating activities (GAAP)
$ 182
$ 157
~ 16.0 %
Less: payments for additions to property, plant & equipment (capital expenditures) (GAAP)
(12)
(15)
Free cash flow (non-GAAP)
$ 170
$ 142
~ 19.5 %
Free Cash Flow Margin
($ in millions)
Three-Month Period Ended
April 3, 2026
December 31, 2025
October 3, 2025
July 4, 2025
Free Cash Flow Margin (non-GAAP)
Free Cash Flow (non-GAAP)
$ 170
$ 291
$ 258
$ 323
Sales (GAAP)
$ 1,422
$ 1,396
$ 1,404
$ 1,371
Trailing Twelve Month Free Cash Flow (non-GAAP)
$ 1,042
Trailing Twelve Month Sales (GAAP)
$ 5,593
Free Cash Flow Margin (non-GAAP)
18.6 %
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”).
Statement Regarding Non-GAAP Measures
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 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.
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.
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SOURCE Veralto
Graybar Announces First Quarter 2026 Financial Results
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