Technology

Veralto Reports Fourth Quarter and Full Year 2024 Results

Published

1 year ago

February 4, 2025

WALTHAM, Mass., Feb. 4, 2025 /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 fourth quarter ended December 31, 2024.

Key Fourth Quarter 2024 Results

Sales increased 4.4% year-over-year to $1,345 million, with non-GAAP core sales growth of 4.6%Operating profit margin was 22.9% and non-GAAP adjusted operating profit margin was 23.8%Net earnings were $227 million, or $0.91 per diluted common shareNon-GAAP, adjusted net earnings were $238 million, or $0.95 per diluted common shareOperating cash flow was $285 million and non-GAAP free cash flow was $263 million

Key Full Year 2024 Results

Sales increased 3.4% year-over-year to $5,193 million, with non-GAAP core sales growth of 3.7%Operating profit margin was 23.3% and non-GAAP adjusted operating profit margin was 24.1%Net earnings were $833 million, or $3.34 per diluted common shareNon-GAAP, adjusted net earnings were $883 million, or $3.54 per diluted common shareOperating cash flow was $875 million and non-GAAP free cash flow was $820 million

“Our fourth quarter results were highlighted by mid-single-digit core sales growth across both segments, robust cash generation and the acquisition of TraceGains,” said Jennifer L. Honeycutt, President and Chief Executive Officer. “This capped off a strong full-year performance in which our talented team, powered by the Veralto Enterprise System, executed well on our strategic priorities and delivered core sales growth, margin expansion and adjusted earnings per share above our initial guidance.” Honeycutt continued, “From an end market perspective, demand continued to strengthen throughout 2024 highlighted by industrial water treatment in North America and the recovery of consumer-packaged goods markets globally.”

“We begin 2025 with a stronger financial position and a more positive view of our end markets relative to 2024. We believe the durability of our businesses, fortified by the Veralto Enterprise System, will enable us to successfully navigate a globally dynamic macroeconomic environment. For the full year 2025, we are targeting low-to-mid single digit core sales growth with another year of margin expansion and strong cash generation. Over the long term, we expect to drive value creation through disciplined capital allocation, with a bias towards acquisitions that enhance our ability to help customers deliver clean water, safe food and trusted essential goods,” concluded Honeycutt.

2025 Guidance

The Company provides forecasted sales only 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 first quarter of 2025, Veralto anticipates that non-GAAP core sales will grow low-to-mid-single digits year-over-year with adjusted operating profit margin between 24.0% and 24.5% and adjusted diluted earnings per share in the range of $0.84 to $0.88 per share.

For the full year 2025, the Company anticipates that non-GAAP core sales will grow low-to-mid-single digits year-over-year and that adjusted operating profit margin will expand 25 to 50 basis points year-over-year. The Company is targeting adjusted diluted earnings per share in the range of $3.60 to $3.70 with free cash flow conversion in the range of 90% to 100% of GAAP net earnings.

Conference Call and Webcast Information

Veralto will discuss its fourth quarter results and financial guidance for 2025 during its quarterly investor conference call tomorrow starting at 8:30 a.m. (ET). Access to the call, webcast and an accompanying slide presentation 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) 343-4136 (U.S.) or +1 (203) 518-9843 (INTL) (Conference ID: VLTO4Q24). A replay of the conference call will be available shortly after the conclusion of the call and until February 19, 2025. You can access the replay dial-in information on the “Investors” section of Veralto’s website under the subheading “News & Events.”

ABOUT VERALTO

With annual sales of over $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 nearly 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 first quarter and full year 2025 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, tax rates, tax provisions, cash flows, pension and benefit obligations and funding requirements, Veralto’s liquidity position or other financial measures; Veralto’s management’s plans and strategies for future operations, including statements relating to anticipated operating performance, cost reductions, restructuring activities, new product and service developments, competitive strengths or market position, acquisitions and the integration thereof, divestitures, spin-offs, split-offs or other distributions, strategic opportunities, securities offerings, stock repurchases, dividends and executive compensation; the effects of the separation or the distribution on Veralto’s business; growth, declines and other trends in markets Veralto sells into; new or modified laws, regulations and accounting pronouncements; future regulatory approvals and the timing thereof; outstanding claims, legal proceedings, tax audits and assessments and other contingent liabilities; future foreign currency exchange rates and fluctuations in those rates; 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 BALANCE SHEETS

($ in millions)

(unaudited)

As of December 31

2024

2023

ASSETS

Current assets:

Cash and equivalents

$ 1,101

$ 762

Trade accounts receivable, less allowance for credit losses of $37 and $36,
respectively

812

826

Inventories

288

297

Prepaid expenses and other current assets

186

188

Total current assets

2,387

2,073

Property, plant and equipment, net

268

262

Other long-term assets

523

398

Goodwill

2,693

2,533

Other intangible assets, net

535

427

Total assets

$ 6,406

$ 5,693

LIABILITIES AND EQUITY

Current liabilities:

Trade accounts payable

395

431

Accrued expenses and other liabilities

850

834

Total current liabilities

1,245

1,265

Other long-term liabilities

517

410

Long-term debt

2,599

2,629

Total equity

2,045

1,389

Total liabilities and equity

$ 6,406

$ 5,693

This information is presented for reference only. Final audited financial statements will include footnotes, which
should be referenced when available, to more fully understand the contents of this information.

VERALTO CORPORATION

CONSOLIDATED AND COMBINED STATEMENTS OF EARNINGS

($ and shares in millions, except per share amounts)

(unaudited)

Three-Month Period Ended
December 31

Year Ended December 31

2024

2023

2024

2023

Sales

$ 1,345

$ 1,288

$ 5,193

$ 5,021

Cost of sales

(544)

(542)

(2,088)

(2,120)

Gross profit

801

746

3,105

2,901

Operating costs:

Selling, general and administrative expenses

(424)

(403)

(1,644)

(1,536)

Research and development expenses

(69)

(57)

(253)

(225)

Operating profit

308

286

1,208

1,140

Non-operating income (expense):

Other income (expense)

—

(9)

(14)

Interest expense, net

(28)

(25)

(113)

(30)

Earnings before income taxes

280

261

1,086

1,096

Income taxes

(53)

(61)

(253)

(257)

Net earnings

$ 227

$ 200

$ 833

$ 839

Net earnings per share:

Basic

$ 0.92

$ 0.81

$ 3.37

$ 3.41

Diluted

$ 0.91

$ 0.81

$ 3.34

$ 3.40

Average common stock and common equivalent
shares outstanding:

Basic

247.6

246.6

247.3

246.4

Diluted

250.3

248.2

249.6

246.8

VERALTO CORPORATION

CONSOLIDATED AND COMBINED CONDENSED STATEMENTS OF CASH FLOWS

($ in millions)

(unaudited)

Year Ended December 31

2024

2023

Cash flows from operating activities:

Net earnings

$ 833

$ 839

Noncash items:

Depreciation

Amortization of intangible assets

Stock-based compensation expense

Loss on product line disposition

—

Impairment of equity method investment

—

Changes in operating assets and liabilities

(116)

(33)

Net cash provided by operating activities

875

963

Cash flows from investing activities:

Cash paid for acquisitions, net of cash acquired

(363)

—

Payments for additions to property, plant and equipment

(55)

(54)

Proceeds from sales of property, plant and equipment

—

All other investing activities

(16)

(3)

Net cash used in investing activities

(434)

(55)

Cash flows from financing activities:

Proceeds from the issuance of common stock in connection with stock-based
compensation

Net transfers to Former Parent

—

(147)

Consideration paid to Former Parent in connection with Separation

—

(2,600)

Payment of dividends

(89)

—

Proceeds from borrowings (maturities longer than 90 days)

—

2,608

Net cash used in financing activities

(65)

(135)

Effect of exchange rate changes on cash and cash equivalents

(37)

(11)

Net change in cash and cash equivalents

339

762

Beginning balance of cash and cash equivalents

762

—

Ending balance of cash and cash equivalents

$ 1,101

$ 762

VERALTO CORPORATION

SEGMENT INFORMATION

($ in millions)

(unaudited)

Three-Month Period Ended
December 31

Year Ended December 31

2024

2023

2024

2023

Sales:

Water Quality

$ 811

$ 782

$ 3,138

$ 3,039

Product Quality & Innovation

534

506

2,055

1,982

Total

$ 1,345

$ 1,288

$ 5,193

$ 5,021

Operating profit:

Water Quality

$ 204

$ 194

$ 768

$ 730

Product Quality & Innovation

124

116

529

472

Other

(20)

(24)

(89)

(62)

Total

$ 308

$ 286

$ 1,208

$ 1,140

Operating Profit Margin:

Water Quality

25.2 %

24.8 %

24.5 %

24.0 %

Product Quality & Innovation

23.2 %

22.9 %

25.7 %

23.8 %

Total

22.9 %

22.2 %

23.3 %

22.7 %

VERALTO CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

Reconciliation of GAAP to Non-GAAP Financial Measures

($ in millions)

Three-Month Period Ended December 31, 2024

Sales

Operating
profit

Operating
profit
margin

Net earnings
for calculation
of diluted
earnings per
common
share

Diluted net
earnings
per
common
share

Reported (GAAP)

$ 1,345

$ 308

22.9 %

$ 227

$ 0.91

Amortization of acquisition-related
intangible assets A

—

0.7

0.04

Other items B

—

0.1

0.01

Tax effect of the above adjustments H

—

(2)

(0.01)

Discrete tax adjustments I

—

Rounding

—

0.1

—

Adjusted (Non-GAAP)

$ 1,345

$ 320

23.8 %

$ 238

$ 0.95

Three-Month Period Ended December 31, 2023

Sales

Operating
profit

Operating
profit
margin

Net earnings
for calculation
of diluted
earnings per
common
share

Diluted net
earnings
per
common
share

Reported (GAAP)

$ 1,288

$ 286

22.2 %

$ 200

$ 0.81

Amortization of acquisition-related intangible assets A

—

0.9

0.05

Other items B

—

0.1

—

Separation costs C

—

0.5

0.03

Tax effect of the above adjustments H

—

(5)

(0.02)

Rounding

—

0.1

—

Adjusted (Non-GAAP)

$ 1,288

$ 306

23.8 %

$ 215

$ 0.87

Year Ended December 31, 2024

Sales

Operating
profit

Operating
profit
margin

Net earnings
for calculation
of diluted
earnings per
common
share

Diluted net
earnings
per
common
share

Reported (GAAP)

$ 5,193

$ 1,208

23.3 %

$ 833

$ 3.34

Amortization of acquisition-related
intangible assets A

—

0.7

0.15

Other items B

—

0.1

0.02

Separation costs C

—

Net loss on disposition of certain
product lines D

—

0.04

Tax effect of the above adjustments H

—

(9)

(0.04)

Discrete tax adjustments I

—

0.02

Rounding

—

0.01

Adjusted (Non-GAAP)

$ 5,193

$ 1,251

24.1 %

$ 883

$ 3.54

Year Ended December 31, 2023

Sales

Operating
profit

Operating
profit
margin

Net earnings
for calculation
of diluted
earnings per
common
share

Diluted net
earnings
per
common
share

Reported (GAAP)

$ 5,021

$ 1,140

22.7 %

$ 839

$ 3.40

Amortization of acquisition-related
intangible assets A

—

1.0

0.19

Other items B

—

Separation costs C

—

0.1

0.03

Standalone Entity Adjustments E

(38)

(0.8)

(138)

(0.56)

Fair value losses on investments F

—

0.06

Impairments and other charges G

—

0.2

0.05

Tax effect of the above adjustments H

—

0.06

Discrete tax adjustments I

—

(12)

(0.05)

Rounding

—

0.1

—

0.01

Adjusted (Non-GAAP)

$ 5,027

$ 1,170

23.3 %

$ 787

$ 3.19

VERALTO CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

Notes to Reconciliation of GAAP to Non-GAAP Financial Measures

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

Year Ended

December 31, 2024

December 31, 2023

December 31, 2024

December 31, 2023

Pretax

$ 10

$ 12

$ 38

$ 48

After-tax

Costs incurred during three-month period ended December 31, 2024 related to certain strategic initiatives ($2 million pretax and after-tax as reported in this line item). Costs incurred during the year ended December 31, 2024 related to certain strategic initiatives ($4 million pretax and after-tax as reported in this line item). Costs incurred during the three-month period ended and year ended December 31, 2023 related to strategic initiatives ($1 million pretax and after-tax as reported in these line items).

Costs incurred during the year ended December 31, 2024 related to the separation of the Company from Danaher primarily related to IT costs and certain regulatory fees ($1 million pretax as reported in this line item). Costs incurred during the three-month period ended and year ended December 31, 2023 related to the separation of the Company from Danaher primarily related to the equity award conversion as a result of the separation as well as other costs the Company incurred to separate from Danaher ($7 million pretax as reported in this line item, $5 million after-tax).

Net loss on the disposition of certain product lines during the year ended December 31, 2024 ($10 million pretax net loss as reported in this line item, $11 million after-tax).

This amount encompasses management estimates of operating as a standalone entity incurred during the year ended December 31, 2023 ($138 million pretax as reported in this line item, $103 million after-tax). The management estimate includes recurring and ongoing costs required to operate new functions required for a public company such as certain corporate functions including finance, tax, legal, human resources and other general and administrative related functions. The estimate also includes an adjustment to sales related to the impact of the framework agreement governing certain commercial arrangements between subsidiaries of Danaher and Veralto, the adjustment is calculated by applying the commercial pricing in the agreement to historical purchases of goods and services by the Former Parent from Veralto.

Fair value loss related to an impairment of an equity method investment in the Water Quality segment for the year ended December 31, 2023 ($15 million pretax as reported in this line item, $11 million after-tax).

Impairment charge related to tradenames and customer relationships in the Product Quality & Innovation segment for the year ended December 31, 2023 ($12 million pretax as reported in this line item, $10 million after-tax).

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.

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 December 31, 2024 vs.
Comparable 2023 Period

Segments

Total Company

Water Quality

Product Quality &
Innovation

Total sales growth (GAAP)

4.4 %

3.7 %

5.4 %

Impact of:

Acquisitions/divestitures

(0.3) %

0.6 %

(1.6) %

Currency exchange rates

0.5 %

0.6 %

0.3 %

Core sales growth (non-GAAP)

4.6 %

4.9 %

4.1 %

% Change Year Ended December 31, 2024 vs. Comparable 2023
Period

Segments

Total Company

Water Quality

Product Quality &
Innovation

Total sales growth (GAAP)

3.4 %

3.2 %

3.7 %

Impact of:

Acquisitions/divestitures

— %

0.3 %

(0.4) %

Currency exchange rates

0.3 %

0.4 %

— %

Core sales growth (non-GAAP)

3.7 %

3.9 %

3.3 %

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 April 4, 2025 vs.
Comparable 2024 Period

Core sales growth (non-GAAP)

+Low-to-mid-single digits

Three-Month Period Ending
April 4, 2025

Adjusted operating profit margin (non-GAAP)

24.0% to 24.5%

Adjusted diluted net earnings per share (non-GAAP)

$0.84 to $0.88

% Change Year Ending
December 31, 2025 vs.
Comparable 2024 Period

Core sales growth (non-GAAP)

+Low-to-mid-single digits

Year Ending December 31, 2025

Adjusted operating profit margin (non-GAAP)

+25 to 50 basis points

Adjusted diluted net earnings per share (non-GAAP)

$3.60 to $3.70

Free cash flow to net earnings conversion ratio (non-GAAP)

90% to 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

Year Ended

Year-over-Year
Change

December 31,
2024

December 31,
2023

December 31,
2024

December 31,
2023

Total Cash Flows:

Net cash provided by operating
activities (GAAP)

$ 285

$ 263

$ 875

$ 963

Total cash used in investing
activities (GAAP)

$ (394)

$ (22)

$ (434)

$ (55)

Total cash provided by (used in)
financing activities (GAAP)

$ (16)

$ 97

$ (65)

$ (135)

Free Cash Flow:

Total cash provided by
operating activities (GAAP)

$ 285

$ 263

~8.5 %

$ 875

$ 963

~(9.0)%

Less: payments for additions to
property, plant & equipment
(capital expenditures) (GAAP)

(22)

(55)

(54)

Plus: proceeds from sales of
property, plant & equipment
(capital disposals) (GAAP)

—

Free cash flow (non-GAAP)

$ 263

$ 241

~9.0 %

$ 820

$ 911

~(10.0)%

Operating Cash Flow to Net
Earnings Ratio (GAAP):

Net cash provided by operating
activities (GAAP)

$ 285

$ 263

$ 875

$ 963

Net earnings (GAAP)

$ 227

$ 200

$ 833

$ 839

Operating cash flow to net
earnings conversion ratio

1.26

1.32

1.05

1.15

Free Cash Flow to Net
Earnings Conversion Ratio
(non-GAAP):

Free cash flow from above
(non-GAAP)

$ 263

$ 241

$ 820

$ 911

Net earnings (GAAP)

$ 227

$ 200

$ 833

$ 839

Free cash flow to net earnings
conversion ratio (non-GAAP)

1.16

1.21

0.98

1.09

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 plant, property 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; andwith 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. Standalone Adjustments: We believe these adjustments provide additional insight into how our businesses are performing, on a normalized basis. However, these non-GAAP financial measures should not be construed as inferring that our future results will be unaffected by the items for which the measure adjusts.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

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July 19, 2026

The recognitions highlight Singtel’s leadership in secure connectivity, network transformation, IoT innovation, and cybersecurity, delivering customer value through intelligent digital infrastructure and AI-enabled enterprise services.

SAN ANTONIO, July 19, 2026 /CNW/ — Frost & Sullivan is pleased to honor Singtel with the 2026 Southeast Asia IoT Connectivity Service Provider Company of the Year, 2026 Singapore Network Transformation Customer Value Leadership, 2026 Singapore Cybersecurity Services Company of the Year, and 2026 Singapore SD-WAN and SASE Service Provider Company of the Year recognitions. These acknowledgements reflect Singtel’s outstanding achievements in delivering secure, intelligent, and scalable digital infrastructure that enables enterprises to modernize operations, simplify complexity, and accelerate digital transformation across Singapore and Southeast Asia. They underscore the company’s consistent leadership in strategy execution, customer value creation, and innovation across enterprise connectivity, cybersecurity, software-defined networking, and IoT connectivity services.

Frost & Sullivan evaluates companies through a rigorous benchmarking process across two core dimensions: strategy effectiveness and strategy execution. Singtel excelled in both, demonstrating its ability to anticipate evolving enterprise requirements while consistently translating long-term vision into measurable customer outcomes. Through platforms such as Singtel CUBΣ (CUBE) and its multidomestic IoT connectivity architecture, the company continues to unify networking, cybersecurity, automation, and AI-driven intelligence into integrated solutions that address the growing complexity of hybrid, multicloud, and connected environments. “Singtel has established itself as a benchmark for enterprise digital infrastructure by converging connectivity, cybersecurity, network intelligence, and IoT orchestration into a unified, customer-centric ecosystem. Its disciplined execution, platform-led innovation, and commitment to simplifying complex enterprise environments continue to strengthen operational resilience and deliver sustained value for organizations across the region,” said Kenny Yeo, Director at Frost & Sullivan.

Guided by a long-term strategy focused on digital innovation, intelligent infrastructure, and customer-centric transformation, Singtel has moved well-beyond traditional telecommunications to a trusted technology partner for enterprises navigating increasingly connected and data-driven environments. Its strategic investments in AI-enabled operations, cloud-native platforms, secure connectivity, and ecosystem partnerships enable organizations to modernize critical infrastructure while maintaining the flexibility to support future business growth.

The company’s strategic agility and sustained investment in integrated digital platforms have enabled it to scale innovative services across local, regional, and global enterprise environments. Innovation remains central to Singtel’s approach through solutions including the CUBΣ connected intelligence platform, multidomestic IoT connectivity powered by eSIM orchestration, managed cybersecurity services, AI-driven network automation, and network-as-a-service capabilities. These solutions simplify network and security management, strengthen cyber resilience, improve operational visibility, and provide enterprises with scalable, secure, and high-performing connectivity across cloud, edge, IoT, and hybrid infrastructures.

By streamlining service delivery through intelligent automation, centralized orchestration, proactive monitoring, and flexible managed and co-managed service models, Singtel continues to help organizations reduce operational complexity while improving service reliability and business agility. Its ability to integrate best-of-breed technologies in a unified operational framework, combined with strong regional network ownership and localized expertise, enables customers to confidently scale digital initiatives while maintaining security, governance, and operational excellence.

Frost & Sullivan commends Singtel for setting a high standard in competitive strategy, execution, and customer value across multiple technology domains. By combining intelligent networking, secure digital infrastructure, AI-enabled operations, and cross-border IoT capabilities in an integrated platform strategy, the company is shaping the future of enterprise connectivity while helping organizations build resilient, future-ready digital ecosystems.

Each year, Frost & Sullivan presents its Company of the Year and Customer Value Leadership recognitions to organizations that demonstrate outstanding strategy development and implementation, resulting in measurable improvements in customer satisfaction, competitive positioning, and business performance. These recognitions honor forward-thinking companies that continuously raise industry standards through innovation, operational excellence, and long-term value creation.

Frost & Sullivan Best Practices Recognition
Frost & Sullivan’s Best Practices Recognitions honor companies across regional and global markets that exhibit exceptional achievement and consistent excellence in areas such as leadership, technological innovation, customer experience, and strategic product development. Each recognition is the result of a rigorous analytical process in which Frost & Sullivan industry experts benchmark performance through comprehensive interviews, deep-dive analysis, and extensive secondary research. The goal is to identify true best-in-class organizations that are driving transformative growth and setting new industry standards.
Contact us: Start the discussion.

Contact:
Tarini Singh
E: Tarini.Singh@frost.com

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SOURCE Frost & Sullivan

Technology

Emdoor Launches “Ailyn” AI Hub at WAIC 2026: Unifying Intelligence Across Every Device

Published

6 hours ago

July 19, 2026

SHANGHAI, July 18, 2026 /PRNewswire/ — Emdoor, a leading provider of intelligent computing devices, unveiled its latest innovation — Ailyn, an integrated software-hardware AI hub — at the World Artificial Intelligence Conference (WAIC) 2026. Under the theme “Intelligence in All Things, Boundless Edge Intelligence”, Emdoor’s Booth X1B-804 showcases four immersive scenarios spanning personal, home, enterprise, and industrial use cases, demonstrating how AI can flow seamlessly across devices.

With decades of experience across cloud, edge, device, and wearable form factors, Emdoor has established one of the industry’s most comprehensive intelligent hardware portfolios. Yet the company recognized a critical gap: while individual devices grow smarter, they often operate in isolation.

Ailyn is Emdoor’s answer to this challenge. Introduced on the WAIC Magic Box stage, Ailyn serves as a unified intelligence layer that orchestrates storage, computing power, AI models, and data across PCs, NAS systems, computing boxes, and IoT devices. The result is a scalable, centrally managed intelligence platform that delivers seamless cross-device collaboration, data privacy, and AI capabilities that improve with use.

At its core, Ailyn follows a device-first, multi-device connected philosophy. By prioritizing on-device model deployment, it reduces costs while preserving privacy, minimizing latency, and enabling offline functionality. Key capabilities include unified data access, uninterrupted task handoff between devices, intelligent multi-model routing, and dynamic compute scaling — plus built-in features for knowledge accumulation, skill expansion, persona customization, and automated task execution.

Four Scenarios, One Intelligent Ecosystem

The enterprise lineup features high-performance AI workstations, AI servers, AI NAS, Mini PCs, and motherboards. Workstations support up to 96-core processors and four double-width GPUs with integrated BMC remote management. AI servers run dual Intel Xeon scalable processors with up to eight mainstream AI accelerators. The single-GPU workstation series offers dual-platform compatibility with both Intel and AMD, featuring a PCIe 5.0 ×16 slot and up to 128GB DDR5 memory. Available in two form factors — a 23.9L tower chassis and a 15.3L compact chassis with tempered glass side panel — it delivers balanced performance for both creative workloads and local AI inference. The AI NAS unifies storage and AI computing power in one device, with192GB of octa-channel LPDDR5X memory to support local large model deployment. Ailyn unifies these resources into a private computing backbone, intelligently offloading heavy workloads so users get instant on-device responsiveness with datacenter-grade power on demand.

For individual users, the showcase includes Mini PCs, AI PCs, AI tablets, and multimodal wearables. The AP16, powered by Intel’s 3rd Generation Core™ Ultra processor, delivers 180 TOPS of AI performance with sustained 54W output — capable of running large models locally. Multimodal wearable solutions built on Qualcomm and BES chips offer faster time-to-market for brand partners. Within the Ailyn ecosystem, PCs handle heavy computing while wearables provide continuous environmental awareness, each device strengthening the whole.

Industrial visitors will find AI BOX units, rugged AI notebooks, handheld terminals, and industrial PCs. AI BOX devices come preloaded with industry-specific models for production line visual inspection. Rugged notebooks deliver reliable performance for mobile field operations. Industrial PCs feature industrial-grade architecture for 24/7 uptime. Through Ailyn, these connected devices break down traditional data silos, enabling intelligent resource orchestration and a closed-loop perception-decision-execution system that accelerates industrial digital transformation.

At the center of the home scenario are AI tablets and home NAS, connected to a full-house AIoT network. The NAS acts as the family’s private data and computing hub, while the tablet serves as the primary interface for senior health reminders and children’s learning support. Ailyn weaves these devices into a cohesive system covering family memories, health care, companionship, and home security — bringing intelligence into daily life without intruding on it.

The launch of Ailyn marks a significant evolution for Emdoor — shifting from a hardware manufacturer to a builder of intelligent infrastructure. It represents the convergence of the company’s deep hardware heritage and its AI innovation roadmap. Moving forward, Emdoor will continue investing in edge AI technology and expanding the Ailyn ecosystem alongside partners, bringing distributed intelligence from the showroom into everyday life.

Company: Emdoor Digital Technology Co.,Ltd.
Contact Person: Yao Zhou
Email: marketing.digi@emdoor.com
Website: http://www.emdoordigi.com/
City: Shenzhen, China

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Technology

AI-Powered Connectivity: APAC Charts a Path to a Smarter Digital Future

Published

15 hours ago

July 18, 2026

Asia-Pacific’s first Broadband Development Summit brings regulators and operators to Bangkok to set the agenda

BANGKOK, July 19, 2026 /PRNewswire/ — Government officials, standards bodies and telecom operators gathered in Bangkok on 14 July for the inaugural Broadband Development Summit APAC 2026, convened by the World Broadband Association (WBBA) to build consensus on AI-era networks.

Participants included the ITU, Thailand’s National Board of the Digital Economy and Society, WBBA, IAB, FNCAP, WAA, NIDA and the IPv6 Council, alongside operators Telkomsel, XLSmart, Surge, Globe, AIS, CMI and HKT and Huawei.

Denny Deng, President of Huawei Asia Pacific Carrier Business, envisions a “faster, smarter, greener” Asia-Pacific.

VOICES FROM THE SUMMIT

“To seize the opportunities of the AI era, we call on the industry to accelerate broadband evolution, advance computing-network synergy, and strengthen the cross-border connectivity. Together, let us build faster, smarter, and greener digital infrastructure for Asia-Pacific.”
— Denny Deng, President of Asia Pacific Carrier Business, Huawei

“High-speed broadband is no longer just about ‘getting online’ — it is the vital infrastructure upon which the entire AI revolution is being built. We view AI not merely as a tool, but as a primary engine for national competitiveness and a catalyst for improving the quality of life for all.”
— Wetang Phuangsup, Ph.D., Secretary-General, the National Board of the Digital Economy and Society, Thailand

“Three initiatives define the road to 2030. We must close the quality divide so the value of broadband reaches everyone. We must build AI-ready networks — 10G access, 800GE cores, intelligence end to end. And we must do it together, through shared standards.”
— Martin Creaner, Director General of WBBA

“Moving towards next-generation networks, network architectures must continue to evolve to deliver broader connectivity, superior quality, enhanced security, and greater intelligence. This evolution is essential for Net5.5G, positioning the network not simply as infrastructure, but as the foundation that enables AI, strengthens resilience and efficiency, and supports digital transformation across industries.”
— Dhruv Dhody, Industry Standardization Expert at Huawei, Chair of the IAB, IETF

“Across Asia-Pacific, fibre is extending beyond homes and offices into rooms, devices, and machines. By working together, we can accelerate fibre innovation and adoption to build truly AI-ready infrastructure.”
— Ilham Nandana, Chair of the Market Intelligence Committee, Fiber Network Council APAC (FNCAP)

“We fixed it before you feel it! AIS is redefining premium home broadband by combining ultra-fast connectivity with AI-driven network intelligence and smart home ecosystem — delivering proactive, invisible service excellence that transforms connectivity into differentiated customer value and sustainable ARPU growth.”
— Thanit Chaiyaboonthanit, Head of Technology Department, Broadband Business, AIS

“Connecting the Unconnected: Affordable Broadband at Scale. Create equal access to global information and empower Indonesia’s digital society.”
— Shannedy Ong, CTO of Surge Indonesia

“Beyond Connectivity: Telkomsel is transforming into a true value creator. By leveraging our FBB market-leading footprint, we power growth through service excellence, customer loyalty, and a next-generation home ecosystem.”
— Stanislaus Susatyo, Director of Sales, Telkomsel Indonesia

“We stopped treating AI as an add-on feature. Instead, our approach at Globe starts with architecture, embedding intelligence into the very core of how we build, how we sell, and how we operate.
AI continuously monitors network health, customer behavior and service quality. Rather than waiting for failures, the system predicts degradation and initiates corrective actions. By maintaining minute-level awareness of network health, our systems automatically resolve 30% of all Wi-Fi issues without any human intervention.”
— Danny Theseira, Head of Broadband Business Group at Globe Telecom

“Huawei is driving the Optics-AI Synergy to foster their collaborative growth. Through AI-ON, operators could build an AI-centric all-optical target network and establish 1-5-20ms latency circles across the Asia Pacific region. AI-ON also supports efficient computing access and usage while delivering an ultimate network experience through gigabit/ultra-gigabit home broadband, accelerating the widespread adoption of AI services.”
— Kim Jin, Vice President & Chief Marketing Officer Optical Business Product Line, Huawei

“Connectivity is not just about technology. It is a lifeline, a platform for opportunity, and a driver of sustainable development. I believe the intersection of connectivity and artificial intelligence will shape the future of smarter, more resilient networks.”
— Dr. Cosmas Zavazava, Director of the Telecommunication Development Bureau, ITU

“Performance and user experience are the essential path to the next-generation WLAN. Based on standards and AI-driven innovation, let’s jointly explore the path to the future autonomous WLAN with all the stakeholders.”
— Dr. Crane H. Yang, Secretary-General, World WLAN Application Alliance (WAA)

“At the summit, NIDA and WBBA signed an MOU to accelerate next-generation network evolution and establish pioneering smart city benchmarks through the co-development of industry standards, the harmonization of global regulations, and the sharing of vertical industry insights.
NIDA focuses on advancing network architecture standards, while WBBA drives global consensus on broadband evolution. This natural strategic complementarity creates vast opportunities for future collaboration.”
— Joey Deng, Secretary-General of NIDA

“ION-2030 develops the global standard for next generation optical networks in the AI era. It provides exceptional AI application and service experience. The WBBA and ITU will jointly accelerate its development, and this is a unique opportunity for Asia-Pacific stakeholders to actively influence the future of optical broadband networks.”
— Dr. Marcus Brunner, Chief Expert Standardization, WBBA WG1 Chair and Vice-Chair of ETSI ISG F5G

“The transition into the AI era demands a high-quality, deterministic digital foundation. By releasing Net5.5G policy guidelines, Malaysia is accelerating the evolution of next-generation network standards based on IPv6, establishing an innovative infrastructure to unleash AI’s value and drive a prosperous digital economy for 2030.”
— Prof. Sureswaran Ramadass, Chair of APAC at IPv6 Council, Industry Partner of WBBA

“The digital economy is thriving across the Asia-Pacific region, with AI emerging as a core catalyst for intelligent transformation. China Mobile International (CMI) is driving regional growth by integrating China’s advanced AI capabilities with comprehensive communications, computing, and AI services. Moving forward, CMI will collaborate closely with industry partners to foster a shared, AI-driven future for the region.”
— Paul Lin, Managing Director of Commercial and Technology, Asia Pacific, China Mobile International

“Next-generation network infrastructure is the oxygen of the intelligent economy. By integrating cutting-edge 800G connectivity with quantum-safe security, HKT is laying the essential foundations to keep Hong Kong’s enterprises highly competitive, secure, and ready for the computing paradigm shifts of tomorrow.”
— Wilson Cheung, Vice President, Broadband Design & Cyber Security, HKT

“The evolution toward Net5.5G AI WAN is an important step in strengthening XLSMART’s transport network for the future. By progressively adopting AI-assisted operations, SRv6, SDN, service differentiation, and higher-capacity transport infrastructure, we are enhancing network intelligence, operational efficiency, and service resilience while supporting long-term sustainability. This transformation is a continuous journey that aligns with the industry’s vision of AI-native broadband networks. Through collaboration with our technology partners and the broader ecosystem, we will continue to develop capabilities that deliver better network performance and support Indonesia’s growing digital connectivity needs.”
— Regie Ginanjar, Head of Transport Autonomy & Orchestration, Transport Network Transformation, XLSMART

“For the AI era, Huawei upgrades the IP bearer network via security resilience, multi-dimensional awareness, and network autonomy. This empowers carriers to guarantee service experience, accelerate monetization, and enhance efficiency, ushering in a new chapter of intelligent connectivity.”
— Arthur Wang, Vice President of Data Communication Product Line, Huawei

A CONVERGING VIEW

Speakers agreed AI is shifting networks from connectivity to intelligent connectivity, as broadband, IP, computing and cross-border infrastructure converge to support innovation and coordination.

WBBA launched the AI-Net Certification, a global benchmark for national policy, industrial ecosystems and network intelligence. XLSmart was named first AI-Net Champion, and Indonesia was among the first with a certified operator, backed by its Net5.5G roadmap.

In another high-profile segment, WBBA Director General Martin Creaner presented the Gigacity Certification to KOMDIGI, SURGE, Telkomsel, AIS, TRUE, HKT and Globe, recognizing regional broadband pioneers.

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SOURCE HUAWEI