Waters Corporation (NYSE: WAT) Reports Third Quarter 2025 Financial Results

Highlights Sales of $800 million exceeded guidance; grew 8% as reported and 8% in constant currency Delivered GAAP EPS of $2.50 and non-GAAP EPS of $3.40, which reflects strong, 16% growth in Adjusted Earnings Per Share that exceeded guidance Instruments grew 6% in constant currency, led by high single-digit LC & MS growth, and TA Division returning to positive growth Recurring revenue grew 9% in constant currency; chemistry grew double digits, with strong uptake of new bioseparations products In constant currency, Pharma grew 11%, driven by broad-based growth across all regions, including double-digit growth in the Americas Raising full-year 2025 constant currency sales growth guidance and raising full-year 2025 non-GAAP EPS guidance Third Quarter 2025 , /PRNewswire/ -- Waters Corporation (NYSE: WAT), today announced its financial results for the third quarter of 2025. Sales for the third quarter of 2025 were $800 million, an increase of 8% as reported and 8% in constant currency, compared to sales of $740 million for the third quarter of 2024. On a GAAP basis, diluted earnings per share (EPS) for the third quarter of 2025 were $2.50, compared to $2.71 for the third quarter of 2024. Non-GAAP EPS for the third quarter of 2025 grew 16% to $3.40, compared to $2.93 for the third quarter of 2024. "Our team yet again delivered outstanding results, driven by strong execution and our differentiated product portfolio. Pharma grew double digits as the instrument replacement cycle entered its second year, and new LC-MS and chemistry products captured opportunities from the growing share of biologics and novel modalities in the pharma pipeline," said Dr. Udit Batra, President & CEO of Waters Corporation. Dr. Batra continued, "Our chemistry portfolio continues to set the standard in the industry, with excellent customer reception of our new Affinity bioseparation columns. In bioanalytical characterization, we have worked closely with customers to develop the Xevo™ Charge Detection Mass Spectrometer, which uses up to 100-fold less sample volume than current techniques and delivers results in under 10 minutes." "We will uphold the same high standards of innovation, operational excellence, and execution in BD's Biosciences & Diagnostic Solutions business as we accelerate our long-term growth strategy. Integration planning is progressing as expected, and we remain highly confident in the achievability of the significant cost and revenue synergies we have identified." A description and reconciliation of GAAP to non-GAAP results appear in the tables below and can be found on the Company's website www.waters.com in the Investor Relations section. Full-Year and Fourth Quarter 2025 Financial Guidance Full-Year 2025 Financial Guidance The Company is raising its full-year 2025 constant currency sales growth guidance to the range of +6.7% to +7.3%. Net of currency translation, the Company is raising its full-year 2025 reported sales growth to the range of +6.5% to +7.1%. The Company is raising its full-year 2025 non-GAAP EPS guidance to the range of $13.05 to $13.15. This reflects year-over-year growth of approximately +10% to +11% and +11% to +12% on a constant currency basis. Fourth Quarter 2025 Financial Guidance The Company expects fourth quarter 2025 constant currency sales growth in the range of +5.0% to +7.0%. Net of currency translation, fourth quarter 2025 reported sales growth is expected in the range of +5.2% to +7.2%. The Company expects fourth quarter 2025 non-GAAP EPS to be in the range of $4.45 to $4.55, which reflects year-over-year growth of approximately +9% to +11%. Please refer to the tables below for a reconciliation of the projected GAAP to non-GAAP financial outlook for the full-year and fourth quarter. Conference Call Details Waters Corporation will webcast its third quarter 2025 financial results conference call today, November 4, 2025, at 8:00 a.m. Eastern Time. To listen to the call and see the accompanying slide presentation, please visit www.waters.com, select "Investor Relations" under the "About Waters" section, navigate to "Events & Presentations," and click on the "Webcast." A replay will be available through at least December 2, 2025. About Waters Corporation Waters Corporation (NYSE:WAT) is a global leader in analytical instruments, separations technologies, and software, serving the life, materials, food, and environmental sciences for over 65 years. Our Company helps ensure the efficacy of medicines, the safety of food and the purity of water, and the quality and sustainability of products used every day. In over 100 countries, our 7,600+ passionate employees collaborate with customers in laboratories, manufacturing sites, and hospitals to accelerate the benefits of pioneering science. Additional Information and Where to Find It This release is not intended to and does not constitute an offer to sell or the solicitation of an offer to buy or exchange any securities or a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. It does not constitute a prospectus or prospectus equivalent document. No offering or sale of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the "Securities Act"), and otherwise in accordance with applicable law. In connection with the proposed transaction between Waters, Augusta SpinCo Corporation ("SpinCo") and Becton, Dickinson and Company ("BD"), the parties intend to file relevant materials with the U.S. Securities and Exchange Commission (the "SEC"), including, among other filings, a registration statement on Form S-4 to be filed by Waters (the "Form S-4") that will include a preliminary proxy statement/prospectus of Waters and a definitive proxy statement/prospectus of Waters, the latter of which will be mailed to stockholders of Waters, and a registration statement on Form 10 to be filed by SpinCo that will incorporate by reference certain portions of the Form S-4 and will serve as an information statement/prospectus in connection with the spin-off of SpinCo from BD. INVESTORS AND SECURITY HOLDERS OF WATERS AND BD ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS, THE INFORMATION STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS THAT WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security holders will be able to obtain free copies of the Form S-4 and the proxy statement/prospectus (when available) and other documents filed with the SEC by Waters, SpinCo or BD through the website maintained by the SEC at www.sec.gov. Copies of the documents filed with the SEC by Waters will be available free of charge on Waters' website at waters.com under the tab "About Waters" and under the heading "Investor Relations" and subheading "Financials—SEC Filings." Copies of the documents filed with the SEC by BD and SpinCo will be available free of charge on BD's website at bd.com under the tab "About BD" and under the heading "Investors" and subheading "SEC Filings." Participants in the Solicitation Waters and BD and their respective directors and executive officers may be considered participants in the solicitation of proxies from Waters' stockholders in connection with the proposed transaction. Information about the directors and executive officers of Waters is set forth in its Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on February 25, 2025, and its proxy statement for its 2025 annual meeting, which was filed with the SEC on April 9, 2025. To the extent holdings of Waters' securities by its directors or executive officers have changed since the amounts set forth in such filings, such changes have been or will be reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Beneficial Ownership on Form 4 filed with the SEC. Information about the directors and executive officers of Waters and other information regarding the potential participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction. Information about the directors and executive officers of BD is set forth in its Annual Report on Form 10-K for the year ended September 30, 2024, which was filed with the SEC on November 27, 2024, and its proxy statement for its 2025 annual meeting, which was filed with the SEC on December 19, 2024. To the extent holdings of BD's securities by its directors or executive officers have changed since the amounts set forth in such filings, such changes have been or will be reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Beneficial Ownership on Form 4 filed with the SEC. You may obtain these documents (when they become available) free of charge through the website maintained by the SEC at www.sec.gov and from Waters' website and BD's website as described above. Non-GAAP Financial Measures This release contains financial measures, such as constant currency growth rates, adjusted earnings per diluted share and free cash flow, among others, which are considered "non-GAAP" financial measures under applicable U.S. Securities and Exchange Commission rules and regulations. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP). The Company's definitions of these non-GAAP measures may differ from similarly titled measures used by others. The non-GAAP financial measures used in this release adjust for specified items that can be highly variable or difficult to predict. The Company generally uses these non-GAAP financial measures to facilitate management's financial and operational decision-making, including evaluation of the Company's historical operating results, comparison to competitors' operating results and determination of management incentive compensation. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting the Company's business. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company's reported results of operations, management strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety. Definitions of the non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures are included in the tables accompanying this release. Cautionary Statement This release contains "forward-looking" statements regarding future results and events. For this purpose, any statements that are not statements of historical fact may be deemed forward-looking statements. Without limiting the foregoing, the words "feels", "believes", "anticipates", "plans", "expects", "intends", "suggests", "appears", "estimates", "projects" and similar expressions, whether in the negative or affirmative, are intended to identify forward-looking statements. Our actual future results may differ significantly from the results discussed in the forward-looking statements within this release for a variety of reasons, including and without limitation, risks or uncertainties related to expectations regarding our strategy, our future financial and operational performance, future economic and market conditions, including our expectations about the growth rates of certain markets, our strategic initiatives, including our instrument replacement initiatives, respond and adapt to changing global dynamics, including the potential impacts of tariffs and supply chain challenges, the potential impacts of the U.S. government shutdown that began in October 2025, our ability to retain and attract customers in various geographies and market segments, our market size and growth opportunities, our competitive positioning, projected costs, technological capabilities and plans, and objectives of management. Furthermore, important factors related to the proposed transaction between Waters, BD and SpinCo could cause actual results to differ materially from those currently anticipated, including that one or more closing conditions to the transaction, including certain regulatory approvals, may not be satisfied or waived, on a timely basis or otherwise, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the proposed transaction, may require conditions, limitations or restrictions in connection with such approvals or that the required approval by the stockholders of Waters may not be obtained, the risk that the proposed transaction may not be completed on the terms or in the time frame expected by Waters, or at all, unexpected costs, charges or expenses resulting from the proposed transaction, uncertainty of the expected financial performance of the combined company following completion of the proposed transaction, failure to realize the anticipated benefits of the proposed transaction, including as a result of delay in completing the proposed transaction or integrating the businesses of Waters and SpinCo, on the expected timeframe or at all, the ability of the combined company to implement its business strategy, difficulties and delays in the combined company achieving revenue and cost synergies, inability of the combined company to retain and hire key personnel, the occurrence of any event that could give rise to termination of the proposed transaction, the risk that stockholder litigation in connection with the proposed transaction or other litigation, settlements or investigations may affect the timing or occurrence of the proposed transaction or result in significant costs of defense, indemnification and liability, evolving legal, regulatory and tax regimes, changes in general economic and/or industry specific conditions or any volatility resulting from the imposition of and changing policies around tariffs, actions by third parties, including government agencies, the risk that the anticipated tax treatment of the proposed transaction is not obtained, the risk of greater than expected difficulty in separating the business of SpinCo from the other businesses of BD, risks related to the disruption of management time from ongoing business operations due to the pendency of the proposed transaction, or other effects of the pendency of the proposed transaction on the relationship of any of the parties to the transaction with their employees, customers, suppliers, or other counterparties; and other risk factors detailed from time to time in Waters' reports filed with the SEC. Such factors and others are discussed more fully in the sections entitled "Forward-Looking Statements" and "Risk Factors" of the Company's annual report on Form 10-K for the year ended December 31, 2024, as filed with the Securities and Exchange Commission ("SEC"), which discussions are incorporated by reference in this release, as updated by the Company's future filings with the SEC. The forward-looking statements included in this release represent the Company's estimates or views as of the date of this release and should not be relied upon as representing the Company's estimates or views as of any date subsequent to the date of this release. Except as required by law, the Company does not assume any obligation to update any forward-looking statements. Waters Corporation and Subsidiaries Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended September 27,2025 September 28,2024 September 27,2025 September 28,2024 Net sales $ 799,887 $ 740,305 $ 2,232,924 $ 2,085,673 Costs and operating expenses: Cost of sales 327,806 301,655 925,958 851,685 Selling and administrative expenses 214,229 169,097 590,367 516,880 Research and development expenses 53,643 45,336 148,813 136,113 Purchased intangibles amortization 12,095 11,759 35,714 35,337 Litigation provision - 1,326 - 11,568 Operating income 192,114 211,132 532,072 534,090 Other (expense) income, net (70) (338) 778 1,619 Interest expense, net (21,925) (17,177) (42,153) (57,824) Income from operations before income taxes 170,119 193,617 490,697 477,885 Provision for income taxes 21,196 32,114 73,282 71,449 Net income $ 148,923 $ 161,503 $ 417,415 $ 406,436 Net income per basic common share $ 2.50 $ 2.72 $ 7.02 $ 6.85 Weighted-average number of basic common shares 59,528 59,367 59,496 59,314 Net income per diluted common share $ 2.50 $ 2.71 $ 7.00 $ 6.83 Weighted-average number of diluted common shares and equivalents 59,622 59,504 59,656 59,471 Waters Corporation and Subsidiaries Reconciliation of GAAP to Adjusted Non-GAAP Net Sales by Operating Segments, Products & Services, Geography and Markets Three Months Ended September 27, 2025 and September 28, 2024 (In thousands) Constant Three Months Ended Percent Impact of Currency September 27, 2025 September 28, 2024 Change Currency Growth Rate (a) NET SALES - OPERATING SEGMENTS Waters $ 713,375 $ 655,652 9 % 0 % 9 % TA 86,512 84,653 2 % 1 % 2 % Total $ 799,887 $ 740,305 8 % 0 % 8 % NET SALES - PRODUCTS & SERVICES Instruments $ 341,484 $ 323,076 6 % 0 % 6 % Service 299,923 278,294 8 % 1 % 7 % Chemistry 158,480 138,935 14 % 1 % 13 % Total Recurring 458,403 417,229 10 % 1 % 9 % Total $ 799,887 $ 740,305 8 % 0 % 8 % NET SALES - GEOGRAPHY Asia $ 269,714 $ 251,329 7 % (5 %) 13 % Americas 292,812 279,136 5 % 0 % 5 % Europe 237,361 209,840 13 % 8 % 5 % Total $ 799,887 $ 740,305 8 % 0 % 8 % NET SALES - MARKETS Pharmaceutical $ 479,776 $ 430,138 12 % 1 % 11 % Industrial 235,669 227,740 3 % (1 %) 4 % Academic & Government 84,442 82,427 2 % 1 % 1 % Total $ 799,887 $ 740,305 8 % 0 % 8 % ________________________________________ (a) The Company believes that referring to comparable constant currency growth rates is a useful way to evaluate the underlying performance of Waters Corporation's net sales. Constant currency growth, a non-GAAP financial measure, measures the change in net sales between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period. See description of non-GAAP financial measures contained in this release. Waters Corporation and Subsidiaries Reconciliation of GAAP to Adjusted Non-GAAP Net Sales by Operating Segments, Products & Services, Geography and Markets Nine Months Ended September 27, 2025 and September 28, 2024 (In thousands) Constant Nine Months Ended Percent Impact of Currency September 27, 2025 September 28, 2024 Change Currency Growth Rate (a) NET SALES - OPERATING SEGMENTS Waters $ 1,989,509 $ 1,840,112 8 % 0 % 9 % TA 243,415 245,561 (1 %) 1 % (1 %) Total $ 2,232,924 $ 2,085,673 7 % 0 % 7 % NET SALES - PRODUCTS & SERVICES Instruments $ 912,792 $ 859,079 6 % 0 % 7 % Service 859,030 812,367 6 % (1 %) 6 % Chemistry 461,102 414,227 11 % 0 % 11 % Total Recurring 1,320,132 1,226,594 8 % 0 % 8 % Total $ 2,232,924 $ 2,085,673 7 % 0 % 7 % NET SALES - GEOGRAPHY Asia $ 756,430 $ 696,319 9 % (5 %) 13 % Americas 829,089 794,775 4 % 0 % 5 % Europe 647,405 594,579 9 % 4 % 5 % Total $ 2,232,924 $ 2,085,673 7 % 0 % 7 % NET SALES - MARKETS Pharmaceutical $ 1,332,795 $ 1,220,092 9 % (1 %) 10 % Industrial 676,689 644,459 5 % 0 % 5 % Academic & Government 223,440 221,122 1 % 1 % 0 % Total $ 2,232,924 $ 2,085,673 7 % 0 % 7 % ________________________________________ (a) The Company believes that referring to comparable constant currency growth rates is a useful way to evaluate the underlying performance of Waters Corporation's net sales. Constant currency growth, a non-GAAP financial measure, measures the change in net sales between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period. See description of non-GAAP financial measures contained in this release. Waters Corporation and Subsidiaries Reconciliation of GAAP to Adjusted Non-GAAP Financials Three and Nine Months Ended September 27, 2025 and September 28, 2024 (In thousands, except per share data) Income from Operations Selling & Research & Operating Interest before Provision for Diluted Administrative Development Operating Income Expense, Income Income Net Earnings Expenses (a) Expenses Income Percentage Net Taxes Taxes Income per Share Three Months Ended September 27, 2025 GAAP $ 226,324 $ 53,643 $ 192,114 24.0 % $ (21,925) $ 170,119 $ 21,196 $ 148,923 $ 2.50 Adjustments: Purchased intangibles amortization (b) (12,095) - 12,095 1.5 % - 12,095 2,894 9,201 0.15 Restructuring costs and certain other items (c) (1,279) - 1,279 0.2 % - 1,279 288 991 0.02 ERP implementation and transformation costs (d) (6,434) - 6,434 0.8 % - 6,434 1,544 4,890 0.08 Acquisition related costs (e) (26,809) (3,735) 30,544 3.8 % - 30,544 2,338 28,206 0.47 Financing Costs (h) - - - - 14,060 14,060 3,374 10,686 0.18 Adjusted Non-GAAP $ 179,707 $ 49,908 $ 242,466 30.3 % $ (7,865) $ 234,531 $ 31,634 $ 202,897 $ 3.40 Three Months Ended September 28, 2024 GAAP $ 182,182 $ 45,336 $ 211,132 28.5 % $ (17,177) $ 193,617 $ 32,114 $ 161,503 $ 2.71 Adjustments: Purchased intangibles amortization (b) (11,759) - 11,759 1.6 % - 11,759 2,814 8,945 0.15 Restructuring costs and certain other items (c) (1,194) - 1,194 0.2 % - 1,194 282 912 0.02 Litigation provision (f) (1,326) - 1,326 0.2 % - 1,326 318 1,008 0.02 Retention bonus obligation (g) (1,909) (636) 2,545 0.3 % - 2,545 611 1,934 0.03 Adjusted Non-GAAP $ 165,994 $ 44,700 $ 227,956 30.8 % $ (17,177) $ 210,441 $ 36,139 $ 174,302 $ 2.93 Nine Months Ended September 27, 2025 GAAP $ 626,081 $ 148,813 $ 532,072 23.8 % $ (42,153) $ 490,697 $ 73,282 $ 417,415 $ 7.00 Adjustments: Purchased intangibles amortization (b) (35,714) - 35,714 1.6 % - 35,714 8,546 27,168 0.46 Restructuring costs and certain other items (c) (5,746) - 5,746 0.3 % - 5,746 1,344 4,402 0.07 ERP implementation and transformation costs (d) (13,811) - 13,811 0.6 % - 13,811 3,315 10,496 0.18 Acquisition related costs (e) (41,093) (3,735) 44,828 2.0 % - 44,828 4,729 40,099 0.67 Retention bonus obligation (g) (2,864) (954) 3,818 0.2 % - 3,818 916 2,902 0.05 Financing Costs (h) - - - - 14,060 14,060 3,374 10,686 0.18 Adjusted Non-GAAP $ 526,853 $ 144,124 $ 635,989 28.5 % $ (28,093) $ 608,674 $ 95,506 $ 513,168 $ 8.60 Nine Months Ended September 28, 2024 GAAP $ 563,785 $ 136,113 $ 534,090 25.6 % $ (57,824) $ 477,885 $ 71,449 $ 406,436 $ 6.83 Adjustments: Purchased intangibles amortization (b) (35,337) - 35,337 1.7 % - 35,337 8,456 26,881 0.45 Restructuring costs and certain other items (c) (10,680) - 10,680 0.5 % - 10,680 2,617 8,063 0.14 Litigation provision and settlement (f) (11,568) - 11,568 0.6 % - 11,568 2,776 8,792 0.15 Retention bonus obligation (g) (11,451) (3,817) 15,268 0.7 % - 15,268 3,664 11,604 0.20 Adjusted Non-GAAP $ 494,749 $ 132,296 $ 606,943 29.1 % $ (57,824) $ 550,738 $ 88,962 $ 461,776 $ 7.76 ________________________________________ (a) Selling & administrative expenses include purchased intangibles amortization and litigation provisions and settlements. (b) The purchased intangibles amortization, a non-cash expense, was excluded to be consistent with how management evaluates the performance of its core business against historical operating results and the operating results of competitors over periods of time. (c) Restructuring costs and certain other items were excluded as the Company believes that the cost to consolidate operations, reduce overhead, and certain other income or expense items are not normal and do not represent future ongoing business expenses of a specific function or geographic location of the Company. (d) ERP implementation and transformation costs represent costs related to the Company's initiative to transition from its legacy enterprise resource planning (ERP) system to a new global ERP solution with a cloud-based infrastructure. These costs, which do not represent normal or future ongoing business expenses, are one-time, non-recurring costs related to the establishment of our new global ERP solution that were determined to be non-capitalizable in accordance with accounting standards. (e) Acquisition related costs include all incremental costs incurred to effect the business combination, such as advisory, legal, accounting, tax, valuation, other professional fees, and integration costs. The Company believes that these costs are not normal and do not represent future ongoing business expenses. (f) Litigation provisions and settlement gains were excluded as these items are isolated, unpredictable and not expected to recur regularly. (g) In connection with the Wyatt acquisition, the Company recognized a two-year retention bonus obligation that is contingent upon the employee's providing future service and continued employment with Waters. The Company believes that these costs are not normal and do not represent future ongoing business expenses. (h) Financing costs relate to certain financing fees incurred by the Company to secure access to certain debt facilities in connection with the agreement Waters entered into to acquire the Biosciences and Diagnostics Solutions business of Becton, Dickinson & Company. The Company believes that these costs are not normal and do not represent future ongoing business expenses. Waters Corporation and Subsidiaries Preliminary Condensed Unclassified Consolidated Balance Sheets (In thousands and unaudited) September 27, 2025 December 31, 2024 Cash and cash equivalents $ 459,118 $ 325,355 Accounts receivable 748,519 733,365 Inventories 572,941 477,261 Property, plant and equipment, net 636,964 651,200 Intangible assets, net 570,773 567,906 Goodwill 1,338,358 1,295,720 Other assets 535,891 502,988 Total assets $ 4,862,564 $ 4,553,795 Notes payable and debt $ 1,407,206 $ 1,626,488 Other liabilities 1,124,665 1,098,800 Total liabilities 2,531,871 2,725,288 Total stockholders' equity 2,330,693 1,828,507 Total liabilities and stockholders' equity $ 4,862,564 $ 4,553,795 Waters Corporation and Subsidiaries Preliminary Condensed Consolidated Statements of Cash Flows Three and Nine Months Ended September 27, 2025 and September 28, 2024 (In thousands and unaudited) Three Months Ended Nine Months Ended September 27, 2025 September 28, 2024 September 27, 2025 September 28, 2024 Cash flows from operating activities: Net income $ 148,923 $ 161,503 $ 417,415 $ 406,436 Adjustments to reconcile net income to net cash provided by operating activities: Stock-based compensation 13,650 10,647 39,625 32,993 Depreciation and amortization 52,678 47,507 153,696 143,250 Change in operating assets and liabilities and other, net (27,943) (15,077) (122,734) (60,695) Net cash provided by operating activities 187,308 204,580 488,002 521,984 Cash flows from investing activities: Additions to property, plant, equipment and software capitalization (25,436) (25,618) (73,772) (90,377) Business acquisitions, net of cash acquired (84) - (35,053) - Investments in unaffiliated companies - (425) (1,295) (1,489) Net change in investments - (8) - (44) Net cash used in investing activities (25,520) (26,051) (110,120) (91,910) Cash flows from financing activities: Net change in debt (68,480) (180,000) (242,986) (530,000) Proceeds from stock plans 2,883 3,237 15,621 25,073 Purchases of treasury shares (214) (141) (14,523) (13,475) Other cash flow from financing activities, net (455) 20 1,347 15,305 Net cash used in financing activities (66,266) (176,884) (240,541) (503,097) Effect of exchange rate changes on cash and cash equivalents (3,619) 2,442 (3,578) 8,461 Increase (decrease) in cash and cash equivalents 91,903 4,087 133,763 (64,562) Cash and cash equivalents at beginning of period 367,215 326,427 325,355 395,076 Cash and cash equivalents at end of period $ 459,118 $ 330,514 $ 459,118 $ 330,514 Reconciliation of GAAP Cash Flows from Operating Activities to Free Cash Flow (a) Net cash provided by operating activities - GAAP $ 187,308 $ 204,580 $ 488,002 $ 521,984 Adjustments: Additions to property, plant, equipment and software capitalization (25,436) (25,618) (73,772) (90,377) Tax reform payments - - 120,006 95,645 Litigation settlements (received) paid, net (2,250) - (2,250) 9,250 Payment of Wyatt retention bonus obligation (b) - - 20,127 19,770 Free Cash Flow - Adjusted Non-GAAP $ 159,622 $ 178,962 $ 552,113 $ 556,272 (a) The Company defines free cash flow as net cash flow from operations accounted for under GAAP less capital expenditures and software capitalizations plus or minus any unusual and non recurring items. Free cash flow is not a GAAP measurement and may not be comparable to free cash flow reported by other companies. (b) During the nine months ended September 27, 2025 and September 28, 2024, the Company made retention payments under the Wyatt retention bonus program. The Company believes that these payments are not normal and do not represent future ongoing business expenses. Waters Corporation and Subsidiaries Reconciliation of Projected GAAP to Adjusted Non-GAAP Financial Outlook Twelve Months Ended Three Months Ended December 31, 2025 December 31, 2025 Range Range Projected Sales Constant currency sales growth rate (a) 6.7 % - 7.3 % 5.0 % - 7.0 % Currency translation impact (0.2 %) - (0.2 %) 0.2 % - 0.2 % Sales growth rate as reported 6.5 % - 7.1 % 5.2 % - 7.2 % Range Range Projected Earnings Per Diluted Share GAAP earnings per diluted share $ 11.10 - $ 11.20 $ 4.10 - $ 4.20 Adjustments: Purchased intangibles amortization $ 0.60 - $ 0.60 $ 0.15 - $ 0.15 Restructuring costs and certain other items $ 0.08 - $ 0.08 $ 0.01 - $ 0.01 ERP implementation and transformation costs $ 0.25 - $ 0.25 $ 0.07 - $ 0.07 Acquisition related costs $ 0.78 - $ 0.78 $ 0.11 - $ 0.11 Retention bonus obligation $ 0.05 - $ 0.05 $ - - $ - Financing Costs $ 0.19 - $ 0.19 $ 0.01 - $ 0.01 Adjusted non-GAAP earnings per diluted share $ 13.05 - $ 13.15 $ 4.45 - $ 4.55 (a) Constant currency growth rates are a non-GAAP financial measure that measures the change in net sales between current and prior year periods, excluding the impact of foreign currency exchange rates during the current period. These amounts are estimated at the current foreign currency exchange rates and based on the forecasted geographical sales in local currency, as well as an assessment of market conditions as of today, and may differ significantly from actual results. These forward-looking adjustment estimates do not reflect future gains and charges that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance. Contact: Caspar Tudor, Head of Investor Relations – (508) 482-3448 SOURCE Waters Corporation

Waters Corporation (NYSE: WAT) Reports Third Quarter 2025 Financial Results

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