Veralto to Acquire In-Situ for $435 Million
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 01 2025
0mins
Should l Buy VLTO?
Source: Coinmarketcap
Veralto Corp has announced an agreement to acquire In-Situ for $435 million, a strategic move aimed at enhancing its water analytics capabilities and expanding its footprint in the environmental water markets.
The acquisition is expected to close in the first quarter of 2026 and is projected to deliver significant cost and commercial synergies. Veralto anticipates pre-tax run-rate cost synergies of approximately $11 million by the end of year three, which will be funded through cash on hand.
In addition to the acquisition, Veralto's Board of Directors has authorized a share repurchase program of up to $750 million. This program will allow the company to execute flexible buybacks over time, further enhancing shareholder value.
In-Situ has demonstrated high-single digit sales growth and is expected to generate around $80 million in sales in 2025, with a gross margin of about 50%. This acquisition is seen as a significant step towards bolstering Veralto's long-term growth and shareholder returns.
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Analyst Views on VLTO
Wall Street analysts forecast VLTO stock price to rise
7 Analyst Rating
2 Buy
5 Hold
0 Sell
Moderate Buy
Current: 95.640
Low
100.00
Averages
110.14
High
121.00
Current: 95.640
Low
100.00
Averages
110.14
High
121.00
About VLTO
Veralto Corporation provides essential technology solutions that monitor, enhance and protect key resources around the globe. Its segments include Water Quality (WQ) and Product Quality & Innovation (PQI). WQ segment provides portfolios of water analytics and differentiated water treatment solutions that enable the delivery of safe drinking water by public and private utilities. Under its Hach, Trojan Technologies, ChemTreat and other globally recognized WQ brands, it provides precision instrumentation and advanced water treatment technologies that its customers rely on to measure, analyze and treat water in residential, commercial, municipal, industrial, research and natural resource applications. PQI segment provides a set of essential solutions for brand owners and consumer packaged goods companies. Under its Videojet, Linx, Esko, X-Rite, Pantone and other globally recognized PQI brands, it provides marking and coding, and packaging and color instrumentation and related consumables.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Veralto Announces Quarterly Cash Dividend
- Quarterly Cash Dividend: Veralto's board has approved a cash dividend of $0.13 per share, payable on April 30, 2026, reflecting the company's ongoing commitment to shareholder returns.
- Record Date for Shareholders: The record date for this dividend is March 31, 2026, ensuring that investors holding shares by this date will receive the dividend, which enhances investor confidence.
- Financial Performance: With annual sales of approximately $5.5 billion, Veralto's strong financial performance as a global leader in water and product quality solutions provides a solid foundation for the dividend, reflecting its robust market position.
- Global Impact: Veralto employs around 17,000 associates dedicated to addressing complex societal challenges, with a mission to safeguard the world's most vital resources, further solidifying its leadership in the industry.
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- Significant Valuation Discounts: According to BNP Paribas, both Xylem (XYL) and Veralto (VLTO) are currently trading at under 21 times earnings, significantly lower than the mid-20x multiples of their peers, indicating a market undervaluation that presents a buying opportunity for investors.
- Sustained Earnings Growth: Despite recent market shifts towards high-growth sectors, both XYL and VLTO have achieved double-digit earnings growth over the past few years, with similar growth expected into 2026, underscoring their strong fundamentals.
- Core Strength of Xylem: Although Xylem reported mixed fourth-quarter results, BNP argues that its core margin expansion narrative remains intact, particularly due to ongoing progress on its 80/20 operational initiative and favorable exposure to industrial markets that could benefit from cyclical upturns in 2026.
- Underappreciated Stability of Veralto: Veralto has exceeded guidance for two consecutive years, and BNP believes the market is underestimating its stable profitability and double-digit EPS growth, highlighting its investment value in the current market landscape.
See More
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- Price Target Adjustment: RBC Capital analyst Deane Dray has lowered Veralto's price target from $111 to $102 while maintaining a Sector Perform rating, reflecting a cautious market sentiment towards the stock.
- Performance Beat: Veralto reported a modest 1% operating beat and provided 2026 guidance that captures consensus at the high end, although slightly below the midpoint, indicating the company's resilience in the current market environment.
- Market Environment Impact: Despite being viewed as a high-quality compounder, Veralto's stock has fallen out of favor in the prevailing market conditions, which may affect investor confidence and stock performance.
- Peer Dynamics: Other firms like Baird, Citi, and Barclays have also lowered their price targets for Veralto, indicating widespread concerns about the company's future performance, which could lead investors to reassess their investment strategies.
See More
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- Significant Performance Growth: Veralto Corporation reported nearly $1.4 billion in total sales for Q4 2025, reflecting a 3.8% year-over-year increase, with core sales growing 1.6% primarily driven by a 2.3% rise in prices, showcasing the company's resilience and adaptability in a dynamic market environment.
- Cash Flow and Shareholder Returns: The company generated over $1 billion in free cash flow in 2025 and announced a $750 million share repurchase program along with an 18% dividend increase, indicating strong confidence in future growth and commitment to shareholders.
- Acquisition and Market Expansion: Veralto completed the acquisition of In-Situ at the beginning of 2026, further expanding its Water Analytics portfolio into fast-growing environmental water and hydrology markets, which is expected to provide robust support for future performance.
- Innovative Product Launches: The company introduced new products such as a new ammonia analyzer, single-use Chemkeys, and AI-enabled packaging software solutions, enhancing product line diversity and market competitiveness, reflecting its ongoing investment in technological innovation.
See More
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- Earnings Highlights: Veralto reported Q4 non-GAAP EPS of $1.04, beating expectations by $0.06, although revenue of $1.4 billion, up 3.7% year-over-year, missed by $10 million, resulting in a 1% drop in shares.
- Q1 2026 Outlook: The company anticipates flat to low-single-digit year-over-year growth in non-GAAP core sales for Q1 2026, with an adjusted operating profit margin of approximately 24.5% and adjusted diluted EPS expected between $0.97 and $1.01, indicating a cautious outlook for future growth.
- Full Year Projections: Veralto expects low-to-mid-single-digit year-over-year growth in non-GAAP core sales for 2026, with an adjusted operating profit margin expanding by approximately 25 basis points, reflecting a focus on maintaining profitability.
- Cash Flow Management: The company targets adjusted diluted EPS in the range of $4.10 to $4.20, with free cash flow conversion expected to be around 100% of GAAP net earnings, demonstrating strong cash flow management capabilities.
See More
Veralto Reports Strong Q4 2025 Results with Strategic Growth Initiatives
- Performance Growth: Veralto achieved mid-single-digit core sales growth of 5% in 2025, with double-digit adjusted earnings per share growth and over $1 billion in free cash flow, demonstrating robust performance in a dynamic macroeconomic environment.
- Acquisition Expansion: The company completed the acquisition of In-Situ in late January, further enhancing its water analytics portfolio and entering the high-growth environmental water and hydrology markets, thereby strengthening its competitive position.
- Shareholder Return Program: In the fourth quarter, Veralto established a $750 million share repurchase program and announced an 18% increase in its dividend, aimed at creating more value for shareholders through disciplined capital allocation and strategic growth.
- 2026 Outlook: The company anticipates low-to-mid-single-digit core sales growth for 2026, targeting adjusted earnings per share in the range of $4.10 to $4.20, reflecting confidence in sustained growth moving forward.
See More
Veralto Announces Quarterly Cash Dividend
- Quarterly Cash Dividend: Veralto's board has approved a cash dividend of $0.13 per share, payable on April 30, 2026, reflecting the company's ongoing commitment to shareholder returns.
- Record Date for Shareholders: The record date for this dividend is March 31, 2026, ensuring that investors holding shares by this date will receive the dividend, which enhances investor confidence.
- Financial Performance: With annual sales of approximately $5.5 billion, Veralto's strong financial performance as a global leader in water and product quality solutions provides a solid foundation for the dividend, reflecting its robust market position.
- Global Impact: Veralto employs around 17,000 associates dedicated to addressing complex societal challenges, with a mission to safeguard the world's most vital resources, further solidifying its leadership in the industry.
See More
Investment Opportunities Amid Water Tech Stock Pullback
- Significant Valuation Discounts: According to BNP Paribas, both Xylem (XYL) and Veralto (VLTO) are currently trading at under 21 times earnings, significantly lower than the mid-20x multiples of their peers, indicating a market undervaluation that presents a buying opportunity for investors.
- Sustained Earnings Growth: Despite recent market shifts towards high-growth sectors, both XYL and VLTO have achieved double-digit earnings growth over the past few years, with similar growth expected into 2026, underscoring their strong fundamentals.
- Core Strength of Xylem: Although Xylem reported mixed fourth-quarter results, BNP argues that its core margin expansion narrative remains intact, particularly due to ongoing progress on its 80/20 operational initiative and favorable exposure to industrial markets that could benefit from cyclical upturns in 2026.
- Underappreciated Stability of Veralto: Veralto has exceeded guidance for two consecutive years, and BNP believes the market is underestimating its stable profitability and double-digit EPS growth, highlighting its investment value in the current market landscape.
See More
RBC Lowers Veralto Price Target to $102
- Price Target Adjustment: RBC Capital analyst Deane Dray has lowered Veralto's price target from $111 to $102 while maintaining a Sector Perform rating, reflecting a cautious market sentiment towards the stock.
- Performance Beat: Veralto reported a modest 1% operating beat and provided 2026 guidance that captures consensus at the high end, although slightly below the midpoint, indicating the company's resilience in the current market environment.
- Market Environment Impact: Despite being viewed as a high-quality compounder, Veralto's stock has fallen out of favor in the prevailing market conditions, which may affect investor confidence and stock performance.
- Peer Dynamics: Other firms like Baird, Citi, and Barclays have also lowered their price targets for Veralto, indicating widespread concerns about the company's future performance, which could lead investors to reassess their investment strategies.
See More
Veralto Corporation Reports Strong Q4 2025 Earnings and Strategic Growth
- Significant Performance Growth: Veralto Corporation reported nearly $1.4 billion in total sales for Q4 2025, reflecting a 3.8% year-over-year increase, with core sales growing 1.6% primarily driven by a 2.3% rise in prices, showcasing the company's resilience and adaptability in a dynamic market environment.
- Cash Flow and Shareholder Returns: The company generated over $1 billion in free cash flow in 2025 and announced a $750 million share repurchase program along with an 18% dividend increase, indicating strong confidence in future growth and commitment to shareholders.
- Acquisition and Market Expansion: Veralto completed the acquisition of In-Situ at the beginning of 2026, further expanding its Water Analytics portfolio into fast-growing environmental water and hydrology markets, which is expected to provide robust support for future performance.
- Innovative Product Launches: The company introduced new products such as a new ammonia analyzer, single-use Chemkeys, and AI-enabled packaging software solutions, enhancing product line diversity and market competitiveness, reflecting its ongoing investment in technological innovation.
See More
Veralto Q4 Earnings Beat Expectations, 2026 Outlook Cautious
- Earnings Highlights: Veralto reported Q4 non-GAAP EPS of $1.04, beating expectations by $0.06, although revenue of $1.4 billion, up 3.7% year-over-year, missed by $10 million, resulting in a 1% drop in shares.
- Q1 2026 Outlook: The company anticipates flat to low-single-digit year-over-year growth in non-GAAP core sales for Q1 2026, with an adjusted operating profit margin of approximately 24.5% and adjusted diluted EPS expected between $0.97 and $1.01, indicating a cautious outlook for future growth.
- Full Year Projections: Veralto expects low-to-mid-single-digit year-over-year growth in non-GAAP core sales for 2026, with an adjusted operating profit margin expanding by approximately 25 basis points, reflecting a focus on maintaining profitability.
- Cash Flow Management: The company targets adjusted diluted EPS in the range of $4.10 to $4.20, with free cash flow conversion expected to be around 100% of GAAP net earnings, demonstrating strong cash flow management capabilities.
See More
Veralto Reports Strong Q4 2025 Results with Strategic Growth Initiatives
- Performance Growth: Veralto achieved mid-single-digit core sales growth of 5% in 2025, with double-digit adjusted earnings per share growth and over $1 billion in free cash flow, demonstrating robust performance in a dynamic macroeconomic environment.
- Acquisition Expansion: The company completed the acquisition of In-Situ in late January, further enhancing its water analytics portfolio and entering the high-growth environmental water and hydrology markets, thereby strengthening its competitive position.
- Shareholder Return Program: In the fourth quarter, Veralto established a $750 million share repurchase program and announced an 18% increase in its dividend, aimed at creating more value for shareholders through disciplined capital allocation and strategic growth.
- 2026 Outlook: The company anticipates low-to-mid-single-digit core sales growth for 2026, targeting adjusted earnings per share in the range of $4.10 to $4.20, reflecting confidence in sustained growth moving forward.
See More
