VLTO

A month has gone by since the last earnings report for Clean Harbors (CLH). Shares have lost about 1.7% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Clean Harbors due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Clean Harbors, Inc. before we dive into how investors and analysts have reacted as of late. Clean Harbors, Inc. reported better-than-expected second-quarter 2026 results, with both earnings and revenues surpassing the Zacks Consensus Estimate. CLH posted earnings of $3.22 per share, beating the consensus estimate of $2.74 by 17.5%. Revenues came in at $1.74 billion, exceeding the consensus mark of $1.63 billion by 6.8%. Earnings increased 36.4% year over year, while revenues rose 12%. The strong results reflected healthy disposal and recycling volumes, remediation and PFAS-related projects, strategic pricing initiatives and favorable market prices for re-refined products. Clean Harbors generated net income of $170.5 million, up 34.3% from $126.9 million in the year-ago quarter. Income from operations increased 27.9% year over year to $268.9 million. Gross profit rose 17.9% to $608.8 million, while the gross margin expanded to 35.1% from 33.3% a year earlier. Adjusted EBITDA climbed 21.6% to $409 million. The adjusted EBITDA margin expanded 190 basis points to 23.6%, supported by stronger results across both operating segments. The company also maintained solid safety performance, with a year-to-date Total Recordable Incident Rate of 0.46. Selling, general and administrative expenses increased to $214.6 million from $186.2 million. Higher incentive compensation, insurance expenses, acquisition-related costs and strategic investments contributed to the increase. Environmental Services generated revenues of $1.46 billion, up 7.7% from the year-ago quarter. Segment adjusted EBITDA increased 8% to $406.1 million, while the adjusted EBITDA margin improved 10 basis points to 27.9%. Technical Services revenues rose 18%, driven by healthy demand for disposal and recycling services, project activity and acquisitions. A large-scale event contributed approximately $30 million to Technical Services revenues during the quarter. Incinerator utilization, including the new Kimball facility, increased to 91% from 86% a year earlier. The improvement reflected strength in the base business and project volumes. Landfill volumes jumped 7% on continued project wins. Safety-Kleen Environmental Services revenues advanced 11%, aided by pricing and higher volumes in containerized waste collection and vacuum services. Field Services revenues rose 3% despite a difficult year-over-year comparison that included major emergency-response projects. The segment has now delivered year-over-year adjusted EBITDA margin expansion for 17 consecutive quarters. Safety-Kleen Sustainability Solutions revenues surged 40.8% year over year to $278.4 million. The increase primarily resulted from a sharp rise in market prices for base and blended products amid global supply disruptions, along with higher charge-for-oil revenues. Segment adjusted EBITDA jumped 142.8% to $93 million, while its margin expanded to 33.4% from 19.4% in the prior-year period. The supply-constrained environment widened the company’s re-refining spread and significantly strengthened profitability. Clean Harbors collected 61 million gallons of waste oil compared with 64 million gallons a year earlier. Although collection volume declined, the company maintained a charge-for-oil rate that was considerably higher year over year. Blended products represented 21% of total volumes sold, up from 19% a year ago and 16% in the first quarter. Direct blended sales increased to 11% of total volumes from 9% in the year-ago quarter, reflecting new customer wins and closed-loop arrangements. The result significantly exceeded management’s expectations from the first-quarter earnings call, when it anticipated SKSS’ second-quarter growth to exceed 10% because of improving base oil prices. Cash provided by operating activities was $239.2 million, up from $208 million in the prior-year quarter. Adjusted free cash flow increased to $135.7 million from $133.2 million. Capital expenditures, net of asset-sale proceeds, were $124 million compared with $87.3 million a year ago. Clean Harbors also repurchased $27.1 million of shares during the quarter, up from $12 million in the year-ago period. The company ended June with $408.4 million in cash and cash equivalents and $108.4 million in short-term marketable securities. Its current and long-term debt totaled approximately $2.77 billion. For the third quarter of 2026, Clean Harbors expects adjusted EBITDA to increase 24-28% year over year. Management anticipates continued strength across both operating segments, supported by emergency-response work, PFAS opportunities, reshoring activity and favorable demand for re-refined products. Following the strong first-half performance, the company raised the midpoint of its full-year adjusted EBITDA guidance by $110 million. Clean Harbors now expects adjusted EBITDA of $1.35-$1.41 billion, with a midpoint of $1.38 billion. The company also increased the midpoint of its adjusted free cash flow outlook by $30 million. Adjusted free cash flow is now projected between $520 million and $580 million, with a midpoint of $550 million. The outlook includes anticipated GAAP net income of $481-$531 million and net cash from operating activities of $890 million to $1.01 billion. Since the earnings release, investors have witnessed a upward trend in estimates review. The consensus estimate has shifted 20.15% due to these changes. Currently, Clean Harbors has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Clean Harbors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Clean Harbors belongs to the Zacks Waste Removal Services industry. Another stock from the same industry, Veralto (VLTO), has gained 3.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Veralto reported revenues of $1.47 billion in the last reported quarter, representing a year-over-year change of +7.5%. EPS of $1.11 for the same period compares with $0.93 a year ago. Veralto is expected to post earnings of $1.09 per share for the current quarter, representing a year-over-year change of +10.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.8%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Veralto. Also, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Clean Harbors, Inc. (CLH) : Free Stock Analysis Report Veralto Corporation (VLTO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for Veralto (VLTO). Shares have lost about 0.1% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Veralto due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Veralto Corporation before we dive into how investors and analysts have reacted as of late. Veralto reported impressive second-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate. VLTO’s adjusted earnings of $1.11 per share topped the Zacks Consensus Estimate by 11% and increased 19.4% from the year-ago quarter, aided by core sales growth, operating execution and tariff refunds. Sales of $1.47 billion surpassed the consensus estimate by 2.5% and rose 7.6% year over year. Core sales grew 4.2%, led by Water Quality growth of 5.7%, while acquisitions and currency movements also supported the top line. Core sales growth reflected a 3% contribution from pricing and a 1.2% increase in volume. Acquisitions added 2.4% to reported growth, driven mainly by In-Situ in Water Quality and GlobalVision in Product Quality and Innovation. Foreign-currency movements provided a 1 percentage point benefit. Recurring revenues grew at a high-single-digit rate and represented 62% of total sales, while non-recurring revenues advanced at a mid-single-digit pace. Water Quality sales increased 10.1% year over year to $908 million. Core sales rose 5.7%, acquisitions contributed 3.2% and favorable currency translation added 1.2%. Price and volume contributed 2.9% and 2.8%, respectively. Chemical water treatment solutions delivered 10.7% core growth, supported by broad-based industrial demand. The segment recorded double-digit growth across data centers, chemical processing, oil and gas and food and beverage markets. Adjusted operating profit increased 12.6% to $241 million, while the margin expanded 60 basis points to 26.5%. Product Quality and Innovation sales rose 3.8% to $566 million. Core sales increased 2%, acquisitions added 1.2% and currency provided a 0.6 percentage point benefit. Pricing contributed 3%, partly offset by a 1% volume decline. Marking and coding core sales grew 3.5%, with gains across equipment, consumables and services. However, lower sales of color-testing and packaging-inspection equipment weighed on packaging and color operations. Adjusted operating profit advanced 8.6% to $152 million and the adjusted margin increased 130 basis points to 26.9%. Adjusted operating profit increased 11.7% to $363 million. The adjusted operating margin expanded 90 basis points to 24.6%, while the adjusted gross margin improved 160 basis points to 61.6%. Refunds tied to tariffs previously collected under the International Emergency Economic Powers Act contributed 5 cents per share to adjusted earnings. They accounted for 110 basis points of gross-margin expansion, while price and volume leverage added another 50 basis points. Excluding the refunds, the underlying business generated 14% adjusted earnings growth. Reported operating profit was $315 million, up from $313 million in the year-ago quarter. The reported operating margin contracted to 21.4% from 22.8%, reflecting restructuring charges and other adjustments. Second-quarter costs included $29 million related to Veralto's 2026 Cost Optimization Program, $17 million of acquisition-related intangible amortization and $2 million associated with strategic initiatives. Reported net earnings increased to $241 million from $222 million, while diluted earnings rose to 98 cents from 89 cents. Operating cash flow totaled $340 million, compared with $339 million a year earlier. Capital expenditures were $12 million, resulting in free cash flow of $328 million and a conversion rate of 136% of net earnings. Veralto ended the quarter with $2.12 billion in cash, gross debt of $3.38 billion and net debt of $1.26 billion. During the quarter, it spent about $195 million to acquire GlobalVision, allocated $134 million to share repurchases and paid $32 million in dividends. For the third quarter of 2026, Veralto expects core sales growth of 4-5% and adjusted operating margin expansion of approximately 25 basis points. VLTO’s adjusted earnings are projected between $1.06 and $1.09 per share. For 2026, management raised its core sales growth forecast to 4-4.5% from 3-4.5%. Adjusted earnings guidance increased to $4.35-$4.43 from $4.20-$4.28, implying growth of 12% to 14%. The company expects adjusted operating margin expansion of 25-50 basis points and free cash flow conversion above 100% of GAAP net earnings. It turns out, estimates revision have trended upward during the past month. Currently, Veralto has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock has a score of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Veralto has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Veralto Corporation (VLTO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Veralto Corporation? Here are five stocks we like better. Veralto raised its full-year outlook after Q2 sales increased 7.6%, core sales grew 4.2%, adjusted EPS rose 19.4%, and free cash flow reached $328 million. The company now expects adjusted EPS of $4.35–$4.43, representing 12%–14% annual growth. Industrial water demand remains a key growth driver, supported by data centers, semiconductors, mining, reshoring, water scarcity, and reuse trends. Management expects second-half core sales growth to accelerate to approximately 5%–6%, led mainly by volume. PQI is expected to recover in the second half as digital workflow, marking and coding, packaging, and color-validation demand improves. Veralto also continues disciplined acquisitions and share repurchases, having bought back more than 5 million shares for about $480 million year to date. Veralto (NYSE:VLTO) said second-quarter sales rose 7.6% from a year earlier, supported by 4.2% core sales growth, a 19.4% increase in adjusted earnings per share, and $328 million of free cash flow. President and Chief Executive Officer Jennifer Honeycutt said Water Quality led the company’s core growth with a 5.7% increase, while Product Quality & Innovation, or PQI, grew 2%. Both segments accelerated sequentially from the first quarter, according to the company. → Microsoft Just Flipped the AI Spending Narrative Overnight Veralto expects core sales growth to accelerate further to approximately 5% to 6% year over year in the second half. On the basis of its second-quarter performance and portfolio momentum, the company raised its full-year adjusted EPS outlook to $4.35 to $4.43, representing projected annual growth of 12% to 14%. Honeycutt cited continued strength in industrial water markets, including demand tied to data centers and related power, mining and semiconductor activity. Water scarcity and reuse trends also continue to create opportunities for water-treatment solutions, she said. → 2 Unique Space ETFs That Could Upend the Industry Chief Financial Officer Sameer Ralhan said second-half core growth is expected to be driven principally by volume, while pricing is expected to moderate from first-half levels but remain at or slightly above the high end of the company’s range. About 50% of Veralto’s water revenue comes from industrial applications, Honeycutt said, with much of that exposure in North America. The company is also seeing support from reshoring and nearshoring activity. ChemTreat, Veralto’s industrial water-treatment business, is posting strong double-digit growth, though Honeycutt noted that it remains a smaller part of the overall company. → MarketBeat Week in Review – 07/27- 07/31 Municipal water markets have remained resilient, management said. Honeycutt noted that roughly 60% of the company’s revenue is recurring, tied to customers’ ongoing operating needs. She said the company believes it can continue growing its municipal business at mid-single-digit rates or better, even as utilities and municipalities manage tighter budgets. Ralhan added that municipal demand is supported by analytical products from Hach as well as wastewater bid activity in the Trojan business. Management expects broad-based improvement in PQI during the second half. Ralhan said the segment’s growth outlook is supported by demand for digital workflow solutions, continued strength in marking and coding, and improving funnels and sales velocity for color-validation and certification instrumentation. Honeycutt said the company is seeing solid bookings for its digital workflow portfolio, including Esko, TraceGains and GlobalVision. The businesses are intended to help consumer packaged goods companies manage packaging design, regulatory compliance, ingredient traceability and print accuracy. The company also expects a recovery in packaging and color equipment. Honeycutt said Veralto exited the second quarter with improved sales funnels and stronger service growth, while new product launches are contributing to momentum. On artificial intelligence, management said GlobalVision provides a deterministic inspection engine designed to deliver repeatable results in regulated workflows. Veralto is working to deploy AI across its digital workflow offerings to support faster time to market, traceability and regulatory compliance. Ralhan said Veralto expects approximately 25 basis points of sequential margin expansion in the third quarter and 25 to 50 basis points of expansion for the full year. Fourth-quarter margin expansion is expected to exceed 50 basis points, led primarily by PQI. PQI’s fourth-quarter improvement is expected to benefit from better fixed-cost absorption and from the absence of prior impacts associated with duplicate production lines in marking and coding, Ralhan said. Water Quality margins are expected to remain comparatively steady. Veralto received about $16 million in tariff refunds during the quarter, including roughly $10 million in PQI and $6 million in Water Quality. Ralhan said the refunds contributed 110 basis points to adjusted operating-profit margin expansion. The company has not included additional tariff refunds in its second-half guidance, though it could receive a further benefit of about $0.02 per share based on filings already made; the timing remains uncertain. The company’s cost-optimization program remains on track. Management expects only a small benefit, measured in a few million dollars, in the fourth quarter, with the largest savings expected in 2027. Veralto completed the acquisition of Alfaa UV, an India-based supplier of ultraviolet water-treatment solutions, during the quarter. Honeycutt described the business as a small but double-digit grower that complements Trojan and Veralto’s previously acquired AQUAFIDES UV business in Europe. The acquisition expands Trojan’s geographic reach and adds solutions for a range of water-treatment applications. Management said recently acquired businesses have delivered near-term commercial benefits through combined product portfolios, joint sales efforts and sales acceleration. Ralhan said the company is ahead of the commercial synergy targets associated with its environmental workflow combination of In-Situ and OTT. The company repurchased more than 5 million shares year to date for approximately $480 million, representing just over 2% of outstanding shares. Ralhan said Veralto’s first capital-allocation preference remains acquisitions, but it will continue to repurchase shares opportunistically when it sees a disconnect between the company’s cash generation and public-market valuation. Veralto said its acquisition pipeline remains active across both operating segments, while emphasizing that it intends to remain patient and disciplined in pursuing deals. Veralto Corporation provides water analytics, water treatment, marking and coding, and packaging and color services worldwide. It operates through two segments, Water Quality (WQ) and Product Quality & Innovation (PQI). The WQ segment offers precision instrumentation and water treatment technologies to measure, analyze, and treat water in residential, commercial, municipal, industrial, research, and natural resource applications through the Hach, Trojan Technologies, and ChemTreat brands. This segment provides water solutions, including chemical reagents, services, and digital solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Veralto Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Core sales growth accelerated sequentially to 4.2% in Q2, primarily driven by a 5.7% increase in Water Quality and a 2% rise in PQI. Industrial water demand is being propelled by the data center ecosystem, including power, mining, and semiconductor sectors, where ChemTreat is seeing double-digit growth. Water scarcity and climate change factors are driving increased adoption of water recycling and reuse solutions across industrial and municipal markets. PQI performance is increasingly tied to digital workflow solutions as CPG brands prioritize product compliance, ingredient traceability, and faster time-to-market. The company maintains a high-quality revenue mix with 60% recurring revenue, providing stability as municipal customers prioritize non-elective operating budgets. Strategic bolt-on acquisitions like Alfaa UV and GlobalVision are being integrated to expand geographic reach in India and enhance AI-driven inspection capabilities. Management expects core sales growth to accelerate further to approximately 5% to 6% in the second half of 2026. Second-half growth is projected to be volume-led, with pricing expected to moderate slightly while remaining at or above the high end of historical ranges. Full-year adjusted EPS guidance was raised to $4.35 to $4.43, reflecting confidence in momentum and a strong funnel of digital workflow bookings. Margin expansion of 25 to 50 basis points is targeted for the full year, with Q4 expected to exceed 50 basis points due to improved fixed cost absorption in PQI. A cost optimization program is underway with small savings expected in Q4 2026 and the primary financial benefits realized in 2027. Q2 results included $16 million in IEEPA tariff refunds, which contributed 110 basis points to adjusted operating profit margins. Management noted an additional $0.02 per share in potential tariff refunds may be available, but excluded this from guidance due to high timing uncertainty. The company repurchased over 5 million shares for approximately $480 million in the first half, signaling a commitment to opportunistic capital return. High-growth markets remained relatively flat, characterized by a recovery in China's PQI segment offset by continued softness in China's water business. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth will be supported by strong industrial demand for data centers and easier year-over-year comparisons in the marking and coding segment. Management cited high visibility into digital workflow recoveries based on current Annual Contract Value (ACV) bookings. The primary bias remains toward M&A to create long-term value, though management will use buybacks if they perceive a disconnect between cash flow and market valuation. M&A funnels are active on both sides of the business, but management emphasized they will remain patient and disciplined as deals are episodic. AI is being integrated into digital workflow solutions to provide 'agentic' layers for mistake-proofing and faster packaging design cycles. The GlobalVision acquisition specifically provides a deterministic inspection engine that uses AI to ensure repeatable, error-free results for regulated CPG brands. Management clarified that municipal operating budgets for water treatment are non-elective, insulating the business from broader federal funding fluctuations. Growth in this segment is being driven by the deployment of new technologies and software that improve plant efficiency.

Veralto VLTO reported impressive second-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate. VLTO’s adjusted earnings of $1.11 per share topped the Zacks Consensus Estimate by 11% and increased 19.4% from the year-ago quarter, aided by core sales growth, operating execution and tariff refunds. Veralto Corporation price-consensus-eps-surprise-chart | Veralto Corporation Quote Sales of $1.47 billion surpassed the consensus estimate by 2.5% and rose 7.6% year over year. Core sales grew 4.2%, led by Water Quality growth of 5.7%, while acquisitions and currency movements also supported the top line. VLTO’s shares have dipped 6.9% over the past year compared with the industry’s 9.3% decline. The Zacks S&P 500 composite has risen 18.7% over the same time frame. Core sales growth reflected a 3% contribution from pricing and a 1.2% increase in volume. Acquisitions added 2.4% to reported growth, driven mainly by In-Situ in Water Quality and GlobalVision in Product Quality and Innovation. Foreign-currency movements provided a 1 percentage point benefit. Recurring revenues grew at a high-single-digit rate and represented 62% of total sales, while non-recurring revenues advanced at a mid-single-digit pace. Water Quality sales increased 10.1% year over year to $908 million. Core sales rose 5.7%, acquisitions contributed 3.2% and favorable currency translation added 1.2%. Price and volume contributed 2.9% and 2.8%, respectively. Chemical water treatment solutions delivered 10.7% core growth, supported by broad-based industrial demand. The segment recorded double-digit growth across data centers, chemical processing, oil and gas and food and beverage markets. Adjusted operating profit increased 12.6% to $241 million, while the margin expanded 60 basis points to 26.5%. Product Quality and Innovation sales rose 3.8% to $566 million. Core sales increased 2%, acquisitions added 1.2% and currency provided a 0.6 percentage point benefit. Pricing contributed 3%, partly offset by a 1% volume decline. Marking and coding core sales grew 3.5%, with gains across equipment, consumables and services. However, lower sales of color-testing and packaging-inspection equipment weighed on packaging and color operations. Adjusted operating profit advanced 8.6% to $152 million and the adjusted margin increased 130 basis points to 26.9%. Adjusted operating profit increased 11.7% to $363 million. The adjusted operating margin expanded 90 basis points to 24.6%, while the adjusted gross margin improved 160 basis points to 61.6%. Refunds tied to tariffs previously collected under the International Emergency Economic Powers Act contributed 5 cents per share to adjusted earnings. They accounted for 110 basis points of gross-margin expansion, while price and volume leverage added another 50 basis points. Excluding the refunds, the underlying business generated 14% adjusted earnings growth. Reported operating profit was $315 million, up from $313 million in the year-ago quarter. The reported operating margin contracted to 21.4% from 22.8%, reflecting restructuring charges and other adjustments. Second-quarter costs included $29 million related to Veralto's 2026 Cost Optimization Program, $17 million of acquisition-related intangible amortization and $2 million associated with strategic initiatives. Reported net earnings increased to $241 million from $222 million, while diluted earnings rose to 98 cents from 89 cents. Operating cash flow totaled $340 million, compared with $339 million a year earlier. Capital expenditures were $12 million, resulting in free cash flow of $328 million and a conversion rate of 136% of net earnings. Veralto ended the quarter with $2.12 billion in cash, gross debt of $3.38 billion and net debt of $1.26 billion. During the quarter, it spent about $195 million to acquire GlobalVision, allocated $134 million to share repurchases and paid $32 million in dividends. For the third quarter of 2026, Veralto expects core sales growth of 4-5% and adjusted operating margin expansion of approximately 25 basis points. Adjusted earnings are projected between $1.06 and $1.09 per share. The Zacks Consensus Estimate for the same is pegged at $1.00 per share. For 2026, management raised its core sales growth forecast to 4-4.5% from 3-4.5%. Adjusted earnings guidance increased to $4.35-$4.43 from $4.20-$4.28, implying growth of 12% to 14%. The Zacks Consensus Estimate for the same is pegged at $4.24 per share. The company expects adjusted operating margin expansion of 25-50 basis points and free cash flow conversion above 100% of GAAP net earnings. Veralto currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. WEX Inc. WEX reported better-than-expected second-quarter 2026 results. WEX’s adjusted earnings of $5.35 per share outpaced the Zacks Consensus Estimate by 5.3% and increased 35.4% from the year-ago quarter. WEX’s revenues of $753.5 million topped the consensus estimate by 1.8% and improved 14.2% year over year. Waste Connections, Inc. WCN posted impressive second-quarter 2026 results. WCN’s adjusted earnings of $1.50 per share outpaced the consensus mark by 11.1% and rose 16.3% from the year-ago quarter. WCN’s total revenues of $2.56 billion surpassed the consensus mark by 1.1% and increased 6.4% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Veralto Corporation (VLTO) : Free Stock Analysis Report Waste Connections, Inc. (WCN) : Free Stock Analysis Report WEX Inc. (WEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Sales Growth: 7.6% year over year. Adjusted EPS Increase: 19.4%. Free Cash Flow: $328 million. Core Sales Growth: 4.2% overall; Water Quality at 5.7%, PQI at 2%. Full Year Adjusted EPS Guidance: Raised to $4.35 to $4.43 per share, representing 12% to 14% growth year over year. Share Repurchase: Over 5 million shares repurchased for approximately $480 million. Warning! GuruFocus has detected 6 Warning Signs with ORCL. Is VLTO fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Veralto Corp (NYSE:VLTO) reported a 7.6% year-over-year increase in total sales for Q2 2026. Adjusted EPS grew by 19.4%, showcasing strong profitability. The company generated robust free cash flow of $328 million. Core sales growth was led by Water Quality at 5.7% and PQI at 2%, with expectations for continued acceleration. Veralto Corp (NYSE:VLTO) raised its full-year adjusted EPS guidance to $4.35 to $4.43 per share, indicating 12% to 14% growth year-over-year. The company faces risks and uncertainties related to forward-looking statements, which could impact future performance. There is a slight moderation expected in pricing, which may affect revenue growth. The impact of volatile raw material costs, particularly in ChemTreat, remains a concern. High-growth markets were relatively flat, with some shrinkage in the Water segment in China. The timing of potential tariff refunds remains uncertain, which could affect future financial results. Q: Can you unpack the drivers behind the 5% to 6% core revenue growth guidance for the second half of the year? A: Jennifer Honeycutt, CEO, explained that the growth is driven by strong industrial market demand in Water, particularly from data centers and associated ecosystems like power and semiconductors. Additionally, water scarcity issues are boosting recycling and reuse solutions. For PQI, there's strong demand for digital workflow solutions and steady demand for marketing and coating solutions, aided by easier comps in Q4. CFO Sameer Ralhan added that the growth will be volume-led, with pricing slightly moderating but still strong. Q: How are you approaching capital allocation, particularly regarding acquisitions and share buybacks? A: Sameer Ralhan, CFO, stated that the primary focus is on M&A to create long-term value, with opportunistic share buybacks if there's a disconnect between free cash flow generation and market valuation. The M&A pipeline is active, but they remain patient and disciplined. Q: Can you provide insights into the opportunity size in data centers, power generation, and semiconductor fabs? A: Sameer Ralhan noted that while the revenue from these sectors is still small at the Veralto level, it's becoming significant for ChemTreat. Jennifer Honeycutt added that ChemTreat is experiencing strong dual-digit growth, driven by these sectors and industrial reshoring activities. Q: What is the outlook for margin progression in the second half of the year? A: Sameer Ralhan indicated that margins are expected to improve sequentially, with a 25 basis point expansion in Q3 and 25 to 50 basis points for the full year. Q4 will see a significant uplift, especially in PQI, due to improved fixed cost absorption and production line efficiencies. Q: How are you leveraging recent acquisitions like Esko, TraceGains, and GlobalVision to drive sales? A: Jennifer Honeycutt highlighted that these acquisitions enhance the digital workflow for consumer goods, integrating packaging design, compliance, and traceability. This integration accelerates time-to-market and provides significant value to brand owners. The environmental monitoring workflows are also benefiting from synergies between In-Situ and OTT products. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

WALTHAM, Mass., July 28, 2026 /PRNewswire/ -- Veralto (NYSE: VLTO) (the "Company"), a global leader in essential water and product quality solutions dedicated to Safeguarding the World's Most Vital Resources™, announced results for the second quarter ended July 3, 2026. Key Second Quarter 2026 Results: Sales increased 7.6% year-over-year to $1,474 million, with non-GAAP core sales growth of 4.2% Operating profit margin was 21.4% and non-GAAP adjusted operating profit margin was 24.6% Net earnings were $241 million, or $0.98 per diluted common share Non-GAAP, adjusted net earnings were $274 million, or $1.11 per diluted common share Operating cash flow was $340 million and non-GAAP free cash flow was $328 million These second quarter results include benefits from recoveries of tariffs previously collected under the International Emergency Economic Powers Act ("IEEPA") of approximately $0.05 per share "In the second quarter, total sales grew approximately 8%, adjusted earnings per share increased 19%, and we generated robust free cash flow. We delivered 4.2% core sales growth year-over-year, led by Water Quality at 5.7%, with sequential acceleration in both segments. We continue to advance long-term value creation through strategic bolt-on acquisitions – including In-Situ, GlobalVision and, most recently, Alfaa UV – as well as opportunistic share repurchases. These actions reflect the accelerating growth profile of our portfolio, our VES-driven execution and commitment to disciplined capital allocation," said Jennifer L. Honeycutt, President and Chief Executive Officer. Honeycutt continued, "In Water Quality, we continue to benefit from strong demand across industrial water treatment, water reuse initiatives and environmental water monitoring workflows. Demand for water analytics supporting the daily operations of our municipal customers remains steady. In PQI, demand also remains steady for our marking and coding solutions, while our digital workflow solutions in packaging and color continue to deliver strong underlying growth. We expect PQI core sales growth to accelerate meaningfully in the second half, driven by increasing adoption of digital workflow solutions and contributions from recent product launches." "Looking ahead, we expect total year-over-year core sales growth to accelerate to approximately 5% to 6% in the second half of the year. Reflecting this momentum and our strong first half performance, we increased our full-year adjusted earnings per share guidance to $4.35 to $4.43, representing 12% to 14% year-over-year growth. Supported by a strong balance sheet and robust cash generation, we remain focused on compounding long-term shareholder value through high-quality growth, VES-driven execution and disciplined capital allocation," concluded Honeycutt. 2026 Guidance The Company provides forecasted sales guidance on a non-GAAP basis because of the difficulty in estimating the other components of GAAP sales, such as currency translation, acquisitions, and divestitures. For the third quarter of 2026, the Company anticipates non-GAAP core sales growth in the range of 4.0% to 5.0% year-over-year with adjusted operating profit margin expansion of approximately 25 basis points year-over-year. The Company's third quarter adjusted diluted earnings per share guidance is in the range of $1.06 to $1.09 per share. For the full year 2026, the Company raised its non-GAAP core sales growth to a range of 4.0% to 4.5% year-over-year, up from the prior guidance range of 3.0% to 4.5%. Adjusted operating profit margin is expected to expand 25 to 50 basis points year-over-year, including the benefit of IEEPA tariff refunds received in the second quarter. The Company raised its guidance for adjusted diluted earnings to a range of $4.35 to $4.43 per share, up from the prior guidance range of $4.20 to $4.28 per share. This includes a $0.05 per share benefit related to IEEPA tariff refunds received in the second quarter. Free cash flow conversion guidance has been increased to greater than 100% of GAAP net earnings. Conference Call and Webcast Information Veralto will webcast its second quarter 2026 earnings conference call tomorrow starting at 7:30 a.m. (ET). Access to the webcast, slide presentation and prepared remarks will be available on the "Investors" section of Veralto's website, www.veralto.com, under the subheading "News & Events" and additional materials will be posted to the same section of Veralto's website. A replay of the webcast will be available in the same section of Veralto's website shortly after the conclusion of the call and will remain available until the next quarterly earnings call. The conference call can be accessed by dialing +1 (833) 309-3473 (U.S.) or +1 (785) 838-9251 (INTL) (Conference ID: VLTO2Q26). A replay of the conference call will be available shortly after the conclusion of the call and until August 7, 2026. 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 approximately $5.5 billion, Veralto is a global leader in essential technology solutions with a proven track record of solving some of the most complex challenges we face as a society. Our industry-leading companies with globally recognized brands help billions of people around the world access clean water, safe food and trusted essential goods. Headquartered in Waltham, Massachusetts, our global team of approximately 17,000 associates is committed to making an enduring positive impact on our world and united by a powerful purpose: Safeguarding the World's Most Vital Resources™. NON-GAAP MEASURES AND SUPPLEMENTAL MATERIALS In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains non-GAAP financial measures. Calculations of these measures, the reasons why we believe these measures provide useful information to investors, a reconciliation of these measures to the most directly comparable GAAP measures, as applicable, and other information relating to these non-GAAP measures are included in the supplemental reconciliation schedule attached. In addition, this earnings release, the slide presentation accompanying the related earnings call, non-GAAP reconciliations and a note containing details of historical and anticipated, future financial performance have been posted to the "Investors" section of Veralto's website (www.veralto.com) under the subheading "Quarterly Earnings." FORWARD-LOOKING STATEMENTS Certain statements in this release, including the statement regarding the Company's anticipated third quarter and full year 2026 financial performance, the Company's differentiation and positioning to continue delivering sustainable, long-term shareholder value and any other statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward-looking" statements within the meaning of the federal securities laws. All statements other than historical factual information are forward-looking statements, including, without limitation, statements regarding: projections of revenue, expenses, profit, profit margins, asset values, pricing, tax rates, tax provisions, cash flows, pension and benefit obligations and funding requirements, Veralto's liquidity position or other projected financial measures; Veralto's management's plans and strategies for future operations, including statements relating to anticipated operating performance, customer demand, cost reductions, restructuring activities, new product and service developments, competitive strengths or market position, acquisitions and the integration thereof, divestitures, spin-offs, split-offs, initial public offerings, other securities offerings or other distributions, strategic opportunities, stock repurchases, dividends and executive compensation; growth, declines and other trends in markets Veralto sells into, the impact of global trade policies, tariffs, restrictions on imports, related countermeasures and reciprocal tariffs; future new or modified laws, regulations, accounting pronouncements or public policy changes; regulatory approvals and the timing and conditionality thereof; outstanding claims, legal proceedings, tax audits and assessments and other contingent liabilities; future foreign currency exchange rates and fluctuations in those rates; results of operations and/or financial condition; general economic and capital markets conditions; the anticipated timing of any of the foregoing; assumptions underlying any of the foregoing; and any other statements that address events or developments that Veralto intends or believes will or may occur in the future. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings. These forward-looking statements speak only as of the date of this release and except to the extent required by applicable law, the Company does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise. VERALTO CORPORATIONRECONCILIATION 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. We define free cash flow as operating cash flows, less payments for additions to property, plant and equipment ("capital expenditures") plus the proceeds from sales of property, plant and equipment ("capital disposals"). Statement Regarding Non-GAAP Measures Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. Management believes that these measures provide useful information to investors by offering additional ways of viewing Veralto Corporation's ("Veralto" or the "Company") results that, when reconciled to the corresponding GAAP measure, help our investors: with respect to the profitability-related non-GAAP measures, understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers; with respect to core sales and related sales measures, identify underlying growth trends in our business and compare our sales performance with prior and future periods and to our peers; and with respect to free cash flow and related cash flow measures (the "FCF Measure"), understand Veralto's ability to generate cash without external financings, strengthen its balance sheet, invest in its business and grow its business through acquisitions and other strategic opportunities (although a limitation of free cash flow is that it does not take into account the Company's non-discretionary expenditures, and as a result the entire free cash flow amount is not necessarily available for discretionary expenditures). Management uses these non-GAAP measures to measure the Company's operating and financial performance. The items excluded from the non-GAAP measures set forth above have been excluded for the following reasons: 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. View original content to download multimedia:https://www.prnewswire.com/news-releases/veralto-reports-second-quarter-2026-results-302836065.html

Veralto (VLTO) came out with quarterly earnings of $1.11 per share, beating the Zacks Consensus Estimate of $1 per share. This compares to earnings of $0.93 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.00%. A quarter ago, it was expected that this water and product quality services provider would post earnings of $1.02 per share when it actually produced earnings of $1.07, delivering a surprise of +4.9%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Veralto, which belongs to the Zacks Waste Removal Services industry, posted revenues of $1.47 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.46%. This compares to year-ago revenues of $1.37 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Veralto shares have lost about 5.5% since the beginning of the year versus the S&P 500's gain of 8.3%. While Veralto has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Veralto was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.06 on $1.49 billion in revenues for the coming quarter and $4.24 on $5.85 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Waste Removal Services is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Quest Resource (QRHC), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This recycling company is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of -50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Quest Resource's revenues are expected to be $64 million, up 7.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Veralto Corporation (VLTO) : Free Stock Analysis Report Quest Resource Holding Corporation. (QRHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Veralto (VLTO), which belongs to the Zacks Waste Removal Services industry. This water and product quality services provider has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 5.51%. For the most recent quarter, Veralto was expected to post earnings of $1.02 per share, but it reported $1.07 per share instead, representing a surprise of 4.90%. For the previous quarter, the consensus estimate was $0.98 per share, while it actually produced $1.04 per share, a surprise of 6.12%. With this earnings history in mind, recent estimates have been moving higher for Veralto. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Veralto currently has an Earnings ESP of +0.77%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 28, 2026. Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Veralto Corporation (VLTO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research