WALTHAM, Mass. - Veralto Corporation (NYSE:VLTO), a global provider of water quality solutions, has taken a minority stake in Axine Water Technologies, a company specializing in electrochemical oxidation technology aimed at purifying industrial wastewater. The $15 million investment announced today by Veralto is part of a strategic partnership that is expected to enhance its water treatment portfolio and expand Axine's customer base in North America.
Axine Water Technologies is known for its electraCLEAR solution, a system designed to effectively destroy organic contaminants in wastewater from pharmaceutical and industrial sources, including per- and polyfluoroalkyl substances (PFAS), which are persistent environmental pollutants.
Jennifer L. Honeycutt, President and CEO of Veralto, emphasized the alignment of this partnership with Veralto's commitment to clean water and its strategy of developing solutions for complex water quality challenges. According to Honeycutt, Axine's technology presents a promising approach to addressing difficult-to-treat contaminants.
Mark Ralph, CEO of Axine Water Technologies, expressed enthusiasm for the partnership, anticipating that it will bolster Axine's growth and deliver enhanced value in both municipal and industrial markets.
Veralto, with annual sales of $5 billion and a workforce of 16,000 associates, has a history of addressing critical challenges through its technology solutions. The investment in Axine is seen as a continuation of this legacy, potentially strengthening Veralto's position in water analytics and advanced water treatment.
Axine Water Technologies, which has accumulated over 150,000 hours of commercial operating experience since 2017, offers a treatment-as-a-service model that complies with existing and anticipated environmental regulations.
The information for this report is based on a press release statement from Veralto Corporation. The forward-looking statements included in the press release, such as projections and anticipated performance, are subject to risks and uncertainties and are not guarantees of future performance.
In other recent news, Veralto Corp demonstrated a robust Q3 performance, reporting a 4.6% increase in core sales and a 19% rise in adjusted earnings per share (EPS) to $0.89. The company also highlighted its successful acquisition of TraceGains, a move aimed at augmenting its capabilities in the food and beverage compliance sector. As part of the recent developments, Veralto revised its full-year adjusted EPS guidance upwards, indicating an optimistic view of its operational performance and strategic initiatives.
Sales in Veralto's Water Quality segment increased by 3.6% to $801 million, while the PQI segment saw a 6.3% rise to $513 million. The company's free cash flow was reported at $215 million, and its balance sheet showed $1.27 billion in cash with a leverage ratio of 1.1x.
Looking ahead, Veralto expects low to mid-single-digit core sales growth in Q4, with Q4 adjusted operating profit margins projected around 24%. The anticipated adjusted EPS for Q4 is between $0.86 and $0.90. The full-year adjusted EPS guidance has been increased to $3.44 to $3.48. Despite some challenges in the Chinese market and the Water Quality segment, these recent developments underscore Veralto's commitment to growth and financial health.
InvestingPro Insights
Veralto Corporation's strategic investment in Axine Water Technologies aligns well with its financial performance and market position. According to InvestingPro data, Veralto boasts impressive gross profit margins, with a gross profit of $3,050 million and a gross profit margin of 59.38% for the last twelve months as of Q3 2024. This financial strength supports the company's ability to make strategic investments like the $15 million stake in Axine.
The company's focus on addressing complex water quality challenges is reflected in its solid revenue figures, with $5,136 million in revenue over the last twelve months. This aligns with the article's mention of Veralto's annual sales of $5 billion. Additionally, Veralto's operating income margin of 23.07% suggests efficient operations, which could be further enhanced by integrating Axine's innovative technology.
InvestingPro Tips highlight that Veralto operates with a moderate level of debt and has liquid assets exceeding short-term obligations. These factors provide the company with financial flexibility to pursue growth opportunities and strategic partnerships, such as the one with Axine Water Technologies.
It's worth noting that InvestingPro offers 11 additional tips for Veralto, providing investors with a more comprehensive analysis of the company's financial health and market position.
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