Short answer
Waters Corporation (WAT) filed its fiscal 2025 10-K annual report with the SEC on Feb 23, 2026. It reported revenue of $3.2B (+7.0% year over year) and net income of $643M.
- Top risk flagged: $4.0B debt assumed via BDS Business Acquisition ($3.5B tranche due Feb 2027, $500M due Feb 2028); planned refinancing creates near-term capital market dependency
FY2025 key financial metrics · XBRL
- Revenue
- $3.2B
- +7.0% YoY
- Net income
- $643M
- +0.8% YoY
- Operating margin
- 25.4%
- −2.6 pp YoY
- EPS (diluted)
- $10.76
- +0.5% YoY
- ROE
- 25.1%
- −9.8 pp YoY
- Operating cash flow
- $653M
- −14.4% YoY
Source: XBRL data from the Waters Corporation (WAT) FY2025 10-K on SEC EDGAR. USD.
Waters Corporation FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: Designs, manufactures, sells, and services LC, MS, and thermal analysis instruments, consumables, and software for life, materials, and food sciences
- Transformative acquisition: Completed $16.8B BDS Business (BD Biosciences & Diagnostic Solutions) acquisition Feb 2026 via Reverse Morris Trust; BD shareholders received ~39.2% of combined company; reorganized into four segments
- R&D spend rose to $196M in 2025 vs. $183M in 2024 and $175M in 2023; R&D headcount ~1,200, recovering from 2024 dip to ~1,100
- Service revenue exceeded 35% of Waters sales and 25% of TA sales in 2025; ~4,300 field representatives across 82 global sales offices
- 2025 product launches notably included first-ever Waters affinity chromatography columns (BioResolve Protein A) and Xevo CDMS for mega-mass biomolecule analysis using 100-fold less sample volume
Management Discussion & Analysis
- Revenue $3.17B, up 7% YoY; Waters segment $2.81B (+8%), TA segment $352M (-1%)
- Operating margin 25.4% vs 27.9% in 2024; $82M BDS acquisition costs and $20M ERP expenses weighed on 2025
- Operating cash flow $653M vs $762M in 2024; capex $113M; $1.0B buyback authorization remaining, no open-market repurchases in 2025
- Key risk: $4.0B debt assumed post-BDS acquisition (Feb 2026); $3.5B tranche requires near-term refinancing; tariff policy uncertainty post-Supreme Court IEEPA ruling adds supply chain and cost risk
Risk Factors
- $4.0B debt assumed via BDS Business Acquisition ($3.5B tranche due Feb 2027, $500M due Feb 2028); planned refinancing creates near-term capital market dependency
- ~69% of net sales outside U.S.; U.S. Supreme Court Feb 2026 ruling invalidated IEEPA tariffs, creating cost structure and supply chain planning uncertainty
- LC/MS instrument manufacturing concentrated in Singapore via third-party contractors; single-source disruption risk with limited ability to qualify replacements quickly
- ~59% of net sales to pharmaceutical accounts; competitor consolidation in highly competitive HPLC/UPLC/LC-MS market could intensify pricing pressure and reduce share
- Singapore tax incentive (5% rate through March 2026) at risk: non-compliance retroactively triggers full 17% statutory rate on all income back to April 2021
Generated from the filing text; verify against the original. How to read a 10-K
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