Waters Corporation (WAT) FY2025 10-K Annual Report
Waters Corporation (WAT) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 23, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Waters Corporation FY2025 10-K Analysis
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
Waters Corporation FY2025 Key Financial MetricsXBRL
Revenue
$3.2B
▲ +7.0% YoY
Net Income
$643M
▲ +0.8% YoY
Operating Margin
25.4%
▼ -258bp YoY
Net Margin
20.3%
▼ -126bp YoY
ROE
25.1%
▼ -979bp YoY
Total Assets
$5.1B
▲ +11.5% YoY
EPS (Diluted)
$10.76
▲ +0.5% YoY
Operating Cash Flow
$653M
▼ -14.4% YoY
Source: XBRL data from Waters Corporation FY2025 10-K filing on SEC EDGAR. All figures in USD.
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