The Water Quality segment experienced a 7.4% increase in core sales, driven by increases of 8.3% in North America and 11.3% in Western Europe. This indicates successful execution of growth strategies in key geographic markets and strong demand for the segment's products and services.

The Product Quality & Innovation segment's core sales increased 8.3%, with marking and coding and packaging and color solutions contributing equally. The packaging and color solutions business was driven by continued demand for digital workflow solutions, indicating the company's ability to capitalize on evolving market trends.

The company states it leverages the Veralto Enterprise System (VES) to drive growth and continuous improvement. VES is a business management system that consists of a philosophy, processes and tools that guide what Veralto does and measure how well Veralto executes, grounded in a culture of continuous improvement.

Selling, general, and administrative (SG&A) expenses as a percentage of sales decreased by 10 basis points to 31.5%, driven by the increase in the company's sales exceeding the increase in the company's SG&A expenses. This indicates improved operational efficiency and cost management.

Research and development (R&D) expenses as a percentage of sales remained flat at 4.8%, primarily consisting of growth-related R&D initiatives. This suggests a consistent commitment to innovation and product development to support future growth.

The company's President and Chief Executive Officer, and Senior Vice President and Chief Financial Officer, concluded that the company's disclosure controls and procedures were effective. This indicates strong internal controls and reliable financial reporting.

The U.S. government has imposed and may continue to impose significant tariffs or other restrictions on foreign imports, and such trade restrictions or related countermeasures taken by impacted foreign countries could negatively affect our business, results of operations, or financial condition.

The 10-Q states that there were no material changes during the quarter ended April 4, 2025 to the risk factors previously disclosed in the 'Item 1A. Risk Factors' section of the 2024 Annual Report on Form 10-K, other than the new risk factor identified below.

Veralto operates in a highly competitive business environment in most markets. This is a general statement, but highlights the ongoing pressure to innovate and maintain market share.

In the first quarter of 2025, the Company declared a regular quarterly dividend of $0.11 per share of Company common stock payable on April 30, 2025 to holders of record as of March 31, 2025. This demonstrates a commitment to returning value to shareholders.

On October 24, 2024, the Company filed a shelf registration statement on Form S-3 with the SEC that registers an indeterminate amount of debt securities, common stock, preferred stock, depositary shares, subscription rights, purchase contracts, units and warrants that may be issued in the future in one or more offerings.