<div id="readability-page-1"><div>Waters Corporation, a leading provider of high-performance liquid chromatography (HPLC), ultra-performance liquid chromatography (UPLC), mass spectrometry (MS), and related consumables and services, has released its annual 10-K report. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces in the current market environment. Financial Highlights <ul><li>Total Net Sales: $3,165 million, reflecting a 7% increase from the previous year driven by strong customer demand across most major geographies and product lines.</li><li>Operating Income: $803 million, a decrease of 3% from the previous year due to higher sales volume offset by changes in sales mix and increased costs related to the BDS Business Acquisition and ERP system implementation.</li><li>Net Income: $643 million, a slight increase of 1% from the previous year, supported by cost savings and improved working capital.</li><li>Net Income Per Diluted Common Share: $10.76, consistent with the previous year, reflecting stable earnings performance.</li></ul> Business Highlights <ul><li>Revenue Segments: The company operates through two main segments: Waters and TA. Waters focuses on HPLC, UPLC, MS, and related consumables and services. TA specializes in thermal analysis, rheometry, and calorimetry instruments and services.</li><li>Geographical Performance: In 2025, sales growth was broad-based across most major regions, with notable increases in China and Europe, both growing by 10%. The U.S. saw a 3% increase, while Asia Other grew by 5%. In 2024, China experienced a 10% sales decline, while Europe saw a 4% increase.</li><li>New Product Launches: In 2023, Waters introduced the DynaPro ZetaStar instrument for nanoparticle analysis and the Xevo TQ Absolute IVD Mass Spectrometer for clinical diagnostics. In 2024, the company launched the HPLC CONNECT software and the Oasis WAX/GCB Cartridges for PFAS analysis. In 2025, new products included the BioResolve Protein A Affinity Columns and the Xevo TQ Absolute XR Mass Spectrometer.</li><li>New Production Initiatives: In 2024, Waters completed an expansion of its Taunton manufacturing facility, enhancing its capacity for LC columns and consumables. Additionally, a new facility was opened in Birmingham, England, to increase MS component manufacturing capacity.</li><li>Sales Units: The company reported a 7% increase in instrument system sales in 2025, driven by strong customer demand across global regions. Recurring revenues from consumables and services also saw an 8% increase.</li><li>Future Outlook: The company plans to evaluate its business activities to determine operating segments for future reporting periods following the BDS Business Acquisition. It also anticipates further integration of AI into new product offerings to enhance competitiveness.</li></ul> Strategic Initiatives <ul><li>Acquisitions: The company completed the acquisition of Halo Labs for $35 million in cash, expanding its portfolio with specialized imaging technologies. Additionally, the company entered into a Term Loan Credit Agreement to finance the acquisition of the BDS Business, which was structured as a Reverse Morris Trust transaction.</li><li>ERP System Implementation: The company implemented a new ERP system, with $52 million spent on capitalized software and operating expenses through 2025.</li><li>Capital Management: The company reduced its aggregate total borrowing capacity by $200 million, bringing the credit facility to $1.8 billion. It also repurchased $15 million of common stock related to the vesting of restricted stock units in 2025. The company did not make any open market share repurchases in 2024 or 2025 but extended its share repurchase program through January 21, 2028, with a remaining authorization of $1.0 billion. The company had $1.4 billion in outstanding debt as of December 31, 2025, and entered into interest rate cross-currency swap agreements to hedge foreign currency exchange rate variability.</li><li>Future Outlook: The company plans to refinance the $3.5 billion tranche of the SpinCo Credit Agreement with long-term bond financing in the first quarter of 2026. It intends to repay the $500 million tranche at or prior to maturity. The company anticipates spending approximately $130 million on the ERP system implementation, using existing cash and its credit facility. The company will continue to monitor the impact of the One Big Beautiful Bill Act on its financial position and explore opportunities for strategic acquisitions and capital investments.</li></ul> Challenges and Risks <ul><li>Integration Challenges: The company faces significant challenges related to the integration of the BDS Business Acquisition, including potential difficulties in implementing the business plan, loss of sales and customers, and complexities in managing a larger, integrated business. Substantial restructuring costs and increased indebtedness could impact operational flexibility and borrowing costs.</li><li>Macroeconomic Risks: Macroeconomic conditions pose risks to the company's international operations, with potential negative impacts from political events, wars, terrorism, economic conditions, and regulatory changes. The ongoing conflict between Russia and Ukraine, as well as tensions in the Middle East, could lead to geopolitical instability affecting the company's results.</li><li>Market Risks: The company is exposed to market risks, including changes in customer demand, competitive pressures, and the need for continuous innovation. Competitors may introduce more effective or less expensive products, and the company must invest in developing new technologies to maintain its market position.</li><li>Operational Risks: Operational risks include potential disruptions in manufacturing facilities, failure to protect intellectual property, and reliance on third-party suppliers and contractors. The company also faces cybersecurity threats that could compromise its technology infrastructure and data privacy.</li><li>Regulatory Risks: Regulatory risks are significant, with changes in governmental regulations potentially harming the company's business. The company must comply with various laws, including those related to environmental standards, data privacy, and anti-bribery.</li><li>Emerging Risks: Emerging risks include the integration and use of artificial intelligence, which presents challenges related to regulatory compliance, intellectual property, and potential biases in AI systems. The company must navigate evolving laws and standards related to AI technology.</li><li>Management Strategies: Management is focused on realizing synergies from the BDS Business Acquisition, targeting cost savings and revenue growth through manufacturing optimization and cross-selling opportunities. The company is actively managing its supply chain to mitigate risks associated with sourcing and transportation disruptions, exploring alternative routes and transportation modes to ensure continuity of supply.</li><li>Market Risk Management: The company is exposed to foreign currency exchange rate fluctuations, particularly with the Canadian Dollar, Euro, Japanese yen, British pound, and Chinese renminbi. These fluctuations could materially affect the company's financial results. The company uses foreign currency exchange contracts to hedge against some of these risks, but there is no assurance of their effectiveness.</li></ul>SEC Filing: WATERS CORP /DE/ [ WAT ] - 10-K - Feb. 23, 2026</div></div>

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Waters Corporation has released its annual 10-K report, highlighting a 7% increase in total net sales to $3,165 million, despite a 3% decrease in operating income. The report details strong performance in key regions, new product launches, and strategic initiatives, including the acquisition of Halo Labs. The company faces integration challenges from the BDS Business Acquisition and macroeconomic risks, while planning to refinance debt and enhance AI integration in future products. Overall, Waters aims to navigate market pressures and capitalize on growth opportunities.

WATERS CORP /DE/ SEC 10-K Report