Veralto is a high-quality, recurring-revenue water and product quality compounder trading at an attractive valuation despite durable regulatory tailwinds and defensive cash flows.
Overview
Veralto is a defensive industrial technology compounder focused on essential water quality and product quality solutions. Spun out of Danaher in 2023, it generates roughly $5.5 billion in revenue across Water Quality and Product Quality & Innovation, with approximately 55–60% recurring revenue from consumables, software, sensors, and services. Its global footprint, premium brands, regulatory exposure, and high switching costs create resilient cash flows, strong pricing power, and attractive long-term compounding potential.