WATMEDIUM SIGNALFINANCIAL10-K

Waters Corporation completed a significant acquisition (BDS Business) in February 2026, driving substantial increases in cash position and current liabilities while maintaining strong equity growth.

The acquisition of the BDS Business represents Waters' fourth major technology addition since its IPO, expanding its analytical instrument capabilities beyond thermal analysis, rheometry and calorimetry. The transaction appears well-funded given the strong cash position and reduced debt levels, suggesting disciplined capital allocation. However, investors should monitor integration execution as operating cash flow declined while SG&A expenses increased notably.

Comparing 2026-02-23 vs 2025-02-25View on EDGAR →
FINANCIAL ANALYSIS

Waters demonstrated strong balance sheet management with cash substantially higher at $587.8M (+81.2%) and total debt reduced to $1.4B (-13.5%), while stockholders' equity grew meaningfully to $2.6B (+40.1%). The recent acquisition drove current liabilities notably higher to $1.2B (+56.9%) and pushed SG&A expenses up 20.3% to $830.4M. Operating cash flow declined modestly to $652.6M (-14.4%), likely reflecting acquisition-related costs and integration activities, though the company maintains a solid financial foundation for executing its growth strategy.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
+81.2%
$324.4M→$587.8M

Cash position surged 81.2% — strong cash generation or capital raise providing significant financial cushion.

Current Liabilities
Balance Sheet
+56.9%
$789.8M→$1.2B

Current liabilities surged 56.9% — significant near-term obligations; verify ability to meet short-term debt.

Stockholders Equity
Balance Sheet
+40.1%
$1.8B→$2.6B

Equity base grew 40.1% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Current Assets
Balance Sheet
+28.7%
$1.7B→$2.1B

Current assets grew 28.7% — improving short-term liquidity or inventory/receivables build.

Interest Expense
P&L
-22.4%
$89.7M→$69.5M

Interest expense declined — debt repayment or refinancing at lower rates improving earnings quality.

SG&A Expense
P&L
+20.3%
$690.1M→$830.4M

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

Inventory
Balance Sheet
+19.9%
$477.3M→$572.4M

Inventory built 19.9% — monitor whether demand supports this build or if write-downs may follow.

Operating Cash Flow
Cash Flow
-14.4%
$762.1M→$652.6M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Total Debt
Balance Sheet
-13.5%
$1.6B→$1.4B

Debt reduced 13.5% — deleveraging strengthens balance sheet and reduces financial risk.

Accounts Receivable
Balance Sheet
+13%
$733.4M→$828.8M

Receivables grew 13% — monitor days sales outstanding for collection efficiency.

LANGUAGE CHANGES
NEW — 2026-02-23
PRIOR — 2025-02-25
ADDED
These amounts have been recorded as part of the income statement provision for income taxes.
Unrealized (losses) gains on open contracts from interest rate cross-currency swap agreements fluctuated year over year primarily due to changes in foreign exchange rates, which resulted in period-to-period variability.
Management s Discussion and Analysis of Financial Condition and Results of Operations 44 7A.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 112 9A.
These instruments are used in predicting the suitability and stability of fine chemicals, pharmaceuticals, water, polymers, metals and viscous liquids for various industrial, consumer goods and healthcare products, as well as for life science research.
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REMOVED
The changes in the valuation allowance during the years ended December 31, 2024, 2023 and 2022 are primarily due to the effect of foreign currency translation on a valuation allowance related to a net operating loss carryforward.
Management s Discussion and Analysis of Financial Condition and Results of Operations 35 7A.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 100 9A.
With approximately 7,600 employees worldwide, Waters operates directly in over 35 countries and has products available in more than 100 countries.
The Company s thermal analysis, rheometry and calorimetry instruments are used in predicting the suitability and stability of fine chemicals, pharmaceuticals, water, polymers, metals and viscous liquids for various industrial, consumer goods and healthcare products, as well as for life science research.
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