Waters (WAT) FY2022 results: revenue $3.0 billion, up 6.7% on the year

Waters Corp. (WAT) reported revenue of $3.0 billion for fiscal 2022, the year ended 31 December 2022, up 6.7% on the year before. Net income was $708 million, up 2.2%, and diluted earnings per share $11.73. The figures are the company's own, from the 10-K it filed with the SEC on 27 February 2023.

Revenue

$3.0 billion

+6.7% on the year

FY2015FY2022

Operating margin

29.4%

29.5% a year earlier

FY2015FY2022

Net income

$708 million

+2.2% on the year

FY2015FY2022

Diluted EPS

$11.73

+5.0% on the year

FY2015FY2022

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2022 · Q2 FY2022 · Q3 FY2022 · Q4 FY2022

Income statement (profit and loss)

$ million	FY2022	FY2021	FY2020	On the year
Revenue	2,972	2,786	2,365	+6.7%
Cost of revenue	1,248	1,157	1,007	+7.9%
Gross profit	1,724	1,629	1,359	+5.8%
Gross margin	58.0%	58.5%	57.4%
Research and development	176	168	141	+4.7%
Selling, general and administrative	658	627	554	+5.0%
Operating income	873	822	645	+6.3%
Operating margin	29.4%	29.5%	27.3%
Interest expense	48.8	44.9	49.1	+8.6%
Pre-tax income	838	806	611	+3.9%
Income tax	130	113	89.3	+14.8%
Effective tax rate	15.5%	14.1%	14.6%
Net income	708	693	522	+2.2%
Net margin	23.8%	24.9%	22.1%
Diluted EPS	$11.73	$11.17	$8.36	+5.0%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2022	FY2021	FY2020	On the year
Operating cash flow	612	747	791	-18.1%
Capital expenditure	176	161	172	+9.1%
Free cash flow	436	586	618	-25.6%
Free cash flow margin	14.7%	21.0%	26.1%
Cash from investing	-108	-232	-264
Cash from financing	-510	-438	-441
Depreciation and amortisation	130	132	126	-1.2%
Share-based compensation	42.6	29.9	36.9	+42.3%
Buybacks	626	649	196	-3.5%
Diluted shares, weighted	60m	62m	62m	-2.7%
Shares outstanding at period end	59m	61m	62m	-2.7%

Balance sheet

$ million	FY2022	FY2021	FY2020	On the year
Shareholders' equity	504	368	232	+37.3%
Debt	1,580	1,520	1,360	+3.9%
Operating lease liabilities	62.1	59.6	68.2	+4.2%
Other liabilities	1,135	1,148	1,180	-1.1%
Total liabilities and equity	3,281	3,095	2,840	+6.0%
Fixed assets	582	548	494	+6.3%
Goodwill	430	438	444	-1.7%
Intangible assets	227	242	259	-6.2%
Investments	0.9	68.1	6.5	-98.7%
Cash and equivalents	481	501	437	-4.1%
Receivables	723	613	573	+18.0%
Inventory	456	356	304	+28.0%
Other assets	382	329	322	+16.1%
Total assets	3,281	3,095	2,840	+6.0%

10-K for the year ended 31 December 2022, filed 27 February 2023: the filing.