Waters (WAT) FY2023 results: revenue $3.0 billion, down 0.5% on the year

Waters Corp. (WAT) reported revenue of $3.0 billion for fiscal 2023, the year ended 31 December 2023, down 0.5% on the year before. Net income was $642 million, down 9.3%, and diluted earnings per share $10.84. The figures are the company's own, from the 10-K it filed with the SEC on 27 February 2024.

Revenue

$3.0 billion

-0.5% on the year

FY2016FY2023

Operating margin

27.7%

29.4% a year earlier

FY2016FY2023

Net income

$642 million

-9.3% on the year

FY2016FY2023

Diluted EPS

$10.84

-7.6% on the year

FY2016FY2023

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2023 · Q2 FY2023 · Q3 FY2023 · Q4 FY2023

Income statement (profit and loss)

$ million	FY2023	FY2022	FY2021	On the year
Revenue	2,956	2,972	2,786	-0.5%
Cost of revenue	1,195	1,248	1,157	-4.2%
Gross profit	1,761	1,724	1,629	+2.2%
Gross margin	59.6%	58.0%	58.5%
Research and development	175	176	168	-0.7%
Selling, general and administrative	736	658	627	+11.9%
Operating income	818	873	822	-6.4%
Operating margin	27.7%	29.4%	29.5%
Interest expense	98.9	48.8	44.9	+102.6%
Pre-tax income	736	838	806	-12.1%
Income tax	94.0	130	113	-27.7%
Effective tax rate	12.8%	15.5%	14.1%
Net income	642	708	693	-9.3%
Net margin	21.7%	23.8%	24.9%
Diluted EPS	$10.84	$11.73	$11.17	-7.6%

$ 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	FY2023	FY2022	FY2021	On the year
Operating cash flow	603	612	747	-1.4%
Capital expenditure	161	176	161	-8.7%
Free cash flow	442	436	586	+1.5%
Free cash flow margin	15.0%	14.7%	21.0%
Cash from investing	-1,442	-108	-232
Cash from financing	755	-510	-438
Depreciation and amortisation	166	130	132	+27.4%
Share-based compensation	36.9	42.6	29.9	-13.4%
Buybacks	70.3	626	649	-88.8%
Diluted shares, weighted	59m	60m	62m	-1.8%
Shares outstanding at period end	59m	59m	61m	+0.1%

Balance sheet

$ million	FY2023	FY2022	FY2021	On the year
Shareholders' equity	1,150	504	368	+128.0%
Debt	2,360	1,580	1,520	+49.4%
Operating lease liabilities	58.9	62.1	59.6	-5.1%
Other liabilities	1,058	1,135	1,148	-6.8%
Total liabilities and equity	4,627	3,281	3,095	+41.0%
Fixed assets	639	582	548	+9.8%
Goodwill	1,305	430	438	+203.4%
Intangible assets	629	227	242	+176.7%
Investments	0.9	0.9	68.1	+4.2%
Cash and equivalents	395	481	501	-17.8%
Receivables	702	723	613	-2.9%
Inventory	516	456	356	+13.3%
Other assets	439	382	329	+15.0%
Total assets	4,627	3,281	3,095	+41.0%

10-K for the year ended 31 December 2023, filed 27 February 2024: the filing.