Waters Corp (WAT)

Business Description

Waters Corporation is a leading analytical instrument manufacturer that operates through two primary business segments: Waters and TA Instruments. The company specializes in high-performance liquid chromatography (HPLC), ultra-performance liquid chromatography (UPLC), mass spectrometry (MS), and precision chemistry consumables, which are essential for analyzing the chemical, physical, and biological composition of materials across various industries . Additionally, Waters Corporation provides thermal analysis, rheometry, and calorimetry instruments to assess the suitability and stability of materials in industrial, consumer goods, and healthcare products . The company's offerings include both instruments and consumables, as well as service sales such as support plans, replacement parts, and repair services .

Waters Segment - Focuses on high-performance liquid chromatography (HPLC), ultra-performance liquid chromatography (UPLC), mass spectrometry (MS), and precision chemistry consumables. Includes operations of Wyatt Technology, specializing in light scattering and field-flow fractionation instruments.
TA Instruments Segment - Designs, manufactures, sells, and services thermal analysis, rheometry, and calorimetry instruments used to predict material suitability and stability in various products.

Key Metrics

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Executive Team

Name	Position	Start Date	Short Bio
Dr. Udit Batra	President and Chief Executive Officer	September 1, 2020	Dr. Udit Batra was appointed as a Director of Waters Corporation as well as its President and Chief Executive Officer on September 1, 2020. He has over two decades of leadership in healthcare and life sciences .
Jianqing Bennett	Senior Vice President, TA Instruments Division	May 1, 2021	Jianqing Bennett was appointed as Senior Vice President of the TA Instruments Division at Waters Corporation on May 1, 2021. She previously served as Senior Vice President, High Growth Markets at Beckman Coulter Diagnostics .
Amol Chaubal	Chief Financial Officer	May 12, 2021	Amol Chaubal was appointed as the Chief Financial Officer of Waters Corporation on May 12, 2021. He previously served as the CFO of Quanterix Corporation and held finance leadership roles at Smith & Nephew and Parexel .
Heather Knight	Board Member	August 14, 2024	Heather Knight was appointed to the Board of Directors of Waters Corporation, effective August 14, 2024. She is the Executive Vice President and Group President of Medical Products and Therapies at Baxter International .

Questions to Ask Management

Given the ongoing CapEx constraints among customers, particularly in the CDMO segment in China where CapEx remains subdued, what specific strategies are you implementing to drive growth and mitigate these challenges in achieving your long-term outlook above the historical rate of 6%?
With instrument sales declining 17% in the second quarter while chemistry and service both grew 5%, how do you plan to address the significant drop in instrument sales and stimulate demand to drive overall revenue growth?
Despite the increase in biologics revenue to over 35% of pharma revenues from roughly 20% in the last 3 to 4 years, what risks do you see associated with this shift, such as market saturation or increased competition in large molecule applications?
Considering customers have delayed instrument replacements due to macroeconomic pressures, how sustainable is the demand for new products like the Alliance iS, and what are your plans to maintain innovation and upsell opportunities if customers continue to defer spending?
With gross margins remaining flat at 59.3% despite headwinds from lower sales volume, FX, and inflation, what specific productivity initiatives are you implementing to improve margins, and how confident are you in their ability to offset future challenges such as inflation or further sales declines?

Program Details	Program 1	Program 2
Approval Date	January 2019	December 2023
End Date/Duration	January 21, 2024	January 21, 2025
Total Additional Amount	$4.8 billion	N/A
Remaining Authorization	$0 billion	$1.0 billion
Details	Extended multiple times	Provides financial flexibility for repurchases and investments

Debt Maturity Schedule

Year	Amount Due (in billions)	Debt Type	Interest Rate (%)	% of Total Debt
2026	0.160	Senior unsecured notes - Series K	3.44	8.8% = (0.160 / 1.826) * 100
2026	0.100	Senior unsecured notes - Series N	1.68	5.5% = (0.100 / 1.826) * 100
2026	0.200	Senior unsecured notes - Series L	3.31	11.0% = (0.200 / 1.826) * 100
2026	0.570	Credit agreement	N/A	31.2% = (0.570 / 1.826) * 100
2028	0.050	Senior unsecured notes - Series P	4.91	2.7% = (0.050 / 1.826) * 100
2029	0.300	Senior unsecured notes - Series M	3.53	16.4% = (0.300 / 1.826) * 100
2030	0.050	Senior unsecured notes - Series Q	4.91	2.7% = (0.050 / 1.826) * 100
2031	0.400	Senior unsecured notes - Series O	2.25	21.9% = (0.400 / 1.826) * 100

Competitors

Competitors mentioned in the company's latest 10K filing.

Agilent Technologies, Inc. - Principal competitor in the markets served by Waters and in the consumable columns market .
Shimadzu Corporation - Principal competitor in the markets served by Waters .
Bruker Corporation - Principal competitor in the markets served by Waters .
Danaher Corporation - Principal competitor in the markets served by Waters and in the consumable columns market .
Thermo Fisher Scientific Inc. - Principal competitor in the markets served by Waters and TA, and in the consumable columns market .
Perkin Elmer, Inc. - Principal competitor in the markets served by TA .
NETZSCH-Geraetebau GmbH - Principal competitor in the markets served by TA .
Malvern PANalytical Ltd. - Principal competitor in the markets served by TA .
Anton-Paar GmbH - Principal competitor in the markets served by TA .
Merck KGaA - Principal competitor in the consumable columns market .
General Electric Company - Principal competitor in the consumable columns market .

Auditor

Name	Start Date	End Date	Reason for Change
PricewaterhouseCoopers LLP	1994	Present	Current auditor