What Veralto Corporation told the SEC could break it.

Since January 2025 the U.S. has imposed/threatened significant tariffs on imports from China and other countries, triggering retaliation; these could raise Veralto's costs and reduce demand for its products and services.

“For example, since January 2025, the U.S. government has threatened or imposed significant tariffs on imports from China and various new or additional tariffs on imports from other countries with limited, temporary exclusions for certain goods. Any such current or future tariffs, along with other U.S. trade actions, have triggered and could further trigger retaliatory actions by certain affected countries”

Although Veralto buys raw materials from many independent sources, certain components requiring particular specifications or regulatory qualifications come from a single or limited number of suppliers, and some businesses buy from sole/limited sources for quality/regulatory reasons.

“No single supplier is significant to Veralto as a whole, although for some components that require particular specifications or regulatory or other qualifications there may be a single supplier or a limited number of suppliers that can readily provide such components.”

About 56% of Veralto's sales (and many of its manufacturing operations and suppliers) are outside the U.S., exposing it to currency, political, legal and compliance risk; a 10% USD move could cut FX-denominated net assets/equity by ~$71M.

“In 2025, approximately 56% of our sales were derived from customers outside the U.S. In addition, many of our manufacturing operations, suppliers and employees are located outside the U.S.”