Roper (ROP) Q4 2025 Earnings Call Transcript

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• Freight recession persisted throughout 2025 for DAT business

  80% confidence

• Roper has >$6B capacity for M&A and buybacks in 2026

  80% confidence

• Roper expects Q1 2026 adjusted EPS of $4.95-5.00

  80% confidence

• Test & Measurement Products segment expected to achieve mid-single-digit organic growth in 2026, with H1 in low singles

  80% confidence

• Nearly every software business in Roper portfolio has or is near launching AI products

  80% confidence

• 2026 focus is to commercialize, sell, deploy, and monetize AI products across portfolio

  80% confidence

• Network Software segment expected to achieve higher end mid-single-digit organic growth in 2026, Q4 weighted

  80% confidence

• We're not starting the year assuming organic growth will inflect in 2026. We're going to execute and will reflect any improvement in organic growth in our guidance as it materializes

  80% confidence

• 2026 guidance does not assume meaningful freight market improvement for DAT

  80% confidence

• Application Software segment expected to achieve higher end mid-single-digit organic growth in 2026, back-half weighted

  80% confidence

• Organic growth this past year was below our expectations for 2025, and we own that

  80% confidence

• Appropriations bill passage expected to provide positive tailwind for Deltek customers but NOT included in 2026 guidance

  80% confidence

• Roper expects revenue growth of approximately 8% total and 5-6% organic in 2026

  80% confidence

• Roper expects adjusted EPS of $21.30-21.55 for full year 2026

  80% confidence

• M&A pipeline is robust with 60% proprietary or founder-driven for bolt-ons

  80% confidence

• We are not assuming an improvement this year for Deltek

  80% confidence

• Verathon is US market share leader in single-use bronchoscopes

  80% confidence

• Private equity market expected to pick up in 2026 with LP pressure on GPs increasing and high-quality assets becoming available

  80% confidence

• CentralReach performing ahead of deal model with strong recurring revenue and expanding profitability

  80% confidence

• ProCare is the clear leader in the marketplace. The business is winning majority of competitive deals. The problem now is just pushed to the right - slow to implement software

  80% confidence

• Deltek had zero competitive issues in 2025, delays were market-driven from government shutdown and DOGE disruptions

  80% confidence

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