Fortive Corporation · NYSE:FTV
Fortive — Q1 2025 Earnings Presentation
19 slides from Fortive's earnings presentation, May 1, 2025
Slide 1: First Quarter 2025 Earnings Release
First Quarter 2025 Earnings Release May 1, 2025
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures Statements in this presentation that are not strictly historical, including statements regarding anticipated financial results, impact of trade policies, including tariffs and the application thereof, global and regional economic conditions, i
Slide 3: Key Messages
Key Messages Solid Q1 performance Navigating the Separation on track, despite dynamic macro current environment targeting by end of Q2 Adj. EPS at midpoint of guidance New Fortive benefiting from durable Form 10 to be filed in early May with range and Adj. Free Cash Flow above markets and recurring
Slide 4: Q1 2025 Financial Highlights
Q1 2025 Financial Highlights Earnings in line with expectations Q1 2025 Q1 Highlights Revenue $1.47B • IOS and AHS growth reflects resilient demand REVENUE & and traction on innovation; strong SaaS and Total Growth (3)% GROWTH ARR growth Core Growth (2)% • Trade and macro uncertainty delaying PT IOS
Slide 5: Q1 2025 Segment Highlights - IOS & AHS
Q1 2025 Segment Highlights - IOS & AHS Resilient demand for New Fortive TOTAL IOS + AHS INTELLIGENT OPERATING ADVANCED HEALTHCARE SOLUTIONS SOLUTIONS ($ in millions) Core Growth: +2.2% Core Growth: +2.0% Core Growth: +2.5% Total Growth: +0.8% Total Growth: +0.9% Total Growth: +0.8% $974 $666 $671 $9
Slide 6: Q1 2025 Segment Highlights - PT
Q1 2025 Segment Highlights - PT Customer caution given policy and macro uncertainty PRECISION TECHNOLOGIES Q1 Highlights ($ in millions) Core Growth: (8.4)% Total Growth: (10.5)% • Solid core orders growth driven by North America and Asia ex-China • Test & measurement core decline (high-teens) refle
Slide 7: Navigating the Current Environment
Navigating the Current Environment Proven FBS playbook to rapidly countermeasure headwinds Estimated Gross Incremental Tariff Impacts1 Countermeasure Playbook 2025 IMPACT • Pricing/surcharges where appropriate China $165 to $175M • Leveraging existing sourcing strategies US imports from China (~145%
Slide 8: Q2 and FY 2025 Outlook
Q2 and FY 2025 Outlook Managing through dynamic, more uncertain environment Q2'25 Expectations FY'25 Expectations ADJUSTED EPS $0.85 to $0.90 ADJUSTED EPS $3.80 to $4.00 KEY ASSUMPTIONS KEY ASSUMPTIONS • PT/Ralliant core decline, modest sequential improvement • Guide reduced for moderated demand at
Slide 9: Track Record of Durable Growth
Track Record of Durable Growth Innovation and diversification driving resilient revenue profile 5Yr Core Growth CAGR New Fortive MSD Strategic actions to enhance durability Ralliant LSD+ • Continued diversification and geographic expansion into attractive growth markets • Accelerated innovation and
Slide 10: Investor Day & Separation Update
Investor Day & Separation Update Launching two independent companies Separation Timeline Fortive & Ralliant 2025 Investor Days May June July Tuesday, June 10th @ 10am ET @ NYSE, +webcast • Ralliant presentation Form 10 filed Investor Day (morning session) early May June 10th • Fortive presentation R
Slide 11: Wrap up
1 Solid Q1 performance despite dynamic macro environment Proven FBS playbook to navigate the current 2 trade landscape 3 Updated FY outlook reflects more uncertain macro and policy environment 4 Separation on-track to be completed by the end Wrap of Q2; investor days scheduled for June 10th up 11
Slide 12: Supplemental Reconciliation Data
Supplemental Reconciliation Data
Slide 13: Adjusted Operating Profit & Adjusted Operating Profit Margin
ADJUSTED OPERATING PROFIT & ADJUSTED OPERATING PROFIT MARGIN Three Months Ended March 28, 2025 Three Months Ended March 29, 2024 $ in millions Intelligent Advanced Total IOS + Precision Corporate Total Intelligent Advanced Total IOS + Precision Corporate Total Total Fortive Operating Healthcare AHS
Slide 14: Adjusted Net Earnings and Adjusted Diluted Net EPS
ADJUSTED NET EARNINGS AND ADJUSTED DILUTED NET EPS Three Months Ended $ in millions, except per share amounts March 28, 2025 March 29, 2024 Per share Per share value value Net Earnings and Net Earnings Per Share (GAAP) $ 171.9 $ 0.50 $ 207.4 $ 0.58 Pretax amortization of acquisition related intangib
Slide 15: Forecasted Adjusted Diluted Net EPS
FORECASTED ADJUSTED DILUTED NET EPS Three Months Ending Twelve Months Ending June 27, 2025 December 31, 2025 Low High Low High Forecasted Diluted Net Earnings Per Share (GAAP) $ 0.44 $ 0.49 $ 2.23 $ 2.43 Anticipated pretax amortization of acquisition related intangible assets 0.33 0.33 1.32 1.32 Ant
Slide 16: Free Cash Flow and Adjusted Free Cash Flow - Trailing Six Months
FREE CASH FLOW AND ADJUSTED FREE CASH FLOW - TRAILING SIX MONTHS (in millions) Three Months Ended Trailing Six Months March 28, 2025 December 31, 2024 Operating Cash Flows (GAAP) $ 241.7 $ 502.2 $ 743.9 Less: Purchases of property, plant & equipment (capital expenditures) (GAAP) (26.7) (37.0) (63.7)
Slide 17: Core Revenue Growth
CORE REVENUE GROWTH Components of Revenue Growth Three Months Ended March 28, 2025 Intelligent Advanced Precision Operating Healthcare Total IOS + AHS Total Fortive Technologies Solutions Solutions Total revenue growth (GAAP) 0.9 % 0.8 % 0.8 % (10.5)% (3.3)% Excluding impact of: Acquisitions and div
Slide 18: Adjusted Effective Tax Rate
ADJUSTED EFFECTIVE TAX RATE Three Months Ended $ in millions March 28, 2025 March 29, 2024 Earnings before income taxes $ 201.4 $ 234.0 Income tax expense (29.5) (26.6) Effective tax rate (GAAP) 14.6 % 11.4 % Earnings before income taxes (GAAP) $ 201.4 $ 234.0 Pretax amortization of acquisition rela
Slide 19: (2) FORTIVE
(2) FORTIVE