Fortive Corporation · NYSE:FTV
Fortive — Q2 2025 Earnings Presentation
26 slides from Fortive's earnings presentation, Jul 30, 2025
Slide 1: Second Quarter 2025 Earnings Presentation
Second Quarter 2025 Earnings EARNINGS PRESENTATION July 30, 2025
Slide 2: Forward Looking Statements, Non-GAAP Financial Measures, & Basis of Presentation
Forward Looking Statements, Non-GAAP Financial Measures, & Basis of Presentation FORWARD-LOOKING STATEMENTS Statements in this presentation that are not strictly historical, including statements regarding anticipated financial results, global and regional economic conditions, industry trends, geopol
Slide 3: Key Messages Today
Key Messages Today • Pivotal quarter with completion of Precision Technologies segment spin-off, now Ralliant • Q2 2025 consolidated results, including Precision Technologies segment, at high-end of our previously announced Adj. EPS guidance • Resilient earnings and free cash flow results for Fortiv
Slide 4: Q2 2025 Financial Performance
Q2 2025 Financial Performance Consolidated Results, Including PT Segment Commentary Q2 2025 Q2 2024 • Adj. EPS at high-end of previously announced range of $0.85 to Revenue $1,519M $1,552M $0.90 Reported Growth (2.2)% +1.7% Core Growth (2.5)% ~Flat • Trailing Twelve Month (TTM) FCF grew +8%; TTM FCF
Slide 5: New Fortive at a Glance
New Fortive at a Glance Simplified company, focused on $4.1B 4% ~50% safety and productivity Revenue Core Growth Recurring (5-year CAGR) Industry-leading operating brands in attractive markets 64% 29% ~$0.9B Adj. Gross Margin Adj. EBITDA Margin Free Cash Flow Strong, durable financial profile with h
Slide 6: Profitable Organic Growth, FBS Amplified, Capital Allocation
Profitable Organic Growth FBS Amplified • Fluke 1670 Series Multifunction Installation Testers with • President's kaizen week, including TruTest software; 'Most Valuable Product' in Control Engineering 34 teams and ~1,000 participants Innovation 2025 Product of the Year awards across the company, pe
Slide 7: Fortive Results
Fortive Results Q2 2025, Continuing Operations Q2 2025 Q2 2024 Commentary • Modest (0.7)% Core Revenue Revenue $1,016M $1,020M decline, impacted by customer Reported Growth (0.4)% +3.7% demand responses to trade, Core Growth (0.7)% +3.9% healthcare, and government spending uncertainty at the end of
Slide 8: Intelligent Operating Solutions Results
Intelligent Operating Solutions Results Q2 2025, Continuing Operations Q2 2025 Q2 2024 Commentary • Revenue and Core Growth roughly flat, with tariff-related Revenue $697M $697M uncertainty impacting Reported Growth +0.1% +3.8% professional instrumentation and Core Growth (0.2)% +3.3% constrained sp
Slide 9: Advanced Healthcare Solutions Results
Advanced Healthcare Solutions Results Q2 2025, Continuing Operations Q2 2025 Q2 2024 Commentary • Revenue and Core Growth impacted by ongoing healthcare Revenue $320M $324M policy and budgetary Reported Growth (1.3)% +3.4% (1.9)% +5.0% uncertainty, resulting in lower Core Growth healthcare equipment
Slide 10: Tariff Update
Tariff Update Estimated Gross Incremental Tariff Impacts1 FBS-Driven Countermeasures 2025 2H IMPACT ANNUALIZED IMPACT • Leveraging the Fortive Business China $20M to $30M $50M to $70M System to adapt and respond US Imports from China (~65% tariff) $10M to $15M $25M to $35M • Countermeasures include
Slide 11: Balance Sheet & Capital Allocation
Balance Sheet & Capital Allocation Q2 2025, Continuing Operations PROFORMA Commentary Balance Sheet As of June 27, 20251 • $1.15B cash proceeds from Ralliant Cash and equivalents ~$0.95B dividend Gross debt ~$2.95B ◦ ~$725M cash used for debt pay Net debt ~$2.0B down ◦ Remainder for share Q2 2025 TT
Slide 12: Fortive Guidance
Fortive Guidance As of Q2 2025, Continuing Operations Adj. EPS | FY 2025 $2.50 - $2.60 • Assumes current environment continues through the rest of 2025 • Includes net impact of anticipated tariffs based on tariffs in effect or expected to go into effect in August Guidance & Disclosure Approach • Gui
Slide 13: Wrap Up
Wrap Up Durable by Design Resilient earnings and free Revenue ($B) Adj. EBITDA ($B) Free Cash Flow ($B) cash flow performance despite challenging environment, reflecting strength of operating brands and power of Fortive Business System Executing Fortive Accelerated strategy and shareholder value cre
Slide 14: Innovating essential technologies to keep our world safe and productive
Innovating essential technologies to keep our world safe and productive
Slide 15: Supplemental Reconciliation Data
Supplemental Supplemental Reconciliation Reconciliation Data Data
Slide 16: Total Fortive – Core Revenue Growth
TOTAL FORTIVE – CORE REVENUE GROWTH Components of Revenue Growth Three Months Ended June 27, 2025 June 28, 2024 Total Revenue Growth (GAAP) (2.2)% 1.7 % Excluding impact of: Acquisitions and divestitures 0.6 % (2.7)% Currency exchange rates (0.9)% 1.0 % Core Revenue Growth (Non-GAAP) (2.5)% —% 1616
Slide 17: Total Fortive – Adjusted Net Earnings and Adjusted Diluted Net EPS
TOTAL FORTIVE – ADJUSTED NET EARNINGS AND ADJUSTED DILUTED NET EPS Three Months Ended $ in millions, except per share amounts June 27, 2025 June 28, 2024 June 30, 2023 Per share Per share Per share value value value Net Earnings and Net Earnings Per Share (GAAP) $ 166.6 $ 0.49 $ 195.1 $ 0.55 $ 209.0
Slide 18: Total Fortive – Free Cash Flow and Adjusted Free Cash Flow – Trailing Twelve Months
TOTAL FORTIVE -FREE CASH FLOW AND ADJUSTED FREE CASH FLOW - TRAILING TWELVE MONTHS (in millions) Three Months Ended Trailing Twelve June 27, 2025 March 28, 2025 December 31, 2024 September 27, 2024 Months Operating Cash Flows (GAAP) $ 311.2 $ 241.7 $ 502.2 $ 459.0 $ 1,514.1 Less: Purchases of proper
Slide 19: Core Revenue Growth Reflecting Ralliant as Discontinued Operations
CORE REVENUE GROWTH REFLECTING RALLIANT AS DISCONTINUED OPERATIONS Components of Revenue Growth Three Months Ended June 27, 2025 Three Months Ended June 28, 2024 Intelligent Advanced Intelligent Advanced Operating Healthcare Total Fortive Operating Healthcare Total Fortive Solutions Solutions Soluti
Slide 20: Adjusted Gross Profit and Margin Reflecting Ralliant as Discontinued Operations
ADJUSTED GROSS PROFIT AND ADJUSTED GROSS PROFIT MARGIN REFLECTING RALLIANT AS DISCONTINUED OPERATIONS Three Months Ended June 27, 2025 Three Months Ended June 28, 2024 Three Months Ended June 30, 2023 $ in millions Intelligent Advanced Total Intelligent Advanced Total Intelligent Advanced Total Oper
Slide 21: Adjusted EBITDA and Margin Reflecting Ralliant as Discontinued Operations
ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN REFLECTING RALLIANT AS DISCONTINUED OPERATIONS Three Months Ended $ in millions June 27, 2025 June 28, 2024 June 30, 2023 Revenue (GAAP) $ 1,016.4 $ 1,020.2 $ 984.0 Net Earnings from Continuing Operations (GAAP) $ 111.6 $ 112.0 $ 92.7 Interest expense, net
Slide 22: Continuing Operations: Operating Profit to Adjusted EBITDA Bridge
FORTIVE CONTINUING OPERATIONS: OPERATING PROFIT & OPERATING PROFIT MARGIN TO ADJUSTED EBITDA AND ADJUSTED MARGIN BRIDGE Three Months Ended $ in millions June 27, 2025 June 28, 2024 Revenue (GAAP) $ 1,016.4 $ 1,020.2 Operating Profit (GAAP) $ 169.8 $ 182.3 Amortization of acquisition-related intangib
Slide 23: Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin
SEGMENT ADJUSTED EBITDA AND SEGMENT ADJUSTED EBITDA MARGIN Three Months Ended June 27, 2025 Three Months Ended June 28, 2024 Three Months Ended June 30, 2023 $ in millions Intelligent Advanced Corporate Total Intelligent Advanced Corporate Total Intelligent Advanced Corporate Total Operating Healthc
Slide 24: Adjusted Net Earnings and Adjusted Diluted EPS from Continuing Operations
ADJUSTED NET EARNINGS FROM CONTINUING OPERATIONS AND ADJUSTED DILUTED NET EPS FROM CONTINUING OPERATIONS REFLECTING RALLIANT AS DISCONTINUED OPERATIONS Three Months Ended $ in millions, except per share amounts June 27, 2025 June 28, 2024 June 30, 2023 Per share Per share Per share value value value
Slide 25: Free Cash Flow Reflecting Ralliant as Discontinued Operations - TTM
FREE CASH FLOW REFLECTING RALLIANT AS DISCONTINUED OPERATIONS - TRAILING TWELVE MONTHS (in millions) Three Months Ended Trailing Twelve June 27, 2025 March 28, 2025 December 31, 2024 September 27, 2024 Months Operating Cash Flows (GAAP) $ 205.0 $ 191.8 $ 327.7 $ 304.7 $ 1,029.2 Less: Purchases of pr
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