Fortive Corporation · NYSE:FTV
Fortive — Q4 2024 Earnings Presentation
22 slides from Fortive's earnings presentation, Feb 7, 2025
Slide 1: Fourth Quarter 2024 Earnings Release
Fourth Quarter 2024 Earnings Release February 7, 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, global and regional economic conditions, industry trends, geopolitical events, our plans to separate into two indep
Slide 3: Delivering Strong Performance Again in 2024
Delivering Strong Performance Again in 2024 Contributing to a 5-year Execution Track Record • Demonstrating consistent performance throughout the year Strong Execution • FY 2024 delivered 13% adjusted EPS and FCF growth Drives Results • 5-year track record: +MSD CG, 14% adj. EPS, 18% FCF CAGRs • Con
Slide 4: Strong Track Record Paves Way for Future Success
Strong Track Record Paves Way for Future Success Durable Growth, Margin Expansion & FCF Growth Accelerate Returns REVENUE ($B) ADJ. OP MARGIN ADJ. EPS NWC % SALES FREE CASH FLOW ($B) 27% $1.4 13% $6.2 $3.89 21% $4.6 ~120 BPS/YR $2.03 6% $0.6 MSD Adj. OMX 14% >50% 18% Core Growth Reduction CAGR CAGR
Slide 5: FBS-Driven Growth & Innovation
FBS-Driven Growth & Innovation Increasing Innovation Velocity and Profitable Growth Intelligent Operating Solutions Advanced Healthcare Solutions Precision Technologies 20 6 4 IsoVu Isolated Current Probes ULTRA GI Cycle Fluke new product PV IV Tracer New product New Tektronix launches; +200 bps lau
Slide 6: Q4 & FY 2024 Financial Highlights
Q4 & FY 2024 Financial Highlights Strong Operational Execution Drives Results Q4 2024 FY 2024 Q4 Highlights • IOS delivers upside; +HSD ARR and RR growth Revenue $1.62B $6.23B • 2nd consecutive quarter +DD orders growth at PT REVENUE & Total Growth +2% +3% • China headwinds muting broader recovery G
Slide 7: Q4 & FY 2024 Segment Highlights - IOS & AHS
Q4 & FY 2024 Segment Highlights - IOS & AHS Recurring SW and Healthcare Consumables Drive Consistent Growth & OMX TOTAL IOS + AHS INTELLIGENT OPERATING ADVANCED HEALTHCARE SOLUTIONS SOLUTIONS +4.4% Core Growth +4.3% +4.7% ($ in millions) Core Growth Core Growth +3.8% Total Growth +4.1% +3.2% Total G
Slide 8: Q4 & FY 2024 Segment Highlights - PT
Q4 & FY 2024 Segment Highlights - PT Demonstrating Durable Through-Cycle Performance PRECISION TECHNOLOGIES PT CORE REVENUE & ADJ. OP PROFIT GROWTH (2.8)% ($ in millions) Core Growth +4% (0.4)% Core Growth Total Growth 3-Yr CAGR $570 $568 28.2% 26.0% Q4 2023 Q4 2024 Revenue AOP % • +DD orders growth
Slide 9: 2025 Outlook
2025 Outlook Growth Expected from All Segments NEW FORTIVE PT NEWCO (RALLIANT) ~$4.1B ~$2.2B Stable industrial demand; NPI ~35% of PT growing at +DD, driven launches accelerate impact ~$1.3B by strong secular trends ~$2.2B +HSD software and Orders growth in 2H'24 supports recurring revenue growth re
Slide 10: Q1 and FY 2025 Outlook
Q1 and FY 2025 Outlook Balanced and Prudent Approach Q1 2025 FY 2025 Q1'25 Expectations Revenue $1.48B to $1.51B $6.23B to $6.35B • Rev: FX ~($30M) | ~(200 bps) impact REVENUE & Total Growth (3)% to (1)% ~Flat to 2.0% ◦ IOS + AHS: +LSD core GROWTH Core Growth ~Flat ◦ PT: (MSD) core; toughest YOY com
Slide 11: Accelerating Shareholder Value-Enhancing Actions
Accelerating Shareholder Value-Enhancing Actions Share Repurchases Step-up in Q4'24 as Spin Timing Comes into Focus 2H 2024 Capital Deployment Highlights % of total capital deployed • Separation progressing well, expect to close early Q3'25 Record ◦ Submitted Form 10 confidentially with 12% 2H FCF t
Slide 12: Evolving Fortive
Evolving Fortive To Deliver Enduring Value • Execution Drives 2024 Performance • Differentiated Multi-Year Track Record • Strategically Well-Positioned for 2025 • Accelerating Value-Enhancing Actions 12
Slide 13: Appendix & Supplemental Reconciliation Data
@ FORTIVE Appendix & Supplemental Reconciliation Data
Slide 14: Adjusted Gross Profit and Adjusted Gross Profit Margin
ADJUSTED GROSS PROFIT AND ADJUSTED GROSS PROFIT MARGIN Three Months Ended Year Ended $ in millions December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Revenue (GAAP) $ 1,620.3 $ 1,583.7 $ 6,231.8 $ 6,065.3 Gross Profit (GAAP) $ 977.2 $ 947.5 $ 3,731.0 $ 3,594.1 Acquisition-Relate
Slide 15: Adjusted Operating Profit & Adjusted Operating Profit Margin
ADJUSTED OPERATING PROFIT & ADJUSTED OPERATING PROFIT MARGIN Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 $ in millions Intelligent Advanced Total IOS + Precision Corporate Total Intelligent Advanced Total IOS + Precision Corporate Total Total Fortive Operating Healthcar
Slide 16: Adjusted Operating Profit & Adjusted Operating Profit Margin
ADJUSTED OPERATING PROFIT & ADJUSTED OPERATING PROFIT MARGIN Year Ended December 31, 2024 Year Ended December 31, 2023 $ in millions Intelligent Advanced Total IOS + Precision Corporate Total Intelligent Advanced Total IOS + Precision Corporate Total Total Fortive Operating Healthcare AHS Technologi
Slide 17: Adjusted Net Earnings and Adjusted Diluted Net EPS
ADJUSTED NET EARNINGS AND ADJUSTED DILUTED NET EPS Three Months Ended Year Ended $ in millions, except per share amounts December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Per share Per share Per share Per share value value value value Net Earnings and Net Earnings Per Share (GA
Slide 18: Forecasted Adjusted Diluted Net EPS
FORECASTED ADJUSTED DILUTED NET EPS Three Months Ending Twelve Months Ending March 28, 2025 December 31, 2025 Low High Low High Forecasted Diluted Net Earnings Per Share (GAAP) $ 0.39 $ 0.42 $ 2.38 $ 2.50 Anticipated pretax amortization of acquisition related intangible assets 0.33 0.33 1.33 1.33 An
Slide 19: Free Cash Flow Conversion Ratio
FREE CASH FLOW CONVERSION RATIO (in millions) Three Months Ended Year Ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Operating Cash Flows (GAAP) $ 502.2 $ 446.8 $ 1,526.8 $ 1,353.6 Less: purchases of property, plant & equipment (capital expenditures) (GAAP) (37.0) (34.
Slide 20: Core Revenue Growth
CORE REVENUE GROWTH Components of Revenue Growth Three Months Ended December 31, 2024 Year Ended December 31, 2024 Total Fortive Total Revenue Growth (GAAP) 2.3 % 2.7 % Impact of: Acquisitions and divestitures (Non-GAAP) (1.1)% (2.0)% Impact of currency translation (Non-GAAP) 0.6 % 0.6 % Core revenu
Slide 21: Adjusted Effective Tax Rate
ADJUSTED EFFECTIVE TAX RATE Three Months Ended Year Ended $ in millions December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Earnings before income taxes $ 274.7 $ 277.5 $ 969.6 $ 990.8 Income tax expense (65.9) (12.3) (136.7) (125.0) Effective tax rate (GAAP) 24.0 % 4.5 % 14.1 %
Slide 22: (2) FORTIVE
(2) FORTIVE