Financial Data and Key Metrics Changes - In Q4, the company reported total revenue of $1.1 billion, an increase of just over 4.5% year-over-year on a reported basis and just over 3% on a core basis [13] - Adjusted EBITDA for Q4 was $358 million, up about 8% year-over-year, with an adjusted EBITDA margin expanding approximately 100 basis points to nearly 32% [14][15] - Adjusted EPS for Q4 was $0.90, reflecting a 13% year-over-year increase, contributing to a full-year adjusted EPS of $2.71, which represented over 12% growth [15][21] Business Line Data and Key Metrics Changes - Intelligent Operating Solutions (IOS) segment revenue grew just over 5% on a reported basis, with core revenue growth of about 4%, driven by strong performance in professional instrumentation and gas detection products [16] - Advanced Healthcare Solutions (AHS) segment revenue was $353 million, growing approximately 3% year-over-year, with adjusted EBITDA of $92 million and an adjusted EBITDA margin of 26% [18][19] Market Data and Key Metrics Changes - North America continued to be the strongest growth driver, with encouraging improvements noted in Europe and Latin America, while APAC growth remained steady [13][16] - The company observed solid customer demand and strong commercial execution across all regions, with particular strength in professional instrumentation and gas detection [13][16] Company Strategy and Development Direction - The company is focused on executing the Fortive Accelerated Strategy, which includes three pillars: accelerating profitable organic growth, disciplined capital allocation, and building investor trust [5][8] - The company is committed to investing in organic growth, pursuing bolt-on M&A, and maintaining a modestly growing dividend to maximize medium to long-term shareholder value [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, initiating full-year adjusted EPS guidance of $2.90-$3.00, representing approximately 9% year-over-year growth at the midpoint [21] - The management highlighted strong execution and operational rigor, with a focus on delivering benchmark-beating shareholder returns [5][24] Other Important Information - The company executed an additional $265 million in share repurchases in Q4, bringing total repurchases for the second half of the year to $1.3 billion [8][19] - The company finished the year with a gross debt to adjusted EBITDA ratio of 2.6x, indicating a strong balance sheet and ample capacity for capital deployment [20] Q&A Session Summary Question: Insights on Fluke's performance - Management noted strong demand and order growth at Fluke, with North America being the strongest region and encouraging improvements in EMEA and LATAM [32][34] Question: Price contribution and guidance - Price contributed about 2% to growth in Q4, with volume contributing roughly 1% [35] Question: First quarter expectations - Management indicated that January has started solidly, and they expect reported revenue and adjusted EBITDA to follow historical trends [41][43] Question: AHS segment margin pressures - Management clarified that margin pressures in AHS were localized in Q4 due to strategic investments, with expectations for margin improvement moving forward [44][45] Question: IOS organic growth sources - Management attributed the strong IOS growth to effective execution of the Fortive Business System strategy, with solid demand in data center applications and defense [72][74] Question: AI enhancements in software - Management highlighted that AI is seen as an opportunity, with strong customer demand for AI-enabled enhancements in their software offerings [53][76] Question: Future growth expectations for gas detection - Management expressed confidence in the gas detection business, anticipating strong performance in 2026 due to effective execution and market demand [95]

Financial Data and Key Metrics Changes - In Q4, the company reported total revenue of $1.1 billion, an increase of just over 4.5% year-over-year on a reported basis and just over 3% on a core basis [13] - Adjusted EBITDA for Q4 was $358 million, up about 8% year-over-year, with an adjusted EBITDA margin expanding approximately 100 basis points to nearly 32% [14] - Adjusted EPS for Q4 was $0.90, marking a 13% increase year-over-year, contributing to a full-year adjusted EPS of $2.71, which represented year-over-year growth of just over 12% [15][7] - The company generated about $315 million of free cash flow in Q4 and approximately $930 million for the full year, with free cash flow conversion on adjusted net income remaining nicely over 100% [20] Business Line Data and Key Metrics Changes - Intelligent Operating Solutions (IOS) segment revenue grew just over 5% on a reported basis, with core revenue growth of about 4%, driven by strong performance in professional instrumentation and gas detection products [16] - Advanced Healthcare Solutions (AHS) segment revenue grew approximately 3% year-over-year, with adjusted EBITDA in this segment at $92 million and an adjusted EBITDA margin of 26% [19] - Recurring revenue grew faster than consolidated revenue, driven by strength in Fluke's maintenance software and AI-enhanced software capabilities across IOS and AHS segments [10] Market Data and Key Metrics Changes - North America continued to be the strongest growth driver, with solid growth across all regions, including steady growth in APAC and an acceleration in Europe [13] - Latin American sales picked up pace, driven by strong performance in professional instrumentation [14] - The company noted early signs of improvement in Europe and positive trends in Latin America and Asia Pacific [16] Company Strategy and Development Direction - The company is focused on three strategic pillars: accelerating profitable organic growth, disciplined capital allocation, and building investor trust, aiming for benchmark-beating shareholder returns [5][8] - The company is committed to investing in organic growth, pursuing bolt-on M&A, and maintaining a modestly growing dividend [11] - The Fortive Accelerated Strategy is being diligently executed, with a focus on innovation and targeted investments in high-growth verticals [9][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, initiating full-year 2026 adjusted EPS guidance of $2.90-$3.00, representing approximately 9% year-over-year growth at the midpoint [21] - The company is confident in its ability to execute its strategy and deliver strong performance for shareholders, despite recognizing that there is more work to be done [25][24] - Management highlighted the importance of customer engagement and the positive impact of strategic investments on future growth [24][19] Other Important Information - The company executed an additional $265 million of share repurchases in Q4, bringing total second-half repurchases to $1.3 billion [8] - The balance sheet remains strong, finishing the year at 2.6x gross debt to adjusted EBITDA, with ample capacity for capital deployment priorities in 2026 [20] Q&A Session Summary Question: Insights on Fluke's performance and demand - Management noted strong demand in Fluke, with North America as the strongest region and encouraging improvements in EMEA and LATAM, with order growth continuing in Q4 [32][34] Question: Price contribution and guidance - Price contributed about 2% to growth in Q4, with volume contributing about 1%, and expectations for 2026 are broadly in line with this [35][36] Question: First quarter expectations and organic sales growth - Management indicated that Q1 is expected to follow historical patterns, with organic sales growth anticipated in the 2%-3% range for the full year [41][42] Question: AHS segment margin pressures - Management clarified that margin pressures in AHS were localized in Q4 due to strategic investments, with expectations for margin improvement moving forward [44][45] Question: IOS organic growth sources - The strong performance in IOS was attributed to effective execution of the Fortive Business System strategy, with solid demand in data center applications and defense [72][73] Question: AI enhancements in software businesses - Management highlighted that AI is seen as an opportunity, with strong customer demand for AI-enabled enhancements driving growth and improving customer experience [53][54] Question: Future growth expectations for gas detection - Management expressed confidence in the gas detection business, anticipating strong performance in 2026 due to effective execution and targeted investments [95][96]

Financial Data and Key Metrics Changes - In Q4, total revenue reached $1.1 billion, reflecting a year-over-year increase of just over 4.5% on a reported basis and over 3% on a core basis [12] - Adjusted EBITDA for Q4 was $358 million, up about 8% year-over-year, with an adjusted EBITDA margin expanding approximately 100 basis points to nearly 32% [13][14] - Adjusted EPS for Q4 was $0.90, marking a 13% increase year-over-year, contributing to a full-year adjusted EPS of $2.71, which represented over 12% growth [14][19] Business Line Data and Key Metrics Changes - Intelligent Operating Solutions (IOS) segment revenue grew just over 5% on a reported basis, with core revenue growth of about 4%, driven by strong performance in professional instrumentation and gas detection [15] - Advanced Healthcare Solutions (AHS) segment revenue grew approximately 3% year-over-year, with adjusted EBITDA in this segment at $92 million and an adjusted EBITDA margin of 26% [17][18] Market Data and Key Metrics Changes - North America continued to be the strongest growth driver, with encouraging signs of improvement in Europe and Latin America [12][15] - APAC growth remained steady, while Europe showed acceleration from Q3, indicating potential positive trends [12][13] Company Strategy and Development Direction - The company is focused on executing the Fortive Accelerated Strategy, which includes three pillars: accelerating profitable organic growth, disciplined capital allocation, and building investor trust [4][10] - The company is initiating full-year 2026 adjusted EPS guidance of $2.90-$3.00, representing approximately 9% year-over-year growth at the midpoint [6][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, highlighting strong execution and growth acceleration in the second half of 2025 [5][24] - The company is committed to maintaining a disciplined approach to capital allocation, with a focus on organic growth and targeted M&A opportunities [10][24] Other Important Information - The company executed an additional $265 million in share repurchases in Q4, bringing total repurchases for the second half of the year to $1.3 billion [6][18] - Free cash flow for Q4 was approximately $315 million, with full-year free cash flow at about $930 million, maintaining a conversion rate over 100% [14][19] Q&A Session Summary Question: Insights on Fluke's performance and demand - Management noted strong performance in Fluke, with North America as the strongest region and encouraging improvements in EMEA and LATAM, indicating solid demand overall [30][32] Question: Price contribution and guidance - Price contributed about 2% to growth in the quarter, with volume contributing roughly 1% [34] Question: First quarter expectations and organic sales growth - Management indicated that they expect reported revenue and adjusted EBITDA to follow historical trends, with a positive outlook for January [40][42] Question: AHS segment margin pressures - Management clarified that margin pressures in AHS were localized in Q4 due to strategic investments, with expectations for margin improvement moving forward [43][44] Question: IOS organic growth sources - The strong performance in IOS was attributed to effective execution of the Fortive Business System strategy, with all elements contributing positively [71][72] Question: AI enhancements in software businesses - Management highlighted that AI is seen as a meaningful accelerator for their software offerings, with strong customer demand for AI-enabled enhancements [52][53] Question: Future growth expectations for gas detection - Management expressed confidence in the gas detection business, anticipating strong performance in 2026 due to effective execution and market demand [94]

Fourth Quarter and Full Year 2025 Earnings EARNINGS PRESENTATION February 4, 2026 Forward Looking Statements and Non-GAAP Financial Measures 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, geopolitical events, future acquisitions, impact of trade and spending policies, the ability to execute the planned strategies, interest rate and current exch ...

Group 1 - Fortive forecasts fiscal 2026 profit above Wall Street estimates, driven by strong demand in its industrial automation unit [1]

Financial Performance - Q4 2025 reported revenue of $1.12 billion, up 4.6% year-over-year; core revenue growth of 3.3%[7] - Full Year 2025 GAAP diluted net EPS of $1.59, up 16.1% year-over-year; adjusted diluted net EPS of $2.71, up 12% year-over-year[13] - Q4 Adjusted EBITDA of $358 million, up 7.8% year-over-year, with an adjusted EBITDA margin of 31.9%[7] - Full Year 2025 GAAP net income of $533 million, up 10% year-over-year, with a GAAP net income margin of 12.8%[15] - Total Revenue Growth (GAAP) for the year ended December 31, 2025, was 2.3%, with core revenue growth (Non-GAAP) at 2.1%[56] - Adjusted EBITDA (Non-GAAP) for the three months ended December 31, 2025, was $357.9 million, with an adjusted EBITDA margin of 31.9%[57] - Net Earnings from Continuing Operations (GAAP) for the year ended December 31, 2025, was $532.7 million, reflecting a net earnings margin of 12.8%[57] - Adjusted Net Earnings for the three months ended December 31, 2025, were $288.9 million, compared to $279.8 million in the same period of 2024[59] Segment Performance - Revenue for the Intelligent Operating Solutions segment in Q4 2025 was $770 million, up 5.3% year-over-year[12] - Advanced Healthcare Solutions segment revenue in Q4 2025 was $353 million, up 3.2% year-over-year[12] - The Intelligent Operating Solutions segment generated sales of $769.7 million in Q4 2025, up from $730.9 million in Q4 2024, marking a 5.0% increase[30] - The Advanced Healthcare Solutions segment reported sales of $352.8 million in Q4 2025, compared to $341.9 million in Q4 2024, reflecting a growth of 3.0%[30] - Revenue for Intelligent Operating Solutions reached $2,856.3 million in 2025, a 2.3% increase from $2,793.2 million in 2024[58] - Adjusted EBITDA for Advanced Healthcare Solutions was $341.3 million in 2025, compared to $340.3 million in 2024, reflecting a slight increase[58] - Operating Profit Margin for Intelligent Operating Solutions was 25.8% in 2025, up from 25.3% in 2024[58] Cash Flow and Capital Management - Free cash flow for FY 2025 was $931 million, slightly down by 1.3% year-over-year[15] - Cash and equivalents decreased to $375.5 million as of December 31, 2025, down from $813.3 million in 2024[34] - The company reported a total operating cash provided by continuing operations of $1,035.7 million for the year 2025, compared to $1,028.5 million in 2024[36] - Free Cash Flow from Continuing Operations for the year 2025 was $930.6 million, up from $942.4 million in 2024[61] - Operating Cash Flows (GAAP) for the three months ended December 31, 2025, were $344.2 million, an increase from $327.7 million in the same period of 2024[61] Shareholder Returns - Executed $265 million in share repurchases during Q4, totaling approximately $1.3 billion for the second half of 2025, representing about 8% of diluted shares outstanding[6] - Initiating FY 2026 Adjusted EPS guidance of $2.90 to $3.00[4] Strategic Focus - Fortive's strategic focus remains on profitable organic growth, disciplined capital allocation, and building investor trust[4] - The company aims to enhance operational performance by excluding non-core expenses from its financial metrics[41] Other Financial Metrics - Gross profit for the year ended December 31, 2025, was $2,641.1 million, compared to $2,619.1 million in 2024, reflecting a slight increase[30] - Operating profit for Q4 2025 was $225.5 million, up from $212.2 million in Q4 2024, indicating a growth of 6.9%[30] - Net earnings from continuing operations for the year were $532.7 million, compared to $482.5 million in 2024, representing a 10.4% increase[36] - The company incurred $42.0 million in pretax acquisition and divestiture-related items for the year ended December 31, 2025[57] - Discrete restructuring charges for the year ended December 31, 2025, amounted to $32.0 million, reflecting ongoing strategic adjustments[57] - The company incurred discrete restructuring charges of $26.3 million in 2025, compared to $10.0 million in 2024[58] - Foreign currency transaction gains and losses related to Euro-denominated debt were adjusted to provide clearer operational insights[46]

Core Insights - Fortive Corporation reported strong financial results for Q4 and full year 2025, with core revenue growth of approximately 3% and adjusted EBITDA growth of around 8% [2][7] - The company exceeded its full year adjusted EPS guidance, achieving adjusted diluted net earnings per share of $2.71, up 12% year-over-year [7][8] - Fortive initiated its full year 2026 adjusted EPS guidance, projecting a range of $2.90 to $3.00 [3][4] Financial Highlights for Q4 2025 - Revenue reached $1.123 billion, reflecting a 4.6% increase year-over-year, with core revenue growth at 3.3% [5][7] - GAAP net income was $192 million, a slight decrease of 0.9% from the previous year, resulting in a GAAP net income margin of 17.1% [5][7] - Adjusted EBITDA was $358 million, up 7.8% year-over-year, with an adjusted EBITDA margin of 31.9% [5][7] - Adjusted diluted net earnings per share were $0.90, a 12.5% increase compared to the prior year [5][7] Financial Highlights for Full Year 2025 - Total revenue for the year was $4.159 billion, a 1.9% increase year-over-year, with core revenue growth of 1.7% [8][7] - GAAP net income increased by 10.4% to $533 million, with a GAAP net income margin of 12.8% [8][7] - Adjusted EBITDA for the year was $1.233 billion, reflecting a 6.1% increase year-over-year, with an adjusted EBITDA margin of 29.6% [8][7] - The company deployed $1.6 billion towards share repurchases throughout FY 2025 [7] Segment Performance - Intelligent Operating Solutions segment revenue was $770 million in Q4 2025, up 5.3% year-over-year [6] - Advanced Healthcare Solutions segment revenue was $353 million in Q4 2025, a 3.2% increase year-over-year [6] - For the full year 2025, Intelligent Operating Solutions generated $2.856 billion in revenue, a 2.3% increase, while Advanced Healthcare Solutions revenue was $1.303 billion, up 1.2% [8][6] Strategic Focus - Fortive is committed to executing its Fortive Accelerated strategy, which emphasizes profitable organic growth, disciplined capital allocation, and building investor trust [3][2] - The company has completed $265 million in share repurchases in Q4 2025, contributing to a total of approximately $1.3 billion in buybacks for the second half of the year [2][7]

announced that Olumide Soroye, President and Chief Executive Officer, and Mark Okerstrom, Chief Financial Officer, will be presenting at Citi's 2026 Global Industrial Tech and Mobility Conference on Tuesday, February 17th, 2026 at 3:30 p.m. ET and Barclays 43rd Annual Industrial Select Conference on Wednesday, February 18th, 2026 at 11:35 a.m. ET. The audio will be simultaneously webcast and archived on the "Inve. EVERETT, Wash.--(BUSINESS WIRE)--Fortive Corporation ("Fortive†) (NYSE: FTV) today ...

Core Insights - Both Fortive and Dayforce reported disappointing Q3 2025 earnings, revealing significant operational challenges despite some revenue growth [1][2][3] Fortive Summary - Fortive's Q3 revenue reached $1.03 billion, a modest increase of 2.3% year-over-year, but net income fell sharply from $222 million to $55 million, marking a 75% decline [2][4] - The operating margin decreased by 390 basis points to 15.5%, indicating lost pricing power in its automation and sensing businesses [2][5] - Full-year 2025 EPS is projected at $1.86, representing a 38% decline from $2.99 in 2024 [2][4] - The company operates in industrial automation and sensing, facing competitive pressure and weak demand, despite generating positive cash flow and maintaining a 0.55% dividend [5] Dayforce Summary - Dayforce reported Q3 revenue of $481.6 million, up 9.5%, but incurred a net loss of $196.8 million, significantly missing analyst expectations of a $0.21 profit [3][4] - The operating margin was negative at 25.8%, indicating that the company spends $1.26 in operating costs for every dollar of gross profit, which is unsustainable [6] - Full-year 2025 EPS is projected at -$0.04, down from $1.98 in 2024, marking a drastic shift in profitability [3][4] Analyst Sentiment - Analysts show limited optimism for both companies, with 14 of 18 analysts rating Fortive as Hold and a target price of $58.12, suggesting only a 3.4% upside [7] - Dayforce has 15 of 16 analysts at Hold, with a target price of $69.92, indicating a lack of momentum for both stocks [7] Investment Outlook - Current operational issues at Fortive and Dayforce suggest a wait-and-see approach until both companies can demonstrate improved execution and profitability [8]

Core Insights - Fluke Networks has launched CertiFiber™ Max, the first third-generation optical loss test set designed for high-density data center environments, enabling certification of up to 24 fibers in under one second [1][4][12] Industry Context - The increasing fiber density and performance demands driven by AI, cloud, and next-generation digital infrastructure are pressuring contractors to test and certify complex fiber systems quickly and accurately [2][4] - Existing testing tools often struggle to keep pace, either limiting fiber counts or adding complexity with fan-out cables and adapters, which can increase the risk of errors [2][4] Product Features - CertiFiber Max offers faster testing, greater accuracy, and long-term flexibility through field-replaceable UniPort™ adapters, supporting various multi-fiber connector types [3][5] - The solution measures loss, length, and polarity across multiple fibers in under one second, ensuring accuracy through the recommended one-jumper reference method [5] Market Demand - The adoption of MMC connectors is rapidly increasing as AI data centers scale, with MMC providing triple the density of MPO connectors and facilitating faster deployment in high-density networks [5] - The demand for faster and more accurate performance testing is driven by ultra-low loss standards required by AI, rising fiber counts, and skilled labor shortages [5]