Financial Performance - Fortive's revenue reached $4.1 billion, with a ~30% Adjusted EBITDA Margin[8] - The company generated $1.2 billion in Adjusted EBITDA[8] - Free cash flow amounted to $0.9 billion, exceeding 100% conversion on Adjusted Net Income[8] - Adjusted Gross Profit Margin stood at ~65%[8] - Core revenue growth from FY 2019 to FY 2024 was 4%, but only 2% in TTM Q3 2025[8, 9] Segment Performance - Intelligent Operating Solutions (IOS) reported $2.8 billion in revenue with a 35% Adjusted EBITDA Margin[8] - Advanced Healthcare Solutions (AHS) achieved $1.3 billion in revenue with a 27% Adjusted EBITDA Margin[8] Capital Allocation - Fortive deployed $1 billion in Q3 for share repurchases, representing approximately 21 million shares or 6% of fully diluted shares outstanding[12] Strategic Initiatives - The company completed the separation of its former Precision Technologies segment on June 28, 2025[4] - Fortive is focused on faster profitable organic growth powered by the Fortive Business System (FBS)[11]

Core Insights - Fluke Corporation has launched CalStudio, a SaaS solution designed to enhance the operational efficiency of calibration labs by centralizing knowledge and procedures into a single cloud-based platform [1][9] - CalStudio allows technicians to streamline workflows, improve collaboration across multiple labs, and increase both efficiency and accuracy, ultimately driving productivity and operational excellence in the calibration industry [1][3] Product Features - CalStudio is powered by Cubyt, a comprehensive database that provides lab technicians with instant access to the latest calibration methods and updates from any location via a web browser [2][10] - The platform eliminates the need for standalone software or local installations, enabling multiple labs to operate from the same set of procedures and data, which reduces file management time and increases billable hours and revenue opportunities [2][10] - Key capabilities include simplified procedure authoring with drag-and-drop, low-code/no-code tools, allowing for faster and easier workflow creation [10] Company Background - Fluke Corporation, founded in 1948, is a leader in compact, professional electronic test tools and software for measuring and condition monitoring, serving technicians, engineers, electricians, maintenance managers, and metrologists [5]

Core Points - Fortive Corporation will be presenting at the Baird 2025 Global Industrial Conference on November 11, 2025, at 4:05 p.m. CT [1] - The presentation will be led by Olumide Soroye, President and Chief Executive Officer of Fortive [1] - The audio of the presentation will be available via a simultaneous webcast and archived on Fortive's official website [1] Company Overview - Fortive innovates essential technologies aimed at enhancing safety and productivity [1] - The company operates through strategic segments, although specific segments are not detailed in the provided content [1]

Core Insights - Fortive Corporation reported third-quarter 2025 adjusted earnings per share (EPS) of 68 cents, exceeding the Zacks Consensus Estimate of 58 cents, marking a year-over-year increase of 15.3% [1][9] - Revenues for the quarter rose 2.3% year over year to $1.03 billion, surpassing the Zacks Consensus Estimate by 2.1%, with core revenues increasing by 1.9% [1][9] Financial Performance - The company executed $1 billion in share repurchases during the quarter, reflecting its disciplined capital allocation strategy [3] - Fortive raised its full-year 2025 EPS guidance to a range of $2.63 to $2.67, up from the previous estimate of $2.50 to $2.60, due to strong third-quarter performance [4][12] - As of September 26, 2025, cash and cash equivalents were $430.8 million, down from $1,827.4 million as of June 27, 2025 [11] Segment Performance - Intelligent Operating Solutions generated revenues of $698.8 million, contributing 68% to total revenues, with a year-over-year increase of 2.6% [6] - Advanced Healthcare Solutions reported revenues of $328.3 million, accounting for 32% of total revenues, up 1.8% year over year [6] - Adjusted operating margins for Intelligent Operating Solutions were 32.8%, expanding 110 basis points year over year, while Advanced Healthcare Solutions saw adjusted operating margins of 26.7%, rising 130 basis points [10] Outlook - The company anticipates overall core growth to moderate in the fourth quarter, with Advanced Healthcare Solutions core growth expected to remain in line with third-quarter levels [13] - Fortive expects a sequential increase in net interest expense in the fourth quarter and maintains a projected adjusted effective tax rate in the mid-teens for 2025 [13]

Core Insights - The manufacturing sector is facing a significant crisis due to unplanned downtime, with 61 percent of manufacturers experiencing such incidents in the past year, leading to weekly losses of up to $852 million [1][10] Summary by Sections Survey Findings - A survey conducted by Censuswide included over 600 senior decision-makers and maintenance professionals from the U.S., UK, and Germany [2][12] - Among the affected manufacturers, 48 percent reported experiencing 6–10 downtime incidents weekly, while 19 percent faced 11–20 incidents [2][13] - The duration of outages is concerning, with 45 percent of respondents indicating that outages last up to 12 hours, and 15 percent reporting incidents lasting up to 72 hours [2][13] Financial Impact - The average cost of downtime is estimated at $1.7 million per hour, with a single incident potentially resulting in losses of up to $42.6 million, equivalent to powering 2,500 manufacturing facilities for a week [3][13] - The financial implications of downtime represent a recurring operational challenge and a significant risk to profitability and resilience at the board level [3][6] Organizational Challenges - Large enterprises, particularly those with over 50,000 employees, report more severe risks, with 40 percent experiencing 11–20 downtime incidents weekly and 50 percent facing outages lasting up to 72 hours [4] - The industry’s response to downtime is fragmented, with manufacturers investing in various digital solutions such as predictive maintenance (12 percent), digital twins (12 percent), and condition monitoring (13 percent) [5] Strategic Recommendations - Fluke Corporation emphasizes the need for manufacturers to shift from reactive to proactive strategies regarding downtime, highlighting that quick fixes do not foster long-term resilience [6] - A clear plan to scale digital investments is essential, as current efforts are too dispersed to create a lasting impact [7]

Core Insights - Fortive Corporation exceeded earnings expectations, reporting adjusted EPS of $0.68 compared to an estimate of $0.57, indicating strong financial performance [1] - The company has raised its full-year guidance, suggesting confidence in future growth and operational stability [1] Financial Performance - Adjusted EPS reported at $0.68, surpassing the $0.57 estimate, reflecting a positive earnings surprise [1] - The increase in earnings may indicate effective cost management and revenue growth strategies [1] Future Outlook - The raised full-year guidance signals optimism about the company's performance in the upcoming quarters [1] - This adjustment in guidance may attract investor interest and positively influence stock performance [1]

Financial Data and Key Metrics Changes - In Q3, total revenue was just over $1 billion, reflecting a year-over-year increase of approximately 2% on both a reported and core basis [12][13] - Adjusted EBITDA grew by 10% year-over-year to $309 million, with an adjusted EBITDA margin expanding approximately 200 basis points to 30% [14][12] - Adjusted EPS increased by 15% year-over-year to $0.68, driven by growth in adjusted EBITDA and favorable interest expense [14][12] - Free cash flow for Q3 was $266 million, with trailing twelve-month free cash flow growing to $922 million [15][20] Business Line Data and Key Metrics Changes - Intelligent Operating Solutions (iOS) segment revenue grew just over 2.5% on a reported basis, with core revenue growth at 2% [15][16] - Advanced Healthcare Solutions (AHS) segment revenue was $328 million, growing approximately 2% year-over-year, with adjusted EBITDA margin expanding from roughly 27% to 28% [18][17] Market Data and Key Metrics Changes - North America showed solid growth, improving sequentially from Q2, driven by strengthening demand trends for professional instrumentation and healthcare equipment [13][12] - Europe experienced a year-over-year decline, worsened by weakening macro conditions [13] - The rest of the world showed mixed results, with significant acceleration in South Asia, particularly India [10][12] Company Strategy and Development Direction - The company is focused on driving profitable organic growth through the Fortive Business System, with a strategy centered on innovation acceleration, commercial acceleration, and recurring customer value [8][9] - Capital allocation priorities include investing in organic growth, pursuing accretive bolt-on M&A, returning capital through share repurchases, and maintaining a modest growing dividend [11][10] - The company is committed to maximizing medium to long-term shareholder returns through disciplined capital allocation [25][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth trajectory, emphasizing the benefits of simplification and a customer-centric approach [23][24] - The outlook for Q4 anticipates a moderation in overall core growth, with AHS core growth expected to be broadly in line with Q3 levels [21][22] - Management remains confident in the resilience of healthcare spending despite potential policy changes, citing strong customer loyalty and ongoing demand trends [104][105] Other Important Information - The company successfully completed the spin-off of its Precision Technologies segment, now operating independently as Rallian [3] - The company has revamped its M&A strategy to focus on smaller, bolt-on acquisitions rather than transformational M&A [41][42] Q&A Session Summary Question: Margin performance and Q4 guidance - Management acknowledged that Q3 margin performance was aided by cost discipline and discrete actions taken to free up resources for growth initiatives, with expectations for some reinvestment in Q4 [31][32] Question: Impact of government shutdown - Management indicated that the federal government shutdown has not significantly impacted their business, as their exposure is primarily to state and local agencies [34][35] Question: Capital allocation and buybacks - The company expressed satisfaction with the $1 billion share repurchase in Q3, reflecting strong free cash flow and attractive valuations, while emphasizing a balanced approach to capital allocation between buybacks and bolt-on M&A [40][41] Question: Demand trends in AHS - Management reported sequential improvement in demand for healthcare capital equipment in North America, driven by increased certainty around legislative conditions [58][59] Question: Software business performance - The software segment continues to perform well, with strong demand for facilities software and ongoing product innovation [66][67] Question: Simplification impact on growth - Management expects increasing impact from simplification efforts as they continue to free up resources for growth initiatives [75][76] Question: Regional demand trends - North America remains the strongest market, while Western Europe has been the softest, with mixed results in other regions [78][79]

Financial Data and Key Metrics Changes - In Q3, total revenue was just over $1 billion, reflecting a year-over-year increase of approximately 2% on both a reported and core basis [12][13] - Adjusted EBITDA was $309 million, up 10% year-over-year, with an adjusted EBITDA margin expanding approximately 200 basis points to 30% [14][15] - Adjusted EPS was $0.68, representing a 15% year-over-year increase, driven by growth in adjusted EBITDA and favorable interest expense [14][15] Business Line Data and Key Metrics Changes - **Intelligent Operating Solutions (iOS)**: Revenue grew just over 2.5% on a reported basis, with core revenue growth at 2%. Growth was driven by demand for facility and asset lifecycle software and professional instrumentation [15][16] - **Advanced Healthcare Solutions (AHS)**: Total revenue was $328 million, growing approximately 2% year-over-year. Demand trends improved sequentially, particularly for healthcare equipment and software [18][19] Market Data and Key Metrics Changes - North America showed solid growth, improving sequentially from Q2, driven by strengthening demand trends for professional instrumentation and healthcare equipment [13][18] - Europe experienced a decline year-over-year, worsened by weakening macro conditions [13] - The rest of the world showed mixed results, with significant acceleration in South Asia, particularly India [10][13] Company Strategy and Development Direction - The company is focused on driving profitable organic growth through its Fortive Business System, emphasizing innovation acceleration, commercial acceleration, and recurring customer value [8][10] - Capital allocation priorities include investing in organic growth, pursuing accretive bolt-on M&A, returning capital through share repurchases, and maintaining a modest growing dividend [11][19] - The company aims to simplify operations and enhance customer-centric approaches, which are expected to yield positive outcomes in the future [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth trajectory, citing strong customer relationships and a robust pipeline of growth opportunities [24][25] - The company anticipates a moderation in overall core growth in Q4, with AHS core growth expected to align with Q3 levels [21][22] - Management remains confident in the healthcare market's resilience despite potential policy changes, driven by aging demographics and increasing healthcare needs [105][106] Other Important Information - The company successfully completed the spin-off of its Precision Technologies segment, now operating as Rallian, on June 28, 2025 [3][4] - The company deployed $1 billion for share repurchases in Q3, retiring approximately 21 million shares, reflecting confidence in its value creation plan [7][19] Q&A Session Summary Question: Margin performance and Q4 guidance - Management acknowledged that Q3 margin performance was aided by cost discipline and discrete actions taken to free up resources for growth initiatives, with expectations to maintain cost discipline in Q4 [31][32] Question: Impact of government shutdown - Management indicated that the federal government shutdown has minimal direct exposure for the company, primarily affecting state and local government agencies [34][35] Question: Capital allocation and M&A strategy - Management confirmed that share repurchases will be a significant part of capital allocation, focusing on smaller bolt-on acquisitions rather than transformational M&A [40][42] Question: Fluke performance and demand indicators - Management reported strong order growth and stable sell-through patterns for Fluke, with improvements in channel inventory and ongoing product innovation [43][44] Question: AHS segment demand trends - Management noted sequential improvement in demand for healthcare capital equipment and consumables, driven by more certainty in legislative conditions [56][58] Question: Tax rate outlook - Management projected a mid-teens effective tax rate for the next few years, with potential risks from new proposals [59][60] Question: Software business performance - Management highlighted strong growth in the software segment, particularly in AI-related applications, and noted that IT spending remains robust [66][68] Question: Demand trends by region - Management indicated strong performance in North America, while Western Europe remains soft, with mixed results in other regions [78][79]

Financial Data and Key Metrics Changes - In Q3 2025, total revenue was just over $1 billion, reflecting a year-over-year increase of approximately 2% on both a reported and core basis [11] - Adjusted EBITDA grew by 10% year-over-year to $309 million, with an adjusted EBITDA margin expanding by approximately 200 basis points to 30% [12] - Adjusted EPS was $0.68, up 15% year-over-year, driven by growth in adjusted EBITDA and favorable interest expense on lower debt balances [12][19] Business Line Data and Key Metrics Changes - Intelligent Operating Solutions (iOS) segment revenue grew just over 2.5% on a reported basis, with core revenue growth at 2% [14] - Advanced Healthcare Solutions (AHS) segment revenue was $328 million, growing approximately 2% year-over-year, with adjusted EBITDA margin expanding from roughly 27% to 28% [17] Market Data and Key Metrics Changes - North America showed solid growth, improving sequentially from Q2, driven by strengthening demand trends for professional instrumentation and healthcare equipment [11] - Europe experienced a year-over-year decline, worsened modestly from Q2 due to weakening macro conditions [11] - The rest of the world showed mixed results, with significant acceleration in South Asia, particularly India, which is expected to drive strong momentum in the coming years [9] Company Strategy and Development Direction - The company is focused on driving profitable organic growth through its Fortive Business System, with a strategy centered on innovation acceleration, commercial acceleration, and recurring customer value [6][24] - Capital allocation priorities include investing in organic growth, pursuing accretive bolt-on M&A, returning capital through share repurchases, and maintaining a modest growing dividend [10][39] - The company is committed to maximizing medium to long-term shareholder returns and has demonstrated this through significant share repurchases [5][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth trajectory, emphasizing the importance of customer-centric operations and the simplification of the organizational model [22][23] - The company expects overall core growth to moderate in Q4, with AHS core growth broadly in line with Q3 levels and very modest core growth at iOS [19][95] - Management remains confident in the healthcare market's resilience, citing aging demographics and increasing healthcare needs as long-term growth drivers [97] Other Important Information - The company successfully completed the spin-off of its Precision Technologies segment, now operating independently as Rallian, on June 28, 2025 [2] - Free cash flow for Q3 was $266 million, with trailing twelve-month free cash flow growing to $922 million [13][18] Q&A Session Summary Question: Margin performance and Q4 guidance - Management noted that Q3 margin performance was driven by revenue performance and cost discipline, with expectations to maintain cost discipline while reinvesting some resources in Q4 [31][32] Question: Impact of government shutdown on performance - The company indicated that its exposure to federal government funding is minimal, and the shutdown has not significantly impacted performance [34] Question: Capital allocation and buyback strategy - Management explained that the $1 billion share repurchase was based on strong free cash flow and attractive valuations, with a focus on smaller bolt-on acquisitions for growth [38][39] Question: Demand trends in AHS segment - Management reported sequential improvement in demand for healthcare capital equipment and consumables, driven by more certainty in legislative conditions [52] Question: Tax rate outlook - The CFO indicated that a mid-teens tax rate is a good framework for modeling through 2026, with potential risks from new proposals [53] Question: Demand by region - North America continues to perform strongly, while Western Europe remains soft, with mixed results in other regions [69]

Financial Performance - Fortive's Q3 2025 revenue reached $1027 million, with a reported growth of +23% and core growth of +19%[14] - Adjusted Gross Profit was $651 million, with an Adjusted Gross Margin of 633%[14] - Adjusted EBITDA grew +104% year-over-year to $309 million, resulting in an Adjusted EBITDA Margin of 301%[14] - Adjusted EPS increased by +153% year-over-year to $068[14] - Free Cash Flow was $266 million, with a Trailing Twelve Month (TTM) Free Cash Flow of $922 million and TTM FCF Conversion on Adj Net Income of 103%[14] Segment Performance - Intelligent Operating Solutions (IOS) revenue was $699 million, with core growth of +22% and an Adjusted EBITDA Margin of 346%[17] - Advanced Healthcare Solutions (AHS) revenue was $328 million, with core growth of +11% and an Adjusted EBITDA Margin of 281%[20] Capital Allocation - The company executed $1 billion of share repurchases in Q3, retiring approximately 21 million shares at an average price of ~$48 per share[9, 13, 25] - Cash and equivalents stand at $04 billion, with gross debt at $33 billion and net debt at $29 billion[23] Guidance - The company raised its FY 2025 adjusted EPS guidance to a range of $263 to $267[9, 26] Strategic Initiatives - The company is diligently executing the Fortive Accelerated strategy, focusing on faster, profitable organic growth powered by FBS Amplified[9, 11]