You might also like
Fortive Corporation is a provider of essential technologies for connected workflow solutions across various attractive end-markets, operating through three strategic segments: Intelligent Operating Solutions (IOS), Precision Technologies (PT), and Advanced Healthcare Solutions (AHS) . The company offers advanced instrumentation, software, and services that enable mission-critical workflows in industries such as manufacturing, healthcare, and utilities . Fortive's global operational footprint is highlighted by deriving approximately 46% of its sales from customers outside the United States .
- Intelligent Operating Solutions (IOS) - Offers advanced instrumentation, software, and services that enable mission-critical workflows, including electrical test and measurement, facility and asset lifecycle software applications, and connected worker safety solutions, serving industries such as manufacturing, healthcare, and utilities .
- Precision Technologies (PT) - Focuses on solving technical challenges with products like electrical test and measurement and sensing technologies, catering to industries such as automotive, aerospace, and energy .
- Advanced Healthcare Solutions (AHS) - Provides critical workflow solutions for healthcare providers, including instrument sterilization, biomedical test tools, and clinical productivity software, ensuring safety and efficiency in healthcare environments .
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Charles E. McLaughlin Executive | Senior Vice President and CFO | None | Charles E. McLaughlin has been the CFO of Fortive since July 2016. He announced his retirement by the end of Q1 2025. | |
Edward R. Simmons Executive | Senior Vice President – Strategy | None | Edward R. Simmons joined Fortive in February 2021. He previously held leadership roles at Vista Equity Partners and Bain & Company. | |
James A. Lico Executive | President and CEO | None | James A. Lico has been the President and CEO of Fortive since July 2016. He announced his retirement effective upon the spin-off of the Precision Technologies segment in Q4 2025. | |
Jonathan L. Schwarz Executive | Senior Vice President of Corporate Development | None | Jonathan L. Schwarz has been with Fortive since July 2016, serving in various corporate development roles. He became SVP of Corporate Development in February 2021. | |
Olumide Soroye Executive | President and CEO of Intelligent Operating Solutions (IOS) | None | Olumide Soroye joined Fortive in August 2021. He previously led the Property Intelligence and Risk Management segment at CoreLogic. | |
Peter C. Underwood Executive | Senior Vice President and General Counsel | None | Peter C. Underwood has been Fortive's General Counsel since May 2016. He has also led sustainability initiatives, with over 60% of Fortive's revenue tied to sustainable outcomes. | |
Stacey A. Walker Executive | Senior Vice President, Human Resources | None | Stacey A. Walker has been with Fortive since July 2016, previously holding HR leadership roles at Danaher. | |
Tamara S. Newcombe Executive | President and CEO of Precision Technologies and Advanced Healthcare Solutions | None | Tamara S. Newcombe joined Fortive in February 2017 and currently leads both the Precision Technologies and Advanced Healthcare Solutions segments. | |
Sharmistha Dubey Board | Chair of the Board of Directors | Director at Naspers Limited, Prosus N.V., and Match Group, Inc. | Sharmistha Dubey joined Fortive's Board in 2020 and became Chair in January 2025. She is the former CEO of Match Group and has extensive experience in technology and product development. |
-
Given the rise of cheaper AI-enabled products posing risks of churn and disintermediation, particularly for Accruent and ServiceChannel, what specific strategies are you implementing to protect and enhance your competitive position in the software market?
-
With the Precision Technologies segment facing headwinds from customer caution and macro uncertainty leading to OEM and channel weakness, can you elaborate on how you plan to counter these challenges and what gives you confidence in projecting order growth in the second half?
-
Your forecast shows a significant sequential margin increase from Q3 to Q4, rising from 27% to over 29%; what are the key drivers behind this expected margin expansion, and how are you mitigating the risks that could prevent you from achieving it?
-
Regarding your capital deployment plans, including M&A and share buybacks, how do you intend to reach your five-year accretion targets by 2025, and can you achieve these goals without a significant change in your current capital allocation strategy?
-
Considering that increased R&D investments are impacting margins without immediate growth benefits, when do you anticipate these investments will translate into meaningful revenue contributions, and how does this timing align with your overall strategic objectives?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
EA Elektro-Automatik Holding GmbH | 2024 | Completed on January 3, 2024, this acquisition for approximately $1.72 billion (with $1.17 billion in goodwill and $681.2 million in other intangibles) enhanced the portfolio with high-power electronic test solutions for energy storage, mobility, and renewable applications, supporting global energy transition efforts. |
Intelligent Operating Solutions Acquisitions | 2023 | Three acquisitions in this segment were completed, with an aggregate cash consideration of $59 million, recording approximately $36.2 million in goodwill and $19.9 million in intangible assets, aimed at accelerating segment strategy and strengthening the product portfolio. |
Provation Software, Inc. | 2021 | The acquisition from Clearlake Capital Group, L.P. was executed as part of strategic initiatives using proceeds from borrowings, including related fees and expenses. |
ServiceChannel Holdings, Inc. | 2021 | Completed on August 24, 2021, this deal, valued at around $1.2 billion (including a $36 million deferred component), enhanced Fortive’s SaaS-based facilities maintenance solutions with significant goodwill ($897 million) and integration investments, driving strategic expansion into recurring revenue streams. |
Recent press releases and 8-K filings for FTV.
- Spin separation update: Fortive announced its planned spin separation with a new CFO, Mark Okerstrom, an updated Board structure, and a filing of Form 10 scheduled for May with the spin expected in early Q3.
- Tariff exposure managed: The company reported approximately $25 million in tariff exposure, primarily related to China, with minimal impact from other regions.
- Focused strategy and margin growth: Fortive is set to drive organic growth, margin expansion, and balanced capital allocation through bolt-on acquisitions and continued integration of AI initiatives into its operational framework.