Fortive (FTV) Company Report

Simplified structure post-Precision Technologies separation: completed the PT spin-off on June 28, 2025, refocusing on continuing operations with $4.1 B TTM revenue and ~50% recurring revenue (TTM Q3 2025)
Attractive margins and cash flow: TTM Q3 2025 adjusted gross margin of 64.2%, adjusted EBITDA margin of 29.4%, and free cash flow of $0.9 B with >100% conversion on adjusted net earnings
Strong segment performance: Intelligent Operating Solutions delivered $2.8 B revenue with 35% adjusted EBITDA margin; Advanced Healthcare Solutions posted $1.3 B revenue at 27% margin (TTM Q3 2025)
Disciplined capital allocation: deployed $1 B in Q3 to repurchase ~21 M shares (~6% of fully diluted shares) and raised FY 2025 guidance after exceeding Q3 expectations

Nov 11, 2025, 10:05 PM

Presentation

Fortive presents at Baird 55th Annual Global Industrial Conference

FTV

Revenue Acceleration/Inflection

Share Buyback

Guidance Update

Following the spin-off of Raliant at the end of June, Fortive is now a streamlined company with a strong financial profile: $4 billion+ revenues, 65% adjusted gross margins, ~30% EBITDA margins, ~$1 billion annual free cash flow, and 50% recurring revenues.
In its first post-spin quarter (Q3), Fortive executed its three-pillar “Accelerator” strategy—faster organic growth, disciplined capital allocation, and building investor trust—delivering 2% core revenue growth, 10% EBITDA growth, and 15% EPS growth, and subsequently raising full-year guidance.
As part of disciplined capital allocation, Fortive repurchased $1 billion of shares in Q3—the largest quarterly buyback in company history—retiring 21 million shares (≈6% of diluted shares).
Segment highlights include accelerating Fluke’s innovation pipeline and commercial footprint (notably in data-center operations and high-growth geographies), advancing recurring software/service platforms like ServiceChannel, and a stabilizing healthcare business post-OB3A enactment.
Fortive reaffirmed its framework to expand adjusted EBITDA margins by 50–100 bps annually, leveraging operational discipline to fund targeted growth investments.

Nov 11, 2025, 10:05 PM

Transcript

Fortive outlines Fortive Accelerated strategy at Baird Conference

FTV

Revenue Acceleration/Inflection

Share Buyback

New Projects/Investments

Following the June spinoff of Ralliant, Fortive now has a simplified portfolio with ~$4 billion revenue, 50% recurring revenues, 65% gross margins, ~30% EBITDA margins, and ~$1 billion in annual free cash flow with >100% net income to FCF conversion.
Fortive Accelerated strategy comprises three pillars: faster profitable organic growth via innovation, commercial expansion, and recurring customer value; disciplined capital allocation prioritizing small bolt-on M&A, $1 billion Q3 share repurchase (6% of shares), and a modest dividend; and building investor trust through clear guidance.
In Q3, Fortive achieved 2% core revenue growth, 10% adjusted EBITDA growth, 15% adjusted EPS growth, repurchased $1 billion of shares, and raised full-year guidance.
Growth initiatives include: expanding Fluke product innovation and sales capacity in data center O&M, EV charging, and solar markets; scaling AI-enabled facilities and asset lifecycle software outside the U.S.; and normalization of healthcare equipment demand post-OB3A Act.
Fortive reaffirms its financial framework of 50–100 bps annual EBITDA margin expansion driven by operating leverage and cost discipline while funding targeted growth investments.

Nov 11, 2025, 10:05 PM

Transcript

Fortive outlines accelerator strategy and Q3 performance at Baird Conference

FTV

Revenue Acceleration/Inflection

Share Buyback

Following the spinoff of Raliant, Fortive now operates as a simplified forecast company with a strong financial profile: >$4 billion revenue, 4% core revenue CAGR over five years, 50% recurring revenues, 65% gross margin, ~30% EBITDA margin, ~$1 billion free cash flow, and >100% net income to FCF conversion.
In Q3 (first quarter post-spin), Fortive outperformed expectations with 2% revenue growth, 10% EBITDA growth, and 15% EPS growth; executed a $1 billion share repurchase (21 million shares, ~6% of shares) and raised full-year guidance.
The company’s Fortive accelerator strategy rests on three pillars:
• Faster, profitable organic growth via innovation, commercial expansion, and recurring customer value
• Disciplined capital allocation emphasizing organic investments, bolt-on M&A, share buybacks, and a modestly growing dividend
• Building investor trust through clear guidance and consistent delivery.
Fortive is targeting its Fluke segment for growth by expanding its new product funnel (data center operations, EV charging, solar), scaling sales capacity in North America, India, and Southeast Asia, and growing its 15% recurring revenues.

Nov 11, 2025, 10:05 PM

Transcript

Ralliant reports third quarter 2025 results

FTV

Earnings

Guidance Update

Dividends

Revenue for Q3 2025 was $529 million, flat year-over-year and up 5% sequentially.
Net earnings came in at $40 million (EPS $0.35), with adjusted EBITDA of $108 million (20.4% margin) and adjusted EPS of $0.60.
In Q3, the Sensors & Safety Systems segment delivered $326 million in revenue (up 11% yoy, +5% seq), while Test & Measurement revenue was $203 million (down 14% yoy, +6% seq).
The company generated $139 million in operating cash flow and $127 million in free cash flow; ended the quarter with $264 million in cash, $1.15 billion in long-term debt, declared a $0.05/share Q4 dividend, and authorized $200 million for share repurchases.
Q4 2025 guidance: revenue of $535–550 million, adjusted EBITDA margin of 20–21%, and adjusted EPS of $0.62–0.68.

Nov 5, 2025, 10:16 PM

Press Release

Fortive reports Q3 2025 results

FTV

Earnings

Guidance Update

Share Buyback

Fortive delivered $1 billion in Q3 revenue, up ~2% on both reported and core basis; adjusted EBITDA rose 10% to $309 million with a 30% margin (+200 bps); adjusted EPS increased 15% to $0.68.
The company raised its full-year adjusted EPS guidance to $2.63–$2.67, reflecting Q3 outperformance and incremental share buybacks.
In Q3, Fortive repurchased $1 billion of shares, retiring ~21 million shares (approximately 6% of fully diluted share count) to optimize capital allocation.
Q3 marked Fortive’s first quarter post-Rallian spin-off, with the Fortive Accelerated strategy driving profitable organic growth, innovation acceleration, and enhanced recurring revenue focus.
Intelligent Operating Solutions segment grew 2.5% (core 2%), led by software and instrumentation resilience, while AHS showed sequential improvement in capital equipment demand and healthcare software strength.

Oct 29, 2025, 4:00 PM

Transcript

Fortive reports Q3 2025 results

FTV

Earnings

Guidance Update

Share Buyback

Fortive delivered $1.0 billion in Q3 revenue, up 2% year-over-year, with adjusted EBITDA of $309 million (+10% yoy) and adjusted EPS of $0.68 (+15%).
Adjusted EBITDA margin expanded 200 bps to 30% driven by operating leverage and cost discipline.
Deployed $1 billion to share repurchases, retiring 21 million shares (~6% of diluted share count) in Q3.
Raised FY25 adjusted EPS guidance to $2.63–$2.67 per share.
Post-Rallian spin-off, Fortive is simplifying operations and executing its “Accelerated” strategy focused on organic growth, disciplined capital allocation, and recurring revenue expansion.

Oct 29, 2025, 4:00 PM

Transcript

Fortive reports Q3 2025 results

FTV

Earnings

Share Buyback

Guidance Update

Fortive recorded $1.027 B in Q3 2025 revenue, up 2.3% year-over-year (core +1.9%), with sequential improvement in North America partly offset by macro weakness in Europe
Adjusted EBITDA was $309 M (30.1% margin), up 10.4%, and Adj. EPS was $0.68, up 15.3%
Generated $266 M of free cash flow in Q3 and $922 M TTM FCF, with conversion over 100%
Deployed $1 B for share repurchases in Q3, retiring ~21 M shares at ~$48/share
Raised FY 2025 adjusted EPS guidance to $2.63–$2.67, up $0.10 at midpoint

Oct 29, 2025, 4:00 PM

Presentation

Fortive reports Q3 2025 results

FTV

Earnings

Guidance Update

Share Buyback

Revenue of $1 billion (+2% YoY), core growth 2%, adjusted EBITDA of $309 million (+10%), and adjusted EPS of $0.68 (+15%)
$1 billion deployed to share repurchases, retiring ~21 million shares (~6% of share count)
Raised full-year adjusted EPS guidance to $2.63–$2.67 per share
Segment highlights: Intelligent Operating Solutions revenue +2.5% (core +2%); Advanced Healthcare Solutions revenue $328 million (+2%), driven by software strength amid cautious equipment demand
Free cash flow of $266 million in Q3; TTM free cash flow of $922 million with conversion >100%

Oct 29, 2025, 4:00 PM

Transcript

Fortive reports Q3 2025 results

FTV

Earnings

Guidance Update

Share Buyback

Revenue of $1.03 B, up 2.3% yoy; core revenue up 1.9%
GAAP diluted EPS $0.35 and adjusted diluted EPS $0.68, increases of 9.4% and 15.3% yoy
Adjusted EBITDA $309 M (30.1% margin) and GAAP net income $117 M (11.4% margin)
Executed $1 B in share repurchases (21 M shares, ~6% of diluted shares)
Raised full-year 2025 adjusted EPS guidance to $2.63–2.67 from $2.50–2.60

Oct 29, 2025, 11:34 AM

8-K

Earnings Transcripts

Quarterly earnings call transcripts for Fortive.

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