Vontier (VNT) Company Report

Vontier's software business represents 10-12% of total sales, comprising industrial software tightly integrated with hardware that is mission-critical and not susceptible to AI commoditization concerns.
The company anticipates $15 million in-year savings from AI integration, with over 90% of its 1,200 software engineers using AI for development and automated testing, and AI handling over 30% of internal IT help desk tickets.
For 2026, Vontier's Q1 revenue guidance is approximately 23.5% of total revenue, consistent with traditional seasonality, and its Invenco business is projected to achieve mid-single-digit growth.
The Telematics business experienced 50% operating profit growth and became cash flow positive last year, while the Repair segment maintains 50% gross margins despite volume deleverage. Vontier's capital allocation strategy includes attractive stock buybacks and disciplined M&A.

Feb 18, 2026, 7:25 PM

Transcript

Vontier Discusses Software Exposure, AI Integration, Growth Outlook, and Capital Allocation

VNT

Guidance Update

New Projects/Investments

Share Buyback

Vontier's software business accounts for 10% to 12% of total sales and consists of industrial software tightly linked to equipment, which controls, automates, and optimizes the physical layer, making it less susceptible to AI-related commoditization concerns.
The company is leveraging AI internally, with over 1,200 software engineers using it to increase sprint velocity and reduce R&D costs, contributing to $15 million in-year savings that will ramp up from Q2 to Q4 2026.
For 2026, Vontier expects Q1 revenue to align with historical seasonality at approximately 23.5% of total revenue, with Invenco projected for mid-single-digit growth after strong performance in 2024 and 2025, and Telematics having grown operating profit by 50% in the prior year.
Vontier sees a couple hundred million dollar uplift in share of wallet opportunity by integrating and cross-selling solutions across convenience retail and fleet operators, leveraging its strong service network.
Capital allocation priorities remain dynamic, with stock buybacks being very attractive at current valuations, alongside a disciplined, strategy-driven M&A pipeline.

Feb 18, 2026, 7:25 PM

Transcript

Vontier Discusses Software Strategy, AI Impact, and Segment Outlook

VNT

Guidance Update

New Projects/Investments

Share Buyback

Vontier's industrial software, which constitutes 10% to 12% of total sales, is mission-critical and tightly integrated with hardware, controlling, automating, and optimizing physical layers for convenience store and fleet operators.
The company is actively integrating AI, with over 1,200 software engineers utilizing AI in R&D, resulting in double-digit increases in sprint velocity and contributing to $15 million in-year savings.
For 2026, the Invenco segment is projected to achieve mid-single-digit revenue growth, following over 20% growth in 2025, with a long-term expectation of high single-digit growth.
The Telematics segment demonstrated a significant turnaround, with operating profit growing by 50% and becoming cash flow positive last year, alongside strong bookings in Q4.
Vontier's capital allocation policy remains unchanged, with stock buybacks considered very attractive due to the current valuation, alongside a disciplined approach to M&A opportunities.

Feb 18, 2026, 7:25 PM

Transcript

Vontier Outlines Connected Mobility Strategy and Operational Efficiencies for 2026

VNT

Guidance Update

New Projects/Investments

Share Buyback

Vontier is making significant progress with its connected mobility strategy, reorganizing into three verticals: convenience retail (70%), fleets and fleet depot (10%), and repair and repair solutions (20%). This strategy saw innovation scale in 2025 and is expected to drive multi-year growth.
The company is achieving operational efficiencies through its 80/20 journey, reducing fuel dispensers from 32 to 14 and software platforms from 30 to 20, and is guiding to greater than 60% incremental margins for 2026.
AI is deeply embedded in operations, with over 90% of software engineers using it, leading to a 20%-25% reduction in the cost of poor quality and $15 million in simplification savings targeted for 2026.
Vontier anticipates 3% organic revenue growth for 2026 and expects mid-single-digit growth for Invenco, a key part of its connected mobility offerings.
The company maintains a strong financial position, targeting 95% adjusted free cash flow conversion for the current year and finding share buybacks extremely attractive given the current stock price.

Feb 17, 2026, 2:40 PM

Transcript

Vontier Discusses 2026 Outlook and Connected Mobility Strategy

VNT

Guidance Update

New Projects/Investments

Share Buyback

Vontier is guiding for 3% organic revenue growth for 2026 and greater than 60% incremental margins for the same year, with a target of 95% adjusted free cash flow conversion.
The company's connected mobility strategy, supported by a reorganization into three key verticals, is driving growth through integrated solutions like FlexPay 6 and iNFX. AI is deeply embedded, with over 90% of software engineers utilizing it for productivity gains and product enhancement, such as achieving nearly 100% uptime in the Driivz EV network.
The DRB segment's Patheon cloud-connected solution, currently at 10% market penetration, has demonstrated over 10% revenue uplift for customers and offers higher recurring revenue. The repair market is also attractive due to an aging car park and increasing repair complexity.
Vontier considers share buybacks extremely attractive given its current stock price and strong balance sheet, while also actively evaluating bolt-on M&A opportunities.

Feb 17, 2026, 2:40 PM

Transcript

Vontier Discusses Connected Mobility Strategy, AI Integration, and 2026 Outlook at Citi Conference

VNT

Guidance Update

New Projects/Investments

Share Buyback

Vontier's connected mobility strategy gained traction in 2025 and is central to its 2026 setup, with the business structured around convenience retail (70%), fleets (10%), and repair (20%).
The company's 80/20 initiative has significantly streamlined operations, reducing fuel dispensers from 32 to 14 and software platforms from 30 to 20. Over 90% of Vontier's 1,000+ software engineers use AI for R&D, leading to double-digit velocity increases and a 20-25% reduction in the cost of poor quality.
For 2026, Vontier guides for 3% organic revenue growth and greater than 60% incremental margins, with $15 million in simplification savings. EFS is projected for low- to mid-single-digit growth, and Invenco for mid-single-digit growth.
Key growth drivers include the 10% penetrated Patheon solution in the car wash business, which boosts customer revenue by over 10%, and the Driivz EV platform showing progress towards profitability. Vontier considers share buybacks "extremely attractive" and evaluates bolt-on M&A.

Feb 17, 2026, 2:40 PM

Transcript

Vontier Reports Strong Q4 and Full-Year 2025 Results, Issues Positive 2026 Guidance

VNT

Earnings

Guidance Update

Share Buyback

Vontier reported a strong finish to 2025, with 5% core growth in Q4 and nearly 4% organic sales growth for the full year, alongside an 11% increase in full-year EPS and over $460 million in adjusted free cash flow. Q4 adjusted EPS was $0.86, up 8% year-over-year.
The company issued 2026 full-year guidance, projecting sales between $3.1 billion and $3.15 billion (midpoint assumes 3% core growth), adjusted EPS in the range of $3.35-$3.30, and adjusted operating profit margins to expand 80 basis points at the midpoint, supported by $15 million in incremental cost savings.
Vontier ended 2025 with nearly $500 million in cash and a net leverage ratio of 2.3 times, having repurchased $300 million of shares during the year. Strategic focus on the unified payment solution and strong segment performance, such as Invenco's 22% organic growth in 2025, are key drivers.

Feb 12, 2026, 1:30 PM

Transcript

Vontier Reports Strong Q4 and Full-Year 2025 Results, Provides 2026 Guidance

VNT

Earnings

Guidance Update

Share Buyback

Vontier reported strong Q4 2025 results with 5% core growth and $0.86 adjusted EPS, an 8% increase year-over-year. For the full year 2025, organic sales grew nearly 4% and EPS was up 11%, generating over $460 million in adjusted free cash flow.
The company issued full-year 2026 guidance, projecting sales between $3.1 billion and $3.15 billion, with core growth of about 3% and adjusted EPS in the range of $3.30 to $3.35. Adjusted operating profit margins are expected to expand 80 basis points.
Growth in Q4 2025 was led by high single-digit increases in Mobility Tech and Environmental and Fueling segments, with Invenco's full-year revenue base growing 22% organically. DRB's growth accelerated in Q4 due to the adoption of Patheon software.
Vontier repurchased $300 million in shares during 2025, representing over 5% of shares outstanding, and reduced its net leverage ratio to 2.3 times. The company anticipates an additional $15 million in-year cost savings from simplification efforts in 2026.

Feb 12, 2026, 1:30 PM

Transcript

Vontier Announces Strong Q4 and Full Year 2025 Results, Provides Optimistic 2026 Guidance

VNT

Earnings

Guidance Update

Share Buyback

Vontier reported Q4 2025 sales of $809 million and Adjusted Diluted Net EPS of $0.86, exceeding the high-end of guidance.
For the full year 2025, the company achieved Adjusted Diluted Net EPS of $3.20 and Adjusted Free Cash Flow of $462 million with a 98% conversion rate, both ahead of guidance.
The Adjusted Operating Profit Margin for Q4 2025 was 21.3%, impacted by a one-time reserve adjustment and higher corporate costs.
Vontier initiated FY 2026 guidance, projecting sales between $3,100 million and $3,150 million, ~3% core growth, ~80bps of Adjusted Operating Profit Margin expansion, and Adjusted Diluted Net EPS between $3.35 and $3.50.
The company repurchased ~$125 million in shares in Q4 2025, contributing to a total of $300 million in share repurchases for FY 2025.

Feb 12, 2026, 1:30 PM

Presentation

Vontier Reports Strong Q4 and Full-Year 2025 Results, Provides Positive 2026 Guidance

VNT

Earnings

Guidance Update

Share Buyback

Vontier reported strong Q4 2025 results with 5% core growth and adjusted EPS of $0.86, an 8% increase year-over-year. For the full year 2025, organic sales grew nearly 4%, and EPS was up 11%.
The company generated over $460 million in adjusted free cash flow in 2025, equating to 15% of annual sales, and repurchased $300 million in shares, representing over 5% of shares outstanding.
For 2026, Vontier expects sales between $3.1 billion and $3.15 billion, with core growth of about 3% at the midpoint, and adjusted EPS in the range of $3.35 to $3.30, reflecting high single-digit growth.
Adjusted operating profit margins are projected to expand 80 basis points at the midpoint in 2026, driven by $15 million of incremental in-year cost savings from simplification efforts.
Growth was notably strong in Mobility Tech, with Invenco revenue reaching nearly $650 million, up 22% organically, and DRB's Patheon software contributing to high single-digit growth in Q4.