Executive Summary

Q1 2025 was a clean beat: revenue $741.1M vs consensus ~$720.9M and adjusted EPS $0.77 vs ~$0.724; GAAP diluted EPS $0.59. Management maintained FY25 guidance and initiated Q2 guidance; Board replenished $500M buyback authorization .
Strength in Convenience Retail & Fueling and Invenco drove results; Repair Solutions was weak on the Matco Expo timing shift and softer technician discretionary spend; Mobility Tech margins dipped on a one-time settlement, but are guided to expand ~100 bps for FY25 .
Tariffs: management estimates ~$50M cost impact in the balance of 2025 but expects to fully offset through supply-chain actions and pricing; exposure to China has been reduced >3x; sales into China <1% and “region-for-region” manufacturing mitigates risk .
Near-term catalysts: Q2 core growth midpoint +6%, margin expansion (+30–80 bps YoY), buybacks (>50% of 2025 FCF targeted), continued Invenco adoption (FlexPay6, unified payments) and Driivz scale (110k plugs) .

What Went Well and What Went Wrong

What Went Well
- Convenience Retail & Fueling resilience: EFS margin expanded +20 bps YoY (29.6%); core +0.9% with strong demand for environmental products and fueling equipment .
- Invenco momentum: Mobility Tech core +12.7% with enterprise productivity and unified payments; Invenco up >20% for the third consecutive quarter; “Our value proposition is clearly resonating…” – CEO Mark Morelli .
- Cash generation and capital deployment: Operating cash flow $110.4M; adjusted FCF $95.6M (83% conversion); ~$55M buybacks in Q1; $500M authorization replenished .
What Went Wrong
- Repair Solutions declined: sales -16.1% YoY; margin -280 bps from volume/mix and Matco Expo shift from Q1 to Q2; management cautious on H2 demand .
- Mobility Tech margin headwind: -40 bps YoY in Q1 due to unfavorable mix and a one-time settlement, despite strong top-line; improvement expected from Q2 onward .
- Macro/tariff uncertainty: management embedded contingency in FY guide; expects price to drive most of H2 growth; Repair disproportionately exposed to tariffs (manageable) .

Financial Results

Recent quarters

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$750.0	$776.8	$741.1
GAAP Diluted EPS ($)	$0.60	$0.82	$0.59
Adjusted Diluted EPS ($)	$0.73	$0.80	$0.77
Operating Profit Margin (GAAP, %)	17.5%	19.2%	17.6%

YoY comparison and vs estimates (Q1 2025)

Metric	Q1 2024	Q1 2025 Actual	Q1 2025 Consensus
Revenue ($USD Millions)	$755.8	$741.1	$720.9*
Primary EPS ($)	$0.74 (Adj)	$0.77 (Adj)	$0.724*
GAAP Diluted EPS ($)	$0.88	$0.59	N/A

Notes: Values with asterisks retrieved from S&P Global. Q1 2025 actual revenue and adjusted EPS were beats vs consensus.*

Segment breakdown (Q1 2025 vs Q1 2024)

Environmental & Fueling Solutions

Metric	Q1 2024	Q1 2025
Sales ($USD Millions)	$331.0	$329.8
Segment Operating Profit ($USD Millions)	$97.3	$97.5
Segment Operating Margin (%)	29.4%	29.6%

Mobility Technologies

Metric	Q1 2024	Q1 2025
Sales ($USD Millions)	$242.7	$270.5
Segment Operating Profit ($USD Millions)	$47.6	$51.9
Segment Operating Margin (%)	19.6%	19.2%

Repair Solutions

Metric	Q1 2024	Q1 2025
Sales ($USD Millions)	$182.4	$153.0
Segment Operating Profit ($USD Millions)	$44.7	$33.2
Segment Operating Margin (%)	24.5%	21.7%

KPIs and cash/returns

Metric	Q3 2024	Q4 2024	Q1 2025
Operating Cash Flow ($USD Millions)	$121.8	$168.1	$110.4
Free Cash Flow ($USD Millions)	$103.2	$148.0	$92.7
Adjusted Free Cash Flow ($USD Millions)	$108.5	$154.8	$95.6
Adjusted FCF Conversion (%)	97.7%	128.1%	83.2%
Net Leverage Ratio (x)	2.7x	2.6x	2.6x
Cash & Equivalents ($USD Millions)	$330.9	$356.4	$333.6
Share Repurchases ($USD Millions)	~$105	~$60	~$55
Debt Repayment ($USD Millions)	—	$50	$50

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Sales ($USD Billions)	FY 2025	$2.97–$3.05	$2.97–$3.05	Maintained
Core Sales Growth (midpoint)	FY 2025	+1.0% to +3.5%	Midpoint approx +2%	Clarified midpoint
Adjusted Operating Margin (YoY)	FY 2025	+35–50 bps	+35–50 bps	Maintained
Adjusted Diluted EPS ($)	FY 2025	$3.00–$3.15	$3.00–$3.15	Maintained
Adjusted FCF Conversion (%)	FY 2025	90%+	90%+	Maintained
Total Sales ($USD Millions)	Q2 2025	N/A	$725–$745	Initiated
Adjusted Operating Margin (YoY)	Q2 2025	N/A	+30–80 bps	Initiated
Adjusted Diluted EPS ($)	Q2 2025	N/A	$0.70–$0.75	Initiated

Earnings Call Themes & Trends

Topic	Q-2 (Q3 2024)	Q-1 (Q4 2024)	Current (Q1 2025)	Trend
Tariffs/macro	Derisking, pre-buys; resilient end markets; book-to-bill >1	China direct sourcing ~$50M; refinancing; cautious on Repair/DRB	~$50M tariff cost estimated; offset via supply chain/pricing; exposure limited; China sales <1%	Manageable, neutralizing impact
Invenco/FlexPay6	>20% sales growth; unified payments traction; Costco Canada win	900 engineers; Bangalore center; platform simplification; recurring revenue up LDD	>20% growth third quarter in a row; margins to expand ~100 bps in FY25	Strengthening
Driivz EV	>100k plugs; large fleet win; revenue up ~50% YTD	Continued scale; multi-energy offerings	~110k plugs under management; SaaS, high margin	Scaling
Car wash (DRB)	Weakness; margin pressure; sequential stabilization	Expect flat 2025; recurring revenue low-single-digit growth	Double-digit decline in Q1, in-line; recurring growing; outlook flat to slightly down	Stabilizing but soft
Repair Solutions	Down mid-single digits; mix shift to lower ticket tools	Stabilizing; cautious on outlook; Expo shift to Q2 in 2025	-16.1% YoY; Expo timing shift; cautious H2	Softer near-term
EFS & aftermarket	Core +9%; aftermarket >20% growth	FY24 margin +110 bps; high teens aftermarket growth	Margin +20 bps YoY; steady dispenser demand; upgrades (DLS 450 Plus)	Robust
Regulatory	PCI 5 drives upgrades; disciplined market pricing	—	Continued compliance emphasis	Supportive

Management Commentary

“2025 is off to a solid start, with first quarter results that exceeded our expectations and encouraging momentum in our Convenience Retail & Fueling end market.” – CEO Mark Morelli .
“We have a resilient portfolio, our exposure to current tariffs is limited and we are proactively mitigating the impacts.” – CEO Mark Morelli .
“We estimate the current [tariff] cost impact of approximately $50 million… We expect to offset the estimated tariffs and neutralize the impact to our margins.” – CEO Mark Morelli .
“Given current valuations, we firmly believe that share repurchase remains one of the most attractive uses of our capital… we received Board approval to replenish our share repurchase authorization back to $500 million.” – CFO Anshooman Aga .
“Invenco… again demonstrating solid performance, up over 20% for the third consecutive quarter.” – CFO Anshooman Aga .

Q&A Highlights

Tariff impact and pricing: No demand disruption observed; price expected to offset ~half the tariff impact; H2 growth largely price-led amid macro caution .
Matco Expo and Repair outlook: Expo shift adds ~$30M from Q1 to Q2; Repair likely down mid-single digits+ in FY25; some pre-buying possible; share count to decline with >$200M buybacks .
Mobility Tech margins: Down 40 bps in Q1 on a one-time settlement; guided to ~+100 bps margin expansion in FY25 with improvement starting Q2 .
EFS capex and modernization projects: No hesitancy; resilient in downturns; strong balance sheets at large operators; ongoing site expansions .
Driivz/EV software: ~110k plugs under management, high-growth SaaS platform enabling fleet and C-store charging management .

Estimates Context

Q1 2025 vs consensus

Metric	Consensus	Actual
Revenue ($USD Millions)	720.9*	741.1
Primary EPS ($)	0.724*	0.77 (Adj)
# of Estimates (Revenue / EPS)	7 / 8*	—

FY 2025 consensus (as of Q1 report)

Metric	Consensus
Revenue ($USD Millions)	3,031.9*
Primary EPS ($)	3.184*
Target Price (Mean, $)	46.50*
# of Estimates (TP)	11*

Notes: Values with asterisks retrieved from S&P Global. Management maintained FY25 adjusted EPS $3.00–$3.15 and expects 35–50 bps margin expansion and 90%+ FCF conversion; models should reflect lower interest expense and share count embedded in guidance .

Key Takeaways for Investors

Strong beat on Q1 adjusted EPS and revenue with momentum in Convenience Retail & Fueling and Invenco; expect continued strength into Q2 with +6% core midpoint and margin expansion .
Repair Solutions remains a drag near-term given Expo timing and softer technician discretionary spend; use caution in H2 volume and mix assumptions .
Tariff risk appears manageable (~$50M) and is expected to be offset through supply-chain actions and pricing; limited China exposure (<1% sales) reduces earnings risk .
Mobility Tech margins should expand from Q2 onward (~+100 bps in FY25); adjust models for mix normalization and removal of one-time settlement impact .
Capital deployment is constructive: OCF $110M, adjusted FCF $96M, buyback capacity replenished to $500M; management targets >50% of 2025 FCF to buybacks .
EFS aftermarket and dispenser demand remain robust; compliance (PCI 5) and modernization are durable tailwinds; India tenders support international growth .
Narrative catalyst: execution on connected mobility strategy (FlexPay6, unified payments, Driivz SaaS scale) and Q2 delivery against raised near-term guide should support estimate revisions and sentiment .

Additional Relevant Press Releases (Q1 context)

Declared regular quarterly dividend of $0.025 per share (payable June 26, 2025) .
ACT Expo multi-energy fleet solutions showcase (CNG/RNG/H2/EV/biofuels) .
Teletrac Navman Enhanced Privacy Mode for AI dashcams (addresses driver privacy while maintaining safety analytics) .

Vontier Corp (VNT)·Q1 2025 Earnings Summary