Executive Summary

Beat and raise quarter: Q2 revenue $773.5M (+11.1% YoY) and adjusted EPS $0.79 both exceeded guidance; adjusted operating margin expanded 80 bps YoY to 21.1%. Strength in Mobility Technologies (+17.9% sales) and Environmental & Fueling Solutions (+16.2%) offset flat Repair Solutions; management raised FY25 adjusted EPS to $3.10–$3.20 and FCF conversion to ~100% .
Estimate beats: vs S&P Global consensus, Q2 revenue beat by ~~$39M (~~+5.3%) and adjusted EPS beat by ~~$0.07 (~~+9.5%); Q3 guidance (rev $745–$755M, adj EPS $0.74–$0.78) brackets Street near the midpoint, implying flat core sales and flattish YoY margins in Q3 . Q2 consensus revenue $734.5M* and EPS $0.7213*; Q3 consensus revenue $747.9M* and EPS $0.7688*.
Mix and timing: $15–$20M shipment pull-forward from ERP go-live and a planned factory maintenance outage aided Q2; management noted tariff cost headwinds but maintained positive price/cost and ongoing mitigation actions .
Capital allocation and leverage: $50M buybacks in Q2 (~1.4M shares), $105M YTD; net leverage 2.5x with LTM adjusted EBITDA ~$704.6M, supporting flexibility to pursue bolt-ons and repurchases .

What Went Well and What Went Wrong

What Went Well
- Mobility Technologies and E&FS outperformed: Mobility Tech sales +17.9% YoY with 180 bps margin expansion; E&FS sales +16.2% with 50 bps margin expansion, driven by dispenser and environmental solutions strength .
- Strong product adoption and recurring revenue: “Over 50% of new dispensers leaving the factory with a FlexPay 6 unit,” NFX surpassed 1B transactions; recurring revenue ~40% in Mobility Tech (Invenco ~35%, Driivz largely recurring) and low-30s at Vontier overall .
- Cash generation and balance sheet: Adjusted FCF $88.5M in Q2 (76% conversion), net leverage 2.5x; raised FY FCF conversion target to ~100% .
What Went Wrong
- Repair Solutions flat with margin pressure: Sales were flat YoY; segment margin -50 bps YoY to 20.8% on unfavorable mix and lower high-ticket demand, despite Expo offset .
- Car wash softness (ERV/DRB): Lower demand as anticipated; industry project timing delays and mix weighed on Mobility Tech early in the year (notably in Q1), though software conversion improved modestly .
- Shipment pull-forward clouds run-rate: ~$15–$20M revenue pull-in (MT $5–$7M) stemming from ERP go-live and a planned outage; implies a modest Q3 headwind as timing normalizes .

Financial Results

Consolidated performance vs prior periods

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($M)	$776.8	$741.1	$773.5
GAAP Diluted EPS	$0.82	$0.59	$0.62
Adjusted Diluted EPS	$0.80	$0.77	$0.79
Operating Margin (GAAP)	19.2%	17.6%	17.6%
Adjusted Operating Margin	22.0%	21.7%	21.1%

Segment breakdown (Q2 2025 vs Q2 2024)

Segment	Sales Q2’25 ($M)	Sales Q2’24 ($M)	Change	Op Profit Q2’25 ($M)	Op Profit Q2’24 ($M)	Margin Q2’25	Margin Q2’24
Mobility Technologies (a)	280.2	237.6	+17.9%	53.5	41.2	19.1%	17.3%
Repair Solutions	150.8	150.8	0.0%	31.4	32.1	20.8%	21.3%
Environmental & Fueling Solutions	361.6	311.2	+16.2%	105.7	89.3	29.2%	28.7%
Intersegment elim.	(19.1)	(3.2)	—	—	—	—	—

(a) Includes intersegment sales of $19.1M in Q2’25 and $3.2M in Q2’24 .

KPIs and cash/returns

KPI	Q2 2025
Core sales growth	+10.8%
Orders growth and Book-to-bill	Orders +8% organically; book-to-bill ~1.0
Operating cash flow	$100.0M
Adjusted free cash flow and conversion	$88.5M; 75.8% conversion
Net leverage ratio (LTM)	2.5x
Adjusted EBITDA (LTM)	$704.6M
Share repurchases	~$50M (~1.4M shares) in Q2; $105M YTD

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Sales	FY 2025	$2.97–$3.05B	$3.02–$3.07B	Raised
Adjusted Diluted EPS	FY 2025	$3.00–$3.15	$3.10–$3.20	Raised
Adjusted Op Margin expansion	FY 2025	+35–50 bps YoY	+20–40 bps YoY	Lowered
Adjusted FCF conversion	FY 2025	90%+	~100%	Raised
Revenue	Q3 2025	N/A	$745–$755M; core midpoint ~flat	—
Adjusted Op Margin	Q3 2025	N/A	Flat to down 50 bps YoY	—
Adjusted Diluted EPS	Q3 2025	N/A	$0.74–$0.78	—
Dividend	Q2 2025	$0.025 prior quarter cadence	$0.025 payable 6/26/25	Maintained

Earnings Call Themes & Trends

Topic	Q4 2024 (Q-2)	Q1 2025 (Q-1)	Q2 2025 (Current)	Trend
Tariffs / Price-Cost	Derisked supply chain; minimal China exposure; price/cost positive	Estimated ~$50M tariff cost for balance of year; plan to offset via supply chain, supplier negotiations, pricing	Maintained positive price/cost; mitigation actions progressing; China exposure reduction ongoing	Steady mitigation; manageable headwind
AI/Tech & Software	Built global software factory; standardizing platforms; R&D hubs incl. Bangalore for AI	Invenco growth on iNFX, unified payments; DRB Patheon conversions rising	“Over 50%” new dispensers ship with FlexPay 6; NFX 1B+ transactions; Mobility Tech ~40% recurring	Scaling connected platforms; recurring mix rising
Product performance	E&FS margins strong; dispenser and ATG upgrades drive growth	Invenco double-digit; DRB down; Matco Expo moved to Q2	E&FS +16%; Mobility Tech +17.9%; Repair flat; ATG upgrade award across 4,500 sites	Broad-based strength ex-Repair
Supply chain / China	Cut China sourcing to ~$50M; low exposure	Continued diversification; some pre-buys to bridge moves	Reducing China exposure; several projects to complete in 2H	Ongoing derisking
Car wash (DRB)	2024 down >20%; 2025 expected flat; recurring up low single digits	Flat-to-slightly down new builds; focus on Patheon	Sales inflected higher in Q2; first increase in five quarters; small strategic bolt-on	Early signs of stabilization
Repair Solutions	Macro pressure on high-ticket; margins down	Expect mid-single digit decline in 2025; Matco Expo timing	Sales flat; margins -50 bps; signs of stabilization post-Expo; inventories normalized	Stabilizing but not inflecting yet
Regional trends	India tenders boosting international	NA C-store new builds resilient	NA and RoW dispensers strong; large NA C-store ATG rollout	Healthy NA; international momentum

Management Commentary

CEO on execution and strategy: “We delivered strong second quarter results… leveraging the Vontier Business System and 80/20 principles… We are advancing our strategic priorities to drive operational efficiency and accelerate topline growth” .
CEO on innovation flywheel: “Over 50% of new dispensers leaving the factory with a FlexPay 6 unit… Invenco’s recurring revenue… up 17% YoY… recently surpassed 1 billion transactions on our NFX payment servers” .
CFO on timing and beats: “Sales outperformance benefited by approximately $15–$20 million related to favorable shipment timings… Adjusted EPS increased 25% to $0.79 above the high end of our guidance range” .
CFO on FY guidance raise and FCF: “We now expect adjusted earnings per share of $3.15 at the midpoint… we are raising our free cash flow conversion target to approximately 100%” .

Q&A Highlights

Repair stabilization and margin path: Margins “perhaps stabilized”; upside requires recovery in higher-priced items and improved credit metrics; Pillar One cost actions continue .
Shipment timing details: ~$15–$20M combined pull-in (MT ~$5–$7M) due to ERP go-live and planned maintenance; temp benefit to Q2 .
Recurring revenue mix: Mobility Tech ~40% recurring (DRB ~60%, Invenco ~35%); Vontier low 30s recurring including spares .
Policy tailwinds: “Big Beautiful Bill” boosts near-term FCF via R&D expensing; customers benefit from accelerated depreciation, likely 2026 impact given project timing .
Orders and book-to-bill: Orders +8% organically; book-to-bill ~1 in Q2 .

Estimates Context

Q2 2025 vs S&P Global consensus: Revenue $773.5M vs $734.5M*; Adjusted EPS $0.79 vs $0.7213*; EBITDA $176.1M vs $171.8M* — broad-based beat. Actuals from 8‑K; consensus from S&P Global .
Q3 2025 setup: Guide revenue $745–$755M (midpoint ~$750M) vs Street $747.9M*; guide adj EPS $0.74–$0.78 (midpoint $0.76) vs Street $0.7688* — revenue roughly in line/slightly above; EPS in range near consensus .
FY 2025: Company adj EPS $3.10–$3.20 (midpoint $3.15) vs Street $3.184*; sales $3.02–$3.07B (midpoint $3.045B) vs Street $3.032B* — EPS near-aligned; revenue a touch higher .

Values retrieved from S&P Global for all fields marked with *.

Key Takeaways for Investors

Strong “beat and raise”: Outperformance in Mobility Tech and E&FS more than offset Repair, with Q2 beats on sales and EPS and FY EPS/FCF guidance raised — supportive for estimate revisions and near-term sentiment .
Quality of beat mixed by timing: ~$15–$20M shipment pull-forward aided Q2; Q3 guide embeds flat core growth and flattish-to-down YoY margins, tempering sequential momentum .
Secular/product flywheel intact: FlexPay 6 and NFX adoption, ATG modernization, and Mobility Tech’s ~40% recurring base support multi-year growth and margin mix tailwinds .
Tariff risk manageable: Company remains price/cost positive with supply chain diversification underway; expect full mitigation within the year, limiting downside to margins .
Capital returns and balance sheet: 2.5x net leverage, ~$705M LTM adj EBITDA, and robust FCF enable continued buybacks (over $700M since spin) and selective M&A — a supportive medium-term capital allocation backdrop .
Watch Repair/DRB trajectories: Early signs of stabilization in DRB and normalization in Matco inventories could set up 2026 improvement; near-term, Repair guided down mid-to-high single digits for 2H .
Stock drivers: Continued software/recurring revenue traction (Invenco/Driivz/Patheon), execution on ATG upgrades and dispenser demand, and tariff mitigation progress likely to drive multiple and earnings trajectory .

Supporting Detail

Q2 vs Consensus and Guidance Snapshot

Metric	Q2 2025 Actual	Q2 2025 Consensus*	Surprise
Revenue ($M)	$773.5	$734.5*	+$39.0
Adjusted EPS	$0.79	$0.7213*	+$0.0687

Metric	Q3 2025 Guidance	Q3 2025 Consensus*	Commentary
Revenue ($M)	$745–$755	$747.9*	In line/slightly above at midpoint
Adjusted EPS	$0.74–$0.78	$0.7688*	Within range; near consensus

Notable product/press highlights (Q2 context)

Matco Tools launched enhanced “6s” toolbox platform (built in Jamestown, NY), supporting premium storage category .
Driivz partnership with Greenspot to manage thousands of EV chargers, showcasing energy management and uptime capabilities .
Teletrac Navman unveiled Multi IQ AI-powered multi-cam safety system integrated with TN360 .

Citations:
Q2 2025 8-K and exhibit: . Q2 2025 press release mirror: –. Q2 2025 call: –. Q1 2025 8-K and call: –, –. Q4 2024 8-K and call: –, –. Dividend: . Product/partnership releases: .

Vontier Corp (VNT)·Q2 2025 Earnings Summary