Executive Summary

Q3 2025 delivered slight top-line growth and margin expansion, with revenue $752.5M (+0.3% YoY) and GAAP operating margin up ~140 bps to 18.9%; adjusted EPS was $0.78, at the high end of guidance . Versus consensus, revenue modestly beat ($752.5M vs $747.9M*) and EPS slightly beat ($0.78 vs $0.77*).*
Management raised full-year adjusted EPS guidance to $3.15–$3.20 (from $3.10–$3.20) and now targets ~95% adjusted FCF conversion (from ~100%); Q4 adjusted EPS guided to $0.82–$0.86 with core sales (1%) to +1% .
Segment mix: Mobility Technologies +5.1% sales and margin +40 bps; Environmental & Fueling Solutions +2.3% sales and margin −20 bps; Repair Solutions −6.9% sales and margin −50 bps as macro headwinds persisted, though management cited sequential stabilization .
Strategic signals: Car wash returned to YoY growth ahead of plan on Patheon software upgrades; unified payments/point-of-sale up high teens; continued 80/20 simplification, portfolio pruning (~$60M proceeds), and $70M buybacks in Q3; net leverage 2.4x .
Potential stock catalysts: consistent delivery at/above guidance, raised FY EPS, car wash inflection and payments momentum offsetting Repair softness; near-term headwind from divestitures (~$15M Q4 sales, ~$2M adj OP) and tariff/interest expense watch for 2026 refinance .

What Went Well and What Went Wrong

What Went Well

Mobility Technologies momentum: sales +5.1% YoY; Retail Solutions up low double digits; car wash returned to YoY growth on mid-teens Patheon software upgrades; segment margin +40 bps YoY as simplification and R&D efficiency offset mix .
Execution/strategy: CEO emphasized “Connected Mobility strategy” and raised outlook, citing core growth tracking >2% for the year and on track for ~10% adjusted EPS growth; “we’re confident in our ability to execute” .
Cash and capital deployment: adjusted FCF $93.6M (82% conversion); ~$70M buybacks in Q3, ~$175M YTD; net leverage 2.4x; targeted divestitures/exits generated ~$60M proceeds .

What Went Wrong

Repair Solutions remained a drag: sales −6.9% YoY; margin −50 bps on lower volumes amid pressured technician discretionary spend; high-ticket categories (storage/diagnostics) challenged; distributors continue destocking .
Mobility margin shortfall vs internal expectations: CFO noted Mobility margins were up ~40–50 bps but ~100 bps were expected; ~$1–$1.5M cost/timing impacts at EFS contributed to the gap .
International timing and portfolio headwind: international EFS tender timing was soft vs NA dispenser strength; divestitures remove ~$70M annualized revenue at ~10% adj OP margin and create ~~$15M sales/~~$2M adj OP headwind in Q4 .

Financial Results

Consolidated Results (chronological columns: oldest → newest)

Metric	Q3 2024	Q2 2025	Q3 2025
Sales ($M)	$750.0	$773.5	$752.5
GAAP Diluted EPS	$0.60	$0.62	$0.70
Adjusted Diluted EPS	$0.73	$0.79	$0.78
GAAP Operating Margin	17.5%	17.6%	18.9%
Adjusted Operating Margin	21.3%	21.1%	21.3%
Operating Cash Flow ($M)	$121.8	$100.0	$110.5
Adjusted Free Cash Flow ($M)	$108.5	$88.5	$93.6

Context:

YoY: Revenue +0.3% (per release), GAAP EPS +16.7% (0.70 vs 0.60), Adjusted EPS +6.8% (0.78 vs 0.73), GAAP operating margin +140 bps (18.9% vs 17.5%); adjusted margin flat YoY .
QoQ: Revenue −2.7% (vs Q2), GAAP EPS +12.9%, Adjusted EPS −1.3%, GAAP margin +130 bps, adjusted margin +20 bps .

Segment Breakdown (Q3 2025 vs Q3 2024)

Segment	Sales Q3’24 ($M)	Sales Q3’25 ($M)	YoY %	Segment OP Q3’24 ($M)	Segment OP Q3’25 ($M)	Margin Q3’24	Margin Q3’25
Environmental & Fueling Solutions	$349.9	$357.8	+2.3%	$103.0	$104.4	29.4%	29.2%
Mobility Technologies (incl. intersegment)	$257.4	$270.6	+5.1%	$46.6	$50.1	18.1%	18.5%
Repair Solutions	$152.1	$141.6	−6.9%	$32.6	$29.6	21.4%	20.9%

Notes: Mobility core +4.8%; Retail Solutions up low double digits; car wash returned to YoY growth; EFS NA dispenser up mid-single digits; Repair softness tied to macro/technician spending and destocking .

KPIs

KPI	Q3 2025	Reference
Adjusted FCF Conversion	81.6%
Net Leverage Ratio	2.4x
Share Repurchases	~$70M in Q3; ~$175M YTD
Book-to-Bill	Just under 1.0x in Q3; ~1.0x for year
Cash & Equivalents	$433.8M
Total Debt	$2,100.6M
Adjusted EBITDA (LTM)	$705.9M

Guidance Changes

Current Guidance (Q3 release) vs Previous (Q2 release)

Metric	Period	Previous Guidance (Q2’25)	Current Guidance (Q3’25)	Change
Sales ($B)	FY 2025	$3.020–$3.070	$3.028–$3.038	Tightened/narrowed to ~$3.03B midpoint
Core Sales Growth	FY 2025	~+2% midpoint	+2.0% to +2.5%	Slightly raised
Adj Operating Margin Expansion	FY 2025	+20–40 bps	+20–40 bps	Maintained
Adjusted EPS	FY 2025	$3.10–$3.20	$3.15–$3.20	Raised low end
Adjusted FCF Conversion	FY 2025	~100%	~95%	Lowered
Sales ($M)	Q4 2025	—	$760–$770	New
Core Sales Growth	Q4 2025	—	(1%) to +1%	New
Adj Operating Margin Expansion	Q4 2025	—	+20–60 bps YoY	New
Adjusted EPS	Q4 2025	—	$0.82–$0.86	New

Divestiture headwind embedded in Q4 outlook: ~$15M sales and ~$2M adjusted operating profit .

Q3 2025 Outcome vs Q2 Guidance

Metric	Q3 2025 Guidance (Q2 PR)	Q3 2025 Actual	Result
Sales ($M)	$745–$755	$752.5	In range (near high end)
Core Sales	~flat midpoint	Flat YoY	In line
Adj Operating Margin	Flat to −50 bps YoY	21.3% vs 21.3% YoY	In line
Adjusted EPS	$0.74–$0.78	$0.78	At high end

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1’25)	Previous Mentions (Q2’25)	Current Period (Q3’25)	Trend
Connected mobility & integrated solutions	Payments/enterprise solutions strong; car wash soft; maintaining FY guide	Payments & EFS strong; car wash soft as expected	Payments/PoS up high teens; car wash back to growth; Patheon mid-teens	Improving momentum
Supply chain & tariffs	“Exposure to current tariffs is limited” and proactively mitigating	—	Teams “proactively mitigated… tariffs”; Repair most exposed; China sourcing <10% by YE; <$50M procurement in China run-rate	Mitigation progressing
Product performance (Car Wash)	Anticipated softness	Car wash soft as expected	Return to YoY growth; pipeline strong; “win with the winners” strategy	Positive inflection
Regional trends	—	EFS strength on NA fueling; strong volumes	NA dispenser up mid-single digits; international tender timing softer	Mixed (NA strong, int’l timing)
Regulatory/environmental	—	—	Tank replacement cycle and new cloud connectivity creating value; latest CARB certification	Supportive secular driver
R&D/efficiency	—	Margin gains aided by cost optimization	R&D efficiency cited in Mobility margin +40 bps	Ongoing efficiency
Capital allocation/portfolio	Replenished $500M buyback; $55M Q1 repurchases	$50M Q2 buybacks; leverage 2.5x	$70M Q3 buybacks; $60M divestiture proceeds; pruning ongoing; leverage 2.4x	Continued deployment/pruning

Management Commentary

Strategy and outlook: “Our third quarter performance reflects progress on our Connected Mobility strategy… Based on strong year-to-date performance we are raising the midpoint of our full-year guidance… we are on track to deliver 10% adjusted EPS growth this year.” – Mark Morelli, CEO .
Connected platform: “We are delivering integrated site‑wide solutions that combine hardware, software, connectivity, and services… These end‑to‑end solutions expand our TAM and create recurring revenue opportunities.” – CEO .
2026 setup: “We expect better operating margin performance in 2026 driven by underlying productivity improvements, increased R&D efficiency, continued 80/20… and more favorable mix as volumes at car wash and Repair Solutions normalize.” – CEO .
Financial discipline: “Adjusted free cash flow of $94M came in at 82% conversion… Net leverage ended the quarter at 2.4x.” – CFO .
Portfolio actions: “Divesting two small businesses… netted $60M proceeds… removing ~$70M in sales at ~10% adjusted operating margin; Q4 headwind ~$15M sales and ~$2M adjusted OP.” – CFO .

Q&A Highlights

Orders and visibility: Book-to-bill just under 1x in Q3; around 1x for the year; larger digital solution wins lengthen sales cycles but support 2026 setup, including car wash pipeline strength tied to Patheon .
Segment outlook for Q4: Mobility flat YoY on hard comps/project timing; EFS low to mid-single-digit growth; Repair down mid-to-high single digits; implied Mobility margin +50 bps, EFS +~100 bps, Repair −~50 bps .
Mobility margins vs expectations: Q3 Mobility margin missed 100 bps improvement expectation by ~$1–$1.5M due to EFS costs/timing; actions underway to rectify .
Tariffs mitigation: Repair most exposed; significant re-sourcing in place with China sourcing below 10% target by YE; gross margins in Repair roughly flat YoY as price offsets tariffs .
Capital structure: $500M bond maturing April 2026 at 1.8% coupon; management flagged likely interest expense headwind upon refinancing .

Estimates Context

Consensus vs actual (Q3 2025):
- Revenue: $747.9M* consensus vs $752.5M actual (beat) .*
- EPS: $0.77* consensus vs $0.78 actual (beat) .*

Metric	Consensus	Actual
Revenue ($M)	747.9*	$752.5
Adjusted EPS ($)	0.77*	$0.78

Values marked with * retrieved from S&P Global.

Implications for estimates:

FY adjusted EPS guidance raised to $3.15–$3.20 supports modest upward revisions at the low end of street FY EPS; Q4 EPS guide $0.82–$0.86 suggests mid‑single‑digit YoY growth with small divestiture headwinds embedded .

Key Takeaways for Investors

Mix improvement and execution continue to offset Repair softness: Mobility and EFS delivered growth and stable-to-better margins; Repair remains pressured but shows sequential stabilization .
High‑quality beat-and-raise: Q3 landed at high end of EPS guidance and management raised FY EPS while tightening sales range; cash conversion remains solid despite tax timing .
Structural growth vectors advancing: payments/PoS up high teens and car wash returned to growth on software upgrades, validating the connected mobility strategy and expanding recurring revenue opportunities .
Portfolio and capital deployment are accretive to quality: pruning non‑core, buying back stock ($70M in Q3), and maintaining leverage at 2.4x position the company for improved margin trajectory into 2026 .
Watch items: Repair demand recovery pace; international tender timing in EFS; divestiture headwinds in Q4 (~~$15M sales/~~$2M adj OP); 2026 refinancing’s interest expense impact .
Near‑term trading: Modest beats and raised FY EPS, plus car wash inflection, are constructive catalysts; lack of broad‑based top‑line acceleration and Q4 divestiture headwind are constraints .
Medium‑term thesis: Secular tailwinds in convenience retail, software-led growth, and 80/20 simplification support above‑market growth and margin expansion potential into 2026; valuation re‑rating case strengthens with consistent delivery .

Additional Relevant Press Releases (Q3 2025)

Sop: Preliminary update (Oct 15): management signaled sales slightly above midpoint and adjusted EPS near/high end of prior guide, consistent with final print .

All citations refer to primary source documents and the Q3 2025 earnings call transcript:

Q3 2025 8‑K/Press Release and financial statements .
Q2 2025 8‑K/Press Release .
Q1 2025 8‑K/Press Release .
Q3 2025 earnings call transcript .
Oct 15, 2025 preliminary update .

Values marked with * in the Estimates Context section were retrieved from S&P Global.

Vontier Corp (VNT)·Q3 2025 Earnings Summary