Question-and-Answer SessionMaybe, I guess, first question would be organic sales growth, there's been a lot of questions around any industrial upturn happening. You're obviously a more stable business than a lot of the other companies here. So just sort of set out how you feel about the demand environment right now starting 2026?Olumide SoroyePresident, CEO & Director Great. Well, thanks for having us. It's always great to be here. So we feel really good about how we exited 2025. Q4 went beyond our expectat ...

Fortive Corporation FY Conference Summary Company Overview - **Company**: Fortive Corporation (NYSE: FTV) - **Date of Conference**: February 18, 2026 Key Points Industry and Market Environment - **Demand Environment**: Fortive exited 2025 with strong core growth across both segments, indicating a positive demand environment as they entered 2026 [2][5] - **Short-Cycle Business**: The company noted strength in its short-cycle business, particularly in North America, driven by data center and distributed energy spending [9] - **Government Spending**: Government-related business accounted for about 8% of total revenue in 2025, with stable conditions expected in 2026 despite previous strong spending post-COVID [18][21] Financial Performance - **Q4 Performance**: Q4 2025 performance exceeded expectations, with broad-based strength across segments and no significant one-time events affecting results [6][7] - **2026 Outlook**: The company does not anticipate dramatic improvements in conditions affecting growth but feels positive about the setup from 2025 [8][21] Segment Insights - **Fluke Segment**: Fluke is recognized for its strong brand and market share potential, with ongoing innovation and a growing recurring revenue stream (15% of Fluke's revenue) [11][15][17] - **FAL Growth**: The FAL platform is expected to grow through innovation and commercial expansion, with a focus on capturing deferred maintenance spending from government agencies [22][29] - **AHS Segment**: The ASP business faced challenges in 2025 but is expected to improve in 2026 due to increased focus on innovation and customer loyalty [63][70] Strategic Initiatives - **Fortive Acceleration Strategy**: The company is focused on executing its Fortive Acceleration strategy to outperform market growth, emphasizing innovation, commercial investments, and recurring customer value [10][28] - **AI Integration**: Fortive has integrated AI capabilities across its businesses, enhancing customer operations and product development [62] Financial Management - **Cost Structure**: The company has a clear understanding of its cost structure, with no surprises post-spin-off from Ralliant, and is focused on margin expansion of 50-100 basis points annually [78][80] - **Capital Allocation**: Fortive emphasizes disciplined capital allocation, prioritizing organic growth investments while remaining open to small acquisitions that enhance existing brands [86][92] Market Position and Future Outlook - **Software Assets**: Fortive's software businesses are well-positioned with unique data assets and network effects, making them resilient in an AI-driven market [34][39] - **Acquisition Strategy**: The company is looking for bolt-on acquisitions that can help existing brands grow faster, with a high bar for software acquisitions due to current market conditions [92][98] Customer Engagement - **Customer Health Metrics**: Fortive monitors customer health scores and adoption rates of AI use cases to gauge satisfaction and potential churn [50][56] Additional Insights - **Geographic Performance**: North America remains the strongest region for Fortive, with signs of improvement in EMEA and steady performance in APAC [9] - **Recurring Revenue Growth**: The company is seeing double-digit growth in recurring revenue streams, particularly in the Fluke segment [15][17] This summary encapsulates the key insights and strategic directions discussed during the Fortive Corporation FY Conference, highlighting the company's performance, market conditions, and future growth strategies.

Core Viewpoint - The company has a straightforward value creation plan aimed at delivering benchmark shareholder returns in the coming years [1]. Group 1: Financial Performance - The company has a strong foundation characterized by industry-leading gross margins [2]. - It consistently delivers strong EBITDA performance and generates very strong free cash flow [2].

Fortive Corporation Conference Call Summary Company Overview - **Company**: Fortive Corporation - **Key Executives**: Olumide Soroye (President and CEO), Mark Åkerström (SVP and CFO) Core Industry and Business Strategy - **Industry**: Industrial technology and software solutions - **Core Strategy**: Fortive's strategy is built on three pillars: 1. Accelerate profitable organic growth 2. Allocate capital with discipline 3. Build and maintain investor trust [1][2][3] Financial Performance and Growth Projections - **Recent Performance**: Fortive reported a 2%-3% organic growth forecast for 2026, slightly below the target of 3%-4% [7][12] - **Long-term Growth**: The company anticipates that growth will accelerate in 2026 and 2027, with 2026 expected to be faster than 2025 [10][12] - **EBITDA Margin**: Adjusted EBITDA margin increased by 110 basis points in 2025, with expectations for further expansion of 50-100 basis points in 2026 [44][46] Product Innovation and AI Integration - **AI Strategy**: Fortive has been integrating AI into its operations since 2017, enhancing both internal processes and customer-facing innovations [18][22] - **Product Development**: The company is focused on accelerating new product introductions, particularly in high-growth markets, with a significant emphasis on customer experience [7][8][25] - **Software Solutions**: Fortive's software brands are leveraging AI to create differentiated offerings, enhancing customer engagement and operational efficiency [31][32] Segment Performance Insights - **IOS Segment**: The IOS segment saw a 4% growth in Q4 2025, driven by product innovation and commercial acceleration [50][60] - **AHS Segment**: The AHS segment is experiencing stable growth in software products, with strong customer loyalty and ongoing innovation [89][99] - **Government Demand**: The demand for procurement and SMA solutions in the government sector has stabilized, with expectations for future growth as deferred maintenance needs arise [81][86] Regional Market Trends - **North America**: Strong point of sale data, particularly in data centers, indicates continued growth potential [65][66] - **EMEA**: Sequential improvement noted in Q4, but customers remain cautious about large orders [66][67] - **APAC**: Mixed performance, with India showing strength while China remains stable [68][69] Capital Allocation and M&A Strategy - **Free Cash Flow**: Fortive generates approximately $1 billion in free cash flow annually, with a focus on buybacks and disciplined capital allocation [111][113] - **M&A Approach**: The company is not pursuing aggressive M&A but is open to acquiring businesses with market-leading positions at favorable prices [117][120] Key Innovations and Future Outlook - **Operational Focus**: Fortive is positioned to capitalize on the operations and maintenance lifecycle of newly built industrial capacities, particularly in data centers [138][140] - **Market Positioning**: The company aims to strengthen its competitive edge through continuous innovation and customer engagement strategies [125][143] Conclusion Fortive Corporation is strategically focused on enhancing its growth through disciplined capital allocation, innovative product development, and leveraging AI technologies. The company is well-positioned to navigate market challenges and capitalize on emerging opportunities in the industrial technology sector.

Industry Overview - The Zacks Electronics – Testing Equipment industry includes companies providing advanced instruments, electronic testing equipment, thermal management systems, and various test solutions, serving markets such as consumer electronics, automotive, industrial, aerospace, healthcare, semiconductors, and communications [2] - Industry players are experiencing growth from 5G-related opportunities, automation trends, and the adoption of software-enabled testing instruments [1][5] Current Trends - The adoption of motion control and test systems is increasing, particularly in aerospace, automation, medical, and military markets, which is a positive trend for the industry [3] - The pharmaceutical market is benefiting from the use of electrical instruments and software for biological research, driving growth for industry participants [4] - The deployment of 5G is creating demand for testing solutions, with a positive outlook for companies involved in high-speed internet services and data centers [5] Macroeconomic Challenges - The industry faces challenges from a difficult global macroeconomic environment, including end-market volatility, unfavorable foreign exchange rates, and geopolitical tensions [1][6] - The automotive sector is experiencing sluggishness due to declining investments in electric vehicles, impacting industry participants [1] Industry Performance - The Zacks Electronics – Testing Equipment industry ranks 88, placing it in the top 36% of over 250 Zacks industries, indicating bright near-term prospects [7][8] - The industry has underperformed the S&P 500 and broader sector over the past year, with a growth of 6.6% compared to the S&P 500's 16.8% and the sector's 21.8% [10] Valuation Metrics - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 26.12X, higher than the S&P 500's 22.98X and the sector's 25.91X [13] Company Highlights - **Fortive (Zacks Rank 2)**: Benefiting from a diversified portfolio and expects 2026 adjusted earnings between $2.90 and $3.00 per share, indicating 9% year-over-year growth at the midpoint [17][19] - **AMETEK (Zacks Rank 3)**: Strong order growth with a record backlog of $3.58 billion, expecting 2026 sales to increase mid- to high single digits [22][23] - **Cognex (Zacks Rank 3)**: Expanding clientele with AI-enabled products, shares have climbed 10.8% in a year, and the earnings estimate for 2025 remains steady at 96 cents per share [26][27]

Core Insights - Fortive Corporation (FTV) has a market capitalization of $19.1 billion and specializes in developing, manufacturing, and marketing software-enabled workflow solutions and specialized technical products [1] Performance Overview - Over the past 52 weeks, FTV shares have declined by 24.7%, significantly underperforming the S&P 500 Index, which has increased by 14%. However, year-to-date, FTV stock is up 8.9%, outperforming the S&P 500's 1.3% return [2] - Fortive has lagged behind the State Street Technology Select Sector SPDR ETF (XLK), which rose by 20.2% over the past 52 weeks, but has outperformed XLK's 2% year-to-date drop [3] Recent Financial Results - On February 4, FTV shares rose by 10.6% following better-than-expected Q4 results, with revenue increasing by 4.6% year-over-year to $1.1 billion and core revenue rising by 3.3%. Adjusted EPS advanced by 12.5% from the previous year, reaching $0.90, exceeding analyst estimates [3] Future Earnings Expectations - Analysts project FTV's EPS to grow by 8.9% year-over-year to $2.95 for fiscal 2026, ending in December. The company's earnings surprise history is mixed, having met or exceeded consensus estimates in three of the last four quarters [4] Analyst Ratings - Among 20 analysts covering FTV, the consensus rating is a "Hold," consisting of two "Strong Buy," one "Moderate Buy," 15 "Hold," and two "Strong Sell" ratings [4] - Seaport Research maintained a "Buy" rating on FTV and raised its price target to $70, indicating a potential upside of 16.4% from current levels [5] Price Target and Trading Status - FTV is currently trading above its mean price target of $59.06 [6]

Core Insights - Fortive Corporation (FTV) reported fourth-quarter 2025 adjusted earnings per share (EPS) of 90 cents, exceeding the Zacks Consensus Estimate of 83 cents, marking a year-over-year increase of 12.5% [1] - Revenues for the quarter rose 4.6% year over year to $1.12 billion, surpassing the Zacks Consensus Estimate by 2.6%, with core revenues increasing by 3.3% [1] Stock Performance - Following the earnings announcement, Fortive's shares surged approximately 11% in the trading session, with the stock gaining 1.3% over the past year compared to a 16% growth in the Zacks Electronics - Testing Equipment industry [2] Capital Allocation - The company focused on disciplined, returns-oriented capital allocation, repurchasing an additional $265 million of shares during the quarter, bringing total share buybacks in the second half to approximately $1.3 billion [3] Revenue Breakdown - Fortive operates under two segments: - Intelligent Operating Solutions generated revenues of $769.7 million, contributing 69% to total revenues, with a year-over-year increase of 5.3% [4] - Advanced Healthcare Solutions registered revenues of $352.8 million, accounting for 31% of total revenues, up 3.2% year over year [4] Operating Performance - Adjusted gross profit increased by 2.3% to $712 million year over year, with an adjusted operating margin of 30.2%, expanding by 80 basis points [5] - Segment-wise, the adjusted operating margin for Intelligent Operating Solutions was 35.7%, expanding by 50 basis points year over year, while Advanced Healthcare Solutions saw a margin of 24.6%, down 140 basis points [5] Cash Flow and Balance Sheet - As of December 31, 2025, cash and cash equivalents were $375.5 million, down from $430.8 million as of September 26, 2025 [9] - Fortive generated an operating cash flow of $344 million for the fourth quarter, compared to $328 million in the previous quarter, with non-GAAP free cash flow at $314 million, up from $305 million [9] Future Outlook - For full-year 2026, Fortive expects adjusted EPS in the range of $2.90-$3.00, assuming continued market conditions observed in Q4 and reflecting current tariff rates [10] - The company anticipates reported revenues of approximately $4.3 billion, with core revenue growth projected between 2-3% [11] - Management emphasized a focus on executing its Fortive Accelerated strategy, which includes accelerating profitable organic growth, disciplined capital deployment, and building investor trust [12]

Market Overview - Stock futures are mixed, showing signs of stabilization after a downturn in software and AI-related technology stocks, leading some investors to view the selloff as a buying opportunity [1] - Defensive sectors and commodity-linked assets are gaining interest, particularly as gold prices have risen above $5,000 per ounce, indicating strong demand for safe havens amid market uncertainty [1] Pre-Market Trading - In pre-market trading, S&P 500 futures rose by 0.11%, Nasdaq futures fell by 0.34%, and Dow futures increased by 0.22% [2] Company Movements - Silicon Labs (SLAB) shares surged by 49% following a definitive agreement for acquisition by Texas Instruments (TXN) at $231 per share in an all-cash transaction [3] - Texas Instruments (TXN) shares declined by 3% after announcing the acquisition of Silicon Labs [6] - Other notable stock movements include Eli Lilly (LLY) up 9%, Johnson Controls (JCI) up 5%, and AMD (AMD) down 10% [6]

Core Viewpoint - SCOR P&C is conducting a conference call regarding the January 2026 renewals, with key insights expected to be shared by the CEO and the Head of Investor Relations [2]. Group 1 - The conference call is being led by Thomas Fossard, Head of Investor Relations, and includes Jean-Paul Conoscente, CEO of SCOR P&C [2]. - SCOR's full year results for 2025 are scheduled to be released on March 4, indicating that detailed financial performance will not be discussed during this call [2]. - Participants are reminded to refer to the press release and presentation slides for renewal information, emphasizing the focus on renewals rather than broader financial results [2][3].

Financial Data and Key Metrics Changes - In Q4, the company reported total revenue of $1.1 billion, an increase of just over 4.5% year-over-year on a reported basis and just over 3% on a core basis [13] - Adjusted EBITDA for Q4 was $358 million, up about 8% year-over-year, with an adjusted EBITDA margin expanding approximately 100 basis points to nearly 32% [14][15] - Adjusted EPS for Q4 was $0.90, reflecting a 13% year-over-year increase, contributing to a full-year adjusted EPS of $2.71, which represented over 12% growth [15][21] Business Line Data and Key Metrics Changes - Intelligent Operating Solutions (IOS) segment revenue grew just over 5% on a reported basis, with core revenue growth of about 4%, driven by strong performance in professional instrumentation and gas detection products [16] - Advanced Healthcare Solutions (AHS) segment revenue was $353 million, growing approximately 3% year-over-year, with adjusted EBITDA of $92 million and an adjusted EBITDA margin of 26% [18][19] Market Data and Key Metrics Changes - North America continued to be the strongest growth driver, with encouraging improvements noted in Europe and Latin America, while APAC growth remained steady [13][16] - The company observed solid customer demand and strong commercial execution across all regions, with particular strength in professional instrumentation and gas detection [13][16] Company Strategy and Development Direction - The company is focused on executing the Fortive Accelerated Strategy, which includes three pillars: accelerating profitable organic growth, disciplined capital allocation, and building investor trust [5][8] - The company is committed to investing in organic growth, pursuing bolt-on M&A, and maintaining a modestly growing dividend to maximize medium to long-term shareholder value [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, initiating full-year adjusted EPS guidance of $2.90-$3.00, representing approximately 9% year-over-year growth at the midpoint [21] - The management highlighted strong execution and operational rigor, with a focus on delivering benchmark-beating shareholder returns [5][24] Other Important Information - The company executed an additional $265 million in share repurchases in Q4, bringing total repurchases for the second half of the year to $1.3 billion [8][19] - The company finished the year with a gross debt to adjusted EBITDA ratio of 2.6x, indicating a strong balance sheet and ample capacity for capital deployment [20] Q&A Session Summary Question: Insights on Fluke's performance - Management noted strong demand and order growth at Fluke, with North America being the strongest region and encouraging improvements in EMEA and LATAM [32][34] Question: Price contribution and guidance - Price contributed about 2% to growth in Q4, with volume contributing roughly 1% [35] Question: First quarter expectations - Management indicated that January has started solidly, and they expect reported revenue and adjusted EBITDA to follow historical trends [41][43] Question: AHS segment margin pressures - Management clarified that margin pressures in AHS were localized in Q4 due to strategic investments, with expectations for margin improvement moving forward [44][45] Question: IOS organic growth sources - Management attributed the strong IOS growth to effective execution of the Fortive Business System strategy, with solid demand in data center applications and defense [72][74] Question: AI enhancements in software - Management highlighted that AI is seen as an opportunity, with strong customer demand for AI-enabled enhancements in their software offerings [53][76] Question: Future growth expectations for gas detection - Management expressed confidence in the gas detection business, anticipating strong performance in 2026 due to effective execution and market demand [95]