[Executive Summary & Business Outlook](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Outlook) Fortive completed the Ralliant separation in Q2 2025, launching a new value creation plan and providing a full-year outlook [Second Quarter 2025 Performance Highlights](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Highlights) Fortive completed the Ralliant separation and launched a new value creation plan in Q2 2025, achieving strong profitability and free cash flow - Completed the Ralliant separation, commencing a new chapter for Fortive focused on accelerating profitable growth and enhancing shareholder returns[3](index=3&type=chunk)[5](index=5&type=chunk) - Achieved strong profitability and free cash flow despite uncertainties from trade, healthcare, and government spending policies[3](index=3&type=chunk) Second Quarter 2025 Consolidated Financial Highlights (Including Precision Technologies) | Metric | Amount | Notes | | :-------------------------------- | :------- | :--- | | GAAP Diluted Net Earnings per Share | $0.49 | | | Adjusted Diluted Net Earnings per Share | $0.90 | At high end of guidance | | Revenue | $1,020 million | Down 0.4% year-over-year | | Core Revenue | | Down 0.7% | | GAAP Net Earnings | $112 million | 11.0% margin | | Adjusted EBITDA | $288 million | 28.4% margin | | First Half Share Repurchases | $345 million | | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Olumide Soroye emphasized Q2 2025 as pivotal, with the Ralliant separation and launch of the "Fortive Accelerated Strategy" for growth and shareholder returns - Q2 2025 marked a pivotal period for Fortive, with the completion of the Ralliant separation and the launch of a new value creation plan to accelerate profitable growth and enhance shareholder returns[3](index=3&type=chunk) - Despite market uncertainties, the company achieved strong profitability and free cash flow, demonstrating the strength of its market-leading brands and the Fortive Business System[3](index=3&type=chunk) - The new leadership team will focus on executing the "Fortive Accelerated Strategy," including disciplined capital allocation and building investor trust, to create significant shareholder value in the coming years[3](index=3&type=chunk) [Full Year 2025 Outlook](index=1&type=section&id=Full%20Year%202025%20Outlook) Fortive anticipates full-year 2025 adjusted diluted net earnings per share from continuing operations to be between $2.50 and $2.60 Full Year 2025 Outlook (Continuing Operations) | Metric | Range | | :----------------------- | :----------- | | Adjusted Diluted Net Earnings per Share | $2.50 - $2.60 | [Summary Financial Results, Fortive Continuing Operations](index=2&type=section&id=Summary%20Financial%20Results,%20Fortive%20Continuing%20Operations) Fortive's continuing operations saw a slight Q2 2025 revenue decrease, but GAAP net earnings and adjusted diluted EPS grew, despite a year-over-year free cash flow reduction Fortive Continuing Operations Financial Summary (Q2-25 vs Q2-24) | Metric | Q2-25 | Q2-24 | Change | | :-------------------------- | :------ | :------ | :----- | | Revenue | $1,016M | $1,020M | $(4)M | | Reported/Core Growth | (0.4)% / (0.7)% | 3.7% / 3.9% | | | GAAP Net Earnings | $112M | $112M | —% | | GAAP Net Earnings Margin | 11.0% | 11.0% | 0 bps | | Adjusted EBITDA | $288M | $291M | (1.0)% | | Adjusted EBITDA Margin | 28.4% | 28.6% | (20) bps | | GAAP Diluted Net Earnings per Share | $0.33 | $0.32 | 3.1% | | Adjusted Diluted Net Earnings per Share | $0.58 | $0.56 | 3.6% | | GAAP Operating Cash Flow | $205M | $218M | (6.0)% | | Free Cash Flow | $180M | $198M | (9.1)% | | TTM GAAP Operating Cash Flow | $1,029M | $912M | 12.8% | | TTM Free Cash Flow | $939M | $826M | 13.7% | [Summary Segment Financial Results, Fortive Continuing Operations](index=2&type=section&id=Summary%20Segment%20Financial%20Results,%20Fortive%20Continuing%20Operations) Intelligent Operating Solutions revenue remained stable with adjusted EBITDA growth, while Advanced Healthcare Solutions saw a slight revenue decrease but improved adjusted EBITDA margin Fortive Continuing Operations Segment Financial Summary (Q2-25 vs Q2-24) | Intelligent Operating Solutions | Q2-25 | Q2-24 | Change | | :---------------------------- | :------ | :------ | :----- | | Revenue | $697M | $697M | $—M | | Reported/Core Growth | 0.1% / (0.2)% | 3.8% / 3.3% | | | GAAP Operating Profit | $171M | $173M | (1.2)% | | GAAP Operating Profit Margin | 24.5% | 24.9% | (40) bps | | Adjusted EBITDA | $236M | $232M | 1.7% | | Adjusted EBITDA Margin | 33.8% | 33.3% | 50 bps | | Advanced Healthcare Solutions | Q2-25 | Q2-24 | Change | | :---------------------------- | :------ | :------ | :----- | | Revenue | $320M | $324M | $(4)M | | Reported/Core Growth | (1.3)% / (1.9)% | 3.4% / 5.0% | | | GAAP Operating Profit | $36M | $36M | —% | | GAAP Operating Profit Margin | 11.2% | 11.0% | 20 bps | | Adjusted EBITDA | $86M | $86M | —% | | Adjusted EBITDA Margin | 26.9% | 26.6% | 30 bps | [Ralliant Separation](index=3&type=section&id=Ralliant%20Separation) Fortive completed the separation of Ralliant Corporation, its former Precision Technologies segment, in June 2025 [Ralliant Separation Details](index=3&type=section&id=Ralliant%20Separation%20Details) Fortive completed the Ralliant Corporation separation on June 28, 2025, distributing common stock to shareholders, with Ralliant reclassified as discontinued operations from Q3 2025 - Fortive completed the separation of Ralliant Corporation, its former Precision Technologies segment, on **June 28, 2025**, distributing common stock to Fortive shareholders[8](index=8&type=chunk) - Ralliant will be classified as discontinued operations starting in **Q3 2025**; "continuing operations" results in this report have been retrospectively adjusted to treat the Precision Technologies segment as discontinued operations[9](index=9&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) Fortive provides an overview of its mission, strategic segments, operational model, investor conference call details, and contact information [About Fortive](index=3&type=section&id=About%20Fortive) Fortive innovates critical technologies for global safety and productivity, operating through Intelligent Operating Solutions and Advanced Healthcare Solutions, powered by the Fortive Business System - Fortive focuses on innovating essential technologies to ensure the world's safety and productivity[12](index=12&type=chunk) - The company operates through two strategic segments, Intelligent Operating Solutions and Advanced Healthcare Solutions, with leading brands in their respective markets[12](index=12&type=chunk) - Headquartered in Everett, Washington, Fortive employs over **10,000 people** in approximately **50 countries** globally, with the Fortive Business System as its core operating model, fostering a culture of continuous improvement[12](index=12&type=chunk) [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) Fortive will host an investor conference call on July 30, 2025, at 12:00 PM ET to discuss results and outlook, with webcast and replay available online - Fortive will host a quarterly investor conference call on **July 30, 2025, at 12:00 PM ET** to discuss results and outlook[10](index=10&type=chunk) - The conference call and accompanying slide presentation will be webcast live and available for replay under the "Events/Presentations" section of the "Investors" portion of Fortive's website[10](index=10&type=chunk)[11](index=11&type=chunk) [Investor Contact](index=5&type=section&id=Investor%20Contact) Investors can contact Christina Jones of Fortive Investor Relations via phone or email for further information - Investors may contact **Christina Jones**, Investor Relations, for more information at **(425) 446-5000** or **investors@fortive.com**[16](index=16&type=chunk) [Non-GAAP Financial Measures Explanation](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) This section explains Fortive's non-GAAP financial measures, their rationale, and limitations, for a clearer view of operational performance and trends [Overview and Rationale](index=4&type=section&id=Overview%20and%20Rationale) Fortive provides non-GAAP metrics like adjusted net earnings and free cash flow to supplement GAAP, aiding understanding of profitability trends and facilitating comparisons - Non-GAAP financial measures, including **adjusted net earnings**, **adjusted diluted net earnings per share**, **adjusted EBITDA**, **free cash flow**, and **core revenue growth**, aim to provide additional perspectives for investors to understand long-term profitability trends and operational performance[13](index=13&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - These non-GAAP measures should not be considered substitutes for or superior to GAAP measures, should be read in conjunction with GAAP metrics, and may differ from similarly titled non-GAAP measures used by other companies[13](index=13&type=chunk)[35](index=35&type=chunk) [Adjusted Net Earnings, Adjusted Diluted Net Earnings per Share, Adjusted EBITDA, and Adjusted EBITDA Margin](index=15&type=section&id=Adjusted%20Net%20Earnings,%20Adjusted%20Diluted%20Net%20Earnings%20per%20Share,%20Adjusted%20EBITDA,%20and%20Adjusted%20EBITDA%20Margin) These non-GAAP metrics adjust GAAP net earnings and diluted EPS by excluding non-core items like acquisition amortization, separation expenses, and discrete tax charges, providing a clearer operational performance view - Adjustments include **acquisition-related intangible asset amortization**, **acquisition/divestiture/separation-related items**, **discrete restructuring charges**, **equity investment gains/losses**, **gains/losses on divestitures**, **gains on asset sales**, and **charitable contribution expenses**[37](index=37&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk)[48](index=48&type=chunk) - For adjusted EBITDA and adjusted EBITDA margin from continuing operations, **net interest expense**, **depreciation expense**, and **income taxes** are also excluded[37](index=37&type=chunk) - Discrete tax charges from the Ralliant separation are also excluded as they are non-recurring and do not reflect current or future cash tax obligations[49](index=49&type=chunk) [Core Revenue Growth](index=18&type=section&id=Core%20Revenue%20Growth) Core revenue growth is a non-GAAP metric that excludes acquisition/divestiture and currency impacts to measure year-over-year revenue change and identify underlying business trends - Core revenue growth is calculated by excluding the impact of **acquisitions or divestitures** and **foreign currency translation** to identify underlying business growth trends[52](index=52&type=chunk)[53](index=53&type=chunk) - Excluding these items helps assess business trends and facilitate long-term performance comparisons, as they are outside management's control and highly volatile[53](index=53&type=chunk) [Free Cash Flow](index=18&type=section&id=Free%20Cash%20Flow) Free cash flow is a non-GAAP metric, defined as operating cash flow minus capital expenditures, used to assess the company's ability to generate cash and fund operations without external financing - Free cash flow is defined as **net cash provided by GAAP operating activities less capital expenditures**[54](index=54&type=chunk) - This metric helps assess the company's ability to generate cash, fund acquisitions and investments, and repay debt without relying on external financing[55](index=55&type=chunk) - Free cash flow has limitations as a liquidity measure because it excludes certain necessary or committed expenditures, such as debt repayment requirements[55](index=55&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section outlines forward-looking statements, highlighting potential risks and uncertainties that could cause actual results to differ materially [Forward-Looking Statements Disclaimer](index=4&type=section&id=Forward-Looking%20Statements%20Disclaimer) This report contains forward-looking statements on future financial performance and market conditions, which may differ materially due to economic instability, trade policies, and other risks - Forward-looking statements in this report pertain to expected financial performance, trade policy impacts, global economic conditions, the Ralliant separation's effects, and capital allocation strategies[14](index=14&type=chunk) - Actual results may differ materially due to various factors, including **economic instability**, **market volatility**, **trade policies**, **supply chain constraints**, **competition**, **regulatory changes**, **acquisition integration risks**, and **geopolitical events**[14](index=14&type=chunk)[15](index=15&type=chunk) - Fortive undertakes no obligation to update or revise any forward-looking statements[15](index=15&type=chunk) [Consolidated Financial Statements (GAAP)](index=6&type=section&id=Consolidated%20Financial%20Statements%20(GAAP)) This section presents Fortive's consolidated GAAP financial statements, including earnings, balance sheets, and cash flows, reflecting overall company performance [Consolidated Condensed Statements of Earnings](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Earnings) Fortive's total sales in Q2 and the first half of 2025 decreased year-over-year, with net earnings and earnings per share also showing a downward trend Consolidated Condensed Statements of Earnings (Q2 2025 vs Q2 2024) | Metric | June 27, 2025 (Three Months) | June 28, 2024 (Three Months) | | :-------------------------- | :----------------------- | :----------------------- | | Sales | $1,518.8M | $1,552.4M | | Operating Profit | $222.2M | $301.8M | | Net Earnings | $166.6M | $195.1M | | Diluted Net Earnings per Share | $0.49 | $0.55 | Consolidated Condensed Statements of Earnings (First Half 2025 vs First Half 2024) | Metric | June 27, 2025 (Six Months) | June 28, 2024 (Six Months) | | :-------------------------- | :----------------------- | :----------------------- | | Sales | $2,993.0M | $3,076.9M | | Operating Profit | $455.8M | $604.0M | | Net Earnings | $338.5M | $402.5M | | Diluted Net Earnings per Share | $0.99 | $1.13 | [Segment Information](index=7&type=section&id=Segment%20Information) In Q2 2025, Precision Technologies saw significant declines in sales and operating profit, while other segments remained relatively stable or slightly decreased Segment Sales (Q2 2025 vs Q2 2024) | Segment | June 27, 2025 | June 28, 2024 | | :-------------------------- | :------------- | :------------- | | Intelligent Operating Solutions | $675.7M | $677.0M | | Precision Technologies | $523.6M | $551.8M | | Advanced Healthcare Solutions | $319.5M | $323.6M | | **Total** | **$1,518.8M** | **$1,552.4M** | Segment Operating Profit (Q2 2025 vs Q2 2024) | Segment | June 27, 2025 | June 28, 2024 | | :-------------------------- | :------------- | :------------- | | Intelligent Operating Solutions | $166.7M | $173.2M | | Precision Technologies | $93.2M | $115.3M | | Advanced Healthcare Solutions | $39.1M | $40.2M | | **Total** | **$222.2M** | **$301.8M** | Segment Operating Margin (Q2 2025 vs Q2 2024) | Segment | June 27, 2025 | June 28, 2024 | | :-------------------------- | :------------- | :------------- | | Intelligent Operating Solutions | 24.7% | 25.6% | | Precision Technologies | 17.8% | 20.9% | | Advanced Healthcare Solutions | 12.2% | 12.4% | | **Total** | **14.6%** | **19.4%** | [Consolidated Condensed Balance Sheets](index=8&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) As of June 27, 2025, Fortive's total assets and liabilities increased, with a significant rise in cash and equivalents and a reduction in long-term debt Consolidated Condensed Balance Sheets (As of June 27, 2025 vs December 31, 2024) | Metric | June 27, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :------------- | | **Assets** | | | | Cash and Equivalents | $1,832.7M | $813.3M | | Total Current Assets | $3,683.4M | $2,592.3M | | Goodwill | $10,403.7M | $10,156.0M | | Total Assets | $18,244.2M | $17,016.1M | | **Liabilities and Equity** | | | | Current Portion of Long-Term Debt | $1,905.7M | $376.2M | | Total Current Liabilities | $3,745.6M | $2,238.4M | | Long-Term Debt | $2,906.5M | $3,331.1M | | Total Shareholders' Equity | $10,389.2M | $10,195.6M | | Total Liabilities and Equity | $18,244.2M | $17,016.1M | [Consolidated Condensed Statements of Cash Flows](index=9&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) In H1 2025, Fortive's operating cash flow slightly decreased, but financing cash flow turned positive due to borrowings and distributions, significantly increasing cash and equivalents Consolidated Condensed Statements of Cash Flows (First Half 2025 vs First Half 2024) | Metric | June 27, 2025 (Six Months) | June 28, 2024 (Six Months) | | :-------------------------- | :----------------------- | :----------------------- | | Net Cash Provided by Operating Activities | $552.9M | $565.6M | | Net Cash Used in Investing Activities | $(50.8)M | $(1,782.2)M | | Net Cash Provided by (Used in) Financing Activities | $509.3M | $(15.1)M | | Net Change in Cash and Equivalents | $1,019.4M | $(1,244.7)M | | Cash and Equivalents, End of Period | $1,832.7M | $644.1M | [Financial Measures Reflecting Ralliant as Discontinued Operations](index=10&type=section&id=Financial%20Measures%20Reflecting%20Ralliant%20as%20Discontinued%20Operations) This section presents Fortive's financial results with Ralliant reclassified as discontinued operations, offering a clearer view of continuing business performance [Basis of Presentation](index=10&type=section&id=Basis%20of%20Presentation) This section presents Fortive's financial information on a continuing operations basis, with Ralliant classified as discontinued operations, retrospectively reflected in future filings - This section presents Fortive's financial information on a continuing operations basis, with **Ralliant classified as discontinued operations**[26](index=26&type=chunk) - Reporting of discontinued operations will be retrospectively reflected in future company filings but will not revise or restate any historical financial statements previously filed with the SEC[26](index=26&type=chunk) [Unaudited Consolidated Condensed Statement of Earnings (Continuing Operations)](index=11&type=section&id=Unaudited%20Consolidated%20Condensed%20Statement%20of%20Earnings%20(Continuing%20Operations)) After reclassifying Ralliant, Fortive's continuing operations achieved stable sales in Q2 and H1 2025, with growth in net earnings and diluted EPS Unaudited Consolidated Condensed Statement of Earnings (Continuing Operations, Q2 2025 vs Q2 2024) | Metric | June 27, 2025 (Three Months) | June 28, 2024 (Three Months) | | :-------------------------- | :----------------------- | :----------------------- | | Sales | $1,016.4M | $1,020.2M | | Net Earnings from Continuing Operations | $111.6M | $112.0M | | Diluted Net Earnings per Share from Continuing Operations | $0.33 | $0.32 | | Net Earnings from Discontinued Operations | $55.0M | $83.1M | | Total Net Earnings | $166.6M | $195.1M | Unaudited Consolidated Condensed Statement of Earnings (Continuing Operations, First Half 2025 vs First Half 2024) | Metric | June 27, 2025 (Six Months) | June 28, 2024 (Six Months) | | :-------------------------- | :----------------------- | :----------------------- | | Sales | $2,009.5M | $2,004.4M | | Net Earnings from Continuing Operations | $224.2M | $177.8M | | Diluted Net Earnings per Share from Continuing Operations | $0.65 | $0.50 | | Net Earnings from Discontinued Operations | $114.3M | $224.7M | | Total Net Earnings | $338.5M | $402.5M | [Segment Information (Continuing Operations)](index=12&type=section&id=Segment%20Information%20(Continuing%20Operations)) Under continuing operations, Intelligent Operating Solutions achieved sales and operating profit growth in Q2 and H1 2025, while Advanced Healthcare Solutions saw slight declines Segment Sales (Continuing Operations, Q2 2025 vs Q2 2024) | Segment | June 27, 2025 | June 28, 2024 | | :-------------------------- | :------------- | :------------- | | Intelligent Operating Solutions | $696.9M | $696.6M | | Advanced Healthcare Solutions | $319.5M | $323.6M | | **Total** | **$1,016.4M** | **$1,020.2M** | Segment Operating Profit (Continuing Operations, Q2 2025 vs Q2 2024) | Segment | June 27, 2025 | June 28, 2024 | | :-------------------------- | :------------- | :------------- | | Intelligent Operating Solutions | $170.8M | $173.4M | | Advanced Healthcare Solutions | $35.8M | $35.7M | | **Total** | **$169.8M** | **$182.3M** | Segment Operating Margin (Continuing Operations, Q2 2025 vs Q2 2024) | Segment | June 27, 2025 | June 28, 2024 | | :-------------------------- | :------------- | :------------- | | Intelligent Operating Solutions | 24.5% | 24.9% | | Advanced Healthcare Solutions | 11.2% | 11.0% | | **Total** | **16.7%** | **17.9%** | [Unaudited Consolidated Condensed Balance Sheet (Continuing Operations)](index=13&type=section&id=Unaudited%20Consolidated%20Condensed%20Balance%20Sheet%20(Continuing%20Operations)) After reclassifying Ralliant, Fortive's continuing operations balance sheet shows a significant increase in cash and equivalents and a substantial reduction in long-term debt Unaudited Consolidated Condensed Balance Sheet (Continuing Operations, As of June 27, 2025 vs December 31, 2024) | Metric | June 27, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :------------- | | **Assets** | | | | Cash and Equivalents | $1,827.4M | $808.1M | | Current Assets of Discontinued Operations | $650.9M | $619.5M | | Total Assets | $18,244.2M | $17,016.1M | | **Liabilities and Equity** | | | | Current Portion of Long-Term Debt | $1,905.7M | $376.2M | | Current Liabilities of Discontinued Operations | $538.1M | $568.5M | | Long-Term Debt | $1,758.1M | $3,331.1M | | Long-Term Liabilities of Discontinued Operations | $1,579.7M | $403.8M | | Total Shareholders' Equity | $10,389.2M | $10,195.6M | | Total Liabilities and Equity | $18,244.2M | $17,016.1M | [Unaudited Consolidated Condensed Statement of Cash Flows (Continuing Operations)](index=14&type=section&id=Unaudited%20Consolidated%20Condensed%20Statement%20of%20Cash%20Flows%20(Continuing%20Operations)) After reclassifying Ralliant, Fortive's continuing operations in H1 2025 maintained stable operating cash flow, reduced investing outflows, and saw financing cash flow turn positive, increasing cash and equivalents Unaudited Consolidated Condensed Statement of Cash Flows (Continuing Operations, First Half 2025 vs First Half 2024) | Metric | June 27, 2025 (Six Months) | June 28, 2024 (Six Months) | | :-------------------------- | :----------------------- | :----------------------- | | Operating Cash Flow from Continuing Operations | $396.8M | $396.1M | | Operating Cash Flow from Discontinued Operations | $156.1M | $169.5M | | Investing Cash Outflow from Continuing Operations | $(35.1)M | $(46.5)M | | Investing Cash Outflow from Discontinued Operations | $(15.7)M | $(1,735.7)M | | Financing Cash Flow from Continuing Operations | $512.5M | $(15.1)M | | Financing Cash Flow from Discontinued Operations | $(3.2)M | $—M | | Net Change in Cash and Equivalents | $1,019.4M | $(1,244.7)M | | Cash and Equivalents, End of Period | $1,832.7M | $644.1M | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=15&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of GAAP to non-GAAP financial measures, offering transparency into adjustments for clearer business performance [Total Fortive – Adjusted Net Earnings and Adjusted Diluted Net Earnings Per Share](index=19&type=section&id=Total%20Fortive%20%E2%80%93%20Adjusted%20Net%20Earnings%20and%20Adjusted%20Diluted%20Net%20Earnings%20Per%20Share) Total Fortive's adjusted net earnings and diluted EPS are reconciled by excluding non-recurring items like acquisition amortization, separation expenses, and discrete tax charges Total Fortive – Adjusted Net Earnings and Adjusted Diluted Net Earnings Per Share (Q2 2025 vs Q2 2024) | Metric | June 27, 2025 (Three Months) | June 28, 2024 (Three Months) | | :------------------------------------------------ | :----------------------- | :----------------------- | | Net Earnings (GAAP) | $166.6M | $195.1M | | Diluted Net Earnings per Share (GAAP) | $0.49 | $0.55 | | Total Adjustments (Pre-Tax) | $162.8M | $149.7M | | Tax Impact | $(24.9)M | $(15.7)M | | Ralliant Separation Discrete Tax Charges | $1.9M | $—M | | Adjusted Net Earnings (Non-GAAP) | $306.4M | $329.1M | | Adjusted Diluted Net Earnings per Share (Non-GAAP) | $0.90 | $0.93 | [Core Revenue Growth Reflecting Ralliant as Discontinued Operations](index=19&type=section&id=Core%20Revenue%20Growth%20Reflecting%20Ralliant%20as%20Discontinued%20Operations) After reclassifying Ralliant, Fortive's continuing operations reported **-0.7%** core revenue growth in Q2 2025, reflecting business performance post-separation and currency impacts Core Revenue Growth (Reflecting Ralliant as Discontinued Operations, Q2 2025 vs Q2 2024) | Metric | June 27, 2025 vs Prior Year Period | June 28, 2024 vs Prior Year Period | | :-------------------------- | :-------------------------- | :-------------------------- | | Total Revenue Growth (GAAP) | (0.4)% | 3.7% | | Impact of Divestitures | 0.4% | (0.8)% | | Impact of Currency | (0.7)% | 1.0% | | Core Revenue Growth (Non-GAAP) | (0.7)% | 3.9% | [EBITDA and Adjusted EBITDA Margin Reflecting Ralliant as Discontinued Operations](index=20&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Margin%20Reflecting%20Ralliant%20as%20Discontinued%20Operations) After reclassifying Ralliant, Fortive's continuing operations reported adjusted EBITDA of **$288.4 million** and an adjusted EBITDA margin of **28.4%** in Q2 2025 EBITDA and Adjusted EBITDA Margin (Reflecting Ralliant as Discontinued Operations, Q2 2025 vs Q2 2024) | Metric | June 27, 2025 (Three Months) | June 28, 2024 (Three Months) | | :------------------------------------------------ | :----------------------- | :----------------------- | | Revenue (GAAP) | $1,016.4M | $1,020.2M | | Net Earnings from Continuing Operations (GAAP) | $111.6M | $112.0M | | EBITDA from Continuing Operations (Non-GAAP) | $280.9M | $281.4M | | Total Adjustments (Pre-Tax) | $8.1M | $9.9M | | Adjusted EBITDA from Continuing Operations (Non-GAAP) | $288.4M | $291.3M | | Net Earnings Margin from Continuing Operations | 11.0% | 11.0% | | Adjusted EBITDA Margin from Continuing Operations (Non-GAAP) | 28.4% | 28.6% | [Continuing Operations: Segment Adjusted EBITDA, Segment Adjusted EBITDA Margin](index=21&type=section&id=Continuing%20Operations:%20Segment%20Adjusted%20EBITDA,%20Segment%20Adjusted%20EBITDA%20Margin) Intelligent Operating Solutions reported adjusted EBITDA of **$235.7 million** and **33.8%** margin, while Advanced Healthcare Solutions reported **$86.1 million** and **26.9%** margin in Q2 2025 Continuing Operations: Segment Adjusted EBITDA, Segment Adjusted EBITDA Margin (Q2 2025 vs Q2 2024) | Intelligent Operating Solutions | June 27, 2025 | June 28, 2024 | | :---------------------------- | :------------- | :------------- | | Revenue (GAAP) | $696.9M | $696.6M | | Operating Profit (GAAP) | $170.8M | $173.4M | | Adjusted EBITDA (Non-GAAP) | $235.7M | $232.0M | | Adjusted EBITDA Margin (Non-GAAP) | 33.8% | 33.3% | | Advanced Healthcare Solutions | June 27, 2025 | June 28, 2024 | | :---------------------------- | :------------- | :------------- | | Revenue (GAAP) | $319.5M | $323.6M | | Operating Profit (GAAP) | $35.8M | $35.7M | | Adjusted EBITDA (Non-GAAP) | $86.1M | $86.1M | | Adjusted EBITDA Margin (Non-GAAP) | 26.9% | 26.6% | [Adjusted Net Earnings from Continuing Operations and Adjusted Diluted Net Earnings Per Share from Continuing Operations](index=22&type=section&id=Adjusted%20Net%20Earnings%20from%20Continuing%20Operations%20and%20Adjusted%20Diluted%20Net%20Earnings%20Per%20Share%20from%20Continuing%20Operations) After reclassifying Ralliant, Fortive's continuing operations reported adjusted net earnings of **$197.8 million** and adjusted diluted EPS of **$0.58** in Q2 2025 Adjusted Net Earnings from Continuing Operations and Adjusted Diluted Net Earnings Per Share from Continuing Operations (Q2 2025 vs Q2 2024) | Metric | June 27, 2025 (Three Months) | June 28, 2024 (Three Months) | | :------------------------------------------------ | :----------------------- | :----------------------- | | Net Earnings from Continuing Operations (GAAP) | $111.6M | $112.0M | | Diluted Net Earnings per Share from Continuing Operations (GAAP) | $0.33 | $0.32 | | Total Adjustments (Pre-Tax) | $99.1M | $102.4M | | Tax Impact | $(12.9)M | $(15.8)M | | Adjusted Net Earnings from Continuing Operations (Non-GAAP) | $197.8M | $198.6M | | Adjusted Diluted Net Earnings per Share from Continuing Operations (Non-GAAP) | $0.58 | $0.56 | [Free Cash Flow from Continuing Operations - Trailing Twelve Months](index=22&type=section&id=Free%20Cash%20Flow%20from%20Continuing%20Operations%20-%20Trailing%20Twelve%20Months) Fortive's continuing operations generated **$938.9 million** in free cash flow for the trailing twelve months ended June 27, 2025, a **13.7% increase** year-over-year Free Cash Flow from Continuing Operations – Trailing Twelve Months (As of June 27, 2025 vs June 28, 2024) | Metric | As of June 27, 2025 (Trailing Twelve Months) | As of June 28, 2024 (Trailing Twelve Months) | | :------------------------------------------------ | :--------------------------------- | :--------------------------------- | | Operating Cash Flow (GAAP) | $1,029.2M | $912.3M | | Less: Capital Expenditures (GAAP) | $(90.3)M | $(85.9)M | | Free Cash Flow (Non-GAAP) | $938.9M | $826.4M |

Core Viewpoint - The market anticipates a year-over-year decline in Fortive's earnings due to lower revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Fortive is expected to report quarterly earnings of $0.60 per share, reflecting a year-over-year decrease of 35.5% [3]. - Revenue projections stand at $1.01 billion, down 35.1% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 33.75% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Fortive currently holds a Zacks Rank of 5, complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Fortive met the expected earnings of $0.85 per share, resulting in no surprise [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Conclusion - Fortive does not appear to be a strong candidate for an earnings beat, and investors should consider other factors before making decisions [17].

Core Insights - Fluke Reliability has integrated its eMaint CMMS with Watchman Services, enhancing predictive maintenance strategies for manufacturers by reducing downtime and optimizing maintenance costs [1][4][10] Group 1: Integration Benefits - The integration allows maintenance teams to connect asset condition monitoring with maintenance execution, leading to improved uptime and reduced costs [1][4] - Real-time vibration data and recommendations from Watchman Services are now directly accessible in eMaint, facilitating faster insights and decision-making [2][4] Group 2: Challenges Addressed - Unplanned downtime is highlighted as a significant challenge in industrial operations, leading to increased maintenance costs and reduced overall equipment effectiveness (OEE) [3] - The integration aims to eliminate data silos and accelerate decision-making, enabling maintenance teams to act before failures occur [4][9] Group 3: Key Features - Watchman Services monitors machine conditions and sends critical information on faults to eMaint, creating tickets for facility managers to resolve issues swiftly [4] - The integration supports proactive maintenance strategies by predicting machine failures and optimizing spare part needs, which is crucial in the current supply chain environment [9]

Core Insights - Fluke Corporation has appointed Parker Burke as President and Group President of Fortive's Connected Reliability Group effective July 7, 2025, to enhance technology and services aimed at reducing downtime and increasing operational resilience [1][4]. Company Overview - Fluke Corporation, founded in 1948, is a leader in compact, professional electronic test tools and software for measuring and condition monitoring, serving technicians, engineers, electricians, and maintenance managers [7]. - Fluke is a wholly owned subsidiary of Fortive Corporation, which was formed in 2016 after Danaher spun off several businesses [8]. Leadership Background - Parker Burke has 15 years of leadership experience within Fortive, previously serving as Group President of Fortive's Environmental Health & Safety Group, where he advanced innovation in connected safety and environmental health software [2][4]. - Burke is recognized for embedding the Fortive Business System across teams and fostering a culture of continuous improvement, with prior leadership roles at Gilbarco Veeder-Root and Anderson-Negele [5]. Strategic Focus - Under Burke's leadership, Fluke aims to scale AI-driven solutions, precision measurement, and connected workflows to transition customers from reactive to predictive operations [4]. - Burke emphasizes the importance of Fluke's heritage of precision, safety, and innovation in addressing critical challenges faced by the industrial workforce [6].

Core Insights - Fortive Corporation has completed the spin-off of its Precision Technologies segment, creating Ralliant Corporation, which began trading on the NYSE under the ticker "RAL" on June 30, 2025 [1][9] - Post-separation, Fortive will focus on Intelligent Operating Solutions and Advanced Healthcare Solutions, while Ralliant will specialize in precision instruments and engineered products [1][2] Company Focus and Strategy - Fortive aims to enhance its recurring revenues and software capabilities, positioning itself for accelerated growth and increased earnings [2][4] - Ralliant is expected to leverage key technology trends to thrive independently [2] Shareholder Impact - Fortive shareholders received one Ralliant share for every three Fortive shares held as of June 16, 2025, totaling around 113 million shares distributed [3] Financial Performance and Challenges - Fortive reported strong fundamentals, including approximately 50% recurring revenues and robust free cash flow, despite facing rising tariff-related pricing pressures and uncertain demand [4][5] - The company anticipates flat to slightly lower revenues, while Ralliant is expected to report a mid-single-digit revenue decline [5] Earnings Guidance - Fortive expects its second-quarter adjusted earnings per share to remain near the midpoint of its prior forecast of 85 cents to 90 cents [6][9] Market Position - Fortive currently holds a Zacks Rank 3 (Hold) and has seen its shares decline by 29.9% over the past six months, contrasting with the Zacks Electronics - Testing Equipment industry's growth of 0.3% [7]

Financial Performance - For Q1 2025, Fortive reported net earnings of $172 million and adjusted net earnings of $292 million, with diluted net earnings per share at $0.50 and adjusted diluted net earnings per share at $0.85[2][3]. - Revenues for Q1 2025 decreased by 3% year-over-year to $1.47 billion, including a 2% core revenue decline[2][3]. - The operating profit margin was reported at 15.8%, with an adjusted operating profit margin of 25.3%, reflecting a 20 basis points increase year-over-year[5][18]. - For Q2 2025, Fortive anticipates diluted net earnings per share between $0.44 and $0.49, and adjusted diluted net earnings per share between $0.85 and $0.90[3][4]. - Full-year 2025 guidance for diluted net earnings per share is projected to be between $2.23 and $2.43, and adjusted diluted net earnings per share between $3.80 and $4.00[4][5]. - Net earnings from continuing operations for the three months ended March 28, 2025, were $171.9 million, a decrease of 17.1% compared to $207.4 million for the same period in 2024[24]. - Adjusted Net Earnings for the three months ended March 28, 2025, were $291.5 million, or $0.85 per share, compared to $295.3 million, or $0.83 per share, for the same period in 2024[45]. Segment Performance - The Intelligent Operating Solutions segment showed core growth, while the Precision Technologies segment experienced delayed investments due to geopolitical uncertainties[3][5]. - The Precision Technologies segment's operating profit margin decreased to 17.4% from 26.7% year-over-year, indicating challenges in that segment[18]. - Core Revenue Growth (Non-GAAP) for the three months ended March 28, 2025, was -1.7%, excluding the impact of acquisitions and divestitures and currency exchange rates[46]. Cash Flow and Assets - Operating cash flow for the trailing twelve months increased by 5% year-over-year, exceeding expectations[5]. - Net cash provided by operating activities was $241.7 million for the three months ended March 28, 2025, compared to $256.7 million for the same period in 2024, reflecting a decline of 5.8%[24]. - The ending balance of cash and equivalents increased to $892.1 million as of March 28, 2025, from $704.6 million a year earlier, marking a rise of 26.6%[24]. - Total current assets increased to $2,704.1 million as of March 28, 2025, up from $2,592.3 million on December 31, 2024, representing a growth of 4.3%[22]. Liabilities and Equity - Total liabilities increased to $6,102.0 million as of March 28, 2025, compared to $5,958.3 million on December 31, 2024, indicating a rise of 2.4%[22]. - Total stockholders' equity rose to $10,243.3 million as of March 28, 2025, compared to $10,195.6 million on December 31, 2024, representing an increase of 0.5%[22]. - Goodwill increased to $10,244.7 million as of March 28, 2025, up from $10,156.0 million on December 31, 2024, reflecting an increase of 0.9%[22]. Share Repurchase and Stock Information - The company repurchased common shares worth $202.6 million during the three months ended March 28, 2025[24]. - The average common diluted stock outstanding decreased from 356.0 million shares in March 29, 2024, to 344.6 million shares in March 28, 2025[45]. Future Outlook - The Precision Technologies segment is expected to be separated into an independent publicly traded company named Ralliant by the end of Q2 2025[6][4]. - The company expects to continue focusing on core revenue growth, excluding impacts from acquisitions and foreign currency translation, to better assess operational performance[41]. - Forecasted Adjusted Diluted Net Earnings Per Share for the three months ending June 27, 2025, is expected to be between $0.85 and $0.90[47]. - Anticipated pretax amortization of acquisition-related intangible assets for the twelve months ending December 31, 2025, is projected to be $1.32[47]. - The company reported a decrease in GAAP Operating Profit from $302.2 million in March 29, 2024, to $233.6 million in March 28, 2025[43]. - The company excluded the effects of acquisition and divestiture-related items and currency translation from sales measures to provide a clearer view of underlying business trends[42]. - The company anticipates a tax effect of the adjustments reflected above to be -$0.24 for the twelve months ending December 31, 2025[47].

Core Viewpoint - Ralliant Corp, a spin-off from Fortive Corp, is set to commence trading on the NYSE, allowing Fortive to focus on high-growth segments while Ralliant can allocate resources more efficiently towards its capital-intensive Precision Technologies business [2][3][4]. Company Overview - Ralliant Corp will include the Precision Technologies business, operating through two segments: Test and Measurement (56% of total sales) and Sensors and Safety Systems (44% of total sales) [10]. - Fortive (ex Ralliant) will retain its Intelligent Operating Solutions (IOS) and Advanced Healthcare Solutions (AHS) segments, which generate nearly 50% recurring revenue [5][6]. Financial Structure - Fortive will receive a $1.15 billion dividend from Ralliant, with $700 million allocated for debt repayment and the remainder for share buybacks [4][9]. - Ralliant will issue new debt of $1.15 billion to fund the cash distribution to Fortive, resulting in a pro forma cash position of $150 million and a net debt of $1.0 billion [11]. Revenue and Growth Projections - Fortive (ex Ralliant) is projected to achieve $4 billion in revenues with 29% adjusted EBITDA margins and a revenue growth of 3.6% in FY25 [6][12]. - Ralliant Corp is expected to deliver revenue growth of 3.5% in FY25 and 4.0% in FY26, with adjusted EBITDA margins of 23.7% in FY25 [13]. Valuation - Fortive (ex Ralliant) is valued using an EV/EBITDA multiple, with a 12-month price target of $62.70 based on its higher margin profile and reducing debt [16]. - Ralliant Corp is valued at a lower multiple of 12.4x 2026E adjusted EBITDA, with a 12-month price target of $52.40, reflecting its lower growth and margin profile [17].

Core Points - The news release titled "Foresight Ventures VCT Plc, NAV announcement" published on 17 June 2025 is to be disregarded [1] Company Information - The announcement was made by Foresight Group, and inquiries can be directed to Gary Fraser at the provided contact number [1]

Fortive (FTV) 2025 Investor Day Summary Company Overview - Fortive is transitioning into a new chapter with a focus on safety and productivity innovations across its brands, particularly after the spin-off of Rallyant effective June 28, 2025 [3][4] - The company will operate under two segments: Intelligent Operating Solutions (70% of revenue) and Advanced Healthcare Solutions (30% of revenue) [27] Financial Performance - Fortive reported approximately $4 billion in revenues with 50% recurring revenues, 65% adjusted gross margins, and 30% adjusted EBITDA margins [14] - The company has achieved a 4% core revenue compound annual growth rate (CAGR) over the last five years [14][34] - The adjusted net income to free cash flow conversion exceeds 100% [14] Strategic Vision - Fortive aims to accelerate revenue, earnings, and shareholder value creation through a focused strategy leveraging high-quality operating brands aligned with attractive markets [15][36] - The company emphasizes durability by design, focusing on sustainability and recurring revenue models [36][48] - Fortive's business system is seen as the engine of success, enhanced by integrating AI capabilities to drive organic growth [17][57] Market Trends and Opportunities - The company is positioned to benefit from significant market trends, including a 200% increase in U.S. manufacturing construction investment since 2020 and a $1 trillion deferred infrastructure maintenance backlog [44][45] - In healthcare, demographic shifts indicate that 20% of the U.S. population will be over 65 by 2030, increasing the demand for healthcare services [46] - Fortive's Advanced Healthcare Solutions segment has an 80% recurring revenue base, indicating strong customer loyalty and market potential [90] Innovation and Product Development - Fortive is committed to innovation, with a focus on developing new products that enhance customer productivity and safety [59] - The company has seen a 3x increase in its new product funnel over the last three years [59] - The introduction of the Ultra GI cycle, a low-temperature sterilization solution, addresses critical healthcare needs and enhances patient safety [96] Capital Allocation Strategy - Fortive generates approximately $1 billion in free cash flow annually, with a disciplined approach to capital allocation [64] - The company plans to focus on bolt-on acquisitions that enhance its existing brands rather than large transformational deals [66] - Share repurchases and a growing dividend are integral to Fortive's capital allocation strategy [67] Leadership and Team - Fortive has curated a leadership team with a blend of experienced leaders and new talent to execute its strategy effectively [72][78] - The team is committed to fostering a culture of innovation and operational excellence, supported by a refreshed board of directors with relevant expertise [79] Conclusion - Fortive is positioned as a simplified, focused company ready for acceleration, with a strong commitment to innovation, capital discipline, and a purpose-driven team [81]

June 10, 2025 Fortive Investor Day 1 Welcome Elena Rosman Vice President Investor Relations 2 Forward-looking statements, non-GAAP financial measures and basis of presentation FORWARD-LOOKING STATEMENTS Statements in this presentation that are not strictly historical, including statements regarding anticipated financial results, global and regional economic conditions, industry trends, geopolitical events, future acquisitions, impact of trade policies, the ability to execute the planned strategies, secular ...