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]

New Fortive Overview - New Fortive is a simplified company with a track record of strong financial performance, supported by approximately 50% recurring revenues[14, 29] - The company is strategically positioned in attractive markets with a clear path to accelerate value creation[14, 29] - New Fortive's revenue is \$41 billion, with Intelligent Operating Solutions (IOS) contributing approximately \$28 billion (approximately 70%) and Advanced Healthcare Solutions (AHS) contributing approximately \$13 billion (approximately 30%)[23] - The company has a higher quality financial profile with 4% core revenue growth, approximately 50% recurring revenue, 64% adjusted gross margin, 10% adjusted EBITDA growth, and 17% FCF growth[24] Business Segments and Market Opportunities - Intelligent Operating Solutions (IOS) has a \$35 billion addressable market with low to mid-single-digit market growth outlook[36, 41] - Advanced Healthcare Solutions (AHS) has a \$10 billion addressable market with low to mid-single-digit market growth outlook[36, 42] - Fluke's addressable market has expanded from \$7 billion to \$15 billion, with double-digit market growth in areas like solar and EV charging[154, 155] - Facility and Asset Lifecycle (FAL) Software has an \$11 billion addressable market with mid-single-digit market growth[191] Financial Performance and Projections - New Fortive has demonstrated strong historical performance, including 4% core growth CAGR, 9% adjusted gross profit CAGR, 12% adjusted EBITDA CAGR, and 12% FCF CAGR[27] - The company projects 3-4% core revenue CAGR for the next few years (2026-2027) and beyond (2028 onwards)[78, 225] - Adjusted EBITDA margin is expected to expand by approximately 50-100 bps annually on average[78, 225] - Adjusted EPS growth is projected to be in the high single digits plus CAGR at a constant tax rate[78, 225]

Core Insights - Fluke Reliability and Treon have formed a strategic partnership aimed at enhancing predictive maintenance and industrial asset performance through the integration of their technologies [1][2] - The collaboration combines Treon's wireless sensor technology with Fluke Reliability's AI diagnostics and predictive maintenance software, enabling customers to detect equipment failures before they occur and optimize maintenance schedules [1][2] Company Overview - Fluke Reliability, part of Fluke Corporation, provides tools, software, and AI-powered insights to help reliability and maintenance teams optimize asset performance, shifting from reactive to predictive maintenance [3] - Treon is a technology company focused on improving productivity and operational visibility through data-driven automation, with its platform Treon Connect enhancing operational efficiency across industries [4] Partnership Details - The integration of Treon Connect with Fluke Reliability's eMaint condition monitoring platform aims to create a seamless connection between screening, diagnostics, and predictive maintenance activities [2][5] - This partnership is expected to deliver a holistic reliability solution, maximizing asset performance and enabling operational excellence at scale [2][5] Benefits to Customers - Customers will benefit from a scalable solution that provides deeper insights into asset performance, improving decision-making and operational efficiency [2] - The partnership is designed to boost predictive maintenance performance through AI-driven insights, enhancing uptime and asset health [5]

Core Viewpoint - Fortive Corporation is significantly expanding its share repurchase efforts, indicating strong confidence in its long-term growth prospects and disciplined capital allocation strategy [1] Share Repurchase Program - The board of directors has authorized an increase of approximately 15.63 million shares under its general share repurchase program, bringing the total number of shares available for buyback to 20 million, including 4.37 million shares from prior authorizations [2] - The general repurchase program is open-ended with no expiration date, allowing Fortive to repurchase shares at its discretion over time [2] - A Special Purpose Share Repurchase Program has been introduced, permitting the company to repurchase up to $550 million of its common stock using proceeds from the anticipated $1.15 billion pre-separation dividend from Ralliant Corporation [3] Spin-off and Share Distribution - Fortive's board has approved the distribution of 100% of the outstanding shares of Ralliant Corporation to Fortive shareholders through a pro rata dividend, scheduled for June 28, 2025 [4] - Shareholders of record as of June 16, 2025, will receive one share of Ralliant common stock for every three shares of Fortive common stock owned [4] Financial Strategy and Performance - Management has allocated about 75% of its free cash flow toward share repurchases since announcing the spin-off last year, emphasizing a balanced, value-driven capital deployment strategy post-separation [5] - In the first quarter, the company repurchased 2.5 million shares, maintaining a consistent pace of buybacks [6] - Fortive remains committed to using free cash flow for additional share repurchases as it progresses with the anticipated spin-off, which is a positive signal for stock price appreciation [7] Challenges and Guidance - The company has revised its 2025 guidance due to a delayed recovery in Precision Technologies and global tariff impacts, estimating gross tariff costs of $190–$220 million, primarily from China [8] - For the second quarter, adjusted EPS is estimated to be 85-90 cents, including tariff headwinds, which are expected to weigh on adjusted operating margins [8] Market Performance - Fortive currently has a Zacks Rank 4 (Sell), with shares losing 2.8% in the past year compared to no change for the Zacks Electronics - Testing Equipment industry [9]

Core Insights - Fluke Reliability has launched a new Shaft Alignment solution that promises immediate return on investment by reducing energy consumption and maintenance costs [1][2] - Misalignments in industrial equipment lead to significant utility costs and unplanned downtime, with up to 90% of equipment being misaligned [2][6] - The new solution features rugged tablets that are compatible with a range of alignment kits, designed to withstand harsh industrial environments [4][5] Company Overview - Fluke Reliability is part of Fluke Corporation, providing tools, software, and services to enhance asset performance and shift from reactive to predictive maintenance [9] - The company has integrated Pruftechnik's expertise in alignment technology since its acquisition in 2019, focusing on scalable solutions for industrial challenges [6][9] Product Features - The Shaft Alignment solution includes a modular system that allows organizations to start with essential components and expand as needed, minimizing initial costs [3][6] - The rugged tablets are IP65-rated for dust and water resistance, and can withstand drops of up to 1.2 meters, making them suitable for tough industrial settings [4][13] - Two versions of the tablet are available: a locked version for focused alignment work and an unlocked version that supports additional applications [5][13] Industry Context - The alignment tools are critical in addressing the challenges faced by maintenance professionals, who are required to maximize uptime with limited resources [6][9] - Pruftechnik has a 40-year legacy in alignment technology, recognized for speed and precision, which underpins the new Shaft Alignment solution [7]

Summary of Fortive (FTV) 2025 Conference Call Company Overview - **Company**: Fortive Corporation - **Upcoming Spin-off**: Fortive is set to spin off its precision technology segment as Ralliant by the end of Q2 2025 [1] Key Industry Insights Sensors and Safety - **Revenue Contribution**: Sensors and safety systems account for 56% of Ralliant's revenue [5] - **Growth Factors**: - **Utility Sector**: There is an expansion phase due to increased electricity demand and aging infrastructure, which is beneficial for sensor business related to transformers and the electric grid [6] - **Defense Technologies**: Strong backlog in the PACSCI EMC business, with global replenishment of production programs [6] - **Niche Applications**: Some resilience observed in harsh and regulated environments, although this segment has been slow [7] Test and Measurement - **Revenue Contribution**: Test and measurement segment represents 44% of revenue [12] - **Market Performance**: - **Diversified Electronics**: Largest market, currently down due to softness in EV and battery energy storage [16] - **Semiconductors**: Continued strength in data center-related products [16] - **Communications**: Softness observed in Europe, particularly in government contracts [18][21] Software Segment - **Revenue Contribution**: Software constitutes about 20% of new Fortive's revenue, with mid-single-digit growth reported [40][41] - **Recurring Revenue**: Approximately 50% of new Fortive's revenue is recurring, split between software and healthcare consumables [41] Financial Performance - **Q1 Performance**: Fortive reported 2% core growth and 80 basis points of year-over-year margin expansion [40] - **EBITDA Margins**: Ralliant is expected to have a pro forma EBITDA margin of 22%, while test and measurement is in the high teens [33] Strategic Initiatives - **Product Development**: Emphasis on investing in new product development to drive organic growth [60] - **Capital Allocation**: Fortive is generating approximately $1 billion in free cash flow annually, with plans to explore acquisitions and investments in high-potential areas [64][66] Market Trends and Challenges - **Tariff Impact**: Tariff mitigation strategies include dual sourcing and shifting production, with only 1% of sales impacted by tariffs from the US to China [89][90] - **European Market**: Cautious optimism regarding recovery in Europe, particularly in Germany, with expectations of a longer timeline for significant improvements [101][103] Additional Insights - **Innovation in Healthcare**: Long-term trends in healthcare demand driven by aging populations and the need for better access to quality care [47] - **SaaS Growth**: Strong growth in SaaS offerings, particularly in healthcare, is expected to be a major growth driver [51][53] Conclusion Fortive is positioned for growth through strategic investments in product development, a strong focus on recurring revenue from software, and a proactive approach to market challenges such as tariffs and supply chain dynamics. The upcoming spin-off of Ralliant is anticipated to unlock further value for shareholders.