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Fortive(FTV) - 2024 Q4 - Annual Results
FTVFortive(FTV)2025-02-07 12:37

Financial Performance - Fourth quarter net earnings were 209million,withadjustednetearningsof209 million, with adjusted net earnings of 406 million, and diluted net earnings per share of 0.60,up190.60, up 19% year-over-year[2][4]. - Revenues for the fourth quarter increased 2% year-over-year to 1.62 billion, with 2% core revenue growth; full year revenues increased 3% to 6.23billion,including16.23 billion, including 1% core revenue growth[3][4]. - Operating profit for the total company was 307.1 million, slightly down from 310.9millionyear−over−year,resultinginanoperatingmarginof19.0310.9 million year-over-year, resulting in an operating margin of 19.0% compared to 19.6%[18]. - Core revenue growth for the year ended December 31, 2024, was 1.3%, with total revenue growth (GAAP) at 2.7%[50]. - Net earnings for the year ended December 31, 2024, were 832.9 million, with diluted net earnings per share of 2.36[48].CashFlowandAssets−Thecompanyreportedoperatingcashflowof2.36[48]. Cash Flow and Assets - The company reported operating cash flow of 502 million and free cash flow of 465millionforQ42024,representinga13465 million for Q4 2024, representing a 13% year-over-year increase[4]. - Net cash provided by operating activities for the year ended December 31, 2024, was 1,526.8 million, compared to 1,353.6millionin2023[24].−FreecashflowfortheyearendedDecember31,2024,was1,353.6 million in 2023[24]. - Free cash flow for the year ended December 31, 2024, was 1,406.4 million, reflecting a 12.9% increase from the previous year[51]. - Cash and equivalents decreased to 813.3millionasofDecember31,2024,downfrom813.3 million as of December 31, 2024, down from 1,888.8 million in 2023[22]. - Total assets increased to 17,016.1millionin2024from17,016.1 million in 2024 from 16,911.8 million in 2023, driven by an increase in goodwill to 10,156.0million[22].FutureProjections−Forthefirstquarterof2025,Fortiveanticipatesrevenueof10,156.0 million[22]. Future Projections - For the first quarter of 2025, Fortive anticipates revenue of 1.48 billion to 1.51billion,withdilutednetearningspershareof1.51 billion, with diluted net earnings per share of 0.39 to 0.42andadjusteddilutednetearningspershareof0.42 and adjusted diluted net earnings per share of 0.83 to 0.86[4][5].−FortiveexpectsGAAPdilutedEPSfor2025tobebetween0.86[4][5]. - Fortive expects GAAP diluted EPS for 2025 to be between 2.38 and 2.50,reflectingayear−over−yearincreaseof12.50, reflecting a year-over-year increase of 1% to 6%; adjusted diluted EPS is expected to be between 4.00 and 4.12,ayear−over−yearincreaseof34.12, a year-over-year increase of 3% to 6%[4][5]. - Forecasted Adjusted Diluted Net Earnings Per Share (Non-GAAP) for the three months ending March 28, 2025, is projected to be between 0.83 and 0.86[52].−ForecastedAdjustedDilutedNetEarningsPerShare(Non−GAAP)forthetwelvemonthsendingDecember31,2025,isprojectedtobebetween0.86[52]. - Forecasted Adjusted Diluted Net Earnings Per Share (Non-GAAP) for the twelve months ending December 31, 2025, is projected to be between 4.00 and 4.12[52].StrategicInitiatives−TheseparationofthePrecisionTechnologiessegmentisprogressingwell,withanexpectedcompletioninearlyQ32025[4][7].−Theplannedseparationisintendedtoqualifyasatax−freespin−offforFortiveshareholdersforU.S.federalincometaxpurposes[7].−ThecompanyinitiatedadiscreterestructuringplanexpectedtobecompletedbyDecember31,2025,withrelatedchargesadjustedinthefourthquarterof2024[37].OperationalHighlights−Strongordergrowthwasobservedacrossallsegments,withdouble−digitordersgrowthforthePrecisionTechnologiessegmentforthesecondconsecutivequarter[4].−Thecompanyhighlightedrobustmarginexpansionandrecordcashflowin2024,drivenbystrongexecutionandFBS−driveninnovation[4].−IntelligentOperatingSolutionssegmentreportedsalesof4.12[52]. Strategic Initiatives - The separation of the Precision Technologies segment is progressing well, with an expected completion in early Q3 2025[4][7]. - The planned separation is intended to qualify as a tax-free spin-off for Fortive shareholders for U.S. federal income tax purposes[7]. - The company initiated a discrete restructuring plan expected to be completed by December 31, 2025, with related charges adjusted in the fourth quarter of 2024[37]. Operational Highlights - Strong order growth was observed across all segments, with double-digit orders growth for the Precision Technologies segment for the second consecutive quarter[4]. - The company highlighted robust margin expansion and record cash flow in 2024, driven by strong execution and FBS-driven innovation[4]. - Intelligent Operating Solutions segment reported sales of 710.8 million, up 4.9% from 682.7millionintheprioryear,withanoperatingmarginincreaseto28.1682.7 million in the prior year, with an operating margin increase to 28.1% from 25.9%[18]. - Advanced Healthcare Solutions segment achieved sales of 341.8 million, a 3.9% increase from 331.2million,withoperatingmarginsimprovingto13.7331.2 million, with operating margins improving to 13.7% from 10.8%[18]. Shareholder Returns - The company repurchased common shares totaling 889.6 million during the year, reflecting a strategic focus on returning value to shareholders[24]. - A charitable donation of 20millionwaspledgedtotheFortiveFoundation,withacorrespondingexpenserecordedintheConsolidatedStatementsofEarnings[35].TaxandExpenses−Thecompanyrecordedanetlossfromdivestitureof20 million was pledged to the Fortive Foundation, with a corresponding expense recorded in the Consolidated Statements of Earnings[35]. Tax and Expenses - The company recorded a net loss from divestiture of 25.6 million during the year, impacting overall profitability[24]. - Discrete tax expenses resulting from the Separation of NewCo amounted to 65.6millionfortheyearendedDecember31,2024[38].−Thecompanyrecordedanon−cashtaxbenefitduetorevaluationofdeferredtaxassetsinSwitzerland,impactingtaxexpenses[39].−Anticipatedpretaxacquisition,divestiture,andseparation−relateditemsareestimatedat65.6 million for the year ended December 31, 2024[38]. - The company recorded a non-cash tax benefit due to revaluation of deferred tax assets in Switzerland, impacting tax expenses[39]. - Anticipated pretax acquisition, divestiture, and separation-related items are estimated at 0.11 for the three months and $0.40 for the twelve months[52].