Fortive(US:FTV)2025-10-29 11:34Financial Performance - Fortive reported Q3 2025 revenue of $1.03 billion, a 2.3% increase year-over-year, with core revenue growth of 1.9%[7] - Adjusted diluted net EPS for Q3 2025 was $0.68, reflecting a 15.3% increase compared to Q3 2024[6] - The company raised its full year 2025 guidance for adjusted diluted net EPS to a range of $2.63 to $2.67, up from the previous range of $2.50 to $2.60[5] - GAAP net income for Q3 2025 was $117 million, with a margin of 11.4%, up 4.9% year-over-year[7] - Adjusted EBITDA for the quarter was $309 million, a 10.4% increase year-over-year, with an adjusted EBITDA margin of 30.1%[7] - Fortive's total sales for the three months ended September 26, 2025, reached $1,027.1 million, a 2.7% increase from $1,003.7 million in the same period last year[22] - Operating profit for the total company was $159.6 million, down from $172.0 million year-over-year, resulting in an overall operating margin of 15.5% compared to 17.1%[22] - Net earnings for the three months ended September 26, 2025, were $117.0 million, with a net earnings margin of 11.4%[49] - Adjusted net earnings (Non-GAAP) for the three months ended September 26, 2025, were $228.3 million, translating to an adjusted diluted net earnings per share of $0.68[51] Segment Performance - The Intelligent Operating Solutions segment generated revenue of $699 million, a 2.6% increase year-over-year[9] - Advanced Healthcare Solutions segment revenue was $328 million, reflecting a 1.9% increase year-over-year[9] - Intelligent Operating Solutions segment reported sales of $698.8 million, up from $681.3 million, while Advanced Healthcare Solutions segment sales increased to $328.3 million from $322.4 million[22] - Core revenue growth (Non-GAAP) for Intelligent Operating Solutions was 2.2%, and for Advanced Healthcare Solutions was 1.1% for the three months ended September 26, 2025[48] - Adjusted operating profit for Intelligent Operating Solutions was $229.2 million, with an adjusted operating profit margin of 32.8% for the three months ended September 26, 2025[50] Cash Flow and Capital Expenditures - GAAP operating cash flow for Q3 2025 was $295 million, with trailing twelve months (TTM) GAAP operating cash flow of $1,019 million[7] - Free cash flow for Q3 2025 was $266 million, with TTM free cash flow of $922 million, representing a 5.5% increase year-over-year[7] - The company reported a net cash provided by operating activities of $717.3 million, down from $1,024.6 million in the previous year[28] - Free cash flow is defined as net cash provided by operating activities less capital expenditures, indicating the company's ability to generate cash without external financing[46][47] - Operating Cash Flows (GAAP) for the trailing twelve months totaled $1,019.2 million, with a quarterly high of $327.7 million in the most recent quarter[52] - Free Cash Flow (Non-GAAP) for the trailing twelve months reached $921.9 million, with the latest quarter showing $266.1 million[52] - Capital expenditures (GAAP) for the trailing twelve months amounted to $97.3 million, with the most recent quarter at $28.6 million[52] - The latest quarterly Free Cash Flow (Non-GAAP) of $266.1 million represents a 47.8% increase compared to the same quarter last year[52] - The company continues to invest in property, plant, and equipment, with total capital expenditures for the trailing twelve months at $97.3 million[52] Share Repurchase and Guidance - Fortive executed $1 billion in share repurchases during the quarter, representing approximately 6% of diluted shares outstanding[6] - Fortive repurchased common shares worth $1,345.1 million during the nine months ended September 26, 2025[28] Balance Sheet and Assets - Cash and equivalents decreased to $430.8 million from $813.3 million as of December 31, 2024[26] - Total assets decreased to $11,886.7 million from $17,016.1 million as of December 31, 2024[26] - Current liabilities increased to $2,469.5 million from $2,238.4 million, primarily due to an increase in the current portion of long-term debt[26] - Fortive's goodwill increased to $7,276.2 million from $7,216.0 million as of December 31, 2024[26] Restructuring and Other Initiatives - The company initiated a discrete restructuring plan in Q4 2024 related to a significant separation, expected to be completed by the second half of 2026[39] - The company recorded a gain from an immaterial divestiture in May 2025, which is excluded from adjusted performance metrics to provide clearer operational insights[43] Foreign Currency Impact - The impact of foreign currency translation on revenue was a decrease of 0.7% for the total Fortive segment in the three months ended September 26, 2025[48]