Fortive(US:FTV)2026-02-04 12:34Financial Performance - Q4 2025 reported revenue of $1.12 billion, up 4.6% year-over-year; core revenue growth of 3.3%[7] - Full Year 2025 GAAP diluted net EPS of $1.59, up 16.1% year-over-year; adjusted diluted net EPS of $2.71, up 12% year-over-year[13] - Q4 Adjusted EBITDA of $358 million, up 7.8% year-over-year, with an adjusted EBITDA margin of 31.9%[7] - Full Year 2025 GAAP net income of $533 million, up 10% year-over-year, with a GAAP net income margin of 12.8%[15] - Total Revenue Growth (GAAP) for the year ended December 31, 2025, was 2.3%, with core revenue growth (Non-GAAP) at 2.1%[56] - Adjusted EBITDA (Non-GAAP) for the three months ended December 31, 2025, was $357.9 million, with an adjusted EBITDA margin of 31.9%[57] - Net Earnings from Continuing Operations (GAAP) for the year ended December 31, 2025, was $532.7 million, reflecting a net earnings margin of 12.8%[57] - Adjusted Net Earnings for the three months ended December 31, 2025, were $288.9 million, compared to $279.8 million in the same period of 2024[59] Segment Performance - Revenue for the Intelligent Operating Solutions segment in Q4 2025 was $770 million, up 5.3% year-over-year[12] - Advanced Healthcare Solutions segment revenue in Q4 2025 was $353 million, up 3.2% year-over-year[12] - The Intelligent Operating Solutions segment generated sales of $769.7 million in Q4 2025, up from $730.9 million in Q4 2024, marking a 5.0% increase[30] - The Advanced Healthcare Solutions segment reported sales of $352.8 million in Q4 2025, compared to $341.9 million in Q4 2024, reflecting a growth of 3.0%[30] - Revenue for Intelligent Operating Solutions reached $2,856.3 million in 2025, a 2.3% increase from $2,793.2 million in 2024[58] - Adjusted EBITDA for Advanced Healthcare Solutions was $341.3 million in 2025, compared to $340.3 million in 2024, reflecting a slight increase[58] - Operating Profit Margin for Intelligent Operating Solutions was 25.8% in 2025, up from 25.3% in 2024[58] Cash Flow and Capital Management - Free cash flow for FY 2025 was $931 million, slightly down by 1.3% year-over-year[15] - Cash and equivalents decreased to $375.5 million as of December 31, 2025, down from $813.3 million in 2024[34] - The company reported a total operating cash provided by continuing operations of $1,035.7 million for the year 2025, compared to $1,028.5 million in 2024[36] - Free Cash Flow from Continuing Operations for the year 2025 was $930.6 million, up from $942.4 million in 2024[61] - Operating Cash Flows (GAAP) for the three months ended December 31, 2025, were $344.2 million, an increase from $327.7 million in the same period of 2024[61] Shareholder Returns - Executed $265 million in share repurchases during Q4, totaling approximately $1.3 billion for the second half of 2025, representing about 8% of diluted shares outstanding[6] - Initiating FY 2026 Adjusted EPS guidance of $2.90 to $3.00[4] Strategic Focus - Fortive's strategic focus remains on profitable organic growth, disciplined capital allocation, and building investor trust[4] - The company aims to enhance operational performance by excluding non-core expenses from its financial metrics[41] Other Financial Metrics - Gross profit for the year ended December 31, 2025, was $2,641.1 million, compared to $2,619.1 million in 2024, reflecting a slight increase[30] - Operating profit for Q4 2025 was $225.5 million, up from $212.2 million in Q4 2024, indicating a growth of 6.9%[30] - Net earnings from continuing operations for the year were $532.7 million, compared to $482.5 million in 2024, representing a 10.4% increase[36] - The company incurred $42.0 million in pretax acquisition and divestiture-related items for the year ended December 31, 2025[57] - Discrete restructuring charges for the year ended December 31, 2025, amounted to $32.0 million, reflecting ongoing strategic adjustments[57] - The company incurred discrete restructuring charges of $26.3 million in 2025, compared to $10.0 million in 2024[58] - Foreign currency transaction gains and losses related to Euro-denominated debt were adjusted to provide clearer operational insights[46]