Vontier (NYSE:VNT) Q4 2025 Earnings call February 12, 2026 08:30 AM ET Company ParticipantsAnshooman Aga - CFOMark Morelli - CEORyan Edelman - VP of Investor RelationsConference Call ParticipantsAndy Kaplowitz - AnalystDavid Ridley-Lane - AnalystJulian Mitchell - AnalystKatie Fleischer - AnalystNigel Coe - AnalystOperatorGood morning, ladies and gentlemen, and welcome to Vontier fourth quarter 2025 earnings call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a ...

Financial Data and Key Metrics Changes - The company reported total sales of $809 million for Q4 2025, reflecting a core growth of 5% and an adjusted EPS of $0.86, which is an 8% increase year-over-year [14][15] - For the full year, organic sales grew nearly 4% and EPS finished up 11% [4][5] - Adjusted free cash flow for 2025 was over $460 million, equating to about 15% of annual sales [4][15] Business Line Data and Key Metrics Changes - Environmental and Fueling Solutions (EFS) segment delivered 6% core growth for the full year, with dispenser sales increasing high single digits in Q4 [16] - Mobility Technologies saw core sales increase by 8.5% in Q4, with Invenco achieving a revenue base of nearly $650 million, up 22% organically [9][17] - Repair Solutions experienced a sequential sales increase in Q4, although overall sales declined by 2% due to lower volumes [18] Market Data and Key Metrics Changes - The fueling market has shown a broad-based growth with a 6% organic CAGR over the last two years, driven by increased capital investment in fueling equipment, particularly in North America [8] - Environmental sales finished the year with growth in the low teens, supported by strong upgrade activity for connected automatic tank gauges [9] - The convenience retail end market is growing at a mid-single-digit CAGR, fueled by strategic investments in food service and technology [10] Company Strategy and Development Direction - The company is focused on a connected mobility strategy that enables profitable growth and innovation across its portfolio [5] - Simplification efforts are expected to yield $15 million in incremental cost savings, enhancing operational efficiency [6][20] - The unified payment solution is a strategic priority, addressing payment complexity and driving additional revenue opportunities for customers [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 with strong momentum and a healthier portfolio, expecting core growth of about 3% and operating margin expansion of 80 basis points [6][20] - The company anticipates challenges in the first half of 2026 due to tougher comparisons but expects stronger growth in the second half [22] - Management highlighted the importance of innovation and product vitality in driving customer engagement and commercial momentum [25] Other Important Information - The company ended the year with nearly $500 million in cash and a net leverage ratio of 2.3 times, down from 2.6 times at the start of the year [19] - Share repurchases totaled $300 million for the year, equating to over 5% of shares outstanding [19] Q&A Session Summary Question: Insights on MobilityTech growth - Management noted that innovation-driven growth in MobilityTech exceeded expectations, with strong uptake on new products like FlexPay 6 and NFX [29][31] - There was a $4 million inventory reserve adjustment at Invenco due to legacy inventory prior to acquisition [33] Question: Longevity of retail fueling cycle - Management expressed confidence in the retail fueling cycle, citing positive feedback from convenience store customers and ongoing capital investments [35][37] Question: Q1 core growth expectations across segments - EFS is expected to grow in the low single-digit range, while Mobility Technologies and Repair Solutions are anticipated to be relatively flat [42] Question: Operating margins and cost drivers - Q1 margins are expected to be flat year-over-year, with significant savings from simplification efforts ramping up in the second half of the year [44][46] Question: Dynamics of payment terminals - Management clarified that their payment terminals are not below average products; they provide significant advantages in managing payment complexity and lifecycle costs [70][72]

Financial Data and Key Metrics Changes - The company reported sales of $774 million, an 11% increase both on a reported and core basis, with adjusted EPS increasing 25% to $0.79 [19][20] - Adjusted operating profit increased 15% year over year with margin expansion of 80 basis points [7][20] - Adjusted free cash flow of $89 million increased significantly versus the prior year, reflecting a strong 76% conversion to adjusted net income [20][28] Business Line Data and Key Metrics Changes - Environmental and Fueling Solutions delivered core growth of nearly 16%, with shipments of dispensers increasing over 20% in the second quarter [21] - Mobility Technologies core sales grew 18%, driven by strong performance at Invenco, while DRB sales declined in the teens year over year [22] - Prepared Solutions sales were flat compared to the prior year, with ongoing market pressures offsetting gains expected from the annual Matco Expo [23] Market Data and Key Metrics Changes - Orders were up 8% organically, with a book to bill ratio of approximately one in the quarter [5][67] - The company noted that 70% of its portfolio outperformed in the quarter, reflecting strong progress in resilient end markets [20] Company Strategy and Development Direction - The company is focusing on operational discipline and commercial excellence, supported by a three-pillar value creation framework [8][29] - There is an emphasis on innovation and new product development, particularly in connected mobility and environmental solutions [12][16] - The company is advancing an agreement to divest its European service business to optimize its regional footprint [10] Management's Comments on Operating Environment and Future Outlook - Management raised the full-year guidance for adjusted EPS to a high single-digit growth, despite expected tariff headwinds and macro uncertainties [18][28] - The company remains confident in its growth trajectory, supported by strong free cash flow and prudent capital allocation [29][30] Other Important Information - The company completed $50 million in share buybacks during the quarter, totaling $105 million in the first half of the year [25] - The company expects to fully mitigate tariff headwinds within the year, with significant progress made in Q2 [28] Q&A Session Summary Question: Revenue outlook for the second half, particularly for Repair Solutions - Management indicated a guide of down mid to high single digits for Repair Solutions, with signs of stabilization but still early to call an inflection [36][40] Question: Margin outlook for Repair Solutions - Margins have stabilized, with potential for improvement as higher-priced items start selling better and bad debt challenges stabilize [39][41] Question: Impact of shipment timing on EFS and Mobility Technologies - The company benefited from shipment timings of about $15 million to $20 million, with Mobility Technologies contributing approximately $5 million to $7 million [47] Question: Invenco's growth and revenue outlook - Invenco is expected to generate over $600 million in revenue this year, with strong growth anticipated despite tougher comparisons [50][52] Question: Recurring revenue base for Vontier - Approximately 40% of Mobility Technologies revenue is recurring, with Invenco at about 35% [52] Question: Customer conversations regarding the Big Beautiful Bill - The bill is expected to benefit free cash flow and may accelerate customer decisions, particularly for smaller operators [59][60] Question: Trends in the underground tank replacement cycle - The company sees early opportunities in the underground tank upgrade cycle, supported by new product innovations [63][64] Question: Month-to-month trends in Matco - Sellout was down 5% for the first half, but July showed improvement, indicating potential positive trends moving forward [84]

Q2 2025 | Earnings Results July 31, 2025 Safe Harbor and Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to statements regarding Vontier Corporation's (the "Company's") business and acquisition opportunities, anticipated sales growth, anticipated adjusted operating margin expansion, anticipated adjusted net earnings per share, anticipated adjusted cash flow conversion, and antici ...

Financial Performance - Q1 2025 sales were $741 million, a decrease of 1.9% compared to Q1 2024[12] - Core sales decreased by 0.7%[6, 12] - Adjusted diluted EPS increased by 4% year-over-year to $0.77[6, 12] - Adjusted operating profit margin decreased by 40bps year-over-year to 21.7%[6, 12] - Adjusted free cash flow increased by 22% year-over-year to $96 million, with a conversion rate of 83%[12] Segment Results - Environmental & Fueling Solutions (EFS) sales decreased by 0.4% to $330 million, but core sales increased by 0.9%[17] - Mobility Technologies (MT) sales increased by 11.5% to $271 million, with core sales up 12.7%[20] - Repair Solutions (RS) sales decreased by 16.1% to $153 million, with core sales down 15.9%[23] Balance Sheet and Capital Deployment - Gross debt was $2.103 billion, and net debt was $1.769 billion[25] - The net leverage ratio was 2.6x[25, 30] - The company repurchased approximately $55 million in shares during Q1 and replenished the share repurchase authorization by $500 million[7, 30] Guidance - Q2 2025 sales are expected to be between $725 million and $745 million, with core growth of approximately 6%[31] - Full year 2025 sales are projected to be between $2.97 billion and $3.05 billion, with core growth of approximately 2%[31] - Full year 2025 adjusted diluted net EPS is expected to be between $3.00 and $3.15[31] - The company anticipates adjusted free cash flow conversion of over 90% for the full year 2025[31] Tariff Impact - The estimated tariff impact for 2025 is approximately $50 million before pricing and additional mitigation actions[8]