Fourth Quarter and Full Year 2025 Earnings EARNINGS PRESENTATION February 4, 2026 Forward Looking Statements and Non-GAAP Financial Measures FORWARD-LOOKING STATEMENTS Statements in this presentation that are not strictly historical, including statements regarding anticipated financial results, global and regional economic conditions, industry trends, geopolitical events, future acquisitions, impact of trade and spending policies, the ability to execute the planned strategies, interest rate and current exch ...

Core Viewpoint - The article discusses stocks categorized into "Naughty" and "Nice" lists based on the pricing of their options, highlighting those with inflated premiums to avoid and those with attractive pricing to consider for buying options. Naughty List - Stocks on the Naughty List have options prices that are significantly inflated, making them risky for trading calls or puts due to high premiums [2] - Oracle Corp. (NYSE:ORCL) has seen its implied volatility rise from 24 to 64, indicating overpriced options ahead of earnings [4] - Lululemon athletica Inc. (NASDAQ:LULU) shows options priced above normal, making it difficult to justify long calls or puts [5] - Paychex Inc. (NASDAQ:PAYX) has inflated options that do not align with its consistent performance, stacking odds against buyers [7] - Ciena Corp. (NYSE:CIEN) has overpriced options despite solid stock movement, making it a red flag for potential buyers [8] - FactSet Research Systems Inc. (NYSE:FDS) has options trading at rich premiums, affecting the risk-reward balance for traders [10] Nice List - Stocks on the Nice List have options trading at or near their lowest levels of the year, providing opportunities for buying time premium without overpaying [11] - Uber Technologies Inc. (NYSE:UBER) has seen its implied volatility drop from 80 to 30, making it an attractive option for bullish plays [12] - Rubrik Inc. (NYSE:RBRK) is trading at the bottom of its implied volatility range, presenting a good opportunity for call buying [13] - Tempus AI Inc. (NASDAQ:TEM) is also at low option premium levels, making it a smart choice for potential moves [14] - Ross Stores Inc. (NASDAQ:ROST) has equal high and low volatility levels, indicating a new low in options pricing, which could be favorable for long calls [15] - Ventas Inc. (NYSE:VTR) has dropped premiums near year-lows, making it an attractive option for buyers if a catalyst appears [16]

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.