Q1 2025 Performance Highlights - Orders grew by +10%, with organic orders up +3.3% year-over-year, resulting in a book-to-bill ratio of 1.10x[7] - Free cash flow reached a record $223 million in Q1[7] - Adjusted EBITDA was $460 million with a margin of 26.8%[16] - Adjusted EPS was $0.72, down 8% year-over-year[16] - The company has $4.2 billion in liquidity, including $1.6 billion in cash on hand[16, 21] Segment Performance - Industrial Technologies and Services revenue was $1.3521 billion, a decrease of 1.6% year-over-year[22] - Precision and Science Technologies revenue was $364.7 million, an increase of 22.9% year-over-year[28] M&A and Capital Allocation - Targeting up to $750 million of share repurchases by the end of 2025[11] - Authorized a $1 billion increase to the company's share repurchase program[11] - Expected annualized inorganic revenue to be acquired in 2025 is 400–500bps[12] 2025 Full-Year Guidance - Total revenue growth is maintained at 3-5%[36] - Organic revenue growth revised to (1)-1%[36] - M&A contribution is expected to be ~$330 million, or ~4.5%[36] - Adjusted EBITDA is projected to be $2.07 billion - $2.13 billion, representing a +3% to +6% year-over-year increase[36] - Adjusted EPS is expected to be $3.28 - $3.40, approximately flat to +3% year-over-year[36]

Core Insights - Fortive reported revenue of $1.47 billion for the quarter ended March 2025, a decrease of 3.3% year-over-year, and EPS of $0.85, slightly up from $0.83 in the previous year [1] - The revenue fell short of the Zacks Consensus Estimate of $1.49 billion, resulting in a surprise of -1.22%, while the EPS met the consensus estimate [1] Financial Performance Metrics - Sales in Intelligent Operating Solutions reached $671.40 million, exceeding the estimated $669.35 million, reflecting a year-over-year increase of 0.9% [4] - Sales in Advanced Healthcare Solutions were $302.20 million, slightly below the estimated $303.14 million, with a year-over-year increase of 0.8% [4] - Sales in Precision Technologies were reported at $500.60 million, significantly lower than the estimated $524.46 million, marking a year-over-year decline of 10.5% [4] - Operating profit for Precision Technologies was $87.30 million, below the average estimate of $98.49 million [4] - Operating profit for Intelligent Operating Solutions was $173.70 million, surpassing the estimated $158.96 million [4] - Operating profit for Advanced Healthcare Solutions was $26.30 million, exceeding the average estimate of $24.60 million [4] - Adjusted operating profit (Non-GAAP) for Advanced Healthcare Solutions was $70.90 million, below the estimate of $74.55 million [4] - Adjusted operating profit (Non-GAAP) for Intelligent Operating Solutions was $223.70 million, above the estimate of $211.49 million [4] - Adjusted operating profit (Non-GAAP) for Precision Technologies was $109.10 million, below the average estimate of $122.67 million [4] - Operating profit for Other segments was reported at -$53.70 million, worse than the estimated -$36.23 million [4] Stock Performance - Fortive's shares have returned -6.2% over the past month, compared to a -0.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]