Fortive(US:FTV)2025-06-10 11:36New Fortive Overview - New Fortive is a simplified company with a track record of strong financial performance, supported by approximately 50% recurring revenues[14, 29] - The company is strategically positioned in attractive markets with a clear path to accelerate value creation[14, 29] - New Fortive's revenue is $41 billion, with Intelligent Operating Solutions (IOS) contributing approximately $28 billion (approximately 70%) and Advanced Healthcare Solutions (AHS) contributing approximately $13 billion (approximately 30%)[23] - The company has a higher quality financial profile with 4% core revenue growth, approximately 50% recurring revenue, 64% adjusted gross margin, 10% adjusted EBITDA growth, and 17% FCF growth[24] Business Segments and Market Opportunities - Intelligent Operating Solutions (IOS) has a $35 billion addressable market with low to mid-single-digit market growth outlook[36, 41] - Advanced Healthcare Solutions (AHS) has a $10 billion addressable market with low to mid-single-digit market growth outlook[36, 42] - Fluke's addressable market has expanded from $7 billion to $15 billion, with double-digit market growth in areas like solar and EV charging[154, 155] - Facility and Asset Lifecycle (FAL) Software has an $11 billion addressable market with mid-single-digit market growth[191] Financial Performance and Projections - New Fortive has demonstrated strong historical performance, including 4% core growth CAGR, 9% adjusted gross profit CAGR, 12% adjusted EBITDA CAGR, and 12% FCF CAGR[27] - The company projects 3-4% core revenue CAGR for the next few years (2026-2027) and beyond (2028 onwards)[78, 225] - Adjusted EBITDA margin is expected to expand by approximately 50-100 bps annually on average[78, 225] - Adjusted EPS growth is projected to be in the high single digits plus CAGR at a constant tax rate[78, 225]