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Fortive (FTV) investor relations material
Fortive Baird 55th Annual Global Industrial Conference summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Strategic direction and financial profile
Post-spin, the company operates as a simplified, focused entity with strong brands in attractive markets, generating over $4.1B in revenue, 65% gross margins, and nearly $1B in annual free cash flow.
Recurring revenues make up approximately 50% of total, supporting consistent organic growth and high net income to free cash flow conversion above 100%.
The company completed the separation of the Precision Technologies segment, with Ralliant Corporation now independent as of June 28, 2025.
Focused on safety, productivity, and two main segments: Intelligent Operating Solutions and Advanced Healthcare Solutions.
Ambition to deliver 3-5 year total shareholder returns exceeding the S&P 500 Index, driven by the Fortive Business System.
Financial performance and operational highlights
Adjusted EBITDA margin at ~30% for the TTM ending Q3 2025, with core revenue growth averaging 4% CAGR from 2019 to 2024.
Free cash flow for the TTM was $0.9B, with conversion exceeding 100% of adjusted net income.
Q3 2025 saw $1B deployed to share repurchases, reducing fully diluted shares outstanding by 6%.
Adjusted gross profit margin remained stable at approximately 64% throughout the year.
Both segments maintained strong adjusted operating and EBITDA margins, with IOS at 34.8% and AHS at 26.6% for the TTM.
Fortive Accelerated strategy pillars
Focused on faster, profitable organic growth through innovation, targeted sales expansion, and enhanced recurring customer value.
Disciplined capital allocation prioritizes organic growth, selective small bolt-on M&A, share repurchases, and a modest growing dividend.
Emphasis on building investor trust through clear communication, meeting expectations, and transparent guidance.
Ongoing focus on innovation, commercial acceleration, and recurring customer value to drive future growth.
Raised FY 2025 guidance after exceeding expectations in Q3 2025.
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